Chongqing: The chairman of Cosco Group, Ma Zehua, has warned the shipping slump is likely to continue for another two years. Speaking at the Cosco-organised World Shipping Summit, which this year has moved inland for the first time to the Yangtze city of Chongqing, Ma said: "I don't think the market will recover within the next two years. There are a lot of newbuilding orders, which means the chances of the supply-demand imbalance improving soon are small."
Ma said Cosco was now focusing on cost control, securing long-term customers and expanding in emerging markets, such as South America and the Middle East.
With shipping lines unlikely to be able to raise rates, the differentiator between success and failure in the coming couple of years, Ma said, would be in controlling costs.
"Everyone will compete on costs, because improving income is very difficult, if you want to increase the freight rate it's tough, it's not possible, the only way is to control costs," Ma said. [05/11/14]