Container business is facing new challenges which are structurally different from the 2009 downturn, followed by a sharp decline in cargo volumes, according to the Asian Shipowners' Forum (ASF).
In a recent meeting, the ASF has recognized that liner shipping could be at risk of falling into a prolonged slump, owing to the current supply-demand trends.
The ASF has expressed concern that the market could encounter further deterioration, given that it is estimated that new capacity of 2 million TEU has been ordered since the middle of 2010.
On the transpacific trade, it was reported that US containerized imports had faltered with the third consecutive monthly drop in year-over-year volume from June 2011 due to the sluggish US economy suffering a slow improvement in the unemployment rate and poor performance in the housing market which has depressed consumer spending.
It was reported that total volume in the eastbound trade is forecasted to be down to 2.7% this year and 4% to 5% in 2012 on a year-on-year basis, but others had perspectives for trade growth.
Amid the difficult time facing the liner industry, the ASF has urged shipping companies to provide views to customers to help them recognize the characteristics of the liner business, especially the close correlation between the quality of liner services and the scale of investment implemented by the shipping companies, in order to achieve a sustainable liner business in the long term.