It appear as the Chinese central government is shifting its approach to Covid. This week, cities and provinces have been gradually lifting lockdown restrictions, likely driven by new economic weakness and widespread protests.

Shenzhen and Shanghai have scrapped the requirement for commuters to present PCR test results to travel on public transport, after Tianjin, Chengdu and Chongqing removed such rules. However, the politburo standing committee, has not yet made an announcement on the official view.

China is the most important country for many shipping segments, especially for dry bulk. The country imports more than 70% of all seaborne iron ore and more than 20% of coal, and a reopening should, all else being equal, be good news for the segment.

On the back of slow activity in China as well as a significant easing of congestion, the peak season has been a disappointment, and we are now heading into what is usually the low season (towards Chinese New Year). As such, we see few immediate triggers, but note that a potential reopening of China would bode well for demand growth in 2023.