China shipping up 4% to win high praise

Earlier in April, China Sea freight, which has been raised by one-fold on major routes such as Asia-Europe and Trans-Pacific, was significantly better under the latest tariff hike, with H shares now up 4.29% to 2.19 Hong Kong dollars, winning the same trade and trading 134 million shares. China Shipping A Shares (601866-CN) is also rising 3.17% to 4.56 yuan. Huang Xiaowen, managing director of the company, recently said although demand is still weak, it plans to increase the 20-foot container transport price for Europe and Asia by up to $300 a month from July 1, increasing the freight rate of 300 U.S. dollars per unit of the Asia-South American route, as well as rates for the Middle East, Australia and Mediterranean routes.　　He also said he plans to cut 20,000 TEU (standard box) capacity this year. According to data, shipping company's busiest season began on July 1, as European and American retailers began to increase their inventories for students to return to school and holiday consumption, Li Shaode, chairman of CSCL, said the peak would be very short.　　Huang Xiaowen also said the increase was not due to a market recovery, but because shipping companies were determined to do so, and found that if the rates were lowered, the delivery rate would not rise.　　On the BDI side, the latest BDI reported 3,073 points, nearly one times higher than the 1574 points in early April. Goldman Sachs followed up with a comment saying it proposed to buy CSCL for HK $2.7. Refers to the increase in freight good performance of the stock, because the market is not high prospects for its freight, and the 10 annual market rate of 0.7 times times, compared to the industry average 1 time times the low level, the valuation attracted.