Archives for category: Overview

In 2019, the shipping markets as a whole appear to have ‘warmed’ for the third consecutive year, and some key markets have sizzled at certain points. But at the same time it has been a different story in terms of fresh asset investment. Pulling the two elements together to take a wider reading of the shipping ‘temperature’ can help put this year into perspective…

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

While car carrier market conditions have improved somewhat from the lows of 2016-17, the sector has continued to face challenges this year, mainly on the demand side. Global seaborne car trade has experienced a range of pressures since the global financial crisis, and whilst 2017-18 saw a return to more positive demand trends, seaborne car trade volumes are on track to decline once again in 2019.

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

As last week’s Analysis showed, deliveries from the shipyards have picked up this year, and the fleet has grown more quickly than many expected. However, supply-side growth still looks fairly ‘manageable’ in many sectors, and not only is the orderbook now down to a historically low 9% of the fleet, but currently the ‘effective’ capacity growth in key sectors is being slowed by scrubber retrofit activity…

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

 

Against a backdrop of this week’s IMO meetings on GHG emissions, tracking the annual CO2 output of the shipping industry is today more important than ever. The world fleet’s ‘footprint’ is estimated at 819 million tonnes of CO2 this year, and IMO targets aim for a 50% reduction by 2050 compared to the 1.0 billion tonnes in 2008 (see SIW 1,391), so putting these figures into some context can be important.

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

The US-China ‘trade war’ has been back in the headlines after reports of a tentative preliminary deal between the countries. The dispute, which began in earnest in Q1 2018, has impacted seaborne trade patterns and global economic sentiment, and suggestions that an initial deal could be reached would be encouraging. Yet clear hurdles and uncertainty remain, whilst trade tensions elsewhere also continue.

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

 

Not for the first time in shipping’s history, the industry’s choice of fuel is sharply in focus. This week we review not just the imminent low sulphur fuel switch, but also the role of alternative fuels in reducing the ~820mt carbon (~2.3% world output) that the shipping fleet produces per year. But for an industry that took over 50 years to switch from wind to steam, the impact may be no less radical and quicker besides!

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

Shipping is often said to provide a good example of classic ‘market mechanics’ in action. Participants react to market conditions, and in turn this contributes to the cyclicality of the business. While factors shaping the demand side are rarely within owners’ control, supply side responses to the state of the shipping markets, including recycling or investment in new tonnage, are often fairly clear…

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

In the H.G. Wells novella The Time Machine, the main character describes how he has travelled thousands of years into the future, using a contraption controlled by two levers. While today’s shipowners can only dream of a machine that could take them through time to the top of the shipping cycle, they do have access to a range of supply-side ‘levers’, which clearly can be used in very different ways.

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

The shipping industry has faced some challenging times since the global financial crisis, including some tough markets and for many a difficult financing environment. However, to keep the wheels of the world economy turning shipping still requires substantial investment, and here we track the total in the post-downturn decade 2009-18 – still a cool one trillion dollars!

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.