February 9, 2015
...“Along with rising labor costs, (click here) these factors will pressure the profitability of Chinese port operators in the next two years.”
Moody’s has just-released a report on the Chinese port sector in which it says operating efficiency and the ability to provide comprehensive and high-quality services along the supply chain will become more important to Chinese ports’ standalone credit quality.
“As China’s growth model shifts the contribution of low-value-added manufacturing to domestic consumption and higher-value-added industries, throughput growth will progressively shift from commodities to containerized and high-value goods,” said Zhang.
Moody’s says core ports in the three prosperous economic regions – Pearl River Delta, Yangtze River Delta and Bohai Rim – are well equipped to benefit from this shift.
“While overcapacity will dampen the need for capacity additions, the growth in ship size and the structural change in the cargo mix handled by Chinese ports will drive port operators to improve their infrastructure in order to remain competitive,” said Zhang.
As such, Moody’s expects that port operators will incur relatively high capex, making deleveraging unlikely over the next two years.
Further, Moody’s notes that government support remains key to the overall credit quality of major port companies in China....
There is a lot changing. Patience is a better idea. Everything is rebalancing in preparation for increased trade, but, it isn't there yet and won't be for awhile.
...But China’s slowing economic growth since 2011 has caused total cargo throughput growth to drop to 9.2% in 2013 and 4.9% in the first 11 months of 2014.
Everyone is rebalancing.
February 9, 2015
The mega container ships (click here) raising concerns among vessel operators, insurers and regulators about the potential for catastrophic accidents.
...“Along with rising labor costs, (click here) these factors will pressure the profitability of Chinese port operators in the next two years.”
Moody’s has just-released a report on the Chinese port sector in which it says operating efficiency and the ability to provide comprehensive and high-quality services along the supply chain will become more important to Chinese ports’ standalone credit quality.
“As China’s growth model shifts the contribution of low-value-added manufacturing to domestic consumption and higher-value-added industries, throughput growth will progressively shift from commodities to containerized and high-value goods,” said Zhang.
Moody’s says core ports in the three prosperous economic regions – Pearl River Delta, Yangtze River Delta and Bohai Rim – are well equipped to benefit from this shift.
“While overcapacity will dampen the need for capacity additions, the growth in ship size and the structural change in the cargo mix handled by Chinese ports will drive port operators to improve their infrastructure in order to remain competitive,” said Zhang.
As such, Moody’s expects that port operators will incur relatively high capex, making deleveraging unlikely over the next two years.
Further, Moody’s notes that government support remains key to the overall credit quality of major port companies in China....
There is a lot changing. Patience is a better idea. Everything is rebalancing in preparation for increased trade, but, it isn't there yet and won't be for awhile.
...But China’s slowing economic growth since 2011 has caused total cargo throughput growth to drop to 9.2% in 2013 and 4.9% in the first 11 months of 2014.
Everyone is rebalancing.
February 9, 2015
The mega container ships (click here) raising concerns among vessel operators, insurers and regulators about the potential for catastrophic accidents.
Shipping lines have sought to stay competitive by running larger,
more fuel-efficient container ships in major shipping lanes, holding
down the cost of ocean shipping and reducing their cost per container.
But the gigantification of container ships and tanker vessels, as
well as more particular stability problems of car carrier designs, need
to be addressed from an insurance risk perspective, says Dieter Berg,
president, International Union of Marine Insurance (IUMI).
There are huge security issues.
February 9, 2015
Government officials (click here) are refusing to release details of how many stowaways were discovered at Felixstowe, Harwich and Parkeston Quay – because it could give criminals an insight into security and resources at the ports.
Nationally, 1,463 illegal immigrants were found hiding aboard vessels arriving at UK ports last year – twice as many as in 2013....
Nothing is in place. There is a lot of work to do to have an infrastructure that works. I really don't understand how any trade agreement can exist without all these challenges being met. Every country's tariffs should be in place. What is in this agreement? Certainly nothing that is appearing in the news today. All this should have been done already and part of any agreement. This is ridiculous. There is no agreement, there is a wish list.
February 9, 2015
Port News
Efforts to reform tariff-setting practices (click here) at the 13 ports owned by the Indian government have gathered speed. Two key developments in the last fortnight bear this out. First, India’s attorney general, the government’s chief legal advisor, agreed with a shipping ministry plan to move private cargo handlers operating under a tariff guideline framed in 2005 to a new market-linked tariff regime announced in July 2013 for new projects. Secondly, the government issued policy guidelines to set rates for services provided by the government-owned port trusts, which had thus far been governed by the 2005 guidelines. These two developments are significant in many ways. But, more importantly, it shows how the shipping ministry has moved smartly to dilute the role of the Tariff Authority for Major Ports (TAMP), the port tariff regulator, even while it braces to introduce an amendment to the Major Ports Trusts Act in Parliament to transform TAMP from being a rate setter to a performance monitoring and grievance redressing authority....
Fast tract what? No one is ready!
There are huge security issues.
February 9, 2015
Government officials (click here) are refusing to release details of how many stowaways were discovered at Felixstowe, Harwich and Parkeston Quay – because it could give criminals an insight into security and resources at the ports.
Nationally, 1,463 illegal immigrants were found hiding aboard vessels arriving at UK ports last year – twice as many as in 2013....
Nothing is in place. There is a lot of work to do to have an infrastructure that works. I really don't understand how any trade agreement can exist without all these challenges being met. Every country's tariffs should be in place. What is in this agreement? Certainly nothing that is appearing in the news today. All this should have been done already and part of any agreement. This is ridiculous. There is no agreement, there is a wish list.
February 9, 2015
Port News
Efforts to reform tariff-setting practices (click here) at the 13 ports owned by the Indian government have gathered speed. Two key developments in the last fortnight bear this out. First, India’s attorney general, the government’s chief legal advisor, agreed with a shipping ministry plan to move private cargo handlers operating under a tariff guideline framed in 2005 to a new market-linked tariff regime announced in July 2013 for new projects. Secondly, the government issued policy guidelines to set rates for services provided by the government-owned port trusts, which had thus far been governed by the 2005 guidelines. These two developments are significant in many ways. But, more importantly, it shows how the shipping ministry has moved smartly to dilute the role of the Tariff Authority for Major Ports (TAMP), the port tariff regulator, even while it braces to introduce an amendment to the Major Ports Trusts Act in Parliament to transform TAMP from being a rate setter to a performance monitoring and grievance redressing authority....
Fast tract what? No one is ready!
