Australia-China tensions set alarm bells ringing for dry bulk market
Although data shows that the trade relationship between the economies remained steady despite increased friction in the first six months of the year, the latest Chinese customs data clearly indicates that trade is deteriorating. This might redraw trade flows and affect the size of the vessels in which these commodities were traditionally transported
Coal and iron ore might not be spared from Chinese onslaught even though it is difficult for China to source iron ore from elsewhere and its domestically produced ore is of a much lower quality. If coal imports are sourced away from Australia, panamaxes and capesizes are forecast to be the worst-hit segments