Posidonia 2018: 5 Most Exciting Things to Watch Out for in Shipping Industry

This is an extremely exciting time for the shipping industry which is expected to undergo a major transformation over the next decade.

A number of variables are likely to play their role in the shaping of the industry’s future way of doing business ranging from the third industrial revolution to electric cars and the switch to renewable energy and digitalization.

However, being such a resilient sector shipping tends to find opportunities in disruption.

Speaking at today’s Power Panel, organized by BIMCO within the Posidonia 2018 trade show, industry representatives from various branches shared their views on the most exciting things in the industry at the moment.

Basil Karatzas, CEO of Karatzas Marine Advisors, said that the most exciting thing on the market was the freight perspective.

“It makes the market return to the fundamentals and give it more thought. What is more, it keeps away speculative investments,” he said, adding that most of newbuildings orders placed so far were for the purpose of renewing fleet or ensured cargo for vessels.

Among the five things to watch out for in the medium to long-term are digitalization and the use of advanced analytics which have already started to transform the shipping industry, according to Henriette Brent-Petersen from DVB Bank.

“We are on the verge of the beginning of a revolution of our industry. It is not only that the business model changes, but all levels of the supply chain,” she explained.

One of the examples to support this argument is the rise of the smart-yards, Brent-Petersen said, which are forecast to automate their manufacturing process and start producing ships copying the Volkswagen model of building cars. This will ultimately put a permanent pressure on the newbuilding prices, she went on to say.

“The most exciting thing at the moment in shipping is Posidonia,” Simon Ward from Ursa Shipbroking said, stressing that shipping boils down to relationships.

“This interaction of people from various areas of the industry is where the new ideas come from and where relationships are forged. Conferences like this one are the places where exchange of technology and innovation takes place: through people. If we lose that we will lose the nature of shipping itself.”


For Valentina Vignoli, from Peninsula Petroleum, a bunker supplier, the most exciting thing at the moment is the 2020 sulphur cap.

“It is the first step for the industry to move into an era of greener fuels. In the medium term we might even see new types of fuels being developed to comply with the new regulations, which is exciting and challenging at the same time,” she said.

Finally, James Leake, analyst at N.S. Lemos, believes a very close eye should be put on the developments in India, and specifically its teenage population as the source of emerging households.

“Given the shape of Indian population pyramid it is the place to watch out for in the five to ten years. I’m not going to claim that it would set the market on fire, but if we are looking for optimism that is the only place growth can come from speaking from a structural perspective; population-wise.”

In conclusion, as stressed by Karatzas, it has become ever more difficult to predict the future and these are very uncertain times for the industry.

Nevertheless, there are at least five things to closely monitor as the industry steams ahead into the uncharted waters.

Reported by Jasmina Ovcina Mandra

Swire Shipping upgrades services from North Asia to the Pacific



From July 2018, Swire Shipping will upgrade its multipurpose liner services between North Asia and the Pacific.

Under this enhancement, Swire Shipping will be adding direct calls at the Chinese ports of Nansha and Ningbo and aligning its North Asia services to provide a 10-day service frequency between North Asia and Papua New Guinea (PNG).

Swire Shipping’s multipurpose vessel in Papua New Guinea (PNG)

Other markets served by Swire Shipping’s North Asia services such as Townsville, Noumea, the Solomon Islands, Vanuatu and New Zealand will also benefit from access to more ports in China. 4 Donald Fraser, Swire Shipping’s General Manager for Liner Trades said, “Swire Shipping is committed to developing and upgrading our services and are delighted to provide our customers with this latest set of improvements. In particular, there will be a sailing every 10 days from China to PNG, complementing our 10-day Southeast Asia-PNG and AustraliaPNG services. We’re very excited to be offering our customers this comprehensive import and export network coverage.”
Source: Swire Shipping

Ship loses 80 containers off NSW coast in wild weather

YM Efficiency, a Liberian-registered cargo ship, was making its way from Kaohsiung in Taiwan to Sydney’s Port Botany on Thursday night when large swells knocked 83 containers into the water off Newcastle.

Roads and Maritime Services was alerted to the lost cargo on Friday.

Spokesman Angus Mitchell said the contents of the containers was unknown, but they’re not believed to contain dangerous goods.

“A full manifest of the cargo on board the vessel, and the condition of the vessel, is being sought,” Mr Mitchell said in a statement.

