Looking back in 2016, the loss, bankruptcy, re formed the subject of the shipping market, and with the bleak market synchronization is, the supply side of the shipping growth slowed sharply, 2017 shipping market segments are expected to usher in a weak recovery.
           "The financial crisis has seen a slow recovery in the global economy over the past eight years, but the shipping industry is still in the middle of a painful downturn," he said. One of the main reasons is that the self-regulation of the industry is out of question and the market lacks self-discipline." China Ocean Shipping Group Deputy General Manager Ye Weilong said. For the global shipping giant, 2016 is the greatest challenge of the year in 2008 after the financial crisis in September 2016, ranked seventh in the world of Hanjin's bankruptcy filing; in October, after the reorganization of the ocean Chinese announced earnings, the first three quarter loss of 9 billion 220 million yuan; at the beginning of November, the global shipping industry leader Maersk announced three quarter, the actual shipping sector a loss of $122 million, the two consecutive quarter of losses.
           Statistics show that from 2011 to 2015, the average annual investment in shipbuilding industry was more than 100 billion US dollars, and the continuous expansion of transport capacity resulted in a serious imbalance between supply and demand. At the beginning of 2016, the two major freight indices of the shipping industry, BDI (Baltic Dry Index) and CCFI (China export container freight index), both fell to a record low, respectively, at 290 and 632 points respectively.
           However, the expansion of capacity crazy momentum in the last two years, obvious ebb tide. Data released by the China Shipbuilding Industry Association showed that in 2016, the international shipping market continued to adjust deeply, and the volume of new world ships dropped by 67% year on year. At the end of the year, the global shipping enterprises hand hold orders fell by 25% compared with the end of 2015.
           At the same time, a substantial increase in the amount of scrapping. The Baltic and International Maritime Council data show that 9 months of 2016 the global scrapping volume grew 16%. In one of the most important shipbuilding base in Zhoushan, some enterprises have exceeded the shipbuilding business profit shipbreaking.
           Due to these factors, from 2016 February onwards, BDI began to slowly upward, to the middle of November rose to 1257 points, the equivalent of tripled.
           Although the shipping market is still in excess capacity, but with the supply growth slowed sharply, the marginal improvement in supply and demand is enough to drive the BDI index rebound. We expect the BDI average to be around 1000 in 2017." CICC's research report pointed out.
Container transport market, in addition to a substantial reduction in new capacity, but also benefit from the concentration of large enterprises brought about by the merger effect. "Korea and other companies bankruptcy, so that shippers worry that in 2017 can no longer enjoy the low fare and cabin protection premium service, psychological change, willing to accept a relatively high price." Tianfeng securities report.
           Tianfeng Securities researcher Jiang Ming said, in the past to adjust the depth of the shipping industry so many practitioners accustomed to "bearish" thinking, but all the signs, "2017 will be good" may no longer be a self comforting slogan.
           In addition to the bottoming out of the market, the positive adjustment of shipping companies is quite impressive. Chinese Ocean Shipping Group Research Center Director Tong Chengquan said, domestic shipping companies need to change the route flow, vigorously carry out the regional transportation China outside, such as Southeast Asia, Africa and India market. In addition, through the integration of the industrial chain for business model innovation. COSCO Shipping, in addition to shipping logistics, is still expanding the financial, heavy industry and other industrial clusters.
Of course, to achieve a weak recovery, the challenges facing the shipping industry are also small. The most obvious is the rise in oil prices and the rise of trade protectionism. However, as the North China Shipping fund partner China Jinhai said, there is no need for excessive pessimism about the shipping industry. From the basic point of view of the industry, more than 90% of the world's trade is still transported through the sea, the lowest unit transportation costs still exist. Moreover, in today's low interest rate environment, the shipping assets are a small amount of non value-added physical assets, with better investment opportunities.