China's Cosco sees shipping slump persisting for next 2 years: chairman

[CHONGQING] The global shipping market is unlikely to see a recovery in the next two years due to continuing oversupply of vessels, the chairman of China's largest shipping group said on Wednesday.

Ma Zehua, the chairman of China Ocean Shipping Group (Cosco), told reporters on the sidelines of a conference in Chongqing that the firm was focusing on cost control, securing long-term customers and expanding in emerging markets, such as South America and the Middle East, to counter the slump.

As part of a recently-announced government push to reform the country's shipping industry, the company will also soon announce partnerships with other large Chinese firms, he said, but declined to provide details.

Cosco Group is one of China's largest government-controlled conglomerates, and is the juggernaut of the country's shipping industry. It controls more than 800 vessels which cover more than 1,600 ports, and manages six listed firms including China Cosco and Cosco Corporation.

REUTERS