China coastal shipping suffers from overcapacity and high yuan

ABOUT 30 per cent of China's coastal shipping companies are suffering losses because of overcapacity and rising fuel prices, with inland shipping companies suffering worse with losses of up to 40 per cent.


Rising oil prices and labour costs rise have driven demand down for cabotage, said China's vice president for transport Xu Zuyan despite a first quarter increase in capacity of 2.08 billion tons, 14.3 per cent increase year on year.


China Container Line general manager Zhang Zuohai said that with European and US companies outsourcing from India and Vietnam, "we are at the edge of loss since exports decreased with yuan's appreciation," reported American Shipper.
(Source:http://www.schednet.com)