Maersk Chief Executive Søren Skou has stated that Q4, 2016 was the first time that demand has outgrown supply since 2010, according to CNBC.
Skou said: “The fourth quarter of 2016 was the first quarter since 2010 where the demand outgrew supply, and actually by some margin.
“We have hardly seen any new capacity being ordered since the third quarter of 2015, the order book of new ships being built is at a record low.”
The shipping industry has been dogged by low demand in recent years, with liners resorting to vast alliances in order to combat overcapacity.
Skou added: “I think the supply and demand fundamentals are looking reasonable now and for at least the first three quarters of this year.”
The Maersk head is expecting a US$1 billion rise in Maersk Line's results in 2017.
Recently Maersk Line and the Federal Antimonopoly Service of the Russian Federation agreed to settle a competition case that could have cost the shipping company $12 million due to it and other shipping lines’ price announcements to the Russian market.
The agreement is subject to a settlement fee payment of approximately $230,000 by Maersk Line.