Container shipping growth rates in the double digits plummeted in response to the slowing global economy this year, and Maersk’s head of network and product Michel Deleuran told The Times capacity cuts may only be the beginning.
“We are certainly seeing a dramatic slowdown. The decline we are seeing in recent weeks is faster and deeper than what most people had expected only a few months ago,” he said.
“If that does not change, one or more of the larger lines could be in financial difficulty next year. Some people could be really challenged by cashflows.”
The shipping group recently cut rates on its Asia-US West Coast route almost 25 per cent to retain market share, from about US$1,700 per 40-foot equivalent unit to about US$1,300. It will also remove eight of its ships from service.
