Shipping Executive Expects Month of May to Be Difficult
Date: Wednesday, April 8, 2020
Source: The Wall Street Journal
Rodolphe Saadé, chief executive of France’s CMA CGM, the world’s fourth-biggest liner, expects May to be the slowest month for moving containers across the world, and the company plans to idle as many as 15 ships as coronavirus continues to rattle supply chains.
“The situation is going to be tense in May,” he told the French daily newspaper Le Figaro. “The problem is no longer in China, where the factories are running at 100%. It comes from European and American customers,” as the virus continues to shut down cities in both continents.
Mr Saadé called for a more-balanced world trade after the pandemic is over and, for the first time, denounced what he called “excessive globalization,” which he said needs to be modified.
Container ships are the backbone of global markets, moving the vast majority of manufactured products, but more than 160 sailings have been canceled over the past week and dozens more are scheduled to be cut until June, which is the beginning of the peak season for container shipping.