Despite the two million TEU of capacity out of service and the relief of the Hanjin Shipping collapse on over-supply in the shipping industry, the container crisis for remaining shipping companies is likely to last for two more years, JOC.com reported.
Tan Hua Joo, Executive Consultant with Alphaliner, stated that demand growth will not go above 2% in the next two years, and even if scrapping levels increase the supply growth next year will only reduce to 5% from 6%.
Tan Hua Joo said: “The scrapping is not sufficient to address the demand-supply gap, on a year-to-year basis 2016 will have the lowest ever annual growth recorded in container shipping supply at 2.9%. This is an all-time low, but will unfortunately bring no recovery in the container markets.”
It has been reported that the largest carriers such as Maersk will find some relief from the industry downturn since the collapse of Hanjin Shipping.
The shipping industry is suffering a record slump as more and more large companies file for debt relief or for creditor funding, and it is not only the larger carriers that are feeling the pinch, but smaller independent shipping companies too.