Chinese shipping giants are signing long contracts and rejigging their networks, as they hedge against prolonged disruptions to global trade routes
China’s shipping giants are bracing for a harsh new reality of persistent global volatility, as the closure of the Strait of Hormuz shifts from being a problem of transit delays to a hard volume shock.
The company currently bypasses the chokepoint using longer routes that require the use of several vessels or multiple modes of transport.
In a briefing with investors early last month, the firm’s general manager, Tao Weidong, played down the financial blow dealt by the war, noting that Middle East routes account for a relatively small portion of Cosco Shipping Holdings’ total revenue.
“The company is not currently considering resuming passage through the Strait of Hormuz,” Tao said, adding they remained on high alert.
Source: News - South China Morning Post
