The situation currently facing the shipping industry

In recent years, the high point of the shipping market makes a lot of ship owners to increase orders for the new shipbuilding been put into operation to form a serious excess capacity situation. Even without considering a drop in demand factors, supply and demand imbalance in the shipping industry is also due to enter the downstream cycle and the structural adjustment period. Since the September 2008 outbreak of the global economic crisis, the shipping industry is worse, accelerating the decline in the shipping industry. A drop in demand in the freight and shipping hit by excess capacity, the general deterioration of the shipping business.

However, the economic crisis on the three major degree of influence of the shipping market segments varies. The first is dry bulk shipping market, due to a variety of reasons, in the first half of the rally, better than market expectations, better than the tanker and container markets. Market ups and downs of the main reasons: one, due to the international financial crisis and global economic development fundamental downturn, leading to the global bulk commodity prices at historic lows. Meanwhile, the Chinese government has adopted a package of economic stimulus plan, especially in infrastructure investment to promote China's iron ore and coal imports surged. In addition, as the world's primary raw material commodity prices fell, leading to China's copper, zinc, bauxite, graphite, and soybean imports soared, but also boost the international dry bulk market, rose as much. 2, fleet capacity increase is far lower than most market participants expected. The new ship deliveries have declined sharply and the rapid growth in the amount of aging ship dismantling. 3, the international dry bulk market, the first to rebound from the shock up in February, has attracted international speculative hot money and shipping hedge funds again in the international dry bulk market, rampant speculation, leading to liquidity crunch in global capital for the rapid evolution of excess liquidity. In particular, a major international investment banks, including Morgan Stanley • investment banks, Goldman Sachs and Merrill Lynch to pay off in the second quarter, the U.S. government's financial injection to get rid of the strict supervision of the U.S. government to make it much free space speculation. 4, due to the revival of demand outside of China's expectations, ore price rise, but the weakening of iron ore imports tariffs fell.

The second is tankers and the market doldrums. As the financial crisis impact on global oil demand has gradually spread in developing countries oil demand is reduced by the increasing turn, oil demand in developed countries will drop quickly. Meanwhile, the tanker capacity accelerated. According to Clarkson Statistics As of July 1, the world's active tanker fleet (million metric tons of ships) were 5142, 425 million dwt, representing the beginning of growth of 4.5%. Decline in demand in the transport and tanker fleet size of double impact of accelerated growth, crude oil fell at the bottom of tariffs. Crude oil freight 2009 Nian January 2 to October 9, the average index of 560 points, up to January 2 of the 849 points, the lowest April 15 of the 453 points. 2009-2010 year is the peak period of the delivery of new vessels. Clarkson, according to statistics, as of July 1, new ship orders for a total of 146.9 million dwt, in the second half will be delivered 35.9 million dwt, accounting for 8.4% of the total capacity. VLCC orders for a total of 64.8 million dwt, in the second half will be delivered to 10.7 million dwt, accounting for 6.7% of total capacity VLCC. In view of the basic transport needs of the second half of the first half of the level slightly higher than the same time, the tanker capacity to maintain a rapid growth and a serious surplus, especially the major ship VLCC fleet growth has been round the transport of crude oil market conditions will be low hover.

Third, the most significant impact is on container transport market. Since the full-blown international financial crisis, the United States, Japan and the euro zone such as the world's major developed economies to the international commodity market, the sharp contraction in demand to make the world trade dropped sharply, while the increasing trade protectionism in global trade matters worse, the situation is very serious. According to the latest report shows that the volume of Yaou Xi-line route appears the first time since 2003 semi-annual negative growth in volume of same period last year close to 20%; eastbound trans-Pacific route compared with same period last year the volume has reduced by about 18%; most of the times the volume of dry routes are also different degrees of decline. In the global container transport market oversupply situation, the owners and ship operators with the capacity contraction measures have achieved some degree of effect, but the existing capacity for sequestration of new capacity by as much as the growth rate of the overall transport market capacity continues to grow. As the available capacity is much larger than the transport needs of shipping companies in order to fight for market share, launched a fierce price war, liner tariff levels fell sharply. According to "international container" of statistics, one quarter of the three major trunk routes Ya Ouxi line, Pan-Pacific and transatlantic eastbound westbound freight routes respectively as compared with the fourth quarter of last year, down 37%, 12%, 17%, respectively, a record since 1993 the largest single-quarter decline.

Situation is grim because of the three major markets, leading to a general decline in corporate profits, shipping, some of worsening business conditions. According to Drewry analysis, a quarter of Asia and Europe, Pan Pacific, Pan-Atlantic carrier, overall revenue fell 57%, respectively, 20%, 23%, due to the sharp decline in flights, some shipping companies have been plunged into a loss of operating conditions. The second quarter, shipping profitability continued to deteriorate. Some shipping lines in the first half and even closed down. Drewry Shipping Consultants is expected, as banks tighten credit, some of the company's cash flow liner, already depleted before the end of the year there will be more shipowners and shipping companies closed down. The agency had expected this year, the volume of container shipping is only 47.1 million boxes a year fell 10.3%, the global shipping lines would be a total loss of 20 billion yuan. A number of shipping lines have been made available in the first half results, the majority of losses. Japan's three major shipping companies, announced July 27 all the losses from April to June this year, totaling a net loss of ¥ 46,820,000,000 (5 billion). In 2008 there were four small shipping companies to terminate business, this year, there are many shipping companies filed for bankruptcy protection or a formal liquidation.