A buoyant outlook anchored in crude oil and China
Oct 01, 2008 | 06:51 AM
If it is true that a rising tide lifts all boats, prospects for the global shipping industry are getting pretty close to high tide.
Analysts covering global shipping say the industry, whose success is tied to global economic conditions, is performing extremely well based largely on demand from developing countries.
"Asia, in particular China, is presently the strongest contributor to global shipping demand growth in all segments," Natasha Boyden and Noah Parquette, analysts at Cantor Fitzgerald LP, New York, wrote in a recent report. "Essentially, shipping rates are riding on the back of China and whether or not the country's commodity usage is growing rapidly enough to absorb additional tonnage supply."
Pareto Securities AS, Oslo, Norway, said that demand across most market segments is strong. In a recent quarterly report on the industry, Pareto expressed a mostly positive outlook for the crude tanker, product tanker, chemical tanker, dry bulk, container and reefer markets. Its only reservation was for the gas-carrier market, which it called "challenging due to delays in new volumes and rapid fleet expansion."....
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