THE global shipping market is unlikely to see a recovery during the next two years as it grapples with an oversupply of vessels, the chairman of China’s largest shipping group said yesterday.

    The sector has been battling overcapacity since the 2008 financial crisis because new vessels ordered before the downturn have flooded the market, dragging down rates and hitting Chinese shipbuilders hard.

    Ma Zehua, the chairman of China Ocean Shipping Group (COSCO), told reporters on the sidelines of a conference in Chongqing that the firm was focusing on cost control, securing long-term customers and expanding in emerging markets, such as South America and the Middle East, to counter the slump.

    “I don’t think the market will recover within the next two years,” he said. “There are a lot of new building orders, which means the chances of the supply-demand imbalance improving soon are small.”

    COSCO Group is one of China’s largest government-controlled conglomerates and is the juggernaut of its shipping industry. It controls more than 800 vessels and manages six listed firms, including China COSCO Holdings and COSCO Corp.

    China COSCO, the group’s flagship firm, narrowly escaped delisting by selling off assets when it posted a narrow profit in 2013, after two consecutive years of losses. Three straight years of losses can trigger delisting from the Shanghai bourse. (SD-Agencies)