Despite recent changes in the global shipping industry, including the restructuring of major alliances and the rise of MSC as a standalone operator, Cosco Shipping Holdings (CSH) plans to continue expanding its capacity and improving service quality, reports Loadstar.
Supply Chain Resilience
At an extraordinary general meeting, CSH vice-chairman Chen Yangfan said the Ocean Alliance, comprising Cosco and OOCL, Evergreen, and CMA CGM, had 4.82m teu of fleet capacity and 480 sets of direct port-to-port services. This, he said, could meet expectations regarding supply chain resilience, safety, cost and other aspects.
Mr Yu said: “Having the scale and reliability is important, as Donald Trump’s second tenure as US president is expected to bring short-term fluctuations and structural changes in the medium to long term. In the short term, there may be an export rush from China as shippers dash to beat the imposition of expected tariffs.”
Precautionary Measures
Mr Trump was likely to impose protectionist measures and Chinese manufacturing could see a further shift to South-east Asia, Mexico and other emerging economies, he added.
Mr Yu continued: “But trade between China and Europe, China and Japan and China and South Korea may usher in new opportunities.”
During the EGM, Cosco’s directors approved plans to order another 12 13,000 teu methanol dual-fuelled containerships, following a recent commission for 18 similar vessels. These are likely to be assigned to Cosco’s Far East-South America services, which the Chinese carrier jointly operates with CMA CGM, Pacific International Lines and Evergreen.
Addressing concerns about overcapacity, Mr Yu said newbuilding deliveries in 2024 and 2025 would account for 10% and 5% of global capacity, respectively. He said: “Capacity growth has slowed down, as new shipping supply was digested by about 5% to 6% due to the detours round the Cape of Good Hope, and environmental protection compliance will lead to reduced sailing speeds, and demolition of old ships…”
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Source: The Loadstar
