China Cosco Holdings Co., Asia’s largest shipping company by market value, said lines needs to stay “level-headed” to prevent a capacity glut from overwhelming a rebound in cargo demand.
China Cosco and China Shipping Container Lines Co. both said today they won’t order any new vessels this year as shipyards works through box-ship backlogs with a combined capacity equal to about a quarter of the existing fleet.
Transpacific container rates have risen as much as 37 percent from June to $2,600 for a 40-foot equivalent box, said China Shipping Container Managing Director Huang Xiaowen.