News Highlights week: 09-2021

China is aiming for an economic growth rate above 6% in 2021, after scrapping its target last year. Premier Li Keqiang announced the target on Friday at the opening of this year's National People's Congress. Although China's economy grew last year, it only managed 2.3% growth, its weakest result in decades. By some measures the target appears modest, falling well below the IMF’s estimate of 8.1% growth for China's economy this year. Other analysts are also tipping stronger growth. "The consensus for the year is about 8%- 9% but this is coming from a low base. The focus is still on the quality versus the quantity of growth," said Fidelity International. 
Higher fuel costs are triggering increases in ocean carrier bunker surcharges, adding more misery for shippers already struggling with record high freight rates and additional fees. Today’s price for low-sulphur fuel oil (LSFO) at Rotterdam is just under $500 per ton, which is up 25% since the beginning of the year and some 60% higher than in November. And carriers are busy resetting their fuel increase recovery mechanisms, effective today or from 1 April, to reflect the higher bunker costs. 

Containerships calling at Singapore are facing increased delays in being able to berth due to a surge in vessel calls. Industry sources say an 18,000 -teu containership now faces a delay in turnaround of up to five to seven days from the normal maximum of two, reports S&P Global Platts. “There is a lot of port congestion in Singapore, which is one of the biggest factors,” an unnamed freight forwarding source told the pricing agency. The number of vessels staying at Singapore port for more than two days in January, was 46 per day on average this year, up about 59% compared to January 2020, where there were 29 such vessels per day, according to S&P Global Platts’ cFlow data. 
Global Ship Lease has said it is eyeing further growth in a “highly supportive” market for containerships after posting an increased profit for the fourth quarter of 2020. Net income of $10.8m, up from $8m in the year-earlier period, pushed annual met income to $37.6m, a slight increase compared with 2019.
Higher margin containership new-building orders have helped boost fourth quarter profit at Yangzijiang Shipbuilding, despite a fall in revenue. China’s largest privately-owned shipbuilder saw net income increase 17% year-on-year to CNY 798.2m ($123.5m) despite revenue falling 38% to CNY 2.9bn. The group’s shipbuilding business registered a gross profit margin of 24% for the fourth quarter versus the 12% seen a year ago . 

MKT