Japan Rebuilding May Spur Dry-Bulk, Ease Global Overcapacity
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Reconstruction in Japan following a tsunami and earthquake that destroyed or damaged more than 150,000 buildings may boost volumes for dry-bulk shipping lines struggling with global overcapacity.
“The rebuilding process will need big volumes of material,” Wei Jiafu, chairman of China Cosco (Holdings) Co., China’s biggest dry-bulk operator, said yesterday in Hong Kong at an earnings press conference. In the short term, the industry faces “severe challenges” because of the increasing size of the global fleet, he said.