Chinese eyes driving dry-bulk demand in 2014
Time:Tue, 28 Jan 2014 06:00:53 +0800
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Mr Michael Bodouroglou, chairman and CEO of Paragon Shipping Inc, said that China will drive demand in 2014 for hiring ships to transport dry bulk commodities such as iron ore, coal, grain and bauxite even as the country's economy slows.
According to the country's National Bureau of Statistics, Chinese economic output slowed in the Q4 as gains in factory output and investment spending eased. Gross domestic product rose 7.7% in the October to December period from a year earlier compared with 7.8% in the Q3.
Mr Bodouroglou said that "Growth and demand in China will continue given ongoing urbanisation. While we will see some volatility in dry-bulk ship rates because of micro events in China, the country's economy is 3 times bigger than 8 or 10 years ago, so 8% growth now is bigger than 15% 10 years ago."
China's manufacturing may contract for the first time in 6 months, according to a gauge released by HSBC Holdings Plc and Markit Economics. The preliminary reading of 49.6 for January in a Purchasing Managers Index was below a final figure of 50.5 in December.
