China’s Currency Devaluation Good for Shipping

Aiswarya Lakshmi
Monday, August 17, 2015

 The depreciation of the Chinese currency will help both international and domestic shipping operators in the region that have been stuggling of late with growing costs and rising competition, says Maersk.

Xinhua quoted Tim Smith, chairman of Maersk China and chief representative of Maersk Group North Asia sa saying that the business prospects in China despite the global trade downturn and question marks over the impact of the recent weakening of the yuan.
He also called the devaluation of the yuan an "overall a good thing."
"Trade is a two-way business, however, and in the short term the depreciation of the yuan will affect China's import volumes," said Tim
The group's revenue in China has roughly doubled since 2009, which is the biggest origin market for its container shipping business, he said.
He also revealed his company is looking to order more vessels from Chinese shipbuilders, among "various options in China right now", part of wider plans to be announced next week to change capacities on some of its Asia-Europe routes.
China is Maersk's largest source of cargo. The firm controls 15 percent of the country's shipping capacity, spending $2 billion each year on equipment and other production materials, he said.
Business in the country is continuing to flourish, and Maersk sees opportunities as the economy moves toward consumption and service-led growth, as well as in the Belt and Road regional trade and infrastructure network proposed by China, he said. "China is big, and important, and that will continue to be the case in future," he added.
Categories: Finance Logistics People & Company News Vessels

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