Thats correct. According to a recent visit by the China President to Athens, he said that China will support the expansion of the shipping industry in Greek as the economy in China is still robust and growing substantially. Dryships will directly benefit from this as the charters for its ship will continue to get demand with good rates.
Oct. 26, 2010, 8:46 a.m.
China Helps Take Uncertainty Out of the Shipping Industry
YORK, NY, Oct 26, 2010 (MARKETWIRE via COMTEX) -- Shipping Stocks have begun somewhat of a rally in the second half of 2010. With the economy still strong in China, the country is increasing its demand for coal as the winter season approaches, and is also importing iron ore and grains. A week ago, Xu Xu, the chairman of the China Chamber of Commerce of Metals, announced that China's iron ore imports are expected to rise for the rest of the year as steel mills embark on a period of restocking -- in September we saw an 18 percent sequential rise in China's iron ore imports. China also gave a vote of confidence to Greek shipping this year, which could mean big things for shipping heavyweights DryShips and Diana Shipping, both of whom have headquarters in Athens.
In early October, Chinese Premier Wen Jiabao initiated a weeklong tour of Europe with a three-day stint in Athens. During his stay, Wen announced that China will assist the Greek economy via a five billion Euro fund to enable Greek maritime activities and to help Greek tycoons purchase Chinese vessels. Wen emphasised China's belief that Greece would overcome present shortcomings and is committed to doubling Sino Hellenic trade activities over the next five years.
A mere one day after Wen's Greek visit, Diana Shipping announced that it signed an agreement with the Export-Import Bank of China for an $82.6 million loan to fund the company's two Newcastlemax carriers. Diana's CEO Simeon Palios called the loan "a breakthrough for the future of Diana Shipping," and noted that Wen Jiabao himself was present at the signing.