From Evergrande to Net Zero
Bulker Owners Have Much to Consider….Tell Us What You Think
Bulk carrier owners have enjoyed a fabulous twelve months. Around the world, governments have responded to the economic disruption caused by Coronavirus by throwing monetarist dogma out of the window and loosening fiscal policy significantly. In other words, they are trying to spend their way out of an economic slump.
This has largely worked so far, with a V-shaped recovery in construction, infrastructure and manufacturing around the world. In fact the recovery has been so steep that supply chains have struggled to keep up. While this has led to unheard of levels for container ship freight rates and time charter rates, the bulkers, which carry the raw materials for this boom, have enjoyed their best freight market since the boom of 2005 to 2008 which was caused by supercharged economic growth in China.
The possible collapse of Evergrande, China’s biggest real estate developer, may be causing jitters in stock markets but so far the bulker freight market remains unperturbed. The BDI rose 29 points to 4,304 on 20 September. If Evergrande is the first domino in a chain to fall, then China may experience something like the credit crunch of 2004-05, when a slowdown in GDP growth there took the wind out of commodity and freight market sails.
|Listen Free to my LISW2020 Presentation|
On 13 September I presented my paper “Commercial Opportunities in Shipping’s Energy Transition” to teh Institute of Chartered Shipbrokers’ online webinar, part of London International Shipping Week. You can listen to a version of it here. Go on, treat yourself. Coming to Antwerp
I will be speaking at ARACON 2021 on the 30th September. The event is being held in Antwerp, one of my favourite cities – a great way to be back on the road again after 21 months! Contact me if you want details or would like to meet up.
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