The Hindu Business Line : Towards steady growth

World container traffic will grow 8 per cent in 2008 while capacity is expected to grow 12 per cent, according to the UK-based Clarksons Research Services. However, analysts feel that the container shipping market will maintain growth, albeit slowly, despite the supply-demand imbalance. This will happen because the terminal operators, as well as carriers, will adjust themselves to overcapacity. The Chinese market too, it is felt, will slow down to steady growth from a r apid one. Compared to 2006, the recovery of the market in 2007 has been slow and weak. The cargo volume on Asia-North America has been affected by the slowdown of the US economy but the growth on the Asia-Europe sector remains strong. The container shipping market, it is also felt, will be influenced by the policy pursued by Maersk Line, the world’s largest container operator. Meanwhile, the Financial Times reported that Maersk will restructure its container business and remove top executives. Also, trucking and warehousing under Maersk Logistics may be separated from the shipping business and converted into standalone business units.

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