China Cosco confident of container rate increase

The president of China COSCO Holdings (601919.SH, 1919.HK), the country’s largest container ship operator, said he is optimistic that the company’s attempts to win a US$800 per 40-foot container rate increase will be successful, Bloomberg reported. "I’m full of confidence," said COSCO President Zhang Liang on March 12 in Beijing. "The full recovery has yet to come but we are on the road to recovery." Shipping rates have risen this year after price wars caused industry-wide losses last year. COSCO may also begin to buy new or second-hand vessels this year to take advantage of low prices, Zhang said. However, he also said that COSCO may delay some ship orders to ensure "sustainable" fleet development.