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CSCL to spend 3.5b yuan on fleet

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New ships and containers are needed to meet strong demand, says executive

China Shipping Container Lines (CSCL) will spend 3.5 billion yuan this year to expand capacity as the international cargo transport business remains robust.

General manager Jia Hongxiang said the company would spend 85 per cent of the money on buying new vessels and the remainder on containers.

'[This] will be a good year for the container shipping industry,' Mr Jia said yesterday, adding freight rates would increase 5 per cent to 6 per cent from last year.

The rapid growth of China's exports and imports has fuelled international trade. According to the Ministry of Commerce, mainland trade grew about 39 per cent to more than US$522.97 billion in the first six months of last year.

CSCL said cargo volume in trade between Asia and the US rose a comparative 36 per cent last year, while freight rates climbed 8.7 per cent. The route to Europe and the Middle East saw cargo volumes jump 57 per cent as freight rates rose 13.7 per cent, Mr Jia said.

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