Issue link: http://digital.nexsitepublishing.com/i/643635
6 January 2016 www.cargobusinessnews.com neWs, trends & analysIs below the average annual growth rate of 10.3 percent, recorded since 1990," Alphaliner said of capacity growth. Changes in capacity have been tracked since 1990. The balance between demand and supply will improve as new vessel deliv- eries from shipyards slow down and a growing number of container ships are scheduled for demolition. Before the financial crisis in 2008, con- tainer transport demand was increasing at about three times the rate of global economic growth. Since 2010, that ratio has been just 1.1, according to shipping organization Bimco. With the International Monetary Fund expecting world economic growth of 3.4 percent in 2016, that would suggest con - tainer demand of between 3.5 percent and 4.0 percent. "The new normal level of demand is somewhat lower than originally ex - pected - just as global GDP growth keeps disappointing us," said Bimco shipping analyst Peter Sand. Maersk Line, the world's largest con - tainer shipping company, said global demand likely increased 1-3 percent in 2015, compared with its previous expec- tation of 2-4 percent. F o r m o r e o f t h e R e u t e r s s t o r y : www.reuters.com CANAdiAN PACifiC RAilWAy To CUT 1000 WoRkERS Canadian Pacific Railway, which posted record profits and revenue last year, says it plans to eliminate 1,000 po- sitions and cut spending by $279 million in 2016 as it adjusts to lower shipment volumes and falling commodity prices. The company said most of the cuts to union and management positions will result from attrition and kick in by mid-year. Since 2012, the railway has cut 6,000 to 7,000 positions. CP made the announcement on a con- ference call after releasing its fourth- quarter and year-end results. The railway says it had $6.71 billion in revenue and $1.35 billion in net income in 2015, though that still fell below ana - lyst expectations. CP has cut 6,000 to 7,000 positions since 2012. The company has cut 12 percent of its workforce in the past year and currently employs 12,800 people in its Canadian and U.S. operations. The railway had $4.69 billion in revenue and $US94 million in net income in 2015, which is below analyst expectations. For more of the Huffington Post story: www.huffingtonpost.ca EvERgREEN gRoUP foUNdER diES AT 88 Chang Yung-fa, the billionaire founder of Evergreen Group who transformed a second-hand bulk carrier into Asia's largest container line, died on Jan. 20. He was 88. Chang, the son of a mariner, started building his business almost fifty years ago by buying a used bulk vessel and became one of Taiwan's richest people. He was chairman of Evergreen Group, which owns Asia's largest container fleet Evergreen Marine; EVA Airways Corp., the island's largest airline by market value; Evergreen Sky Catering, an air - line-catering company; and Evergreen International Hotels. Chang has a fortune of at least $1 billion, according to the Bloomberg Bil- lionaires Index. "The oceans and ships occupy very important places in my life," Chang wrote in his autobiography, pub- lished in 1997. The tycoon called himself "a natural-born son of the ocean." Chang started working as a clerk for a Japanese shipping company as a teen- ager while attending night school and went on to spend 15 years as a sailor, rising to the rank of captain, according to his memoirs. Evergreen Marine, the company that began his business empire, was estab- lished in 1968 with a used bulk vessel. It then expanded into an operator of more than 190 ships, according to Alphaliner. For more of the Bloomberg story: www.bloomberg.com dSv CloSES ACqUiSiTioN of UTi WoRldWidE The DSV Group has finalized its acqui- sition of U.S.-based UTi Worldwide Inc. for approximately $1.35 billion. UTi is a global supply chain services and logistics company with 21,000 em- ployees in 58 countries. The combined company will be one of the world's stron- gest transport and logistics networks "We are proud to welcome custom- ers and employees of UTi to DSV," said CEO Jens Bjørn Andersen. "We will now commence the integration process while taking care to maintain a high service level towards all customers. As we move forward, the commercial activities of DSV and UTi will continue under the DSV brand." Headquartered in California, UTi is a global, asset-light supply chain services and logistics company with estimated annual revenue of $3.5 billion. UTi offers complete supply chain services and solu - tions, including air, ocean, distribution, customs brokerage and contract logistics. DSV is a Danish transport and logistics company offering transport services worldwide by road, air, sea and train. ChiNA'S MARiTiME ECoNoMy UP 7 PERCENT iN 2015 China's maritime economy is expected to have generated almost $988 billion in 2015, a 7 percent year-over-year increase, according to the State Oceanic Administration (SOA). The maritime economy has become an important aspect of the national economy, with its total production value growing by an average 8.1 percent annu- ally from 2011 to 2015, said SOA direc-