Earnings go down as tankers take a dip
Time：2014-09-10
Browse：55
Freight rates for dirty tankers went down in August with the decline in crude demand from the US and Europe. While demand for crude remained subdued in Europe on low refinery runs, a steady fall in US imports on rising domestic production and increased inventories hurt freight rates on major routes going to the US. Against the dominant trend, demand for crude increased in China and Japan and freight rates also firmed up on these routes. The tanker market is expected to remain volatile in September, as strong demand for crude in Asia-Pacific supports the market while refinery shut-downs in Europe act as a dampener. The market may suffer further if escalating violence in Iraq and threats of increased sanctions on Russia lead to supply disruptions.
In the LPG sector, spot rates for VLGCs on AG-Japan voyages softened in August to average $110/tonne. The decline was mainly attributed to low demand from Asian consumers while ample cargo was available in the Middle East.
Freight rates for conventional LNG carriers improved to $45pd in August as buyers floated enquiries ahead of the winter season.
The dry bulk market revived, fuelled by an increase in demand for iron ore and coal. Supramaxes and Panamaxes were employed in the Pacific to ship coal, grain and minerals. As a result, freight rates surged on major routes.
The freight market remained weak for chemical vessels throughout the month, with eastbound Transatlantic trade volume slipping further in 5k-tonne cargo sizes. However, Benzene shipments from Japan and Taiwan to the US were relatively stable. Freight levels could be supported by the anticipated recovery in arbitrage benzene exports from South Korea over the next few months.
The container fleet for August jumped more than 150k teu to reach 17.8 million teu (5,090 vessels). The biggest vessel joining the industry was Merete Maersk of 18,270 teu. Evergreen also took the delivery of Thalassa Thyi and Doxa from Hyundai Heavy Industries to be deployed on the Far East to Europe service. Along with Scorpio Group’s order for three 19,200 teu monsters, Namsung Shipping and Shanghai Hai Hua (Hasco) posted orders for two vessels of 1,000 teu each. The new orders were won by the Korean shipyard Dae Sun.