Global shopping market overcapacity to be absorbed in 2-3 years, predicts Chinese Ministry of Transport official, adding that improving US economy, UK demand for staples should boost shipping in 2013

BEIJING , March 6, 2013 () – It would take another two to three years to absorb the surplus capacity in the shipping market, said Xu Zuyuan, vice minister with China's Ministry of Transport on Wednesday.

The shipping industry has been in the downturn of business for quite long time since international financial crises in 2007.

The shipping market would have better performance in 2013 than 2012 due to improvement in American economy and continuing European demand on staples, said Li Shaode, chairman with China Shipping (Group) Company.

Li noted that container shipping business would recovery ahead of bulk shipping business on China's relatively steady iron ore demand and the severe overcapacity of bulk cargo ships. (Edited by Liu Yanan, liuyn@xinhua.org)
(c) 2013 Xinhua News Agency

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