Shipping faces rough seas ahead

As coal imports shrink in India, shipping companies are losing their bargaining power with customers

Fortunes of the global shipping industry, and in turn of shipbuilders, have a strong correlation with how well or badly the world economy fares. The forecast by the World Bank that the global economy will grow 2.7 per cent in 2017, down a notch from 2.8 per cent projected in June, and then 2.9 per cent in 2018, therefore, leaves a subduing impact on shipping.

As if that is not enough, protectionist pronouncements by President Donald Trump and uncertainties in global trade caused by the United Kingdom’s decision to leave the European Union will negatively impact movement of goods