A Perfect Storm is Brewing for the Shipping Industry
by Rebecca Wright
The bellwether sector is in crisis mode as it navigates oil price volatility, a drop in global demand and a glut of supply in ship capacity. Around 90% of the world’s goods are transported by sea, so when demand drops, shipping companies are among the first to notice.
Global growth is waning, while concerns swirl around China’s economic slowdown. China is the world’s second-largest economy and biggest exporter, but it’s now posting its weakest annual growth in 25 years.
Chinese exports shrank in the first two months of this year, according to government data. Imports also fell.