A further 30 containers on board are severely damaged.

The department said two had been spotted about 100 metres off Fingal Head and Boondelbah Island, near Port Stephens.

It’s now the vessel operator’s responsibility to recover and remove the 40-foot containers and boaters were alerted to the potential hazards on marine radio.

Members of the public can report any sightings to the Australian Maritime Safety Authority on 1800 641 792.

The ship was reportedly refused entry to Port Botany on Friday due to the risk of more cargo coming loose.

U.S. Sanctions Start to Pinch Shipping in Iran

It will be months before new U.S. sanctions against Iran take hold, but global shipping operators are already pulling back from the big oil-exporting nation.

The world’s two biggest shipping lines, Denmark’s Maersk Line and Swiss-based Mediterranean Shipping Co., said they were winding down general cargo shipments, while tanker owners said they plan to move their vessels to other oil-producing countries in the Middle East or West Africa.

Even though the U.S. is alone in imposing the new sanctions, “I don’t think any shipping line that operates globally will be able to do business in Iran if the sanctions arrive in full force, the way they are intended,” said Soren Skou, Maersk’s chief executive.

Maersk and MSC have been moving everything from electronics and household goods to food and heavy machinery to Iran. Mr. Skou said Maersk’s Iran operations are small, but with an Iranian population of 80 million, carriers heralded the lifting of earlier sanctions in 2016 as the opening of an important Middle East trade destination.

The Trump administration has given the industry until early November to end operations in Iran, which exported a record 2.6 million barrels of crude a day in April. The sanctions also will affect ship-insurance premiums, lines of credit for moving cargo, and ship-fuel suppliers.

Pulling Iran off the service map for crude carriers will be a blow to the world’s tanker operators. Shipowners in that sector have suffered from a glut of global capacity and now will see the world’s fifth-biggest oil producer removed from their market. Iran accounts for 5% of global output and the majority of Iran’s oil is exported to China, Japan, India and South Korea.

Shipowners in China, which currently buys roughly 650,000 barrels of Iranian crude a day, said they expect Iran’s total daily crude shipments to drop by more than half.

“We won’t dare to risk any violations as we also have a bulk of our business involving shipping oil between the U.S. to the Far East,” said a senior executive of a China state-owned oil-shipping major, who asked not to be named. “What concerns us is that our ships won’t be able to sail to the U.S.”

The carriers that will hurt the most are Iran’s two state-owned firms, National Iranian Tanker Co. and Islamic Republic of Iran Shipping Lines.

A spokesman for NITC, which operates around 5% of the world’s tanker fleet, including 38 very large crude carriers, or VLCCs, said it was too early to comment on the sanctions. But people involved in the matter said NITC may mothball some of its VLCCs and use them as “floating storage” in view of rising oil prices.

IRISL, which operates about 120 container ships, dry-bulk carriers and chemical tankers, has been looking to replace its aging fleet and join the world’s big shipping alliances.

It has placed orders for four container ships and six chemical tankers with South Korea’s Hyundai Heavy Industries Co. Ltd., worth about $650 million, according to people involved in the deal.

IRISL is considering whether to ask Hyundai Heavy to speed up deliveries before the sanctions go into effect, delay or cancel the orders, according to people familiar with the matter. Hyundai Heavy didn’t respond to requests for comment.

“The U.S. sanctions create a very challenging environment for shipowners, ” said Basil Karatzas, a New York-based shipping consultant, who works with some of the world’s biggest shipping companies. “They could be blacklisted for moving Iranian crude or other cargo, fined and prohibited from doing business with the U.S. It’s not worth the risk.”

Source: Dow Jones

20,000 TEU COSCO Shipping Virgo Delivered

Chinese container shipping major COSCO Shipping Corporation has taken delivery of its fifth 20,000 TEU containership, COSCO Shipping Virgo.

Built by Shanghai Waigaoqiao Shipbuilding, the ship is 399.8 meters long and 58.6 meters wide. It boasts a deck area equivalent to almost four standard football fields and can achieve a speed of 22.5 nautical miles per hour.

COSCO Shipping Virgo has a maximum carrying capacity of 20,119 TEU, and it is equipped with 1,000 reefer sockets.

The giant boxship was classed by both DNV GL and China Classification Society.

