Shipping industry to face three challenging years, according to Hapag Lloyd

German shipping company Hapag Lloyd’s CEO, Rolf Habben Jansen, predicts that the next three years will be challenging due to slower growth in demand for shipping services compared to the available shipping capacity. However, he believes that the industry downturn will not be as severe as the one experienced after the 2008 global financial crisis. During that period, the new capacity introduced represented 55% of the existing fleet, whereas now it is only 27%. Freight rates have also fallen by around 60% year-on-year.

Jansen acknowledges that container shipping has always been a cyclical business, but he remains optimistic that the situation will not be as bad as the previous crisis. Despite the challenges, Hapag Lloyd is preparing for the difficult period ahead and is likely to focus on strategies to navigate the industry downturn.

This news highlights the current state and challenges facing the shipping industry. As demand for shipping services grows more slowly than the available capacity, companies like Hapag Lloyd are preparing for a difficult period. However, the CEO remains hopeful that the downturn will not be as severe as the one experienced after the 2008 financial crisis. It will be important for companies in the shipping industry to adapt and navigate these challenges to ensure their survival and long-term success.

Source .