The outlook for the global shipping industry is less than promising for 2012. A December 2011 report by Drewry, a leading container forecaster, says that global port throughput growth in 2012 is expected to decrease by 1.3 percentage points. The shipping industry, which has a close link with the world economy, is currently saddled with multiple pressures resulting from the global financial crisis in 2008-2009, the more recent sovereign debt crisis in Europe, and of course the slowdown of the U.S. economy. Additionally, the cyclical nature of charter rates, intense competition, long build period of vessels and withdrawal of financial support from banks and financial institutions are adding to their woes.
However, two problems that are pushing this industry to the brink are oversupply and rising fuel prices. Although the recovery of economic activity is expected to resuscitate the shipping industry in the next few months, excess capacity and high fuel prices will weaken growth prospects.