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Friday, 19 March 2010 |
 Container lines will 'absolutely' win targeted rate increases on Asia-US routes this year because of capacity cuts and rising US consumer spending, according to Goldman Sachs Group Inc.
'US and Europe consumers are not feeling as bad as a year ago' Goldman
analyst Tom Kim said at a shipping conference on Tuesday. 'The volumes
are still there. The demand is picking up.'
China Cosco Holdings Co and 14 other shipping lines have agreed to seek
an US$800 rate increase in year-long contracts starting around May after
price wars and over-capacity caused industry-wide losses in 2009. The
push comes alongside a jump in US and European container traffic as
consumers boost spending on electronics and furniture amid easing job
concerns. 'We will probably see rate increases this year and next year,'
Mr Kim said. Lines will 'absolutely' achieve the US$800 target, he
said.
China Ocean Shipping (Group) Co, parent of China Cosco, the nation's
largest container line, will likely make a profit in the first quarter
and for the full year, executive vice-president Zhang Fusheng said on
March 5.
Source: Bloomberg
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