Storm Hits Shipping Industry

STORM HITS SHIPPING INDUSTRY

The global shipping industry needs confidence and patience to deal with the challenges facing the sector brought about by the financial crisis, business leaders said at the 2008 World Shipping (China) Summit in Dalian.

Wei said the industry is hurt as demands for containers, dry bulk, and oil tankers are being reduced. OPEC has announced to cut production, while some Chinese steel mills also have chosen to cut their output. Container's traffic volume for 2008 as a whole is now projected to be 5.5 percent less than the 2007 traffic volume, with no turnaround expected in the next six months.

According to Wei, there are many positive factors for the further development of the shipping industry. Governments of giant economies like the United States, European nations, Japan, and Russia are taking measures to bail out companies. He said that the Global dry bulk volume is projected to grow by 5.2 percent in 2008, and 3.5 percent in 2009.

China's oil tanker demand is still strong. Its crude oil import reached 140 million tons in the first three quarters of 2008, with a year-on-year increase of 8.8 percent. The figure is expected to reach 180 million tons at the end of the year, he said.

Wei said the challenge could also be a chance to optimize the structure of the industry. With orders of bulk ships being cancelled, single-hull tanker being phased out, and speculation leaving, the shipping capacity will be strengthened.

Source: http://www.chinadaily.com.cn/bizchina/2008-11/08/content_7186701.htm