Knaggs Guitars - Container Shipping headed in right direction but with some distortions : Global Shipping Experts

Knaggs Guitars -

 : The prognosis for recovery in the Shipping Line industry fell very much along professional lines at the Asian Logistics and Maritime Conference in Hong Kong as a panel of industry practitioners debated the issue of what's on the horizon for Shipping Lines.

Executive Consultant Mr. Tan Hua Joo of Alphaliner, expected the demand growth in the developed markets of Europe and North America to hold the key to recovery while in a counterpoint, McKinsey Partner Steve Saxon suggested that recovery is much more likely to come from the emerging market countries with their higher proportion of consumer-oriented demand.Knaggs Guitars

Tan also pointed out that while the trend may be towards more growth in consumer goods in India and Africa, these are very small markets in Container Shipping terms and even with high double digit growth will not be able to absorb the excess supply in the Container Shipping market that the Western markets with their longer distances will be able to.

"I think we're taking steps in the right direction," said MOL Chief Commercial Officer Richard Hiller. He noted that the lines have consolidated and are making efforts to control costs although it was debatable whether this would have a significant effect within the next year.

Tan however reiterated: "There continues to be significant distortions with significant Government intervention and unfortunately this is going to prevent a real recovery for as long as the weaker carriers are not allowed to make exits."

Tan added that this is an issue with the Chinese companies and increasingly with the Koreans as well. "It's these kinds of market distortions that will continue to drive the market over the next couple of years," Tan concluded.