Xeneta CEO Patrik Berglund forecasts a positive outlook for the remainder of 2017, as Maersk recently achieved higher revenues due to stronger freight rates - which soared 120 per cent in May on the Asia-Europe trade lane - and Hapag-Lloyd forecasts earnings will improve as the year progresses.
"A staggering 78 new mega-ships are due to come online for the Asia-Europe trades over the next two years, pushing capacity up by over 23 per cent," said Mr Berglund, reported American Shipper.
"Mega-ships of 18,000 TEU need to command utilisation rates of at least 91 per cent to achieve cost savings. Even in the high volume Asia-Europe trades that is difficult and may necessitate lower than average rates for some volume, which, inevitably, will hit overall rate development.
"Each of the key alliance partners is playing catch up with one another, trying to reap the mega ship benefits. In doing so they're going to flood the market with new capacity and risk reversing current positive trends. This is a potential mega-problem in waiting," he said.