A change in global shipping demand is about to ensue, BIMCO claims basing its argument on the reorganization of the Chinese economy in growth-pace, size and composition.
“As the economy evolves from one focused on infrastructure and real estate investments as well as heavily depending on its export of manufactured goods, the demand for all sorts of seaborne shipping services changes,” BIMCO explained, adding that all sectors of the global shipping industry are feeling the impact.
China’s general economic performance is moving by steady steps in the new normal with progress made and quality improved, National Bureau of Statistics of China announced.
Based on major indicators such as GDP, industrial production etc, the economic activity in the world’s largest economy is stabilizing but slowing down.
“As the signals from a wider range of indicators tell us to be cautious, today’s news is only somewhat comforting. A ‘new normal’ is about to arrive in China too, with a change to shipping demand as we know it likely to follow in its wake.
“The sheer size of the Chinese economy, being the world’s second largest, makes 7.3% growth significant.
“The Chinese economy is being transformed by ongoing reforms that all aim at building a stronger domestic demand that will stabilize growth and enhance social cohesio,” Chief Shipping Analyst at BIMCO, Peter Sand, said.
Source: BIMCO, Image: Crowley