Conflicts between asset managers and transportation companies are producing suboptimal business decisions. Many carriers are caught in conflicts with owners of ships they manage. Carriers want to manage the transportation business for profit; owners want to manage for maximum value of their assets. Many suffer from a conflict between the asset- management and transportation mind-sets.
Without fundamental changes, such as industry consolidation or new external shocks, we see the trend of overcapacity and industry losses continuing for the next three to five years. We project that supply/demand imbalances will persist (Exhibit 2), with revenues and pricing remaining under pressure as larger vessels launch and global GDP grows only moderately.