China's ocean freight is expected to test new lows in 2016 as ocean shipping demand is still sluggish, according to a report released by Shanghai Shipping Exchange (SSHE) on Tuesday.
The report estimates that ocean freight may witness a drop of 4 percent in 2016 as demands for ocean shipping in China's coastal area keep declining. Under the backdrop of supply-side reform and massive industrial overcapacity reduction and house de-stocking, the Chinese economy will face much downturn pressure.
The report forecasts that the coastal dry bulk cargo shipping demand is to see a minimum fall of 6 percent, while the dry bulk ocean shipping capacity will be 2.5 percent lower than that in the end of 2015, which is a successful restrain of capacity expansion, but the shipping overcapacity is still serious. According to SSHE, in the first ten months of 2015, three major types of China's coastal dry bulk cargo saw total volume exceeding 882 million metric tons, down 5.83 percent year on year.
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