Shipping Industry Will Face Severe Crisis From Virus: IHS Markit

The video discusses the challenges faced by Chinese importers, particularly in the context of the coronavirus outbreak, and compares it to the SARS outbreak. It highlights the impact on the shipping industry, which is heavily reliant on Chinese economic growth. The transcript also delves into the commodity markets, noting significant changes in Chinese import statistics over the years. The shipping industry is expected to face a crisis due to reduced demand, although this is not yet reflected in market trends. The video concludes with a discussion on the industry's response to these challenges and the anticipated slow recovery.

What is the expected impact of the coronavirus on Chinese GDP growth according to the IHS market global economics team?

• An increase of 1%

• A reduction of 1%

• No change

• An increase of 0.5%

How does the current Chinese import percentage compare to that during the SARS outbreak?

• It has decreased from 4% to 2%

• It has remained the same at 10.5%

• It has increased from 4% to 10.5%

• It has decreased from 10.5% to 4%

What percentage of global consumption do Chinese iron ore imports account for?

• 75%

• 85%

• 65%

• 50%

What is one of the immediate responses of the shipping industry to the crisis?

• Reducing shipping rates

• Cutting capacity by blanking sailings

• Increasing the number of sailings

• Increasing port congestion

What is the expected recovery pattern for the shipping industry from the current crisis?

• Immediate recovery with increased demand

• No recovery expected

• Slow, prolonged recovery over months

• Rapid recovery within weeks