Maersk Line's director of business performance for the Asia-Pacific region believes container lines should think twice before expanding their fleets as the shipping industry begins to recover from the global recession.
In a keynote speech at the Asia-Pacific Maritime Conference in Singapore, Hennie van Schoor said the global container shipping industry is still in a precarious position, AFP reported.
"The situation remains very, very fragile for the shipping industry," Mr van Schoor said. "It is balanced on a knife's edge."
The news comes on the back of Singaporean shipping firm NOL announcing it plans to charter 10 vessels and reintroduce 10 more idled ships from its existing fleet this year.
Maersk believe companies should proceed with caution in bringing laid-up ships back into service, to avoid increasing losses which totalled around US$15bn last year.
As global trade slowed during the recession, shipping rates fell considerably and 500 vessels were removed from service, around 11 per cent of the world's fleet.
Mr Van Schoor said there are indicators of an upswing in trade but signs show this is being fuelled by companies restocking rather than an increase in consumer demand.
While US imports rose 13 per cent in the fourth quarter of 2009 compared to 2008, retail sales only grew by 1 per cent. In Europe imports were up 3 per cent, but sales again only increased by 1 per cent.
"What this is telling us is that the underlying demand for growth is not there yet," Mr van Schoor said.
