Singapore — Compete or go under: that is the message shipping bosses in Asia are taking into the new year. Faced with a prolonged trade slowdown and depressed freight rates, the region’s container lines are set for further consolidation after a year that saw the collapse of South Korea’s Hanjin Shipping, a megamerger among Japanese rivals and the sale of Singapore’s shipping flagship. With capacity in excess, firms will continue joining forces to cut costs and improve efficiency, according to the heads of AP Moller-Maersk and Hyundai Merchant Marine. "It will be another difficult year," Hyundai Merchant CEO Yoo Chang-keun said in his new year’s speech to employees. "Global shipping companies are preparing for the long battle in the shipping industry through [mergers and acquisitions] and government support." An overly optimistic outlook for trade recovery following the 2008-09 global financial crisis prompted shipping companies to order ever-larger vessels, with some stretching long...
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