High-priced shipping low value goods

Recently, executives of COSCO Shipping Co. said: "The pressure on the industry's transportation capacity is very high, and it is impossible to raise the price. Some companies may even want to use Mercedes-Benz to fight taxis in order to survive and even get high-value ships to transport low-value goods." In the recovery of the shipping industry, COSCO Shipping is generally expected to wait until 2015. It is expected that the company will advance ahead of the industry in 2015.

High-priced shipping low value goods

The financial crisis has brought continuing pains to the entire shipping industry. Especially last year, the entire industry faced a more serious situation than before. In the past year, COSCO Shipping has maintained its previous profitability with the special shipping transportation segmentation market. According to the 2012 annual report, the company achieved operating income of 6.3 billion yuan, an increase of 22.11% year-on-year; net profit of 19.15 million yuan, a year-on-year decrease of 87.39%.

After the conclusion of the COSCO Shipping Shareholders' Meeting yesterday, Tan Li, general manager of the company's strategic development department, admitted to the reporter: “The entire industry is facing a lot of pressure in terms of capacity and serious overcapacity.”

"It is now that the tariffs are not going to raise prices. It is not easy to maintain the tariffs." Tan Li said: "The market demand has dropped, the capacity is surplus, and for example, some companies have even lower prices for high-priced shipping in order to survive. Goods, like taking Mercedes to do a taxi." Tan Li revealed that this year's entire freight rate fell significantly.

Industry may recover after two years

Although the excess capacity has become a consensus, the low-end game still makes some shipping companies keen to expand the fleet and buy ships. Tan Li said that COSCO Shipping will look at the market's control capabilities and make modest adjustments in some market segments.

The current market's greatest concern is when the shipping market will survive this downturn. After the outbreak of the financial crisis, the entire international shipping industry has been at a low level for five consecutive years. Tan Li believes that if the neutrality is optimistic, the entire industry will recover by 2015, and some companies that are even worse will have to wait until 2016 and 2017. "At present, the entire industry cycle is different from the traditional cycle. It is expected that the entire industry will not be ups and downs in the next five years."

For the future performance of COSCO Shipping Co., Tan Li seems more confident: the company will advance ahead of the industry in advance in 2015. “Although the current container and bulk cargo business has been squeezed, 60% to 70% of the company's capacity is mainly concentrated on multi-purpose heavy-lift vessels. In the next five-year strategy, the company will move from traditional transportation services to equipment and offshore engineering. , wind power transportation and other aspects to make adjustments."

In addition, Tan Li said that about 30% of the company's capacity is concentrated in special ships, which is expected to see a semi-submersible ship business in 2014 and 2015, a relatively good trend.