Back after a week in Japan and China visiting various trading companies and steel mills. Its not pretty. Although the news is saying that Investment Loans are up in China it appears that most of these loans have many strings attached and most of them only pertian to solid state backed enterprises. Bottom line for steel makers and supporting crew is that its sink or swim for most of them. The profitable will survive and the rest will be left to flounder. The governments are doing their best to increase infrastructure spending but some of the economic issues are beyond the reach of any helping hand. The market forces will have their say in the end.
What does all this mean for shipping pricres and the BDI index. Long term I maintain that it will be a long and painful ride for this lady. Short term look for volatility as people look for anysigns of real recovery only to be thwarted by a continous stream of gloomy news.
The china propaganda machine is working well. Ask any chinese executive and they will tell you that the Chinese economy is even worse than what is being reported...
Are the Chinese just playing poker to try and pull prices down or is this really the case. My feeling is that the truth is quite bad. No economy decides to allow millions to fall unemployed in the name of saving a few bucks on imports. The problems seem to be real.
But theres good news in every bad news story. Lots of opportunities arise in these bear markets. When everyone is running scared opportunities abound.
Yours Virtual Shipbroker
- The Virtual Shipbroker
- Hi. I am a shipping company director, transport academic, author, family man and all round nice guy. I have worked as shipbroker, shipowner, freight trader and bulk charterer, in senior positions, with some of the largest and most disrespected (joke) companies in the world. Ask my advice on all things shipping and you will receive my blunt and always honest answer. Hang around to learn more about chartering and ship broker salaries, chartering and ship broker jobs, chartering and shipbroker recruitment agencies, cheap freight, maritime education, chartering and ship broker qualifications, become a ship broker, tips on how to be a successful bulk shipping executive, philosophy, Zen and the art of shipbroking, and much more. Yours The Virtual Shipbroker (recently proclaimed the guru of shipbroking) Copyright © 2009-17 by Virtualshipbroker