Global shipping firms must prepare for another tough year as a glut in global capacity will continue to weigh on profits and margins, the chairman of China’s biggest shipping group, China Ocean Shipping Group Co. (COSCO) said.
“The industry turnaround will still take a long time,” Ma Zehua told Reuters in an interview recently. “There are a lot of challenges ahead.”
While the outlook for the shipping industry is improving, excess capacity remains a big headache. According to a recent transport sector survey by international law firm Norton Rose Fulbright, 40 percent of those polled cited overcapacity as the biggest threat to recovery in the industry.