The CEO of Germany’s Hapag-Lloyd predicted that there could be a chance they will be able to rebalance the world shipping markets in recent years. However, Jansen is positive that market recoveries will only take a short period while the new capacities may have already been added by the time the expected demand is realized.
Capacity and Demand Dynamics
Jensen identifies an important dimension of the sector pointing out possibly a smaller difference between supply and demand compared to what may appear. This perception defies the fears and proposes optimistic views on the sector.
Hapag-Lloyd’s Strategic Response
However, despite the difficult industry conditions currently being experienced by Hapag-Lloyd, one of the five largest container shipping companies worldwide declared cost savings. They are slash-and-burn measures such as cutting down on services that will serve as cost cost-cutting reducing earnings resulting from very low freight rates. It is a strategic reaction to the existing market environments.
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Source: MarineLink
