HAPAG LLOYD chief executive Rolf habben Jansen sees supply exceeding demand in the coming year, reports LA area's Global Trade Magazine.
'We should always look at supply and demand in this market and that the order book remains relatively big. The industry needs an order book that's a little bit smaller than what we see right now, but we do see that ordering activity has come down this year and that makes sense,' said Mr Habben Jansen.
'I would also say that when you look at the global supply-demand balance, it is likely that we will see more supply growth than demand growth.'
Mr Hansen admitted that freight rates will soften, and his colleague Mark Frese pointed out that there is considerable inflation in costs.
Meanwhile, Hapag Lloyd continues to be profitable. The first nine months saw revenue up 58 per cent year on year to US$28.4 billion, while group profit is up 120.4 per cent to $14.6 billion.
Hapag Lloyd has worked to base its shipping business on more stable longer-term contracts rather than the spot market.
SeaNews Turkey
'We should always look at supply and demand in this market and that the order book remains relatively big. The industry needs an order book that's a little bit smaller than what we see right now, but we do see that ordering activity has come down this year and that makes sense,' said Mr Habben Jansen.
'I would also say that when you look at the global supply-demand balance, it is likely that we will see more supply growth than demand growth.'
Mr Hansen admitted that freight rates will soften, and his colleague Mark Frese pointed out that there is considerable inflation in costs.
Meanwhile, Hapag Lloyd continues to be profitable. The first nine months saw revenue up 58 per cent year on year to US$28.4 billion, while group profit is up 120.4 per cent to $14.6 billion.
Hapag Lloyd has worked to base its shipping business on more stable longer-term contracts rather than the spot market.
SeaNews Turkey
