A GLOBAL shipping capacity glut is looming this year with the world fleet expected to rise 7.8 per cent, 2.4 per cent more than demand, said Wan Hai Lines chairman Chen Bo-ting on the carrier's 50th anniversary.
Despite the gap between supply and demand exceeding that of 2014, the chairman is still confident that his shipping line will achieve record revenue of TWD70 billion (US$2.32 billion) this year fuelled by a US$10 drop in oil prices per barrel.
Lower bunker prices are anticipated to save the shipping line TWD250 million as consumption accounts for 25 per cent of the carrier's operational costs.
Last year revenue was flat, after recording 12 per cent year-on-year growth, as rates on its European service hovered at $1,200 per TEU, while American rates were $1,000 per TEU.
The shipping line's capacity is expected to increase by 15 per cent on-year to 220,000 TEU in 2015.
Eyeing near-sea shipping, the transportation company is planning to put orders for box ships ranging from 1,500 TEU to 2,000 TEU, although it has no plans yet for mega ships.
The company currently operates 90 vessels for 77 services, covering 146 ports worldwide.
WORLD SHIPPING
22 February 2015 - 22:35
Wan Hai Lines fears capacity glut throughout the year
A GLOBAL shipping capacity glut is looming this year with the world fleet expected to rise 7.8 per cent, 2.4 per cent more than demand, said Wan Hai Lines chairman Chen Bo-ting on the carrier's 50th anniversary.
WORLD SHIPPING
22 February 2015 - 22:35
Wan Hai Lines fears capacity glut throughout the year
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