Shipping market is in the trough

2016 shipping market is exceptionally difficult year. According to the survey, over Liucheng Chinese companies believe BDI 2016 will be lower than 800 points, weak economic growth, bulk cargo demand will further decline, capacity oversupply. Shipping demand or will be declined to some extent. In fact, China's shipbuilding industry overcapacity, exacerbated by the bankruptcy of private shipping enterprises. This series of facts tell us that the shipping market is in a trough.
BDI: total global economic barometer "rain" the shipping industry is not easy coming spring
Just two weeks into the 2016's, BDI fell more than 15%. January 18, 2016, BDI fell 369 points, a record 15-year low. Such open in unfavorable situation, so that the entire industry is caught in a pessimistic atmosphere among. Although there are some after the rally, but also short-lived. April 8, 2016, BDI index climbed 22 points, or 4.26 percent, reported 539 points, a record last December 9 the highest level. Since the low February 10, 2016 in, BDI index rebounded by 85.22%. But the industry believes that industry fundamentals are still not improved. BDI long term there is still room for fall.
As the US economic rebound is slowing down, with multiple factors boosted the European market weakness, and external demand and deceleration during China's economic transition, so that the world's major economies, trade is shrinking or just do consolidation or a slight increase in some stage of this market estimates, the shipping market in the winter will continue for some time; although there seems to speed the development of India and other emerging economies quickly, but because of its economies of scale not amount so it can not play the role of economic engine. From a global perspective, protectionist barriers to trade is not uncommon for conflicts between countries and regions of growing uncertainty factor of economic development increased significantly than in the past many of these are no doubt picked up BDI index under pressure. Shipping online Xiaobian that, BDI as a barometer of the global economy, the situation has let the spring rains shipping industry seems not so easy to come.
Container: supply and demand imbalance, the overall decline
In January 2016, entered the Chinese market, the traditional Lunar New Year peak shipment, overall Chinese export container transportation market demand rebound, but by the capacity of the base is too large impact, limited the effect of improving the relationship between supply and demand, most of the airline market after tariffs pulled up sharply in early That by-week decline. Shanghai Shipping Exchange, China's export container freight index average of 760.5 points for the release of the previous month rose by an average of 5.3%; Shanghai export container freight index average of 689.0 points the previous month rose by an average 28.4%; 2016 in February, China's export container transportation market into the off-season after the traditional Lunar New Year, the overall demand is low, although the shipping companies on a number of routes to take measures to maintain the capacity to shrink the supply and demand relationship, but results are poor, freight low volatility. China's export container freight index average of Shanghai Shipping Exchange was 766.6 points the previous month average flat; Shanghai export container freight index average of 527.7 points the previous month decreased by an average of 23.4%; 2016 month, China's export container transportation market is in the post-holiday volume recovery, sluggish overall demand for transport, supply and demand imbalance is more serious, more routes tariffs fell. China's export container freight index average of Shanghai Shipping Exchange was 704.2 points the previous month fell by an average of 8.1%; Shanghai export container freight index average of 420.3 points the previous month fell by an average of 20.4%.
Tanker Market: continue to release capacity, high tariffs farewell
The international crude oil market short chips increased. US crude oil (WTI) and Brent crude oil spot prices have risen, but still remained at low levels. Whether crude or refined oil transportation transport, showing the available capacity to continue to release, causing freight rates began to fall from the previous high. Although once the pre-oil transport market has little prosperity, but is not difficult to see because China and other countries for oil reserves while tariffs pulled up and maintain, because the storage facilities planning restrictions and the use of funds, has bid farewell to the relatively tight Tanker era, some large tankers have been long-term or short-term or as a reservoir container. Although at the moment there is no oil transport market as bulk and container market bleak, but there will be no pre-spring day, insisting protracted war will also be placed in front of a serious problem Tanker Owners.
Shipbreaking market: Shipbreaking scrap prices will continue to enhance the demand for good.
March 2016, China Federation of Logistics and Purchasing and the National Bureau of Statistics survey service center released the Chinese manufacturing PMI was 50.2%, 1.2% rise the previous month, for the first time back to the ups and downs over the line since last August. Slightly undulating domestic scrap market, trading volume still, there are iron ore market decline occurs, but there billets and coal rally scrap market sentiment is more optimistic, positive operation is strong, resources, trading is also more desirable. This month the domestic heavy scrap average price was 1223 yuan / ton, was up 13.70 percent, the subcontinent Fei Gangchuan price significantly enhance domestic Fei Gangchuan price bottomed. According to statistics, 15000-25000 tons of light crude oil tankers, product tankers 6000-10000 tons of light, light 7000-12000 tons bulk carrier, said this month the average ship scrapping valued at $ 143.5 / tons of light, to $ 139.8 / tons of light, 130.2 US dollars / tons of light, up 6.93%, 7.87%, 7.40%. Into April, the steel market demand season starts, started face more and more, plus official enforcement Tangshan limited production, sales healthy development of steel scrap demand has improved, it is expected prices will continue Fei Gangchuan shipbreaking positive. Dry bulk shipping market downturn, as well as rising prices of shipbreaking, stimulated a substantial increase in the amount of dry bulk cargo ship dismantling. This month the acquisition of domestic recycling facilities in the international market Fei Gangchuan 10, 443,600 dwt bulk carriers 80%, part of the ship was only 16 years of age. This month, total domestic recycling facility dismantling Fei Gangchuan all kinds of a total of 50 million deadweight tons, last month increased by 10 million dwt.
