Ma Zehua: Cost control is the only way to improve earnings


World Shipping (China) Summit 2014 is being held in Nov. 5-7 in Chongqing with the theme of "adapting to new norms".Now it firmly stands as the World's largest top-level shipping conference, enjoying a reputation as the "Davos" of the shipping industry.

Cosco's chairman Mr. Ma Zehua, addressed in the summit that, he believed that shipping market cannot recover in two years. New building orders are still large recently, which means that the improvement of imbalance between demand and supply is impossible in short term.

In recent three years, the freight rate of container liners has shown downtrend. Data from Maersk, in the past five years, the average rate per year drop by 1.5%~2%. The rate is decided by demand and supply of the market and its trend depends on the market.

He said that COSCO focus on cost control and establish long-term partners. It has developed emerging market such as expansion of South America and Central east. In the recent future, the shipping enterprises are impossibily improve of rate, so the main factor to influence success and failing of shipping enterprises is controlling cost. It is difficult to improve earnings. If the company want to increase the freight rate only, it is unpractical. The only solution is control cost.

Source from : CNSS