From Bloomberg News
Oct. 23 (Bloomberg) -- Mitsui O.S.K. Lines Ltd., the world’s largest shipping line by fleet size, said its container unit may be unprofitable for two more years as rising global capacity and slowing world trade damps rates.
The unit will make a loss in the year ending March 2011, Executive Vice President Masakazu Yakushiji said in an interview in Tokyo yesterday. It may be able to return to profit the following year if rates rise, he added.
Back in January, I predicted the U.S. would be in a recession until 2011.
I think that is still fairly accurate, and apparently the same holds true
for container carriers.
I liked this quote
Shipping lines can only “lose less by doing less,” said Johnson Leung, a Hong Kong-based analyst at Tufton Oceanic Ltd., the world’s largest shipping hedge-fund group. “Oversupply is not something you can solve in a year.”
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1 comment:
And after a year or two, what is it that is going to end the recession?
Increased worldwide production? Increased world trade of what kind of goods?
With the real or approaching depletion of most raw materials what is the "new economy" going to be built on?
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