According to COSCO, the ship’s fuel consumption and energy-efficiency have been optimized through latest energy-saving rudder and propulsion systems.  In addition, the ship is equipped with intelligent ship management systems and allows for one-man bridge operation.

It is worth USD 122.95 million, based on the valuation from VesselsValue.

The delivery of COSCO Shipping Virgo comes on the back of four 20,000 TEU boxships delivered since the beginning of this year.

COSCO Shipping Taurus, also built by SWS, and COSCO Shipping Aries, built by Nantong COSCO KHI Ship Engineering (NACKS) were delivered in January this year.

COSCO Shipping Leo and COSCO Shipping Gemini followed suit in March and April respectively.

World Maritime News Staff; Image Courtesy: Cosco Shipping

‘Biggest’ change in oil market history: Crude prices set to soar ahead of shipping revolution

Instead of OPECIran or even Venezuela, the most prominent driver of oil prices over the next two years is likely to come in the shape of a shipping revolution, analysts have warned.

New rules coming into force in approximately 18 months’ time are seen as a source of great concern for some of the world’s biggest oil producers. That’s because global energy and shipping industries are thought to be ill-prepared for the looming sea change.

On January 1, 2020, the International Maritime Organization (IMO) will enforce new emissions standards designed to significantly curb pollution produced by the world’s ships.

“It’s the biggest (change) in the history of the market,” Amrita Sen, chief oil analyst at Energy Aspects, told CNBC’s “Squawk Box Europe” this week.

Why are the changes being enforced?

Amid a broader push towards cleaner energy markets, the IMO’s changes will specifically look to cut back sulfur emissions. The pollutant is a component of acid rain, which harms vegetation and wildlife, and is blamed for some respiratory illnesses.

The forthcoming measures are widely expected to create an oversupply of high-sulfur fuel oil while sparking demand for IMO-compliant products — thus ratcheting up the pressure on the refining industry to produce substantially more of the latter fuels.

“That is very important because Middle Eastern producers lose out heavily from that because their crude tends to be very high sulfur,” Sen said.

A support vessel flying an Iranian national flag sails alongside the oil tanker 'Devon' as it prepares to transport crude oil to export markets in Bandar Abbas, Iran, on Friday, March 23, 2018.

Ali Mohammadi/Bloomberg via Getty Images
A support vessel flying an Iranian national flag sails alongside the oil tanker ‘Devon’ as it prepares to transport crude oil to export markets in Bandar Abbas, Iran, on Friday, March 23, 2018.

In contrast to some of the world’s leading oil producers in the Middle East, including OPEC kingpin Saudi Arabia, the U.S. is expected to be better-placed to cope with the IMO’s measures due to their reputation for producing lighter crude.

What does this mean for oil prices?

Global benchmark Brent crude will climb to $90 a barrel by 2020 as new international shipping laws overhaul the types of fuels produced by refiners, Morgan Stanley analysts predicted in a research note published last week.

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“We expect the crude oil market to remain under-supplied and inventories to continue to draw,” the bank said, before adding: “This will likely underpin prices.”

To be sure, the IMO’s rules will ban ships using fuel with a sulfur content higher than 0.5 percent, compared to 3.5 percent at present, unless ships are fitted with equipment to clean up its sulfur emissions.

Right now, few ships have invested in equipment to scrub pollutants from engines that burn high-sulfur fuel, so many external observers believe the majority of shipping companies are investing in capacity to make low-sulfur fuel.


Here’s what drives the price of oil:



Sulphur Cap Chaos in 2020 Warn World’s Shipowners

The International Chamber of Shipping (ICS) fears ‘chaos and confusion’ unless the UN International Maritime Organization (IMO) urgently resolves some serious issues concerning the successful implementation of the 0.5 percent sulphur in marine fuel cap, which is scheduled to come into effect globally overnight on 1 January 2020.

Such chaos would have serious consequences for the movement of the world’s energy, raw materials and manufactured products – about 90 percent of global trade being carried by sea.

This was the principal conclusion of the Annual General Meeting of ICS’s member national shipowner associations which met in Hong Kong last week.

