Chairman Wan Hai is optimistic about the marine market
Chen Boting, Chairman of Wanhai, believes that the freight market will improve in the middle of 23 years, when the worries about the Ukrainian war and the novel coronavirus epidemic will be eased.
Since the middle of the year, the freight rate has dropped from the historical high and is expected to reach the low level before Covid-19's listing in 2020.
Chen said, "On the whole, things are not as bad as many people think. Today's situation is not as bad as the global financial crisis in 2008. It is the end of the year. Employees are considering bonuses, but we will do our best."
At a community event, Chen pointed out that the global economy is affected by three factors.
The first is the huge cost caused by inflation, because it will restrain the growth of consumption and lead to the decline of container freight volume. The second factor is psychological expectation, and the third factor is structural problems caused by geopolitics and epidemic prevention policies.
Chen mentioned psychological factors. Supply chain bottlenecks led to the rise of emerging industries such as Uber Freight, which led to crowding out effect and caused a shortage of manpower in the manufacturing chain. However, Chen believes that overcapacity can be adjusted in the next six to twelve months.
Chen believes that as more economies are opening up, people are accustomed to the impact of conflict, and concerns about the Russian Ukrainian conflict and epidemic prevention should be eased in 2023.
At the same event, Tommy Hsieh, general manager of Wanhai, said that half of the company's revenue from trans Pacific routes came from long-term shipping contracts.
Tommy Hsieh said, "There is no doubt that the fourth quarter of this year will be profitable. As for the market situation next year, we still need to observe, and it is expected that there will be no loss."