Europe, China Economic News Challenges Shipping Demand

Posted by Michelle Howard
Monday, May 05, 2014

The global economic recovery continues along the rather bumpy lines described in the most recent report on macro economics from BIMCO.



Chief Shipping Analyst at BIMCO, Peter Sand, said, "Economic data coming in today dampens optimism for the Euro zone a bit. A lower of level of GDP growth and inflation is affecting shipping demand slightly negatively. However, the outlook for the manufacturing sector in the Euro zone continues to improve"



EU reduces Euro growth forecast as inflation seen to slow
Bloomberg reported, The European Commission trimmed its economic growth forecast for the Euro area and predicted low inflation to remain a threat to expansion for at least the next two years.

 

The 18-nation Euro zone’s gross domestic product will rise 1.7% in 2015, compared with a February prediction of 1.8%, the Brussels-based commission said today. The inflation rate will be 0.8% this year and 1.2% in 2015, both lower than previously forecast and well below the European Central Bank’s target of just below 2%.

 

Eurozone manufacturing recovery broadens in April
Chris Williamson, Chief Economist at Markit, said, “The Eurozone PMI paints a promising picture for the region’s manufacturers at the start of the second quarter.” He continued, “It remains to be seen whether this strengthening of demand will feed through to more pricing power, which remains weak due to the widespread existence of spare capacity and high unemployment in many countries. With factory gate prices falling for a second month running, policymakers will remain concerned about deflationary forces.”



Chinese manufacturers signalled a further deterioration in overall operating conditions during April.

“On the opposite side of the globe, the slowing down of Chinese growth in the manufacturing sector continues. April data on Purchasing Managers Index improve marginally (48.1 in April up from 48 in March) but remains in the area of contraction. This too indicates a soft patch in shipping demand,” Sand added.
 


Commenting on the China Manufacturing PMI  survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said, “The final reading of the HSBC China Manufacturing PMI stabilised at 48.1 in April, up slightly from 48.0 in March, and revised down from an earlier flash reading of 48.3. The latest data implied that domestic demand contracted at a slower pace, but remained sluggish. Meanwhile, both the new export orders and employment sub-indices contracted”. He continued: “Over the past few days, Beijing has introduced more reform measures, which could support growth by inducing more private sector investment. We think bolder actions will be required to ensure the economy regains its momentum.”

 

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Baltic Sea Freight Index Falls to Lowest Level Since 1986

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, spiralled downwards to its lowest level in nearly three

Pacifica Rolls Out New Container Vessel

Pacifica Shipping, New Zealand's coastal shipping company, is launching a new container vessel from March replacing a smaller vessel whose charter has ended, reports The Stuff.

Shipping Pollution Will Skyrocket -Study

International freight volumes will grow fourfold by 2050 while the average length of haul will increase by 12 percent over that time, trends that will cause a spike

Finance

Matson Announces Quarterly Dividend

Matson, Inc. declared a first quarter dividend of $0.17 per common share, the company’s board of directors announced. The dividend will be paid on March 5, 2015

Kirby Reports Record Earnings

Kirby Corporation announced record net earnings of $68.1 million, or $1.19 per share, for the fourth quarter 2014 (ended December 31). The results bested 2013’s fourth quarter figures of $64.

Baltic Sea Freight Index Falls to Lowest Level Since 1986

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, spiralled downwards to its lowest level in nearly three

News

Matson Announces Quarterly Dividend

Matson, Inc. declared a first quarter dividend of $0.17 per common share, the company’s board of directors announced. The dividend will be paid on March 5, 2015

Maintenance Woes Led to Digby Ferry Grounding

Maintenance deficiencies and inadequate emergency procedures led to November 2013 grounding of Princess of Acadia in Digby, Nova Scotia    Maintenance deficiencies

Hogan Named VP at Newport News Shipbuilding

Rob Hogan has been appointed vice president of manufacturing at the Newport News Shipbuilding division of Huntington Ingalls Industries (HII), the company announced.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pod Propulsion Port Authority Salvage Ship Electronics Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2104 sec (5 req/sec)