Asia/Pacific News
Industry Execs: Box Markets Face Another Two Tough Years
Shipping executives last week sounded a cautionary note at a seminar in Singapore that there could be another two tough years for box market players, Seatrade Global reports.
"It is going to be fairly subdued picture for the next two years or so with some signs of recovery thereafter," said Peter Malpas, Director at Braemar ACM Shipbroking Australia.
His comments were echoed by Jost Bergmann, DNV GL's Director for Container Ships, who noted that an abundance of capacity is still weighing down freight rates.
"There is still tough competition on the major routes due to oversupply and it's expected to continue for one two years." said Bergmann.
"For the time being we are still in a situation where the fleet is growing a little bit faster than the transportation demand and that is why the freight rates are under pressure and also the charter rates are under pressure," he added.
Malpas pointed to "modest" growth forecasts of five to six percent for 2015 as a sign of healthy demand.
"We are still delivering too many ships in the short term," he said, however, of the supply side of the equation.
The comments come as a contrast to recent optimistic statements from other major stockholders in the container shipping market, such as United Arab Shipping Co. and Danske Bank.
