While volumes in the
shipping sector are holding
up, shipping lines continue
to face serious challenges
in terms
of revenue,
Maersk SA
MD Jonathan
Horn told
FTW.
“Our
revenue per
FFE, year
to date in
comparison
to last year, is
down by more
than 10% for
exports and
down between
5 and 10% on
imports. This clearly shows
that the revenue line remains
under pressure.”
He said globally there were
also still some issues around
overcapacity that would take
some time to work out of the
system.
“Shipping remains a tough
industry. As a group we have
been successful in taking out
the cost at a faster rate than
reduction in rates, but of
course there is a limit to how
much cost you can take out.
“It is important for us to
try and get rate increases
where we can.
We are not
naïve to think
we can just
go out there
and dictate
rate increases,
because it is
about what
the market
will allow one
to achieve, but
it is important
that we
achieve a
reasonable
progression in
rate increases,” he said.
“As an industry, to provide
customers with reliable,
sustainable services with
world-class hardware and
technology, you need to
be earning a reasonable
return on investment that
allows you to reinvest in the
businesses – and that has
been a challenge in the past
few years.”
INSERT & CAPTION
To provide customers
with reliable,
sustainable services
you need to be
earning a reasonable
return on investment.
– Jonathan Horn
