China’s shipping industry was developed in 1961. The industry has grown and reached international standards both in developing networks and handling efficiency. The Chinese shipping sector is now booming. Here are four reasons why.
1. The Chinese government has invested in water transport infrastructure. New ports are being constructed, and many older facilities are being rebuilt. Efforts are made to containerization at major international ports. These have helped in the growth of the Chinese shipping industry.
2. Steel export from China reached a new level. It has benefitted mid-sized ships. The still mills have production more than the domestic consumption. This has contributed to the growth of the shipping industry in China.
3. The oil product tanker and crude oil tanker market have a strong freight market due to the drop in oil price couple of years back. The demand for oil tankers is high and has a positive impact on the Chinese shipping industry.
4. The demand for importing goods and parts from China is high. Despite the recent price increase, investors are still finding China a cheaper source for their business. This has lead to the growth of the shipping industry in China.
Hundreds of millions of containers are handled by the Chinese ports every year. China manufactures 90% of the world’s containers. There will always be demand for Chinese goods as it was difficult to find any other country that will offer products at such cheap price. So, the shipping industry of China will keep on having a strong foothold.