As China eases COVID restrictions and opens up its economy, new trends are emerging in the shipping industry. The Chinese crude oil import quota is 20 percent higher versus the same time last year and this has helped cool off container prices, as per GE Shipping management in an interview with CNBC-TV18.
“Chinese oil import quota, which is a crude oil import quota has come in about 20 percent higher than at the same time last year, which is about 20 million tons more of crude imports,” said G Shivakumar, CFO of GE Shipping.
He added that despite the cool-off in crude tanker rates, they are still at very profitable numbers.”
The refined products export quota is 45 percent higher than at the same time last year, as per the management.
On the other hand, Shivakumar pointed out that dry bulk carriers are currently in a weak spot. He noted that tankers are compensating for this weakness.
“Dry bulk up very poor again, we must remember that quarter one of the calendar year is traditionally a very weak period for dry bulk. So Dry bulk carriers are all typically earning on average – the kinds of ships that we have or probably earning $10,000 per day or less,” he said.
Shivakumar also mentioned that dry bulk asset prices are down 30-35 percent from their peak.
Overall, the shipping industry is experiencing a mix of both positive and negative trends, with different segments of the market performing differently.
Source: Hellenic Shipping News
