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.
Together with three other shipyards, Titan Petrochemicals has entered into a new joint venture in Shanghai. The company will serve as a leading service company for the Asian vessel industry, is the ambition.
An engine factory will strengthen and upscale Wärtsilä's position as supplier of engines for the Chinese shipbuilding industry. In spite of the yards being under pressure, the supplier eyes a big market for, in particular, vessels for Chinese companies, says James Han, managing director of Wärtsilä China, to ShippingWatch.
China plans to invest close to USD 300 billion in motor and waterways in 2017, informs the country's Ministry of Transport. China stocks soared as investors bet on state-backed builders after the government's announcement.
Overseas shipments dropped by 10 percent in September, significantly below expectations. China is kept alive by a housing bubble and massive state-funded stimuli, according to the head of financial markets research at Rabobank in Hong Kong.
After a minor setback in 2015, global steel demand is expected to grow in 2016 and 2017, according to new numbers from the World Steel Association. This is positive for dry bulk carriers, but the steel market still faces challenges from weak global investing.
According to the Wall Street Journal, China's two largest state-owned shipping groups are planning to merge 11 shipbuilding yards, involving around 25,000 employees, during a period in which the order intake is hovering at record lows.
Chinese ports have less work and are suffering from factors including a large reduction in container exports out of China. The ports should not get their hopes up for a return to the good old days, reports Financial Times.
The Australian mining company estimates that China's steel production will peak in the mid-2020s. But this will be the "end of the beginning" for China's growth, notes BHP, and not the beginning of the end.
China's role as the global growth engine driving prosperity was a one-off affair, says Carsten Wiebers, head of maritime business for German KfW IPEX-Bank. For world trade to take off, the world's poorest need a bigger share of global wealth, he says.
New major Chinese container carrier China Cosco Shipping Corporation has reached a financing deal for no less than 50 vessels. The country's China Exim Bank will put up the many billion of dollars needed for the purchase.
Mining companies, banks and analyst agencies can all find encouragement in the most recent numbers from China's commodity imports, which mar the first time in a long while that there are good signs for especially the dry bulk market.
New legislation in China is good news for the struggling bulk sector, which can look forward to growing coal imports from the growth driver in light of limits on the country's own production. The scope of the coal import, however, hinges on numerous uncertainties, Alphabulk writes.
Out of China's total 300 active shipbuilders, just 51 hold almost 97 percent of all new orders to the country's shipbuilding industry. The Chinese yards received 83 percent more newbuilding orders in the first five months of the year.
Shipbuilders in China are hungry since the bulk market is lifeless, while there is still a pulse in the feeder segment when it comes to container, says Thomas Eefsen, Business Development Director at Odense Maritime Technology, to ShippingWatch. "But not much more than a pulse," he adds.