Container ship lines may be “shooting themselves in the foot” by restoring vessel capacity faster than cargo volumes rise, a new report by Axis Intermodal UK warns.
An analyst said effective capacity — vessels in operation — is expected to rise 12 percent in each of the next two years as carriers reactive laid-up ships and take deliveries of new vessels. Cargo demand, meanwhile, is expected to grow at only 9 percent a year through 2011.
“By accelerating the redeployment of the idle fleet and not maintaining pressure on shipyards to delay deliveries, the shipping industry is shooting itself in the foot and (inviting) a more pronounced seasonal downturn at the end of 2010,” he wrote.