Market Insight
Our sector specialists have been examining the supply-demand factors of container, tanker and dry bulk markets regularly. Our aim is to look through rumours, noises and explain what the current market dynamics and future trends are. After all, markets are where shipping companies are making or losing their money.
Containers: Charter rate
Latest From Charter rates
Containership charter market strengthens on scarcity of prompt tonnage
Charter rates for feeder and sub-panamax tonnage have shown the biggest gains in the past week
Containership charter market continues to strengthen
Tonnage providers are attempting to obtain longer charter periods, but are meeting resistance from liner operators with large newbuilding orderbooks
Boxship tonnage providers ‘aggressively’ trying to improve charter terms
Demand for ships above 2,000 teu has increased by the Red Sea effect, with time charter rates for 6,500 teu units rising by over 50% since December
More suezmax tankers take the long way to Europe and the Med
Most suezmaxes now transiting southbound via the Red Sea are carrying Russian crude while those heading northbound are mostly in ballast to load Russian, or Turkish crude. Meanwhile, the rerouting effect could entice more charterers to combine two suezmax-size cargoes on to one very large crude carrier
Containership charter rates continue to rise but overcapacity threat remains
Improvements in boxship charter rates because of Red Sea diversions may not last as the containership markets face a wealth of newbuilding deliveries
Containership charter rates still trending down but demand rising for larger ships
Number of fixtures has picked up considerably however charter periods are strictly on a short-term basis
Containers: Between the lines
Latest From Between the lines
Between the lines: Fourth-quarter performance shows signs of carrier weakness
A stellar financial performance last year was clouded by a significantly weak fourth quarter, as demand waned and average freight rates fell across the board
Between the lines: First-quarter carrier results show scale of cash windfall
Lines’ level of profitability is not driven by a volume growth, as apart from Zim, all other carriers that report global volumes either recorded sharp on-year declines, or in the case of Hapag-Lloyd, a marginal 0.4% increase. The ebit figures are more so a reflection of the current freight rate environment
Between the lines: Container sector faces uncertainty ahead of peak season
Sea-Intelligence’s Alan Murphy highlights a shift in North American traffic, systemic changes in transpacific vessel sizes and the prospect of an equipment capacity crunch
Between the Lines: Empty box flood poses new supply chain challenges
A return to normality for the global supply chain will bring huge relief to container shipping, but the next headache will be repatriating empty boxes particularly on the transpacific trade
Between the Lines: Bad news for shippers in 2022
Freight rates are expected to remain at record highs, as congestion problems that plagued 2021 continue. Schedule reliability will also likely repeat last year’s dismal performance, making ‘resilience and robustness’ essential to supply chain planning
Between the lines: Lower demand pressure had little impact on box carrier reliability
The latest global schedule reliability data shows carriers arriving ‘on-time’ with around one in three vessels, as the seasonal decline in volumes had little impact on port punctuality
Dry Bulk: Capesize
Latest From Capes
Seanergy ups dividend as it clinches increased capesize earnings
Nasdaq-listed owner of 18 large bulkers intends to ‘vigorously defend’ itself against Economou lawsuit
BHP sees India continuing to drive iron ore, coking coal demand
BHP forecasts a small further improvement in global steel production with growth led by India, Southeast Asia and to a lesser extent China over the next two years
Bauxite trade helps capes counter seasonality
While an improved iron ore trade has helped capesize rates, continued strength in bauxite trades has been a more substantial factor, Jefferies analysts say
Seanergy plots largest buyback yet along with ATM funding
New programme authorises up to $25m in share repurchases over the next two years
Capesize earnings hit 18-month high
Capesize earnings have hit an 18-month high, according to Baltic Exchange data, reaching $31,671 per day. Iron ore exports in both basins supplemented with bauxite exports from West Africa have supported rates, Jefferies says
Seanergy eyes ‘best fundamentals’ for capesizes in three decades
Nasdaq-listed owner is projecting a significant increase in average rates for its fleet for the fourth quarter
Dry Bulk: Handies
Latest From Handies
Precious Shipping sees ‘extreme volatility’ ahead for shipping market
Fiscal and monetary stimulus by governments could boost the markets, as could a better steel sector, easing of financial conditions in China, and better-than-expected US economic growth, while a low orderbook will help reduce supply-side pressure
Dry bulk should see healthy rates this year, says Braemar
Capesize lift should come in a few months as China’s industrial output ramps up following its zero-Covid policy, says shipping analyst Alexandra Alatari
Dry bulk market failing to inspire
Hopes of a post-Chinese New Year boost fail to materialise with capesizes bearing the brunt of the losses, while sub-capesize segments in limbo trading in the $7,000 per day range mainly due to conflicting signals
