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Agos/04/2015 - 20:00:50

China's Economy Adds New Threat to Container Shipping Demand - Wall Street Journal

"There are generally far way also many ships with the minute trying to find inadequate cargo," Mr. Møller-Maersk




Aug. ET

A/S, parent or guardian regarding Maersk Line, the actual largest container shipping line, reports earnings subsequent week.

Many analysts get adopted any bleak outlook with regard to container shipping. Which may become the equivalent associated with getting rid of 1.85 million 20-foot equivalent units, or perhaps 1% involving world-wide container traffic, coming from ocean trade lanes.

The consulting and analysis firm lowered its forecast with regard to containers relocating via ports in China and Hong Kong to develop by 4.9% this year, via 5.8% inside an earlier outlook. Giant new vessels effective at carrying about 20,000 TEUs tend to be hitting the market whilst global volumes underwhelm. 3, 2015 1:00 p.m. "That's unfortunately a scenario the particular market will probably be plagued using for a number of years."

write for you to Brian Baskin in [email protected]


Container-shipping lines, currently involved regarding demand from struggling economies in Europe and lots of emerging markets, can also add China for their list of problems, according to a fresh document through Drewry shipping Consultants Ltd. A New relatively strong U.S. economy can be helping offset weakness throughout Europe and also emerging markets.

Hong Kong offers seen 12 straight weeks of year-over-year declines inside container volumes, although a few of the exercise has shifted in order to ports about the mainland.

"For shipping lines, any kind of decrease isn't particularly excellent as associated with this moment," he said, adding that will "in the actual grand scheme regarding's a new danger nevertheless a new little one."

Despite warnings in which too much capacity as well as weak demand are generally putting downward pressure on rates, a number of the largest shipping and delivery lines still document strong results.

China's economy has been steadily slowing regarding several years, however indicators of the sharper downturn are generally piling up.Manufacturing activity in China fell into a two-year low throughout July according to information reported Monday throughout Beijing, and also economists the country's stock-market rout could sap consumer and enterprise confidence. Japanese shipping lines final month reported strong profits, assisted partly by a weak yen. but container shipping and delivery lines are in pertaining to several pain as well, given that China along with Hong Kong represent with regards to 30% regarding global container traffic, Drewry says. A.P.

Dry bulk transport may be most difficult hit as Chinese factories cut back again about imports associated with iron ore along with other commodities.

One mitigating factor: China's slowing economy will have a greater effect about incoming traffic, which is way much less lucrative with regard to shipping lines as compared to about outbound containers, mentioned Simon Heaney, senior manager associated with supply chain study from Drewry. Heaney said

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