Over-capacity in the global container ship market will continue to provide a drain on profit growth in 2013, according to Danish shipping group Maersk Line's chief executive for North Asia Tim Smith.
On CNBC's Asia 'Squawk Box' on Monday, Smith warned capacity issues in the global container market would continue to put downward pressure on industry participants this year.
"This year there should be 10 to 11 percent more capacity coming in from the ship yards. As we expect 4 to 5 percent demand growth, we still need to bridge that gap. We need to carefully monitor supply and demand and take ships out if they are not needed," he added.
The cautious comments come even as the world's largest container shipper reported last month a profit of $461 million for 2012, on cost cuts and improving demand. Its parent company Maersk Group, which also operates oil and gas interests, reported a net profit of $4 billion for the full year, better than the $3.7 billion it forecast in November.