With overcapacity in ocean freight markets continuing to be a long-term problem, questions have been raised around how lines will react.
According to Transport Intelligence, Maersk has made moves to address the issue by laying up one of its flagship 18 000-TEU vessels. “Other container lines are also moving to address the capacity situation through tactical operational changes or mergers and acquisitions, as in the case of CMA CGM acquiring NOL,” comments TI.
“And with all trade lanes, except Europe to US, firmly in contraction territory, the question of the month is whether carriers will remove ocean freight capacity,” says TI.
In a survey undertaken by investment banking company Stifel in partnership with TI, respondents were asked whether they believed that other shipping lines would follow Maersk's lead in laying up vessels to address the overcapacity issue.
An overwhelming majority, 71%, answered YES, while 18% responded NO, and 11% were unsure. Of those respondents who believed other lines would take similar measures to mitigate overcapacity, 86% thought they would remove capacity for more than four weeks, covering much of the year's peak season, while 10% expected the removal to last 3-4 weeks, and just 4% believed it would last less than 3 weeks.
