The global container shipping market will face overcapacity in the coming years, and the rates paid by customers have fallen to unacceptable levels, Maersk Group CEO Vincent Clerk said at the group's annual shareholder meeting.
Hapag's German competitor is Lloyd (HLAG.DE ) said that the global oversupply of container ships and the crisis in the Red Sea will force it to cut costs in 2024, adapting transportation and ports after an 83% drop in net profit.
Container shipping rates jumped in December and early January as attacks on ships in the Red Sea forced companies to divert ships from the Suez Canal for a much longer journey around Africa, but they have since declined as available capacity continues to exceed demand.
According to Maersk, the influx of new container ships last year increased the global capacity of the industry by 9%, which is expected to increase by another 11% this year and another 7% in 2025.
