SeaTrans - Experiment in Shanghai - Freight Markets, Bunkers, Ports and the China Connection

Yes, I'm still at work...now in shanghai where we enter tomorrow (26 Nov 07), the world of SeaTrans 2007. We essentially decided to consolidate three events to create one larger event that offers both common streams and issues, focused content and the chance to network.

This time we have Bunkering, Dry Bulk and the container port and shipping sectors in view...all important from a china perspective and all offering a nice mix of content and exposure that everyone should enjoy.

I do hope we can build this up...at a time when everyone is jumping on the shipping conference bandwagon - we need to stay ahead and I hope the people like it..better still give me new ideas n additions and adjustments we can make so that we can deliver a better event off the base we now have.

In short 2007's agenda is about:

- rising cost of bunkers and what this means to you (I guess in short, Dry Bulk guys remain happy, tanker operators are crying and container shipping is also on their knees with the impact of higher bunker costs representing something like 40-60% of operating cost...perhaps we should move away from the residual fuel model...but then that too would open up new issues

- Dry Bulk shipping has been the darlings of the business, with rates as historic highs...then the issues here are more about fatigue, overuse and the care needed to ensure these working assets are able to maximise income at a time all owners descrive as well beyond most imagination - my own feel...the secret lies in port congestion and the possibility that new ships coming on stream
could be left crewless...and hence unable to add badly needed tonnage to the market

- Ports and the Container industry...China is factory to the world..so the Asia-Europe and US Trades are booming..but that story has been about for a long time already...the new part is China's growth, Asia rise and the demand for ports and shipping on the back haul - as Asians demand for more luxury and quality products.

On thing is for sure, China is and will be an important feature, in trade and since some 98% of world trade is via ships...shipping will take on a strong Chinese (Asian) influence.

Once this week is done...my thoughts will move to coffee..another commodity on price acendancy, and yet another product that has its future in Asia...and maybe the Middle East and Russian Far East. Anyway we will be in Vietnam...Asia's largest coffee exporter and the world No.2...so numbers from there will shape price and markets. Lets see.