Esben Poulsson, ICS Chairman

Speaking from Hong Kong, ICS Chairman Esben Poulsson said:

‘The shipping industry fully supports the IMO global sulphur cap and the positive environmental benefits it will bring, and is ready to accept the significant increase in fuel costs that will result. But unless a number of serious issues are satisfactorily addressed by governments within the next few months, the smooth flow of maritime trade could be dangerously impeded. It is still far from certain that sufficient quantities of compliant fuels will be available in every port worldwide by 1 January 2020. And in the absence of global standards for many of the new blended fuels that oil refiners have promised, there are some potentially serious safety issues due to the use of incompatible bunkers.’

Mr Poulsson added:

‘Governments, oil refiners and charterers of ships responsible for meeting the cost of bunkers all need to understand that ships will need to start purchasing compliant fuels several months in advance of 1 January 2020. But at the moment no one knows what types of fuel will be available or at what price, specification or in what quantity. Unless everyone gets to grips with this quickly we could be faced with an unholy mess with ships and cargo being stuck in port.’

ICS emphasises that governments will need to make significant progress on these issues at a critical IMO meeting in July about the impending global sulphur cap, to which ICS – in cooperation with other international industry associations – will be making a number of detailed technical submissions to assist successful implementation of what ICS describes as a regulatory game changer.

European Commission Needs to Respect IMO CO2 Reduction Strategy

The ICS AGM in Hong Kong endorsed its support for the historic UN IMO agreement adopted in April 2018 on a comprehensive strategy to phase out international shipping’s CO2 emissions completely. This includes targets to improve the sector’s CO2 efficiency by at least 40 percent by 2030 and 70 percent by 2050, and a very ambitious goal to cut the sector’s total GHG emissions by at least 50 percent by 2050 regardless of growth in demand for maritime transport.

ICS member national associations agreed to contribute constructively to the immediate development of additional IMO regulations that will start to have a direct impact on further reducing international shipping’s CO2 emissions before 2023, in line with the new IMO strategy. They agreed that ICS should come forward with detailed proposals before the next round of IMO discussions in October on reducing GHG emissions from shipping.

However, ICS members expressed serious disappointment at the apparent intention of the European Union to press on with the implementation of a regional CO2 reporting system at variance to the global system already agreed by IMO, despite having given an undertaking to align the MRV regulation with the global regime.

‘We are still waiting to see the final recommendations from the European Commission following a recent consultation’ said ICS Chairman Esben Poulsson. ‘But the industry has made clear its total opposition to the publication of data about individual ships using abstract operational efficiency metrics that bear no relation to CO2 emissions in real life and which will be used to penalise shipowners unfairly.’

Mr Poulsson added:

‘Anything less than a full alignment with the IMO CO2 data collection system will be seen as a sign of bad faith by many non-EU nations who recently agreed to the IMO GHG reduction strategy, precisely to discourage such unilateral measures which risk seriously distorting maritime trade and global shipping markets.’

Esben Poulsson Re-elected

The ICS AGM, which was hosted by the Hong Kong Shipowners Association, re-elected Esben Poulsson (Singapore) as ICS Chairman for a further two year term.
Source: International Chamber of Shipping

Interview: Shipping’s Decarbonization Will Need Major R&D Investment

Following a lengthy process, the International Maritime Organization’s (IMO) member states finally agreed in April to require international shipping to decarbonize and at least halve its greenhouse gas emissions by 2050.

The agreement includes strengthening design requirements for each ship type, a relative reduction of 40 percent in CO2 emissions by 2030, and at least 50 percent reduction by 2050, and subsequently a path toward a complete phase-out.

Although the members agreed on the goals, concerns were raised over the lack of any clear plan of action to deliver the emissions reductions.

Kirsi Tikka, Executive Vice President, Senior Maritime Advisor, at the American Bureau of Shipping (ABS), in an interview with World Maritime News said that collaboration by all stakeholders as well as sufficient investment in technology development are needed.

“To meet the targets established in the initial IMO strategy for GHG reduction will require considerable development time and financial investment that may not deliver returns in the short term.”

Since the experiences of early adopters of technology in complying with environmental regulations have not always been positive, the industry “is unlikely to adopt new GHG reduction technologies until there is a full proof of functionality and ideally a cost/benefit analysis.”

Kirsi Tikka, Executive Vice President, Senior Maritime Advisor, ABS
Kirsi Tikka, Executive Vice President, Senior Maritime Advisor, ABS

Tikka continued that financing the R&D needed to deliver on the schedule established by the IMO strategy “will be a challenge for the industry – something of which the IMO is well aware.”

