There will be no sustained recovery in the dry bulk or container shipping sectors this year amid overcapacity in the industry and slowing demand for raw materials from China, said “K” Line President and CEO Eizo Murakami.
In his New Year’s address, Murakami said that while falling bunker prices and a weakening yen had provided a buffer in 2015, structural overcapacity in dry bulk and container shipping would continue to present a challenge.
“Given stagnating resources demand in China and other regions as well as rising geopolitical risks, the business environment continues to be uncertain in the second half,” he said. “We anticipate that some more time will be required before we see full-scale market recovery.”
