Wednesday, July 8, 2015

CHINA SHIPPING CONFIDENCE

A sign of the pending maritime financial tsunami.  Will a Chinese carrier be swept away by it?

China shipping confidence index hits two-year low

06 July 2015
Ten indicators, including vessel turnover, freight revenue and profit/loss, flowing money, corporate loans, and investment intention, worsened to the point of stagnancy. Photo: PA
China's shipping industry confidence index for the second quarter of 2015 was in relatively stagnant zone at 65.64, a two-year low, while the China Shipping Prosperity Index has remained stagnant for two straight quarters.
Shanghai International Shipping Institute (SISI), in the China Shipping Prosperity report released on 30 June, stated that China's Shipping Prosperity Index was at 93.88 in the second quarter of 2015, up 8.14 from the first quarter.
Port companies' index improved at 102.34, while China's shipping service corporate prosperity index stayed in a slightly stagnant zone at 97.33, stated SISI.
The prosperity index of dry bulk shipping companies was stagnant at 74.93 in the second quarter, while the corresponding confidence index remained moderately stagnant at 32.60, according to the report.
Ten indicators, including vessel turnover, freight revenue and profit/loss, flowing money, corporate loans, and investment intention, worsened to the point of stagnancy.

Related news: Chinese moves offer short-term hope for dry bulk

Cash flow was at its tightest in three years and investment intention hit a three-year low as well.
The prosperity index for container shipping companies in the second quarter of 2015 slumped 10.58% quarter on quarter to relative stagnancy at 87.92.
New capacity and lower space usage ratio inevitably caused the dramatic decline of the freight charge, suggesting a sharp fall of profit ahead, said SISI.
In the previous quarter, the prosperity index for China's port enterprise rose above the break-point to prosperity zone at 102.34.
However, as overall the economic situation showed no sign of pickup, the business confidence of port enterprise is pressurised, which saw a nose-dive to 89.17 and fell to relative stagnancy zone, creating a pessimistic mood about the overall port development, according to the report.
China's shipping enterprises in the third quarter of 2015 is expected to continue the ease-up from the deterioration in the second quarter, and the prosperity index will be in the slight stagnancy zone at 96.82, up 2.94 points, projected the report.

No comments:

Post a Comment