WMN: Would you agree that the compromise on the 50 percent reduction was the best the IMO could do for the moment?

Tikka: Given the apparently high degree of disagreement on strategy between member states going into the meeting it was a very positive result for the IMO, the industry and potentially, the environment. By agreeing to establish a global target for CO2 emissions reductions, the IMO has produced a result in line with the Paris Accords and has sent a clear message that eliminates the need for regional target setting.

Shipowners will start to collect emissions data according to the IMO Data Collection System in January 2019 and this data will provide the foundation for IMO discussions on the final shape of the GHG strategy from 2023, Tikka continued.

Despite the headlines concerning 50% reductions of 2008 levels by 2050, the targets for the greenhouse gas reduction “are not finalized and IMO will use the output from the IMO DCS and the fourth IMO Greenhouse Gas Study (in 2020) to further refine the targets.”

In the meantime, shipowners are probably more focussed on the implications of 2020 in terms of fuel strategy and operational profile, Tikka said.

“The IMO GHG agreement raises a lot of questions, to which there are for the moment, few answers: what kind of technology will be available? What fuel strategy – conventional or alternative – should they choose and what propulsion system will offer the best option?”

WMN: What is your take on the available solutions on the market? What is the way forward: alternative fuels, scrubbers or maybe innovative ship designs?

Tikka: I agree that there is a need for significant system and service development to transfer some of today’s promising technology into solutions that can be implemented and applied. These include fuel cell and battery technology, wind and solar power assistance and new fuels such as Gas-To-Liquids, methanol from biomass and other biofuels, but few are ready to go on the kind of scale needed to meet the GHG targets.

Vessel designs have already been optimized for economic efficiency in recent years and a step change in efficiency would require a radically different approach to design and/or use of materials. Since it is not feasible to replace the world fleet by 2030, we will need other fuel and operational measures such as optimizing speed for on-time arrival at port, to supplement any advances in design.

Speaking on the impact of CO2 reduction decision on ship speeds, Tikka informed that vessel speed has “a significant impact on required power and therefore on fuel consumption and CO2 emissions.”

As a result, ships in sectors that typically operate at higher speed “are likely to work at lower operational speeds in future. And maybe more importantly these speeds will need to be optimized for the most efficient utilization of the vessel in the logistics chain rather than the traditional approach of specifying the speed in the charter party.”

Tikka said that addressing the CO2 requirements “will certainly take a holistic approach across the industry.”

The leveraging of more real-time and accurate vessel performance data will form an integral aspect of achieving these improved efficiencies. Digital technology and improved connectivity will offer tools not only for reporting and improving vessel performance but also for optimizing the wider logistics chain, Tikka concluded.

World Maritime News Staff

Hard-line biosecurity on dirty vessels

Hon Damien O’Connor
Minister for Biosecurity
16 May 2018

New Zealand has become the first country in the world to roll out nationwide biofouling rules to stop dirty vessels from contaminating our waters, says Minister of Biosecurity Damien O’Connor.

“About 90 per cent of non-indigenous marine species in New Zealand, such as Mediterranean fanworm, Japanese kelp and Australian droplet tunicate, arrived on international vessels. These incursions harm our aquaculture industries, fisheries and native marine ecosystems,” says Damien O’Connor.

“Under the new biofouling rules, operators must prove they’ve taken appropriate steps to ensure international vessels arrive with a clean hull.

“The new rules came into force yesterday and will better protect New Zealand’s unique marine environment and other vital industries from biosecurity risk.

“Biosecurity New Zealand officers will take a hard line on vessels that can’t provide evidence they meet the rules. Divers will carry out inspections of hulls.

“Officers will also have the power to direct vessels for cleaning and order the vessel to leave New Zealand if the fouling is severe.

“Vessel operators will meet the costs of any compliance order.

“The shipping industry has had four years to prepare for the changes and ignorance of the new requirements will not be accepted.

“The definition of a clean hull will depend on vessel type and its itinerary.

“For example, the rules are stricter for vessels that are staying in New Zealand for a long time with the intention of visiting a range of ports.

“I strongly encourage all international vessel operators to make sure they know the rules before they arrive in New Zealand,” says Damien O’Connor.

Japan Catches Up With Shipping Consolidation

Japan has caught up with a wave of consolidation sweeping the shipping industry, with its three biggest carriers merging their container operations to compete with bigger rivals in Asia and Europe.

