- About us
- IBJ Awards
- Free Sample
- Contact us
ABTO conference hopes for the best
(Posted on 06/11/20)
China is stockpiling every kind of commodity at a “mind-blowing” rate, with the country’s imports propping up an overall fall in trade volumes globally, bulk terminal operators and shippers were told last week at a virtual conference organised by the Association of Bulk Terminal Operators (ABTO).
In an introductory presentation to kick off a series of seminars on the Impact of Covid-19 on Bulk Markets and Terminal Operations, BIMCO’s Chief Shipping Analyst, Peter Sand said: “There is one nation at the centre of the universe [for the bulk shipping industry] and that country is China.
“If you see the impact of China and its stocking up of basically every kind of commodity, but for coal, it is mind blowing. And it is not only the volumes; it is also the distances. China is basically grabbing whatever it can from all over the world.”
Sand said that China’s “craving for agribulks”, in particular, is having a “very positive” effect on the dry bulk sector, which is shifting short haul trades to long haul trades.
“If we go by Suez Canal transit numbers, we have seen a 26% increase in the first three quarters of the year, I mean, that is mind blowing in many ways. It also illustrates the purchasing power of China. We know China has the muscle, but from the stimulus packages they have, it did not look as if the dry bulk sector would benefit to this extent. It is absolutely second to none.”
However, the dominance of one country can be problematic. Sand warned that some bulk terminal operators and shippers may not benefit from the growth in trade volumes as China looks to establish what he called the “Chinese conveyor belt,” – China’s own fully formed supply chain.
Commenting on trade relations with China, he said: “After three years of the trade war, the US has seen the highest export of soya beans in its trading history. Following years of disruption, the first seven weeks of the 2020/2021 marketing year, which runs from 1 September to 31 August, have seen the strongest exports ever.”
The US is now exporting 80% of its entire soya bean production to China. In the 2018/2019 marketing year, not one bean was shipped to the country.
In the day’s second presentation, Rahul Sharan, analyst at shipping consultant Drewry, informed ABTO members and delegates that dry bulk growth rates over the next five years could be similar to that recorded over the previous period, depending on individual countries response to Covid, but also emphasised China’s importance in keeping bulk trades moving.
“As Peter was saying earlier, China is going to lead everything. We are expecting some growth in China's food production and expecting improvements in iron ore imports to feed China’s steel mills and build up inventories,” he said.
However, coal trades will decline. Commenting on the trade between Australia and China, Sharan said the completion of the rail network between Mongolia and China in 2021 “threatens to bring the trade down”.
“The second phase of the railway will expand to Khorloogiin Choibarsan in east Mongolia, establishing a direct connection with Russia, thus reducing the cost of coal trade between Russia and China.”
Speaker of the United States House of Representatives, Nancy Pelosi has announced $5 million in new... Read more
With nearly 69 million tons of seaborne cargo transhipped in 2021, North Sea Port grew 9% compared to... Read more
Solid bulk increased by 11% at the port of Dunkirk to reach 20.1 MT in 2021. Ore, which rose sharply... Read more
Flying the Japanese flag, the M/V Frontier Harvest arriving from ?skenderun, Turkey, was the first ship... Read more
The Federal Saint-Laurent is the first vessel to call the Port of Trois-Rivières in 2022. It... Read more
The port of Bilbao has become a member of the EcoPorts network, the main environmental initiative of... Read more
AD Ports Group, a leading facilitator of trade and logistics, has strengthened its regional footprint... Read more
The Pilbara Ports Authority in Australia has delivered a total monthly throughput of 59.9 million tonnes... Read more
Major building works at the UK’s largest grain terminal at the Port of Tilbury have reached a... Read more
Canadian Pacific Railway Limited and Kansas City Southern have received the required regulatory pre-... Read more