Global shipyards are under pressure and 2021 is turning out to bring the third lowest level of newbuilding orders in 12 years, despite new orders for containerships currently at a 14-year high.
The container and dry bulk shipping industries are breaking new records left, right and centre it appears, resulting in dry bulk owners enjoying unseasonably high profits, and container shipping carriers and tonnage providers delivering record high profits.
Demand drivers and freight rates Driven by the pandemic and stimulus-induced consumer spending on retail goods, container shipping has been a great place to be for carriers and tonnage providers, while proving a headache for those with cargoes needing to be moved in a timely manner.
Demand drivers and freight rates A recent small and short spike in oil product tankers shows just how far the tanker market still has left to go on its recovery journey.
Demand drivers and freight rates The first four months of 2021 have been record-breaking in volume terms, with demand reaching 1.69 billion tonnes – the highest-ever start to a year. Volumes are up 6.1% compared with the same period in 2020, and only slightly down from the 1.72 billion tonnes in the final four months of 2020.
Despite diverging pandemic paths in the world, global growth is forecast to reach 6% this year, according to the International Monetary Fund, following a 3.3% contraction last year. There are, however, still plenty of downside risks, especially as parts of the world are facing their worst coronavirus outbreaks to date and the prospect of a large part of the global population being vaccinated is still a long way off.
Peter Sand is joined by Jochen Gutschmidt for the final episode, which focuses on container shipping. Sand and Gutschmidt look into the somewhat crazy and out of control container shipping market. Commodities moved in a box have dominated much of the conversation in 2020, and here is the perfect opportunity to dive down into how, why and where it is going. The two look both on commercial (procurement) and operational (management and optimization) trends. Spanning across short and long-term analyses, giving the viewer insight into the short-term markets and a unique look into the experts forecast for the future.
The pandemic is still wreaking havoc in large parts of of the world, and while the tanker market is hurting badly, the companies in the container shipping sector are making record profits. In dry bulk, rates are at a 10-year high. But how long will this situation last, and what disruptions to the current state of the market should you keep your eyes out for?
That question, and many others, BIMCO’s chief shipping analyst, Peter Sand, tried answer on 2021’s second instalment of BIMCO’s Shipping Market Overview & Outlook.
No V-shaped recovery in sight after the large-scale shutdown of economic activity and the virus posing a risk to globalisation.
Throughout April, container shipping spot freight rates on the back-haul trade from North Europe to China were higher than those on the front-haul trade from China to North Europe.
The sulphur regulation from the International Maritime Organization (IMO) that came into force on 1 January 2020 took the centre stage in the shipping industry at outset of the new decade. Four months on, the spotlights have turned to the coronavirus and the OPEC+ oil price war.
Despite lower volumes being fixed in the spot market, it is key to tracking developments in the container shipping market, as it quickly responds to the changing situation and adjustments to demand and supply.
Converted Very Large Ore Carriers (VLOC) are increasingly becoming a thing of the past with the long-term freight contracts coming to an end as newer and more reliable ships replace them in the market.
The benefits of strong demand growth in the 2010s were limited by faster supply growth.
Members of OPEC and allies (OPEC+), agreed to a historic production cut of 9.7 million barrels of crude oil per day (m/bpd) to reduce the massive production overhang and set a price floor to limit the fall in oil prices.
An overview of the reports and analysis available to BIMCO members.
BIMCO will host the Perspectives and insights on shipping amidst a pandemic webinar on 14 April 2020. The free 1-hour webinar will touch upon how the coronavirus has impacted the commercial shipping markets and what the future may hold.
The coronavirus outbreak has affected all aspects of the shipping industry, lowering, if not wiping out, demand growth prospects for the year across all segments. The outbreak has also affected fleet development.