Handysizes maintain strong performance
Handysizes have shown greater resilience to freight rate falls over recent weeks on strong trading volumes which has seen utilisation at one of the highest among bulk carrier segments, says Braemar ACM
Coal, control and congestion to shape dry bulk freight market
Port congestion has been particularly acute in northern China, where 314 bulk carriers are now tracked at anchor, up from 250 a month ago, awaiting to discharge at coal, ore, minerals or grain terminals, according to Lloyd’s List Intelligence data
Nigerian refinery to have ‘major impact’ on tanker market
Poten’s Erik Broekhuizen said that the Dangote refinery will dramatically change the crude oil and refined product balances in Nigeria and the wider West Africa region
Dry Bulk: Panamax
Latest From Panamax
United Maritime adds third bareboat-chartered bulker amid dry bulk optimism
Within February the Nasdaq-listed owner has agreed a sale-and-leaseback transaction for another of its existing vessels
Seacon balances management services with controlled fleet growth to 29 ships
Chinese shipmanager also has an orderbook of another 13 newbuildings
Monjasa buys panamax as floating bunker storage
Monjasa said its fleet now consists of 13 tankers following the purchase of four secondhand vessels this year
Panamaxes outpace capesizes in Indian coal trade shift
Dry bulker trading patterns have altered this year as coal imports into India declined, while those into China spiked
Dry bulk should see healthy rates this year, says Braemar
Capesize lift should come in a few months as China’s industrial output ramps up following its zero-Covid policy, says shipping analyst Alexandra Alatari
Dry bulk market failing to inspire
Hopes of a post-Chinese New Year boost fail to materialise with capesizes bearing the brunt of the losses, while sub-capesize segments in limbo trading in the $7,000 per day range mainly due to conflicting signals
Dry Bulk: Ultra & Supras
Latest From Ultra and supras
Dry bulk should see healthy rates this year, says Braemar
Capesize lift should come in a few months as China’s industrial output ramps up following its zero-Covid policy, says shipping analyst Alexandra Alatari
Dry bulk market failing to inspire
Hopes of a post-Chinese New Year boost fail to materialise with capesizes bearing the brunt of the losses, while sub-capesize segments in limbo trading in the $7,000 per day range mainly due to conflicting signals
Soyabean trade to lift demand for panamaxes
Panamaxes should benefit from higher soyabean exports out of Brazil, while demand for smaller-sized bulk carriers will be hurt by much lower sorghum volumes from the US
Sub-capesizes end the year rangebound at lower levels
Handysizes to panamaxes have shed value through the month, with average daily spot rates ending the year in a $11,000-$14,000 range, as activity dwindles ahead of the holidays and amid an uncertain economic outlook
Baltic Exchange considers updating supramax index to reflect size and trade shift
The London-based exchange held a working group to discuss the possible changes to a larger sized vessel in response to feedback. Potential changes to routes and weightings were also on the agenda
Jinhui Shipping profit suffers amid softer freight rates
Company said congestion and disruption issues are likely to continue in some countries and regions for the foreseeable future
Tankers & Gas: LNG
Latest From LNG
Ex-CNOOC president ensnared in Beijing’s graft crackdown
Li dedicated nearly his entire career to the Chinese oil and gas major. His case demonstrates that Beijing's anti-corruption campaign among government officials and state-owned enterprise executives is still ongoing
Wah Kwong, China Gas and CSSC Shipping team up for more LNG carrier newbuilds
Two large LNG carrier newbuildings will be added to the partnership led by the Hong Kong-headquartered owner
Hanwha Ocean signs MOU to build 12 LNG carriers for Middle East shipper
So far, the second phase of QatarEnergy’s fleet expansion project has reportedly included agreements for 52 vessels
Capital Product sheds more boxships as it doubles down on gas shipping
First four disposals expected to swell owner’s cash kitty by about $81m
CoolCo expects demand tailwinds as more LNG heads east in second half
New York-listed CoolCo forecasts a seasonal upswing in the second half of the year. It will be boosted by longer voyages as more liquefied natural gas heads east
Marinakis inks new $1bn deal for LNG carriers
Four 174,000 cu m vessels to be built by Hyundai Samho brings the number of new LNG carriers ordered by Greek owner from South Korean yard group to 22
Tankers & Gas: LPG
Latest From LPG
The week in newbuildings: Orders valued at $3bn signed
Ordering activity continues to be dominated by bulk carriers and tankers, although several high-value contracts were reported for the gas and vehicle carrier sectors
Strong finish sends BW LPG to strongest year on record
BW LPG posted its strongest financial year after a robust fourth quarter, during which VLGC rates climbed to near-record levels. The company’s outlook for the year is ‘positive’ but it expects high volatility
StealthGas makes ‘promising start’ to year after record 2023
Greece-based company cuts debt by more than half in 12 months
Evalend emerges as owner behind latest VLAC pair
Greek owner’s previous series of VLGCs will be coming on stream this year and can carry ammonia at 87% capacity
Volatile VLGCs climb from cold crash
