--FILE--A truck transports a container of COSCO on a quay at the Port of Rizhao in Rizhao city, east Chinas Shandong province, 3 May 2014. The head of China's largest state-run shipping group expects the world's shipping industry will remain in a downturn in the next two years, weighed by persistent overcapacity and weak demand. Ma Zehua, chairman of China Ocean Shipping (Group) Co., said Wednesday (5 November 2014) in an interview that outlook for the shipping industry, a key barometer for global economic health, will remain challenging despite a gradual economic recovery in the U.S. and the easing European debt crisis. "There are many speculative investments in the market with shipowners and leasing firms making orders for new ships, " said Mr. Ma. He said existing orders for new ships from all shipping companies have exceeded 10% of the current global fleet, which is already in excess, suggesting a flux of shipping capacity would continue to put pressure on freight rates.
