WORLDWIDE MARITIME NEWS (XIII)

1.- SHIPPING INVESTMENTS: CALL OFF 2014 SHIPPING REBOUND

 

According to a survey of development in shipping and offshore companies in the first quarter 2014, the growing orderbooks combined with the declining rates and prices in recent weeks make numerous investors doubt whether the expected, gradual shipping rebound in 2014 will come to pass. Investors are worried about the recovery of freight rates and shares prices and the growing orderbooks which could hinder the market recovery sooner or later. However, the dry bulk index is significantly higher today than it was a year ago, and analysts estimate that employment for many of the large dry bulk vessels will increase significantly over the next 30 days, with cargoes coming out of Brazil. For crude oil, it expects improved earnings in the 1st quarter 2014 compared to the 4th quarter of 2013, while container carriers are expected to see a slight improvement due to seasonality and a general rate increase (GRI) in January. But it is not enough for Investors who needs to see rates rebounding again to be more certain that the cyclical recovery is on track.

 

 

 

2.- SLOW STEAMING: SOLVES THE PROBLEM OF OVERCAPACITY

 

According to a new study by Drewry, slow-steaming has helped that today´s market has less overcapacity than there would otherwise have been because it has enabled more ships to operate on the same route as was previously possible. Before slow-steaming was introduced eight ships would be employed on an Asia-Europe service, while after the introduction of slow-steaming the same service can employ 11 ships. If slow-steaming have not been introduced the capacity in the market would have increased by 40 percent in the period from 2008 to 2013, while capacity, with slow-steaming in place, has only increased by 22 percent. It has a possitive and a negative consequence such as the major transit times and blank voyages faced by shippers.

 

 

 

3.- P3: PRESSURE ON KOREAN SHIPYARDS

The rise of container alliances could have positive and negative consequences in the shipbuilding sector. On the one hand, container alliances could break up the balance between supply and demand between container carriers and Korean shipyards due to the signature of joint vessel purchases which gives owner´s greater negotiation power on the contract. On the other hand, it would bring more work to shipyards because container carriers will order ships in efforts to compete with  alliances.