The container sector can expect a “markedly challenging year” as it braces for a 50 percent increase in the number of very large container ships entering service, says Bimco, an international shipping association representing ship owners controlling around 65 percent of the world’s tonnage.
In its newly published “Reflections 2012,” the Denmark-based association forecasts a 4 percent GDP growth worldwide—similar to that of 2011—but warns about “the significant oversupply in shipping tonnage in all three main sectors.”
Sensing no short-term comfort discernible, it recommended “the traditional remedies of idling and recycling to control this tonnage glut.”
The association also called on the EU and US, with their considerable influence on maritime trade, to exercise “daring and decisive political leadership” in confronting the industry’s many challenges.
In addition, it saw a need to stimulate domestic demand in Asian nations, despite their own regional difficulties.
Yudhishthir Khatau, Bimco president, forecasts consolidation in the industry, pointing out the realities of operating in a business dominated by cash flow. He is optimistic, however, that even in difficult times “there will continue to be new opportunities” that may bring reward to those who explore them.
