Ningpo Port Truckers Strike, Disrupt Freight
Thousands of truck drivers went on strike over salary and haulage rates in the eastern Chinese port of Ningbo this week, and a logistics firm said on Friday the industrial action was disrupting operations at the world's sixth busiest port. In a statement on its official microblog account, Ningbo Port Co Ltd said the strike had started over trucking rates but declined to give further details. The company said it was taking measures to ensure that operations at the port, China's third busiest, were not disrupted and to ensure losses were kept to a minimum. Local media reported the strike began at the Beilun area of the port and that it started with a few hundred drivers and escalated on Thursday to a few thousand, who clashed with police.
Chinese Shipyards Bankrupted by Sluggish Demand
According to 'China Daily' Zhejiang Jingang Shipbuilding Co Ltd, headquartered in the Taizhou city of East China's Zhejiang province, recently filed a bankruptcy petition to the Taizhou Municipal Intermediate People's Court due to its significant loans and lack of new orders. Most banks regard the export-led shipbuilding industry as "high risk", refusing to underwrite or extend loans to related companies. The Jingang shipyard is only one among many similar Zhejiang-based shipyards that have suspended business and dismissed employees due to the difficult market conditions. In June, Ningbo Hengfu Shipping Trade (Group) Co Ltd and Ningbo Beilun Sky Shipbuilding Co Ltd both filed motions to sell off assets.
SS&Y Capesize Indices Mixed
Shipbrokers Simpson, Spence and Young's Pacific Capesize Index fell 27 points to 4,428 in the week ending Dec. 6. "A flat week led to a dip of 27 points as the Queensland/Rotterdam route fell 40 cents while routes to Beilun strengthened," SS&Y reported. "Forecast for seaborne trade in steam and coking coal and iron ore look bullish for 2000. A slow first quarter will be turned around by the second quarter for an optimistic 2000 for owners," SS&Y added. SS&Y's Atlantic Capesize Index rose five points to 4,425 last week. "The index had a flat week rising just five points but average earnings for a standard Capesize vessel (161,000 dwt) across the four BCI routes, have risen by 65.7 percent to $16,204 daily from their second quarter low," SS&Y reported.
