Newsroom Blog
GREEN shoots have become a favourite topic of discussion lately. Not a sudden obsession with gardening, but whether we are seeing signs of recovery of the global economy and hopefully the shipping industry with it.
The slightest sign of these green shoots is grasped at and their potential impact talked about at length. However, any real signs of a recovery in the economy or shipping markets remain extremely hard to discern.
Certainly, China has been buying a lot of iron ore, and more recently coal, which is good in the short term for dry bulk shipping. Hardly enough, though, to turn around the entire world economy.
Anyone hoping to tie the rises in the Baltic Dry Index to the direction of the economy as whole should note that demand in the rest of the world remains extremely weak and the increases are merely a reflection of the impact of the China factor.
The container trades show worryingly few signs of improvement, with volumes remaining depressed. Yes, volumes might have actually stopped falling, but there are few signs of improvement.
The reality is that much of the shipping industry seems to be in a holding pattern. Those who are financially stressed focus on hanging on and making it through to some sort of recovery, while those who stashed away money in the good times continue to watch and wait for the best time to make a move.
Any green shoots are extremely short at best, and at worst little more than a mirage.
Post your comment
Recent activity
- Green challenge
- Weight checks
- Spotlight on Greece
- Collective action
- Europe's failings
- Rule B twists and turns
- Baltic Max lessons
- Positive side to China
- Bulking up on gloom
- Stowaway solution
- All eyes on Greece
- Up the ante
- Student politics
- A queuing mentality
- Power with responsibility
- Borrowers beware
- Hanjin Heavy tactics
- No easy way out
- A bad benchmark
- What's in a name?
- Rethink the rethink
- Slow steaming is good
- Queue here for rescue
- Pay up or shut up
- Running out of patience
- Value for money?
- United front
- Think before you shoot
