To the concentration of the shipping business in ten major shipping companies through mergers or load-sharing agreements, substantially reducing the current overcapacity, shipping companies, to improve their profitability, raise freight rates, will call fewer ports and use increasingly terminals operated by its affiliates, without leaving much room for manoeuvre to the users.
Long ago we have been insisting that the runaway growth in the size of ships seeking to reduce their costs had to be slowed down, and looks set to be so, because what was apparently good for the maritime industry was not for the port industry or for foreign trade.
It’s imperative a drastic reduction in the current capacity of the shipping industry, including the suspension of the construction of new mega containerships.
Despite a weaker growth of world trade, shipping industry is still hiring the construction of large ships. Why?
Latin America must be very cautious in terms of the deepening of its ports, which should be consistent with the size of the ships that will require the growth of their markets, which is very limited. On the other hand they should worry about improving urgently their infrastructure of internal transport that currently generates important bottlenecks.
Port Finance International article shows us the sensible being the world to the behavior of the Chinese economy, in particular where the sea sector is concerned.