VLCC tankers are now demonstrating a contango market, especially after the recent rise of newbuilding prices, compared to their five-year old peers. This according to Mcquilling Services which stated in a report Friday, that the market for VLCCs could very well be in a contango, i.e. future prices are expected to be higher than current valuations. According to Mcquilling,
Cargo growth between Asia and the Middle East/Indian Subcontinent region was poor in 4Q 13, prompting ocean carriers to look for more profitable ways of serving the trade lane.
Cargo shipped from Asia to the Indian Subcontinent
The European Commission and the High Representative of the European Union for Foreign Affairs and Security Policy have adopted today a Joint Communication to the European Parliament and the Council "For an open and secure global maritime domain: elements for a European Union maritime security strategy". This joint communication presents a vision of the Union's
With the dry bulk market freight rates finally making waves, China's aim of 7.5% GDP growth for 2014 mean once again positive news for the shipping market, in particular dry bulk. According to a note released yesterday by BIMCO's Chief Shipping Analyst, Mr. Peter Sand, "despite being a little down on the 2013 GDP growth of 7.7%, the growth target of 7.5% set by China’s
European banks account for approximately three-quarters of the global ship financing market of approximately USD 475 billion, with German banks having by far the highest exposure compared to their European competitors. Banks in Scandinavia and the United Kingdom follow. As a result, German banks are particularly exposed to any negative market developments in the
In today's trading market, owners are frequently requested to accept a letter of indemnity (LOI) in exchange for complying with charterers' or shipper's request to take on risks which can fall outside the contractual demands normally placed on a carrier. These can also fall outside the scope of standard insurance coverage, and hence deserve careful attention.
Ship owners who invested in newbuildings during the 2012-2013 are the biggest gainers of the current market claimed a report from shipbroker Intermodal. They managed to take advantage of low demand and thus low prices for new buildings. As such, they were able to combine the latest ECO designs on offer, they managed to negotiate a rich specification, they chose
The scene is set for the emergence of ethane as a notable liquefied gas carrier cargo on deep-sea routes. The product is a key component of the natural gas liquids (NGLs) in which the new shale oil and gas volumes coming onto the market are rich. It is also a major petrochemical industry feedstock offering many advantages over the alternatives. As a reflection of this new dawn
INTTRA, the world's largest multi-carrier e-commerce network for ocean shipping, today announced the first results from its comprehensive ocean shipping information quality program, revealing exclusive insight into the quality of carrier data provided by the global containerized shipping industry. The program -- comprised of a monthly carrier scorecard, the INTTRA Insights
Volatility is the "name of the game" in the tanker market, something which has been the case as well during the first couple of months in 2014, with the market experiencing its biggest spike in the last five years, before retreating once again at the beginning of February. Volatility has been more obvious in the VLCC and Suezmax tanker classes, but has also been notable in
India’s imports from Europe remained disappointing in 4Q13, leaving ocean carriers with exacerbated empty container equipment repositioning costs from the Middle East.
Cargo shipped from Europe to the Middle East and Indian
Laytime questions are some of the most common, yet also technically complex, that Members have to consider as part of their operations. In this Bulletin, the Association will discuss the important recent decision in the "Ladytramp" 2012.
Once laytime commences, it may only be suspended
As the dry bulk market has kept on improving, but at a very slow rate, ship owners have elected to take a step back from the flurry of the S&P market, as it was in the past few week. After all, prices had started to firm up quite a bit. According to the latest report from Lion Shipbrokers, "buying interest is decreasing as ships' values have firmed beyond the budget of many prospective
Ocean carriers are moving ahead with the creation of bigger alliances, even though regulatory authorities have yet to pass judgment on them. More ocean carriers are determined to jump onto the mega-alliance bandwagon, and appear to assume that regulatory authorities will not object. Evergreen has just confirmed a plan to join the CKYH alliance between Asia and
The shipping industry has faced its worst crisis during the last 25 years. The limited liquidity of the shipping market and the trend of banks to limit their exposure have made shipowners to find new methods of financing their investment projects. Traditional lenders such as Germany’s Commerzbank and HSH Nordbank and the UK’s Lloyds and RBS are either exiting the market or trying to
While the debate in the US is raging on whether or not to allow for crude oil to be exported, the growth of US oil product market, is providing for many opportunities for owners of clean tankers. According to a recent report from shipbroker Gibson, "the current abundance of fracked crude in the US has provided US refineries with an increasing supply of cheap feedstocks.
Shipbuilding is an extraordinary business. Over a century the epicentre has moved from the UK, which once built 60% of the world’s ships, to Europe, Japan, South Korea and now China. Incumbent yards don’t welcome newcomers who have to fight for market share, usually by offering rock bottom prices. Good for shipowners, but the battle often brings shipyard capacity
Provided that charterparties are on back to back terms, and the claim is successful, liability for costs incurred should be able to be passed down a charterparty chain. A technical issue will not be allowed to prevent such liability for costs being passed down a charterparty chain. This is illustrated by the recent case outlined below:
Occidental Chartering INC. V Progress Bulk Carrier
The dry bulk market, hit by the low seasonal demand which is a typical characteristic of the first quarter of each year, is beginning to emerge from the shadows as of late. During the past few days, the market's benchmark, the Baltic Dry Index (BDI) has been on a slow, yet steady rise, ending yesterday's session, once again on the upside, reaching 1,250 points. Capesizes
The orderbook for small containerships has been notably thin for the last few years. Yet cascading activity driven by a surplus of larger units has prolonged overcapacity, driven vessels into lay-up and supressed charter market earnings. But with intra-regional volumes still forging ahead is there a potential capacity gap looming in the sub-3,000 TEU sector?
How Thin Is Thin?