Container shipping market looks up in 2010
Furthermore, the Shanghai Containerised Freight Index (SCFI) recently surged by 7.2 per cent as spot rates on both Asia-Europe and Asia-US trades “went up considerably as a result of the rate increases imposed by carriers.”
The world’s idle container fleet has decreased by 142,000 TEU as the number of idle ships dropped from 581 units at the beginning of January 2010 to 532 units at the start of February, according to Alphaliner’s records.
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According to Peter Tirschwell, senior vice president of strategy, The Journal of Commerce, latest economic data including fourth quarter GDP growth of 5.7%, clearly points to a recovery. However, the transportation industry remains concerned about underlying economic weakness, an uneven recovery and its sustainability.
For importers rushing to ship goods ahead of the mid-February factory shutdowns for the Chinese New Year, capacity is a significant challenge.
Just as the economy is starting to pick up, there are delays getting merchandise to stores. At the same time, shipping rates are being raised significantly and, in many cases, cargo has been diverted to more expensive airfreight to meet delivery deadlines.
“We are now experiencing the most turbulent conditions that the transpacific market has seen in recent years,” said Tirschwell.
Source : Eye For Transport
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Dagfinn Lunde, member of the board of managing directors for DVB Bank also told Emirates Business that the offshore, drilling and the service markets are showing better prospects for investment. Despite a drop in 2009 revenues, the bank is optimistic about its business this year, he said.
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After the vessel Ariella sent out a distress signal early Friday, the Danish warship Absalon sent a helicopter to confirm the presence of pirates, and communicated with the crew to ensure they were in a safe location, said Cmdr. John Harbour, spokesman for the European Union Naval Force.
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Tanker purchases may increase as the economy recovers from the worst slowdown since World War II. Oil demand will rise about 1.1 million barrels a day this year and 1.5 million in 2011, U.S. Energy Department data show.
“Ship values are low enough now that buying vessels can make sense,” said Jeffrey Pribor, chief financial officer of New York-based General Maritime. “The key now is not as much waiting for lower values as picking the right time to buy. We have some hopes that timing could be 2010.” Tsakos has $300 million on hand to purchase ships, said Paul Durham, the Athens-based company’s chief financial officer.
“Our primary objective this year is to acquire vessels,” Durham said in a telephone interview. The acquisition “probably will be on the crude-tanker side, such as Suezmax and Aframax, but we will also look at product tankers.”
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More to the point: $45,000 is more than enough for profits to roll in at a fine pace for shipping companies. Anything above $50,000 is considered historically strong, and enough to drive stock prices higher.
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“We have posted the lowest profit in six years. We have seen a huge drop in rates from corresponding quarter of last year. Tanker market was strong last year but has turned weak now,” said the Great Eastern Shipping Chief Financial Officer, Mr G. Shivakumar, during an earnings conference call.
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Freight rates for commodity carriers and oil tankers averaged at least 50 percent less last year as a drop in world trade curtailed demand for cargoes, according to data from the London-based Baltic Exchange. Bank lending to the shipping industry shrank as ship prices declined.
Brazilian companies ordered $3.1 billion of ships, making them the biggest spenders. Chinese firms spent $2.9 billion and Greek shipping lines $1.8 billion.
Source : Bloomberg
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Container shipping market looks much better
Other positive signs it said include the extra slow steaming technique “absorbing excess capacity quicker than anticipated, especially for the larger vessel sizes.”
Furthermore, the Shanghai Containerised Freight Index (SCFI) recently surged by 7.2 per cent as spot rates on both Asia-Europe and Asia-US trades “went up considerably as a result of the rate increases imposed by carriers.”
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They will be authorized to open containers on cargo ships to check goods they suspect are hazardous and have contamination risks. Officials will be able to look at the goods without the presence of cargo owners.
“The clean and safe water environment is not only a key to the coming Expo but also a threshold to the city’s efforts to build a shipping center,” said Xu Guoyi, head of the Shanghai Maritime Safety Administration.
