China Trade Hits Shipping - February 2016

China's fall in trade hits Shipping FEBRUARY 2016 Though the world once flourished as China’s demand for imports and exports boomed it seems as though that boom is set to bust and many companies are scrambling to determine what course of action is going to protect them and their assets the best. The slowdown is not only hurting global markets but is also starting to hurt Chinese ports as well.

In recent months the shipping industry has suffered sharp downturns and drops in the market. What is to blame? Many are pinpointing China’s fall in trade to the downfall of the shipping industry as a whole. While there has been no direct research done to prove this point, there is some sound reasoning behind the claim. China is one of the world’s biggest importers and exporters of goods globally and it stands to reason that a fall like the recent 13.2 percent fall in imports would affect the global market.

China’s exports fell 1.8 percent in 2015 and now the Baltic Dry Index has fallen by an astounding 76 percent since last August to bring the market for shipping things like iron, ore and grain to an all time low. Globally, the demand for vessels on a global scale has dropped by 40 percent which is a troubling thing to consider. Demand has fallen across the board. Time will tell if the market is going to reach heights like those of China’s rise or if the downturn will continue until inevitable collapse and disaster.