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China’s economic growth is good news for shipping companies

Posted June 23, 2008

Chinas economic growth is good news for shipping companies

Despite a slowing economy, Americans keep importing Chinese goods. In China, production and economic growth continue to soar. That’s bullish news for shipping companies! Click here for the market buzz…

by J. Christoph Amberger

Baltimore — (TFN): China’s industrial output grew 16 percent in May, after gaining 15.7 percent in April. Exports surged 28.1%.
Pundits and dollar bears like to point at continued growth as an indication that China is “decoupling” from the flagging American economy.

Problem is just that when it comes to Chinese imports, the U.S. hasn’t even started flinching yet. Production growth occurred on rising exports. In 2007, China’s trade surplus with the United States has grown from $12.6 billion to$14.3 billion, a gain of 13%. Most recent trade data indicate that the United States is posting new import highs.

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Make 102% From China’s $80 Billion “Water Bill”
70% of China’s rivers and lakes are contaminated with toxic substances. China’s government must shell out $80 billion on water treatment plants to clean up the mess by 2010. One company recently agreed to build a massive wastewater treatment plant in China’s largest city, and it just signed another contract worth $12 billion… “First-in” investors could see 102% gains in the next few weeks. Read the report!

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And as U.S. companies are looking down the double barrel of rising taxes and increasing labor and benefits imposed by a new Administration, chances are outsourcing of American manufacturing jobs will continue to keep the Chinese export sector humming for years.

Overseas shipments from China surged last month and are unlikely to decrease as China opens new export markets in Asia and Latin America. Yet the dry goods shipping sector has taken it on the chin in recent weeks, notwithstanding record earnings.

This is the kind of opportunity we at TFN like to exploit. Eagle Bulk Shipping Inc. (NASDAQ:EGLE), Navios Maritime Holdings Inc. (NYSE:NM), China Cosco Holdings (OTC:CICOF) represent great entry levels into the bulk shipping right now.
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Posted by J. Christoph Amberger · Filed Under Featured Video, International Investing, Videos 

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