Shipbrokers have dismissed concerns of any market fallout following an international ruling over rights to the Spratly Islands.
The Permanent Court of Arbitration in the Hague today declared that China has no historic right to the islands in the South China Sea, which have been disputed since the 1940s.
Ralph Leszczynski, head of research at Banchero Costa, told Reuters the ruling was “just pure politics”.
“China will simply ignore it, and it will not change in any way the reality on the ground. All there is at stake is access to offshore oil and gas deposits and perhaps fishing grounds," he said.
The tribunal found China had violated the sovereign rights of the Philippines and “unlawfully created a serious risk of collision when they physically obstructed Philippine vessels”, TradeWinds reported earlier today.
Peter Hinchliffe, secretary general of the International Chamber of Shipping, said: "It is vital that merchant ships are allowed to go about their lawful business on the world's oceans without diversion or delay. We will of course be monitoring for any interference in the coming weeks.”
While a direct impact on shipping was not anticipated, oil responded to the ruling with a 2% spike this morning.
