COPENHAGEN: Maersk Line expects the ailing Asia-Europe trade to improve in the second half of this year, as the devaluation of the Chinese currency boost exports and liners decrease capacity.
Tim Smith, North Asia regional chief at Maersk Line and Maersk China chairman, said an increase in demand coupled with adjusted capacity could lead to freight rate increases for carriers even though the trade has been buffeted by both falling volumes and spot market rates in recent months.
Smith said the recent devaluation of yuan will most likely prove to be a mixed bag for liner services by boosting China’s exports but also making imports more expensive. However, Maersk remains upbeat about the outlook of China’s imports trade, as the company is confident that the Chinese economy will mature, increasing consumption.
Maersk Line’s profit for the second quarter of 2015 was down 7.3 percent on a year ago to $507 million, as a result of lower spot rates, but the fall was softened by lower fuel prices. The overall Maersk group’s posted profit dropped 52 percent on a year ago to $1.1 billion for the same period as a result of low container freight rates and the drop in global oil prices.
