Economy of China Recovers as Exports Begin After Coronavirus Havoc

Economy of China started showing recovery signs from the lock down. China’s exports begin after coronavirus havoc as the shipping industry slowly recovers. However, the shipping lines outside mainland China will take longer to recover.

China shipping to resume and gradually recover
Economy of China Recovered as Container Movement Resumed and Gradually Recovers
Shipping Activities Resume as Economy of China Recovers

Though factories in China are back in operation, there are several roadblocks in getting freight to docks. According to Alphaliner, a shipping data service stated that tonnage of container ships lying idle around the world due to the global coronavirus crisis is immense. Charter rates for tankers and bulk freighters dropped more than 70% since January as demand for oil, iron ore and coal from China decreased.

Though custom offices are operating fine, the difficulty lies in getting the goods to and from the docks. Also, the Chinese government has taken measures to resume economic activities and stabilize the economy after the COVID effects. China’s Ministry of Transport announced no fees for port construction till 30th June for import of cargos to give a boost to China’s economy.

Measures Taken by Government of China

China ordered the removal of several checkpoints that kept infected travelers out. Further, the government allowed trucks to enter and leave the city with few health checks. However, people coming in cars and buses are subject to lengthy scrutiny followed by a 14-day quarantine in case of any symptom. While seaport cranes and other equipment were reported to be working efficiently, the shortage of trucks is posing a challenge in the distribution of goods.

Predictions for an Upward Trend of Economy of China

A.P. Moller-Maersk Group of Denmark, the world’s largest shipping line confirmed that three-fifth of China’s trucking capacity is working again. According to reports most factories in China are back in operation from 50% to 75% of their capacities. Peter Sand, the chief shipping analyst for BIMCO stated that though the dry bulk market is still running at low freight rates, there has been bottoming out. Also, the FFA (forward freight agreement) curve is depicting an upward trend. Further, there are predictions that spot rates will rebound as Chinese economic activities normalize. Besides, manufacturing activities are on a rise in China.

 In all, while China’s comeback is slow and steady, the disruption across the world is evident. 

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