MOL expects ship utilization to remain high in 2005-2006

MOL expects ship utilization to remain high in 2005-2006 Steady increases in cargo volumes will offset substantial rises in ship capacity in the transpacific and Asia/Europe container trades during 2005 and 2006, a report published by the research department of Mitsui O.S.K. Lines says.
   The report predicts ship utilization will remain high in 2005 and 2006. “We expect the present trend to continue up to 2006, with some up-and-down fluctuation of the supply/demand balance,” MOL said.
   MOL’s report is more bullish than the general view held by several analysts that the strong market would continue to favor containership operators in 2005, but with the likelihood of a cyclical downturn in 2006.
   Commenting on the transpacific market, MOL said, “by the year 2006, the delivery of new tonnage will be settling down.”
   MOL said eastbound transpacific cargo volumes were expected to increase about 16.9 percent in 2004. It predicted that eastbound cargo growth would now slow down to 10-12 percent a year.
   On the supply side of the transpacific trade, “a continuous substantial increase of tonnage capacity from the year 2004 onwards will occur,” it added.