Singapore: Container lines need to boost revenue 20 percent and mothball more ships to end losses caused by slumping world trade and overcapacity, according to industry advisers Marsoft Inc. "It is imperative for the liner industry to abandon the price war and really push for rate increases," Monika Krogulska, the Boston-based company's Asia representative, said at a shipping conference in Singapore, reports Bloomberg. About 5 percent more box-ships need to be laid up to remove oversupply, she added.?Container rates are about 33 percent lower than a year earlier, according to Marsoft, as shipping lines have slashed fees to win market share and avoid costly lay-ups. Demand has tumbled as U.S. and European consumers pare spending on Asian- made goods amid the recession.?"More tonnage will find its way to lay-up in order to close the gap between demand and supply," Krogulska said. [05/10/09]
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
