Cosco boss sees V-shaped downturn - 'much better next year'

RISING transpacific freight rates will hold as demand grows, a cheerful Cosco chief executive Wei Jiafu told reporters on the sidelines of the US National Press Club in Washington, DC even where he was to speak.

Mr Wei said he believed in a V-shaped recession. "I believe the worst of the global financial crisis is past," he said. "It's really over. Next year will be much better than this year."

Rate setting is going well, he said. "Since June, we've raised rates several times, but still not enough," he said, adding that overcapacity is an "issue that cannot be avoided" in rate negotiations.

Nonetheless, Mr Wei believes higher rates will be sustained as demand rises and capacity shrinks. "We need collaboration between shippers and shipowners to look to protect the long-term interest of the shipping industry," he said.

(Source: www.schednet.com)