OOIL Group Chairman CC Tung said Tuesday that it could take three to four years before the container industry works its way out of the glut of vessel capacity that hangs over the market.
“We are pleased to see that after a very tough year for the container shipping industry in 2009, demand seems to be recovering, albeit tentatively,” Tung said at the christening ceremony for OOCL’s latest ship on Tuesday at the Geoje Shipyard in South Korea. “However, many uncertainties remain and the industry is still looking at a tremendous capacity overhang. It could be three to four years before the supply and demand balance reaches equilibrium.”
Tung said OOCL would continue to listen to its customers’ volume forecasts and “provide sufficient tonnage to cover demand.”
Tung was presiding over the christening of OOCL’s newest container ship Tuesday, the OOCL London, which is the 15th in the line of 16 SX-class 8,063-TEU vessels that OOCL ordered from Samsung Heavy Industries.
OOCL said it will deploy the OOCL London on the EU Loop C service in response to the recovery of demand on the Asia-Europe trade.
The EU Loop C port rotation is: Rotterdam, Hamburg, Southampton, Singapore, Shekou, Hong Kong, Kaohsiung, Ningbo, Shanghai, Xiamen, Kaohsiung, Hong Kong, Shekou, Singapore, Port Kelang, Southampton and back to Rotterdam in a 70-day round trip.
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