Product tankers and more specifically MR2 class have been among the "darlings" of the tanker market over the past year or so. A positive demand outlook, coupled with low asset prices and healthy freight rate market attracted many ship owners, who saw an investment opportunity. Today, the tide seems to be shifting once again, as a series of new refinery projects,
Steel products account for a notable proportion of China’s seaborne exports, representing some 13% of total shipments in tonnes over the last two years. While Chinese steel product exports were badly affected by the global downturn in 2009, export volumes have continued to recover and reached 60.5mt in 2013, representing around a quarter of global seaborne steel
Overall confidence levels in the shipping industry rose to their highest level for almost six years in the three-month period to February 2014, according to our latest Shipping Confidence Survey.
Freight rates look set to improve or maintain existing levels over the
next twelve months, while an increase in private equity funding is
expected to have a major impact on the
Big ships get lots of attention. How often do you read about the Vale-maxes, Capesizes and VLCCs? Of course the big bulk trades are massively important and the five major bulks totalled 2.8 bt of cargo last year. But they're not the whole story. The minor bulks are not so minor any more. This year they will reach 1.5 bt of small parcels that tie up lots of ships - probably about 200 m dwt.
Golar LNG Partners LP (NASDAQ: GMLP) (the "Partnership") announced today, further to its announcement on December 5, 2013, that it has completed its acquisition of the company that owns and operates the FSRU Golar Igloo from Golar LNG Limited for a purchase price of approximately $310.0 million. The Partnership financed the purchase price by the assumption of
The European Commission has concluded that funding for an investment project in the amount of €71.1 million from the European Regional Development Fund to the Port of Salerno in Italy (Campania Region) is in line with EU state aid rules.
EU Commission Grants Funding for Modernisation of Italian Port of Salerno:
With dry bulk tonnage oversupply, slowly but surely fading away, analysts are turning their eyes on the other side of the spectrum, aka demand. In a note this week, Commodore
Research & Analysis noted that "data released from the Chinese
government this week shows that domestic iron ore production in January
and February totaled approximately 183.27 million tons.
Various financial and commodity markets are still reeling from the sharp one-day decline in iron ore (and copper) prices seen earlier this month. However, there is some misperception about what is occurring in China right now. Contrary to some misguided reports, Chinese demand for imported iron ore cargoes has been quite strong recently. Through the first three days
Reflecting Brazil’s status as a growing ‘BRIC’ economy, Brazilian GDP expanded by an average 4% per annum between 2004 and 2013, while oil demand in Brazil grew by a compound annual growth rate (CAGR) of 4.3%. For oil market analysts, this was a lot to make a song and dance about.
The Song Remained the Same:
The spot freight rate market between Asia and the Mediterranean is seldom calm, but this year’s Chinese New Year holiday season was particularly volatile.
Ocean carriers employed the exceptionally high pre-Chinese
Dry cargo exports from East Coast South America to Europe are beginning to increase significantly thanks to the recent devaluation of Brazil’s currency.
European cargo discharged in East Coast of South
The market for VLCCs is an ever changing one and while new routes are emerging and there is optimism for a projected rise in ton-mile demand, the supply side of the market needs a closer look and attention. In its latest report, Poten & Partners noted that the spate of newbuilding activity across different tanker sectors could be evidence that a lemming-like approach
Overall container trade growth between the Far East and the ‘Southern’ regions of the globe (Latin America, Africa and Oceania) has been relatively strong since the financial crisis, despite the softness of demand growth from Latin America over the last couple of years. However, the freight market on these routes has struggled recently, as the cascade of larger tonnage
Index-linked contracts between shippers and carriers, and between shippers and forwarders, appear to be increasing for valid reasons. According to Freight Investor Services, which specialises in helping contracting parties soften market volatility through hedging, shipper interest in Index-Linked Container Contracts (ILCCs) has increased significantly during the past 12
The gradual improvement of the dry bulk market, as expected for some time now, is urging shipowners to increase their newbuilding ordering activity, in an attempt to take advantage of the -- still -- low prices, compared to the 2007-2008 highs. As a result, 2014 has so far proved to be the best year in terms of contracting activity, since 2008. Over
the course of the past week,
During January 2014, the number of vessels in the bulkcarrier fleet (above 10,000 dwt) reached 10,000. This has been a result of remarkable growth in the fleet, with particularly unprecedented expansion in the last few years.
Pacing Out Fleet Growth
It took approximately nineteen years for the number of
The 2014 outlook for the container shipping industry appears bleak. According to AlixPartners’ 2014 Container Shipping Outlook, the industry as a whole remains buried under a growing mountain of debt amid continued market turbulence. And this is hardly breaking news. With few exceptions, the industry has struggled for the better part of the past decade. What is new
With VLCCs and Suezmaxes emerging as the most sought after tanker classes from ship owners this year, the focus has shifted away from product tankers, which were the "stars" of the first half of last year. According to Mr. Patrick Tye, Head of Research of Gibson Shipbrokers, nearly 300 product tanker orders were placed last year, versus just 62 crude tankers, but in
Why do they do it? This refrain has cropped up in broker reports for a century. When the market is on its knees, owners start ordering like there’s no tomorrow. And in a depressing number of cases they are right - thanks to the orders there is no tomorrow. But that’s shipping and as the contracts stack up, analysts start wondering what investors have spotted
that they’ve missed.
Since the beginning of the year, the shipping market has kept an active pace in almost all market segments; the prevailing mode is that the world economy is entering a growth phase and that logically shipping would be the major beneficial of economic growth and trade. Some market pundits have gone as far as to claim the worst is behind us in shipping, the bottom of the market