Archives for category: Bulkers

In such a volatile business as shipping, it is commonly held that shipowners are “paid to take the risk”. As a result of this, earnings from their assets may often be thin whilst they bide their time for the “days in the sun” when they enjoy earnings at the top end of the market range where they make a significant share of their money. Here we take a close look at this distribution of owners’ earnings.

For the full version of this article, please go to Shipping Intelligence Network.

Shipping and energy are two central features of the modern globalised economy. Indeed, in 2019 total seaborne trade is projected to exceed 12bn tonnes, while primary energy demand is expected to stand at over 14bn tonnes of oil equivalent: around 1.6 tonnes of seaborne trade and 1.8 toe of energy for everyone on the planet. What is the relationship between these salient features of global economic activity?

For the full version of this article, please go to Shipping Intelligence Network.

 

This year, the shipping industry is expected to transport 12bn tonnes of cargo. That’s double the volume shipped in 2000 and four times the trade in 1980; the result of economic growth and globalisation. Dry bulk and container trade were at the heart of this in the boom of the 2000s, but both over time and across sectors the seaborne trade growth environment continues to evolve.

 

For the full version of this article, please go to Shipping Intelligence Network.

One of the most important building blocks of shipping market economics is the concept of the ‘delivered cost’ of a commodity and freight’s part within it. In general, the freight element of the cost of delivering (i.e. selling from the point of origin and shipping to the buyer) of a commodity is only a limited part of the total delivered cost. This has key implications for shipping market behaviour.

For the full version of this article, please go to Shipping Intelligence Network.

Once in a while, one of the many statistics regularly updated in Shipping Intelligence Weekly reaches a major milestone, and this month we have a significant one to reflect upon. As of May 2019, for the very first time we have been able to report on a global shipping fleet comprising over 2 billion deadweight tonnes in capacity. This week’s Analysis reviews the progress from the first billion dwt to the second…

For the full version of this article, please go to Shipping Intelligence Network.

Environmental concerns are increasingly to the fore in world political economy, with the global energy mix and questions of “peak demand” for different fossil fuels receiving increasing attention as a result. While there is clearly still much uncertainty around this topic, it is worth exploring how shipping continues to develop alongside the changing dynamics of the global energy mix.

For the full version of this article, please go to Shipping Intelligence Network.

It is often noted that the shipping market’s component parts make it ‘multi-cyclical’, helpful in an industry where the number of variables is large and volatility prevalent. It seems like this view is a reasonable assumption: at any given time one or more markets may be under pressure but equally circumstances are likely to be favouring other markets at the same time. But how to test it?

For the full version of this article, please go to Shipping Intelligence Network.