Container shipping volumes to grow 5% in 2013: APL boss

“Globally we think that growth will slow from its long term historical levels but it will still remain positive,” Glenn told Seatrade Global Online.

APL, the shipping arm of Singapore's Neptune Orient Lines (NOL), has seen strong demand levels coming from the intra-Asia long-haul market going into the Middle East subcontinent, the intra-Asia short-sea market in the Far East, and Latin America.

“We believe growth in those three areas will remain quite good compared to global averages,” Glenn said.

He added that the biggest drop in demand has been on the major east-west trade, where European and North American consumer demand has declined due to their flagging economies.

Container lines are battling against soaring bunker fuel prices and overcapacity problems, as well as largely unprofitable freight rates. However Glenn pointed out that rates on average right now are above where they were a year ago.

“Pricing discipline (by carriers) is the single most important factor in getting rates to compensatory levels. This factor will ultimately determine whether rates are at sustainable or they are not,” he said.

Apart from restoring confidence in the market through freight rates, achieving cost savings via reducing bunker fuel consumption is also vital for shipowners. NOL claimed that its 'efficiency programme' in 2012 saved the company $504m, out of which 45% were on bunker bills.

Key grade Singapore 380 cst bunker fuel is priced at around $634 per metric tonne on Tuesday, according to Bunkerworld data. “Bunkers are a very significant cost item for us, as they are for any shipping companies. Reducing fuel consumption remains absolutely critical to our cost savings programme,” Glenn said.