The Container Shipping Manager recently had the pleasure of speaking with leading industry figure and chairman of CMA CGM, Jacques Saade, to gain some insight into his views on the container shipping market in 2008.
Mr Saade on the transpacific trade and the floating BAF...
CSM: It seems that many carriers have been adjusting capacity to cope with fluctuations in demand this year.
Mr Saade: Earlier this year we stopped a few ships as it was more economical to stop a ship rather than to load at just 50 per cent. Leave the cargo for the ship that is coming afterwards.
CSM: You say this is more economical because of the high oil price?
Mr Saade: Yes, because if you pull out your ship then the only cost you have to pay is the charter rate. This is less costly than running a ship at 50-60 per cent utilisation and still having to paying your bunker costs and the port charges for that vessel to make a round trip.