COSCO sees recovery in shipping demand

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Nov 2009

Shipping demand has recovered as the global economy has come through the worst of the downturn, the head of the world's largest dry bulk ship operator said on Monday. Wei Jiafu, president and chief executive of China Ocean Shipping Group (COSCO), described the ups and downs in the Baltic Exchange's main sea freight index, the Baltic Dry Index, as quite natural.
The index, which tracks rates to ship dry commodities, had recovered to 3,974 by the end of last week from a 2009 low of 772, but remains well below last year's record high of 11,793.
Asked if the index indicated that shipping demand was weak, Wei said: "There is big demand. It's normal in the short run to have challenges, up and down, up and down, but demand has recovered."
Wei was speaking to reporters on the sidelines of a China-European Union business summit in this eastern city.
"There is some overcapacity in containers, but relatively speaking, freight volumes are too low. We need the U.S. and Europe to buy more Chinese goods," he added.
"I was in the United States recently and I told them that they were too unfair to their children last Christmas. They need to buy more for them," Wei joked.
COSCO Group is the parent company of China's largest shipping conglomerate, China Cosco, Chinese shipbuilder Cosco and COSCO Pacific the world's fifth-largest port operator.

Source: Reuters