THE global transport industry is facing a tough year ahead in 2012, according to the latest doom and gloom forecast to emerge that predicts many businesses will suffer losses.
James Thompson, chairman and founder of the Crown Worldwide Group, a Hong Kong-based logistics and transport provider, warns that shrinking freight rates on the Asia-US trade indicates that container shipping lines are in for a difficult time.
"In the shipping industry, you'll see a lot of losses. They are in for a rough period," Mr Thompson told London's International Freighting Weekly. "I don't see much happening in an [US] election year that will lead to a dramatic reversal of the economic outlook."
Slow economic growth in the US has dragged freight rates down on the Asia-US trade and they are coming under further pressure owing to the large amount of new vessel capacity on order.
"Once those ships are ordered, there is no way out," he said.
Crown Worldwide, which operates in 60 countries, is forecasting record sales of US$800 million this year, compared with $675 million in 2010. It attributed this to the revenue growth in its core relocation business with a growing number of executives moving in and out of Asia.