By Ole Mikkelsen

COPENHAGEN, Nov 9 (Reuters) – The world’s primary container delivery firm Maersk Line expects consolidation within the trade to hurry up as freight charges fall attributable to too many vessels for too few items, Chief Executive Soren Skou from Maersk Line mentioned on Monday.

“I expect a number of deals,” Skou advised Reuters in an interview.

Singapore-based Neptune Orient Lines mentioned on Saturday it’s in preliminary discussions with France’s CMA CGM and A.P. Moller-Maersk, which controls Maersk Line, a couple of potential acquisition of NOL.

Skou declined to remark however mentioned Maersk Line would concentrate on natural progress whereas alternatives to purchase as they arose.

“The strategic arguments for Maersk Line to acquire NOL would be to expand the geographical scale in Intra-Asia and on the Transpacific,” Nordea Markets delivery analyst Stig Frederiksen mentioned in a observe to shoppers.

An acquisition would additionally assist Maersk Line elevate margins attributable to price financial savings, Frederiksen added.

In one other potential merger, trade insiders anticipate Chinese agency Cosco’s container delivery unit to merge with China Shipping Container Lines (CSCL) to create the fourth-largest delivery firm on this planet.

Maersk Line stays probably the most worthwhile within the trade due to its scale and price reducing, however is struggling to reside as much as revenue objectives set by guardian A.P. Moller-Maersk .

It reported a 61 p.c drop in its quarterly revenue to $264 million on Friday attributable to a lot weaker than anticipated demand and low container freight charges. Revenue fell by virtually 15 p.c to $6 billion.

Skou mentioned the worldwide container commerce progress price would probably match world financial progress price subsequent 12 months. Before the monetary disaster hit in 2008, the expansion price averaged about two to a few instances the worldwide financial progress price however that was unlikely to occur once more, he mentioned.

The International Monetary Fund (IMF) has forecast that the world economic system will develop by 3.1 p.c this 12 months and by 3.6 p.c in 2016.

Despite the provision and demand imbalance that has pushed down freight charges, Maersk Line nonetheless expects to take care of its focused earnings earlier than curiosity and taxes margin over opponents of 5 proportion factors. (Editing by Susan Thomas)

(c) Copyright Thomson Reuters 2015.

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