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Tag Archives: ship owners

Trying to Read the Tea Leaves: What Will Be China’s Long-term Influence on the International Shipping Industry?

05 Thursday Mar 2015

Posted by Angela Chao in Dry bulk shipping

≈ 3 Comments

Tags

BDI improving, bulk cargo shipping, Chinese economy, Chinese steel consumption, international shipping market, ship owners

A Wide Lens View

US dollar versus China Yuan - Impact on international shipping industryThe BDI is improving, coming off its 30-year low of 509 points in mid-February to land at 540 points at the end of the month. But, bulk cargo shipping owners are hurting due to spot earnings covering only between one-third and one-half of their daily costs. The pain is felt even by those whose vessels are paid for, as they still need the capital to protect against negative cash flow. This depression may mean cheaper vessels, but a cash balance that remains at a deficit really has no redeeming features. Tankers are faring a bit better due a more balanced supply and demand ratio, but the improvement has resulted in unnecessary ordering, as well as switching orders from dry to wet cargo tanker vessels.

China’s Influence

Approximately 15 years ago, China surpassed Japan as the leading influencer of the international shipping market. Previously, it was Japanese productivity, especially during the 1980s, which spurred growth in the bulk carrier and tanker industry, as Japan imported raw materials not available domestically to build a thriving manufacturing sector. These same container ships and tankers carried Japanese product to ports far and wide, thus cultivating a strong service and delivery-oriented shipping industry, along with a strong employment base. Continue reading →

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About Me

Angela Chao
Chairman and C.E.O. of Foremost Group, a leading shipping and trading enterprise, Angela Chao is an active businesswoman who serves on several boards and loves to volunteer. Angela comes from a loving and supportive family of Chinese descent. The Chao family dedicate themselves to serving and contributing to society.

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Recent Posts

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