Cosco chief sees good times ahead as US and Europe recovers

Time:2010-09-16 Browse:41 Author:RISINGSUN

ASIA`s biggest shipping line, China Cosco, anticipates a "good year" in 2011 as consumer spending rebounds in the United States and the European Union, according to company chairman Wei Jiafu.

"Next year will be a good year. People have money but they have been reluctant to spend it," Mr Wei told Bloomberg in Tianjin. "Everyone will think it`s a good time to invest."


While attending the World Economic Forum, Mr Wei said the coming fourth quarter will probably be the peak season for container shipping and commodity freight rates will climb for a second straight year in 2011.


But Bloomberg also noted that Wei`s optimism contrasted with AP Moeller-Maersk, the world`s largest container line, which said last week that shipping companies may be forced to cut capacity from the fourth quarter because of slowing demand.


To which Mr Wei`s only concession was that container shipping demand growth will slow in the fourth quarter compared with the first half because of the high volumes carried in the final three months of last year. There will be growth, though," he said.


Mr Wei also noted that the Baltic Dry Index, a measure of rates for carrying iron ore, coal and other commodities, will likely average 3,000 this year and a higher amount next. It averaged 2,617 last year.