While volumes in the shipping sector are holding up, shipping lines continue to face serious challenges in terms of revenue, Maersk SA MD Jonathan Horn told FTW. “Our revenue per FFE, year to date in comparison to last year, is down by more than 10% for exports and down between 5 and 10% on imports. This clearly shows that the revenue line remains under pressure.” He said globally there were also still some issues around overcapacity that would take some time to work out of the system. “Shipping remains a tough industry. As a group we have been successful in taking out the cost at a faster rate than reduction in rates, but of course there is a limit to how much cost you can take out. “It is important for us to try and get rate increases where we can. We are not naïve to think we can just go out there and dictate rate increases, because it is about what the market will allow one to achieve, but it is important that we achieve a reasonable progression in rate increases,” he said. “As an industry, to provide customers with reliable, sustainable services with world-class hardware and technology, you need to be earning a reasonable return on investment that allows you to reinvest in the businesses – and that has been a challenge in the past few years.” INSERT & CAPTION To provide customers with reliable, sustainable services you need to be earning a reasonable return on investment. – Jonathan Horn
