Asia/Pacific News
Taiwanese Lines Bullish on Cheaper Oil
Executives of Taiwanese shipping lines Evergreen International (Evergreen) and Yang Ming Marine Transport (Yang Ming) predict improvements in the container shipping markets this year thanks to anticipated economic improvements and lower oil prices, the Want China Times reports.
Increased supply of U.S. shale oil, along with changes in U.S. monetary policy that may reduce oil price speculation, is likely to keep oil prices down.
Meanwhile, Hsieh Chih-jien, vice president of Evergreen, cited International Monetary Fund (IMF) growth predictions of 2.8 percent for the U.S., 1 percent for Europe, and 3.7 percent for the global economy as a whole.
Lu Feng-hai, chairman of Yang Ming, said increased dismantling of ships, slow steaming and the suspension of some shipping routes is likely to reduce the growth of effective capacity, helping to keep the supply of vessels under control.
Hsieh also said shippers should avoid a price war during off season to protect the industry's overall interests.
Evergreen and Yang Ming have both been making efforts to reduce their fleet's fuel consumption in an effort to improve their competitive positions.