Freezing US temperatures narrowed the US-Asia propane arbitrage as the year started and had a chilling effect on VLGC spot rates, which hit their lowest levels in nearly two years early in February. But not so the past two weeks, with Jefferies assessing rates at around $40,000 per day globally, driven by higher US export volumes
Ship recycling sector bogged down by elevated shipping markets
‘A pervading theme of an unrelenting dearth in the overall availability of tonnage across global ship recycling markets has been enduring for several quarters now,’ said cash buyer GMS
Tankers & Gas: Products
Latest From
Rise of dark fleet capping growth of P&I clubs, says Roppestad
‘We are seeing lower growth in tonnage, not because we are getting less business in, but because some part of the world fleet has gone out of Western insurance markets,’ says Roppestad
CCB Leasing orders Sumec ultramax pair backed by Bohai Ocean charters
A pair of firm 64,000 dwt conventional-fuel dry bulkers were placed at Sumec’s subsidiary New Dayang Shipbuilding, with more to follow
Daily Briefing March 19 2024
IMO resumes efforts on carbon pricing tools | Red Sea tensions on display at IMO meeting | Bunker demand faces long-term decline despite geopolitical spikes
Seacon expands fleet with chemical tanker order
Deal comes after Seacon ordered another four chemical tankers of the same size and four MR tankers in China last month
IMO resumes efforts on carbon pricing tools
IMO member states are to adopt economic and technical measures in 2025, under last year’s revised greenhouse gas strategy. Now the regulator has to figure out how these measures will work
Novorossiysk-bound ships detouring amid heightened drone threat
A document circulated on social media suggests ships are being instructed to alter course after a general cargoship spotted a naval drone in the Black Sea earlier this month; however, the exact reason why others are anchoring mid-route is not clear
Tankers & Gas: Suez & Aframax
Latest From Suez and Aframax
ETS share of tanker freight costs set to grow
Higher ETS prices and falling tanker freight rates could significantly increase the share of EU carbon tax in spot rates after 2026, when 100% of emissions will be accounted for
Iran allows crew on board seized Greek tanker St Nikolas to be swapped
The fate of the tanker formerly known as Suez Rajan, which has been embroiled in a long-running tit-for-tat series of seizures between US and Iran, now remains in the hands of the Iranian courts
TEN emerges as owner behind Samsung shuttle tanker order
The latest order, priced at $148m, brings to at least three the number of shuttle tankers being constructed for US-listed owner, on top of four vessels already in operation
Record volumes of Russian oil shipped outside the West’s reach after sanctions crackdown
Just 39% of tankers calling at Russian ports over February had marine insurance with the International Group of P&I clubs, a proxy for sanctions compliance with the G7 oil price cap — the lowest number since it was implemented 14 months ago
Okeanis eyes ‘even better’ longer-term scenario for tankers
New York- and Oslo-listed owner clinches sharply higher rates in first quarter of 2024 following record 2023
Teekay Tankers nears debt-free position on concluding strongest-ever year
Strong oil demand, the Russian invasion of Ukraine’s effect on tonne-miles and low fleet growth propelled mid-sized tanker specialist Teekay Tankers to its best year on record. The company is nearing a debt-free position as it plans to wind down its last sale-and-leaseback arrangements
Tankers & Gas: VLCC
Latest From VLCC
Rise of dark fleet capping growth of P&I clubs, says Roppestad
‘We are seeing lower growth in tonnage, not because we are getting less business in, but because some part of the world fleet has gone out of Western insurance markets,’ says Roppestad
Novorossiysk-bound ships detouring amid heightened drone threat
A document circulated on social media suggests ships are being instructed to alter course after a general cargoship spotted a naval drone in the Black Sea earlier this month; however, the exact reason why others are anchoring mid-route is not clear
The week in newbuildings: Crude oil and product tanker orderbook sees further boost
Greek and Israeli shipowners have ordered a combined 12 large tankers in the past week, comprising four ships each in the VLCC, suezmax and long range two sectors
The week in charts: Houthi attacks will continue | Newbuilding prices set to rise | Ship recycling recovery on hold | Chinese demand props up Russia oil exports
Robust weapons supply chain continues to support Houthi firepower, shipbuilders’ bulging orderbooks mean prices are set to creep up in 2024 and Russian crude oil imports hit eight-month high in China
Bunker demand faces long-term decline despite geopolitical spikes
Replacement of older, less-efficient vessels and the adoption of cleaner fuels as part of shipping’s decarbonisation efforts will inevitably lead to reduced future consumption of both high-sulphur and low-sulphur fuel oils
US blacklists suezmax tanker and owner for Iran and Houthi links
The US has slapped sanctions on a suezmax tanker and its registered owner for shipping Iranian commodities in support of the IRGC-QF and a sanctioned Houthi financial facilitator. Ofac says the suezmax took Iranian oil from a sanctioned tanker that spoofed its location during the cargo transfer
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