The head of maritime operating giant China Shipping says broad industry indicators suggest the ocean container market will improve in the second half of 2009.
Li Shaode, president of Shanghai-based China Shipping Group, said measures such as the Baltic Dry Index for dry bulk prices suggest improvement at the basic commodity level that will feed more shipping in coming months. The BDI has grown haltingly this year after a steep falloff of more than 80 percent in the last three months of 2008.
"I think this indicates that the market is turning up," Li said Wednesday in New York, where he was inducted into the International Maritime Hall of Fame.
He said falling inventories in the first quarter suggest retailers and manufacturers will have to replenish stocks later this year, raising hopes of improvements in the faltering container shipping business.
"Regarding container shipping, it will take some time to recover," he said.
"There is a great imbalance between supply and demand. Too many ships are coming into the market. The container market in the second half will be better than in the first half."
Source: PTI online