A leading shipping line executive is warning of the prospect of overcapacity returning to cargo transport companies.

Hapag-Lloyd CEO Ralf Habben Jansen said he believes a large newbuilding program, easing congestion and declining demand will start to impact the sector in the coming months.

With the orderbook at 25 percent of the global fleet, there is the prospect of oversupply in certain trades in the short to medium term, he told journalists.