Bulk shipping rates tumble 90% as China’s output shrinks

Shipping rates on the bulk side are sliding as China’s economy starts to slow and demand for raw materials weakens. Shipping costs are based on ship supply and demand and bulk ships are starting to become more available.

Signs that China’s strong economy is in trouble started a few months ago with the Chinese housing industry. Evergrande, one of China’s largest homebuilders is currently in default with 300 billion in debt and making the market nervous. This has caused a ripple effect in the Asian housing market with the hopes that it can be contained. It will be interesting to follow this story as the container side of shipping is still wide open and backed up for months to come.  

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httpss3-ap-northeast-1.amazonaws.compsh-ex-ftnikkei-3937bb4images007338703700-3-eng-GBCropped-164381347620220202NY Bulk ship