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MOL chief sees 'few prospects for recovery'

Mitsui OSK Lines (MOL) ceo Junichero Ikeda said the company see “few prospects for recovery” in his New Year message.

Chief of MOL since June last year Ikeda said the business climate for shipping remained “severe”.

“Fleet oversupply is still an issue, and we see few prospects for recovery with the Chinese economy slowing down and markets stuck at historically low levels for both containerships and dry bulkers,” he stated.

The low oil price has had some benefit with both the improved tanker market and lower bunker fuel costs, however, it also impacts other areas of MOL’s business.

“However, low crude prices also raise concerns of a slowdown in resource development, which could negatively impact our new LNG carrier and offshore business projects,” Ikeda said. “In addition, we cannot realistically expect favorable conditions will go on forever in the tanker market.”

Ikeda is focused on getting MOL to adapt to the changing business climate and altering the way in which the company works. “We must not be content to rely on methods that worked in the past. I said this upon becoming ceo last June because past experience does not guarantee our future success.”

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