NEW YORK: Fitch Ratings in its recent report has forecasted a growth of 2.5% in Global Container volumes in 2020. While this represents a small increase from 2019, it is well below the average growth rate of about 4.5% over the past eight years, says the report.
Trade restrictions, if they remain unresolved, are likely to have a negative impact on Global Container volumes of about 1% in 2020, according to AP Moller-Maersk.
“We expect better capacity management in Global Container shipping with fleet capacity increasing by 3.3% in 2020, slower than 3.6% in 2019. Container freight rates in 2020 are likely to remain at levels similar to those in 2019,” the agency added.
Dry Bulk
Fitch expects Dry-Bulk trading volumes to grow by 3% in 2020, up by more than 1.5 percentage points on 2019, due to higher iron ore and other commodities volumes. Iron ore volumes are expected to slowly recover following the Vale dam incident in Brazil and challenging weather at Australian Ports in 2019.
Fleet additions are likely to match this growth in volumes, and freight rates are likely to increase as dry-bulk shippers will be better positioned to pass on some of the higher fuel costs.
Tankers
Global tankers’ supply and demand are likely to grow by 2.5% and 3.5%, respectively, in 2020, supporting a better supply-demand balance. This will help freight rates to stay at levels comparable to annual averages in 2019, which represents a recovery from their troughs in the middle of 2018, the report says.
OOCL wins 2 HKMA Hong Kong Sustaainability Award Trophies
OOCL proudly received the “Hong Kong Sustainability Award” and “Special Recognition for Outstanding Sustainability Initiative: Environmental Dimension” at the Hong Kong Sustainability Award 2018/19 ceremony on November 11, 2019.
Organized by the Hong Kong Management Association (HKMA), the Hong Kong Sustainability Award aims at recognizing organizations which have demonstrated outstanding sustainability practices in economic, social, and environmental aspects while achieving good business and organizational performance within their industry sectors. The awards program also advocates for cross-sector sharing of best practices while inspiring organizations to entrench sustainability into their operation and culture for more impactful and long-term business sustainability results.
Over the years, OOCL has been proactively taking on a leadership role in implementing many important initiatives to address the environmental and business challenges, such as its relentless efforts in operational efficiency, bunker saving, investing in fuel efficient containerships and other best practices that contributes significantly to the success of our overall sustainability profile and competitive position in the industry. OOCL is also an industry leader in applying advanced
AI technologies to improve its operating efficiency and business practices whereby reducing cost, improve sustainability and providing better services to its worldwide customers.
Receiving the award on behalf of OOCL, Mr. Erxin Yao, Director of Corporate Operations and Marketing and Regions Management said: “We are very honored to receive the two awards from the HKMA that recognizes our excellent achievements and dedication to sustainability. This award is very encouraging for OOCL to continue pushing our corporate sustainability agenda further into the next level and achieve the long-term sustainable development goals ahead of us. OOCL looks forward to working more closely with our business partners and stakeholders to advance our green initiatives for a more sustainable future in our industry.”
