The chief executive officer of Hapag-Lloyd Mr Rolf Habben Jansen predicts that the container shipping industry may soon start on a downward trend for another two to three years to come as the freight rates have remained low and the poor economic climate in Europe is aided The prices have exceeded reasonable limits and we predict that there will be a lot of pressure on the stock exchange. It is projected that on a volume basis shipments will grow modestly but there are uncertainties as well as cost control.
Container Shipping Faces Challenges Ahead
Head of the world’s fifth-biggest carrier said. “I’m certainly concerned about the next 24-36 months because I think we are going to see a downturn
Hapag-Lloyd AG Chief Executive Officer Rolf Habben Jansen said in an interview on Thursday. “I do expect that the market is going to remain under significant pressure.”
The container shipping industry anticipates a tough period ahead, with Hapag-Lloyd CEO Rolf Habben Jansen expressing concerns about low freight rates, a fragile European economy, and geopolitical uncertainties. The industry faces a potential downturn, marked by unsustainable freight rates and market pressures resembling a price war. Hapag-Lloyd, despite cost-cutting measures, reports Q3 revenue below estimates. Jansen emphasizes global economic factors impacting sentiment and highlights the need for positive movements in interest rates and inflation to bolster confidence in global trade. The industry grapples with uncertainties, making the next 2-3 years challenging.
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Source: The Economic Times
