Maersk exec warns of “exuberance”

A Maersk Line executive has warned of “exuberance” of shipping lines at the first sight of rising freight rates. Such a headlong rush, warned Hennie van Schoor, Director of Pacific performance for Asia-Pacific, will leave most these lines reeling in red ink this year, as they did in last year.

Mr Van Schoor added that a severe excess supply still exists and that the drop in global demand has sent the industry to record an unprecedented collective loss of US$10.6 billion. Mr Van Schoor said that the strategy to keep freight lines at an optimal level lies in a shipping line’s ability to control their supply of ships.
“When and how that (idle capacity) flows back into the market really is the conundrum that we are faced with,” he said. (source: Baird Maritime)

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