Ship repair market: ship repair business has decreased demand response solutions Road
2015 Zhoushan ship repairing enterprises total of about 2000, accounting for one fifth of the country, has become a veritable important ship repair base. Which is located in Liuheng COSCO, Yongsan, Xin-three shipping enterprises were repairing about 800, became the highlight of Zhoushan ship repair industry. 2016, ship conversion and ship repair business declined. Liuheng Longshan Shipyard chairman Zhouya Guo said that above all, to reduce costs, the various production departments to nuclear costs, lower and lower costs for 2016 by 4%, because of the recent rise in ship repair prices want basic unrealistic. Followed by long-term perspective, the courage to invest in difficult times, adapt to the future development trend of large ships, now the company has expropriated 300 acres of land, 700 meters shoreline, for the construction of 400,000 tons dock. "As a local private ship repairing enterprises face operating pressure, and only rely on the existing conditions, to increase the market development efforts, using a variety of resources for traditional large-scale shipping of orders, increased oil tankers, chemical tankers, engineering ships the development efforts. "in the" IMC Yong Yue, "Yong said the general manager, and now they have begun to use the robot operations, but also with foreign giants auto repair and maintenance equipment research and development, currently the company's customers are the world's leading shipping companies.
Shipbuilding market: orders declined year on year
January-February 2016, 51 key monitoring shipbuilders shipbuilding 3.92 million dwt, down 21.6%. Received new ship orders for 900,000 dwt, down 76.4%. The end of February, handheld shipbuilding orders for 115.4 million dwt, down 20.8%. Profits, from January to February, the shipbuilding industry 94 focus on monitoring enterprises realized main business income of 35.7 billion yuan, down 7.5%; total profit of 160 million yuan, down 46.7%. In March 2016, according to Golden Destiny weekly, the owner has ordered a total of two new vessels, including the only two oil tankers with a total capacity reached 316,000 dwt. New ship orders fell by 60 percent compared to the previous week. In the field of bulk carriers, China Merchants Group in Waigaoqiao Shipbuilding, North China Shipbuilding Heavy Industries and China Merchants Heavy orders has ordered four, four and two 400,000 DWT VLOC, expected to be delivered in 2018 and 2019, delivered after long-term lease to CVRD. In other areas of the ship, Ningbo Da Yu Shipping Co., Ltd. under the CSC single Jiangdong Shipyard has ordered six 9,800 DWT cargo ship, scheduled for delivery in 2017 and 2018. Tanker orders up to 100% of the total orders. Compared with the previous week, LPG ship orders fell by 100 per cent, from one down to 0; cargo ship orders fell by 100 percent, from 2 down to 0; ro-ro ship orders fell by 100% from 2 down to 0.
Commodities: "Thirteen Five" to bring good signal
By 2016, China's iron ore prices since early February rose 26%. Market analysts pointed out that Bank of Norway, " 'Thirteen Five' draft plan of China's first-ever mentioned the 'supply-side structural reforms', the market will play a decisive role in the allocation of resources implies that the government will reduce the economy intervention, which in our opinion, will commodity exports and generate positive effects. "the analyst said in a recent report that China's new" five-year plan "will be favorable commodity imports, since China will accelerate removing unnecessary excess capacity and the pace of industrial production capacity.
COSCO Shipping: "heating" has become the new choice for enterprises
In January 2016, after the Chinese New Year ushered in the busy, he ushered in a heavy message. China shipping two giants that Cosco and China combined. For a time, the shipping industry considered "raged." Two central enterprises merged into a new group put into operation, marking China's shipping industry consolidation kicked off. The industry generally believe that after years of downturn after the global shipping industry has entered a period of high-merger integration. Industry sources say that in 2016 a wide range of acquisition and integration will be the main theme of a big industry. In the industry to pick up hopeless environment, only those well-funded, significant economies of scale of the enterprise in order to survive and develop in the fierce competition. Faced with this situation, or are forced to take the initiative to cooperate to hold together for warmth, it has become an inevitable choice for enterprise development. April 11, 2016 because of concerns about South Korea's shipbuilding industry may lose dominance of the global market, while addressing the problem of excess capacity, the South Korean government is preparing to promote the integration of the Korean shipbuilding industry, the future of the world's three shipbuilding giants will merge into two or even It is a business. Shipping online Xiaobian that shipping enterprises merger or reorganization will be more and more. By then, the merger integration is likely to be a series of staged drama in the shipping industry. The integration of acquisitions to enhance the degree of concentration, but also help change the current more fragmented market. This is healthy for the future development of the shipping industry favorable.
Shipping online Xiaobian that deal with the new situation, the enterprises to reduce costs, increase market development is essential. For shipping companies, we must first abandon the inherent thinking, research and development efforts, expand market channels, or alliances or "heating", a great way to get out of their own under the market downturn.