PSA: “Key trends affecting the industry will continue in 2014”

In a statement released to CM, he points out that world GDP and global container handling growth rates are forecast to remain moderate and in low single digit percentages.  On the other hand, mega vessels will continue to be delivered, with many coming on stream in the next two years.

“The imbalance between weak trade increase and surplus shipping capacity will continue to challenge freight rates and consequently, sustain the squeeze on the profitability of container shipping lines.  Ports will be under greater pressure to deliver high performance standards at competitive rates,” he stressed.

This will be caused as more mega ships are launched with the result that the upsizing cascade will trickle down to smaller ports, demanding additional capital investments to upgrade port infrastructure and to meet a re-written set of service level expectations.