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Industry News
The dry bulk market’s recovery is in full swing, with rates rebounding on a steady pace. In its latest weekly report, shipbroker Xclusv said that “the dry market continues its “counterattack” from mid-February lows. BCI closed at 1,931 points mark, having an increase of 606% since 17 February and 19 daily positive closings out of the last 21. The reopening of China, the increased needs of India and the rerouting of Russian Coal exports because of the War Sanctions have given a great boost to Capesize demand & freight rates. Supramax & Panamax vessels have also capitalised this upward trend,…
The newbuilding contracting activity has been hampered so far this year, by elevated prices. However, owners are interested in placing more orders in the gas, product tanker and container segments. In its latest weekly report, shipbroker Allied Shipbroking said that “container shipping company ONE continued the trend for investment in efficiency enhancing technologies and alternative fuel capabilities, that has been particularly visible in the container sector. Having ordered 10 neo-panamax vessels in May last year, the company now has 20 large container vessels on order set to be ready for methanol and ammonia and features such as bow covers to…
The apparent lack of more willing sellers has hampered any further growth in the ship recycling market, over the course of the past week. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “Bangladeshi recyclers continue to lead the way in the market, with improved price levels being seen for any available tonnage this week! Whilst there is talk of several Chinese owned units being circulated into the market, either potential or definite candidates, the general supply looks to have diminished from recent weeks. We also have Ramadan just around the corner, where activity looks set to slow…
Mid-sized bulkers are expected to take advantage of more favorable demand conditions moving forward, in terms of grain trade. In its latest weekly report, shipbroker Intermodal said that “following the latest report on World Markets and Trade, USDA raised its forecast for global wheat production in 2022/2023 by 5 million MT. More specifically, global wheat production is seen at 788.94 million MT, as production increases in Russia, Australia, and Canada, are offsetting reduced outputs in Argentina, US and Ukraine. Global trade is seen overall higher, underpinned by higher exports from Kazakhstan, Australia, and Brazil. More specifically, in February, exports of…
Product tankers and more specifically, MRs are to keep benefitting from increasing demand from Australia. In its latest weekly report, shipbroker Gibson said that “in recent years, Australia’s refining sector has undergone a profound structural shift. Refinery rationalisation and Covid-19 related demand pressure led to the closure of several struggling refineries, following a prolonged downward trend. Recognising the implications for national security, the Australian Government intervened to keep the nation’s two remaining refineries – Lytton (109 kbd) and Geelong (120 kbd) in operation until at least 2027. Still, declining refining runs have driven a significant increase in Australian CPP imports…
The tanker market reached a higher ground during February. According to OPEC’s latest monthly report, “dirty freight rates improved in February, with m-o-m gains in VLCCs and Suezmaxes outpacing declines in Aframaxes. VLCCs picked up from a low base, as renewed demand for long-haul vessels strengthened rates. On the Middle East-to-East route, dirty spot freight rates rose 22% m-o-m. Gains in Suezmax spot freight rates earned back some of the previous month’s losses, with rates on the US Gulf Coast-to-Europe route up 18% from the previous month. By contrast, Aframax rates declined, although from high levels. Spot freight rates on…
The second hand market for ships has declined to just $7 billion, versus $13.5 billion in the same period of 2022. In its latest weekly report, shipbroker Xclusiv said that “the global economy is holding its breath as two American banks, Silicon Valley Bank & New York’s Signature Bank collapsed withing the past three days. US authorities raced on Sunday to stem jitters about the health of the nation’s financial system, pledging to fully protect all depositors’ money while also giving any banks squeezed for cash easier terms on short-term loans. Authorities are aiming to strengthen confidence in the banking…
Larger dry bulk carriers have been in high demand among shipowners lately. In its latest weekly report, shipbroker Allied Shipbroking said that “off the back of orders for four Ultramax vessels last week, another three were reportedly ordered at the same yard, Nantong Xiangyu Shipbuilding, by Indonesian firm Tanto Intim Line. Ultramax vessels have accounted for over half of dry bulk newbuildings so far this year and is a part of the trend among owners for vessels for larger vessels within the smaller size segments. Over 2023 and 2024, over 70% of deliveries of these vessels will be for Ultramaxes,…
The ship recycling market has shown signs of a strong recovery, as prices have increased and more owners have the financial incentive to sell their older ships. In its latest weekly report, shipbroker Clarkson Platou Hellas hailed the second HKC compliant yard in Bangladesh, announced this week. “The S.N. Corporation Bangladesh ship recycling yard has been rewarded for its efforts in upgrading their yard to regulatory standards by receiving certification by NK Class as being compliant for the Hong Kong Convention (HKC) under the IMO guidelines. An incredible achievement which brings further steps in line with greater green ship recycling…
European LNG imports are expected to rapidly increase over the course of summer, boosting demand for LNG tankers. In its latest weekly report, shipbroker Intermodal said that “uncertainty over the recovery of Chinese demand, demand destruction in Europe, as well as weather conditions will pivot the LNG market this summer. Global LNG supply is expected to increase by 1% y-o-y this summer, to 200 million MT. Meanwhile, global LNG demand is seen at 192 million MT, also 1% higher y-o-y”. According to Ms. Chara Georgousi, Research Analyst with Intermodal, “in China, we should expect to witness a significant boost in…
The product tanker market flows have changed considerably since the EU ban on Russian imports. In its latest weekly report, shipbroker Gibson said that “with the refined products price cap now in place for just over a month, the changes in trade flows as a result are stark. Many longer haul voyages are yet to be completed, but this only points to a clear trend of Russia being forced to divert cargoes to distant markets in order to maintain export volumes. Until February, Europe had remained Russia’s primary market for refined product exports; however, in the space of a month,…
Demand for iron ore declined during 2022, bringing export volumes down in most major markets, Brazil included. In its latest weekly report, shipbroker Banchero Costa said that “2022 was a rather negative year for global iron ore trade, primarily due to weaker demand worldwide and supply issues in Brazil. In January-December 2022, global iron ore loadings declined by -2.3% y-o-y to 1,518.2 mln tonnes, excluding cabotage, from 1,554.4 mln t in 2021, according to vessels tracking data from Refinitiv. Volumes were almost at par with the 1,525.6 mln tonnes shipped in 2019, but below the 1,557.2 mln tonnes shipped in…