Is the Dragon Draggin’?

For most of the past decade, China has been the saving grace for the tanker, and other, shipping markets. While economic malaise pervaded in the West, China’s economic dragon appeared difficult to tame. Recently released data suggest that China’s incremental demand growth for transportation fuels may not be as robust as some originally anticipated. It is important to understand that this does not suggest a contraction in Chinese demand, but rather a moderation in its consumption growth rate. In general, the outlook at this point still appears rosy, but the recent moderation should be heeded as a warning sign for shipowners, especially those going all-in on the China bet. Download here