Weaker demand from a slower-growing Chinese economy is putting the global freight industry through rough waters, but for Singapore-basedIMC Pan Asia Alliance Group, there’s a bright side to this downturn.
“Actually, [the slowdown] is good because such cycles can clean up those crazy people who do not belong to the industry,” Chavalit Frederick Tsao, chairman of the privately-owned conglomerate with its roots in shipping.
“They will realize there’s no easy money to make and they will stay away. The more educated [industry] players [become], the more stable the industry will be [but] with more opportunistic people, the industry is going to be [worse off],” he added.
According to the 58-year-old, the company’s shipping and logistics business in China is still holding up despite mounting concerns about the world’s second-biggest economy amid wild gyrations in its stock markets.
“China is actually doing better than anywhere else. Our ports, shipyards, logistics are all doing well and [remain] profitable,” said the fourth-generation leader who took over the helm of the family business 20 years ago.