Rising manufacturing activity in China to support cargo demand
Global markets took heart over the weekend as the Chinese manufacturing PMI in March jumped from 49.2 to 50.5, the largest increase since 2012. With factory activity on the Asian mainland recovering, utilization rates are likely to rise and demand for raw material inputs like petrochemical feedstocks will also probably climb. Increasing cargos may support regional freights in the second half of 2019. From 2020, freights will likely jump on the back of higher fuel costs due to the IMO-mandated switch to 0.5% sulphur.