[photopress:logistics_Maersk_line.jpg,full,alignright]Concerns have been raised that the supply/demand situation in the shipping sector will deteriorate over the coming years due to a combination of weakening demand and large orders for new container vessels.
Shipping giant A P Moller-Maersk Group, however, disputes this and strongly believes demand will continue to outstrip supply.
Jesper Larsen, country manager for Maersk Line Philippines said, ‘If you look at the figures provided by well-reputed independent analysts, such as Drewry and Clarkson, it is clear that this view that supply will be in excess of demand is not supported by hard numbers. Both groups are forecasting fairly solid global GDP growth. GDP growth is a key driver of demand growth. It is evident that while the world economy is expected to slow down in 2008, it is still well above the long-term average of three percent.’
The forecasts also indicate container demand will be robust and capacity growth is likely to slow down from peak levels.
Jesper Larsen said, ‘While the supply/demand balance will indeed soften over the next few years, it is likely that we will end up around the healthy 2003 levels where we, particularly over the peak season, saw demand exceed the supply of shipping capacity.’
Regarding bunker surcharges, Larsen said, Maersk Line has a total consumption of well over 10 million tonnes of bunker fuel a year, and carriers could not continue to pay all the costs of rising fuel prices while at the same time sustaining high service levels on the various trades.
So as fuel prices go up so will the cost of shipping.
No great surprise there.
Source: Cargonews Asia
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