China’s COVID-19 Restrictions Could Help the Dry Bulk and Container Segments, but Hurt Tankers
In its latest weekly report, shipbroker Intermodal noted that “China has announced Covid-19 related restrictions across 20 different provinces (including Shanghai the center of the country’s commercial activity) with an apparent effect on oil consumption. According to S&P global estimations, the loss in oil consumption is estimated at around 650,000 bbl/day in March and 400,000 bbl/day in April. However, restrictions could have a positive effect on the container and dry bulk freight markets, due to the upcoming port delays that could tighten the tonnage availability further. Inevitably, China’s economic performance will shape the 2022 dry bulk outlook”.