World trade is recovering at a faster-than-expected rate but the shipping sector will experience more volatility ahead.
This was the forecast made by Wei Jiafu, president of China Ocean Shipping (COSCO Group), the second-largest shipping company in the world.
Speaking at the World Shipping (China) Summit, Wei said, "Given the sophisticated global economic environment, cyclical turbulence will become more obvious, while volatility will grow more dramatically." The market will also face challenges from clients’ increasing concern over clean and green transportation, and enterprises will have to be more flexible.
According to the World Trade Organization, global trade will increase 13.5% this year, the biggest year-on-year increase since 1950, following a faster-than-expected recovery in trade flows.
Despite this, Wei said the excess freight capacity created as newly built ships are delivered to owners will cause problems.
English People’s Daily Online reported Wei as saying, "New deliveries and over-capacity are hurting the recovery of shipping."
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