With the world economy in a slow recovery phase and major economies facing further downward pressure, global seaborne trade may continue to rebound gently. But we note that overcapacity is still glaring, and its countermeasures such as scrapping of old ships, capacity idling, and slow-steaming have been applied with but limited effects. And fierce competition in cost control has triggered an increasingly high orderbook of mega-ships.
We believe collaboration and innovation will become the theme of the international shipping market in 2015. On the one hand, there will be intensified cooperation between shipping companies or players in the upstream or downstream along the industrial chain of marine transport. On the other hand, innovation in the operation, management as well as technology of shipping companies will be further intensified.
Given that the growth of supply and demand is relatively close and that shipping companies tend to cooperate more with each other, we may expect marginal growth in freight rates for the international shipping market this year.
Zhen Hong, Secretary General, Shanghai International Shipping Institute