|
HONG
KONG—Neptune Orient Lines Ltd. chief executive officer
Ron Widdows said global shipping lines might reduce
capacity in the second half because of higher fuel costs
and falling rates, according to a Lloyd’s List
interview.
Higher
costs may force shipping lines to charter fewer vessels
and cut some of their services, especially on trade
between Asia and Europe, the report said, citing Widdows.
The price of 380 Centistoke bunker fuel Tuesday rose to
a record $764.50 per metric ton in Singapore, according
to Bloomberg data.
“If
these fuel prices stay in the range where they are
today, I think you are going to see some fairly
substantial service pullbacks,” Widdows said.
The gap
between supply and demand won’t be as great as some
people expect, Widdows said, because some of the ports
don’t have the capacity to handle bigger vessels. There
is also a lack of roads and railways to carry containers
into and out of harbors, he said.
Trade
between Asia and Europe, which gained about 20 percent
last year, slowed this year on weaker demand and as
shipping lines deployed new, larger vessels on the
route. The Howe Robinson Container index, which tracks
weekly charter rates for container vessels, has fallen
for four straight months to the lowest since April last
year. (Bloomberg) |
