THE container shipping business is expected to grow below 6% next year due to the US recession and the contraction in the European market.
Maersk Line Malaysia country manager Omar Shamsie said the liner business should see a growth rate of between 5% and 6% this year.
“The outlook for container shipping and world trade is very uncertain due to the developments in both the world economy and the financial markets,” he told StarBiz.
“Consumers in the US and Europe are now holding back and we can expect to see the decrease in demand continue for quite some time,” he said.
Container shipping has seen significant growth over the last 30 years, with the yearly growth rate being 10% on average.
Omar said that even during the worst downturn in 2001, the growth rate was 4%, while in the best years, the shipping industry had enjoyed a double-digit rate.
“The coming months will be tough but Maersk Line is prepared and will try first and foremost to hold on to our current business,” he said.
Omar said container liners had already been taking steps to counteract the negative effects of the downturn, with many shipping companies, including Maersk Line, reducing capacity on the Asia-Europe routes. read more
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