Page 52: of Maritime Reporter Magazine (June 1998)

"Datron improved the crews' morale almost as much as our TVs' reception!"

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CONTAINERSHIP MARKET the preliminary Drewry assessment pointing to an 8.7 percent rise in port handling activity and an 8.3 percent growth in underlying cargo vol- ume.

Expectations for 1998 are highly uncertain, but there is some confidence that even Asia will be able to sustain marginal positive growth, despite the particularly acute problems on the intra-

Asian trades — which have hitherto been the fastest growing routes in the world. Other regions will need to take up the shortfall to main- tain the expansionary momentum to which the industry has been accustomed. In this respect it is vital that Latin America does not catch the

Asian economic malaise; that Japan avoids the slide into deflation; that China remains above the worst of the regional fall-out; and that the

Western European and U.S. economies remain resilient and receptive to Asian imports.

The Drewry forecast for 1998 points towards a global rise in container port handling of just five percent, which would be the lowest rate of growth for over a decade — but in the circumstances something of a triumph, and vindication of those who believe in the inherent strength of global liner trade.

Certainly if the after-shock from Asia is con- tained and this market starts to stabilize in 1999, longer term prospects still point toward continued growth of container trade worldwide — so that at the very worst 1998 should constitute a pause and not a full stop. General cargo trade should con- tinue its expansion, fueled by the decentralization of production and the globalization of the world economy.

Trade liberalization has reduced tariff barriers in many regions during the 1990s, and there is still scope for further cargo growth from this source. Container operators have the capability to capture more general cargo traffic — the cur- rent rate of penetration being only around 50 per- cent, still some way short of any physical or eco- nomic ceiling.

In response to depressed profitability — which intensified in 1997 and which can hardly be expected to improve in 1998 — the pace of indus- try consolidation has quickened, with several medium size liner companies being acquired by larger groups.

The latest of these developments has been P&O

Nedlloyd's purchase of Blue Star Line, while pre- viously CP Ships had swept up Lykes and

Contship during 1997 (and subsequently Ivaran).

The privatization of Italia Line and Lloyd

Triestino will produce further rationalization amongst this vulnerable group of carriers who lack the size to compete effectively against the global lines. Only those with a defendable niche are likely to escape the squeeze from the mega- carriers above and the more nimble specialists below.

Moreover, further consolidation within the major carriers might also be expected, and recent restructuring has confirmed that current partner- ship arrangements will be no guide, and equally no barrier, to future developments. Financial imperatives do not respect vessel sharing agree- ments or alliances.

Maritime Reporter/Engineering News "TV reception on board used to be terrible. You'd always be going in and out of range. Sometimes the boat's own structure prevented good reception. It was very frustrating to the crew, especially when they were looking forward to special sporting events or movies. The Datron System gives us a picture that's always clear and sharp.

It's been a great morale booster."

The Datron DBS-4000 In-Motion Satellite

System delivers laser-disc quality pictures and

CD-quality sound by continually aligning itself for the clearest signal. It can improve your picture and your crew's oudook. It's brought to you by WATERCOM. For more information, call us today at 1-800-752-3000.

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