Mitsui O.S.K. Lines (MOL), Kawasaki Kisen Kaisha Ltd. 9107 1.20% , (K-Line) and Nippon Yusen Kabushiki Kaisha NPNYY -0.23% (NYK Line) pumped $3 billion into the merged company called Ocean Network Express (ONE) that kicked off operations last month as the world’s sixth largest container operator, with a combined fleet of 230 vessels.

“A large company buys a small company and grows bigger, such deals have been repeated in the past, but this is the first time (in shipping) that three companies jointly start a new business on an equal footing,” Junichiro Ikeda, MOL’s chief executive, said in an interview.

MOL is the leading partner in ONE.

ONE controls close to 7% of global container market, well below the double-figure shares of the top three carriers, Denmark’s Maersk Line, Switzerland’s Mediterranean Shipping Co. and France’s CMA CGM SA.

Container shipping moves roughly $4 trillion worth of manufactured goods annually, from designer dresses to electronics, food and heavy machinery.

But a glut of tonnage in the water and vicious price wars have pushed freight rates well below break-even levels over the past few years, sinking most operators deeply into the red and pushing some out of business.

The crisis pushed the fragmented industry to consolidate, with the world’s 20 biggest operators shrinking to seven over the past three years that control about three-quarters of total container capacity.

It also triggered a reckoning among policy makers in many countries, from Germany to Japan, that have seen commercial shipping as a key strategic asset for their economies. The failure of South Korea’s Hanjin Shipping in 2016 sent shock waves around the world and particularly in Seoul, where the world’s eighth-largest container line was considered an important cog in the country’s export-driven economy.

People involved in the ONE merger told The Wall Street Journal it was seen as a must, as carriers with a 3% share or below are expected to go out of business or swallowed up by bigger players.

Although still small in global terms, ONE is dominant in intra-Asia trade lanes and is the biggest player in moving Asian exports to the U.S. across the Pacific, with a 16% market share, according to maritime data provider IHS Markit . It also controls 37% of container capacity in and out of Japan, the world’s third-largest economy.

“I think future trade will grow mainly in these regions, and the market share (that) ONE holds is never small,” MOL’s Mr. Ikeda said.

He declined to comment on the impact of possible trade tariffs in talks between the U.S. and China.

Consolidation gives shippers fewer carriers to choose from and some may move away from ONE to other operators, but Mr. Ikeda insists he isn’t worried.

“If you focus on the services that come to and go from Japan, our competitors are totally incomparable with us,” he said. “In terms of frequency…. ONE is superior. Therefore, even if customers seek choice desperately, they don’t have much of a choice.”

ONE, which set up its headquarters in Singapore, launched operations April 1 to a rocky start. Brokers and freight forwarders said shippers in the first 20 days of operation faced problems booking cargo slots and communicating with the carrier.

The carrier said the problems were the result of setting up a new IT system and difficulties moving staff from the three partners to new offices around the world.

“It was surprising and disappointing, given the high efficiency records of the three carriers before they became ONE, but the situation is slowly improving,” a Singapore broker said.

Mr. Ikeda said it would take time for the former rivals to fully integrate.

“Although all of them are Japanese companies, there are differences in doing things among them,” he said. “Their mutual understanding has deepened during the preparatory period, but I consider it to be a big challenge to unify the way to conduct business in a real sense.”

The operators have a deep reach into global trade, from consumer goods to raw industrial commodities.

MOL on its own is the world’s biggest natural gas carrier, operating 76 ships out of a total global fleet of 440 vessels, and plans to add another 19 LNG carriers to its fleet over the next few years.

In container trade, ONE is part of THE Alliance, one of three major shipping groups that also includes Germany’s Hapag-Lloyd AG and Taiwan’s Yang Ming Marine Transport Corp.

Alliance members share networks, ships and port calls, saving billions of dollars each year in fuel, port handling and other expenses. They are using giant ships that can move more than 20,000 containers.

THE Alliance already has six such vessels and plans to order six more by the end of this year, despite concerns that the behemoths may exacerbate overcapacity and add pressure to freight rates.

Mr. Ikeda doesn’t expect a flood of new orders because carriers expect only moderate growth in shipping demand, and “everyone understands the situation that way.”
Source: Wall Street Journal