Growth in the dry bulk market is surprisingly strong and driven by Chinese appetite for iron ore as well as the large Capesize vessels, assesses JP Morgan ahead of the release of many third quarter reports.
The container market is behaving significantly different than usual this year in relation to China's Golden Week. There are far fewer blank sailings than usual, and rates have plunged since this summer.
China's escalating acquisition of ports and carriers is a sign of its commitment to its political vision of becoming a maritime superpower, prompting concern among European carriers, which have allegedly called for political attention to the matter – both nationally and within the EU. Next week's meeting of the Box Club will no doubt also revolve around the issue.
Chinese authorities have designated more ports as being in special zones where ships are required to use low sulfur fuel, and the country weighs tightening the sulfur emission limits even further starting in 2018, reports Seatrade Global.
China Petroleum & Chemical Corp., the world's top oil refiner, will process about 1 million metric tons a month less than previously projected for the period June to August. This comes alongside OPEC's weakened resolve to maintain output costs.
Cosco Shipping Group plans to launch a large financing fund for targeted investments in shipping. The fund will be split into a yuan fund and a dollar fund and will focus on, among other things, struggling companies.
Chinese plans for a brand new megacity spells good news for bulk carriers which transport iron ore, aluminum, and copper. In a new analysis, Wood Mackenzie projects a surge in demand for metals for construction.
Dry bulk carriers should not pin their hopes on the current boom in China's economy. Stimuli from fiscal policy were the drivers of increased demand and now it seems the country's government will try and slow down the housing market, two analysts tell ShippingWatch.
Clarksons Platou expects more stable rates and gradually growing confidence in the dry bulk market. The firm thus says 'buy' to dry bulk shares rather than viewing the shares as candidates for selling.
China's political leadership is guiding the country's economy onto a new, slower track. The goal is for domestic consumption to play a bigger part in the economy, whereas growth was previously based on export and investment.
Several container carriers have received penalties in China for failing to provide correct information about their freight rates to the Chinese ministry of transports. The carriers fined include CMA CGM and Hamburg Süd. But the size of the fine is fairly modest.
A new port in Angola in West Africa is financed by a major Chinese loan and being built by a Chinese company. The first phase is expected done in late 2017 and will feature a repair yard and a free trade zone.