Archives for category: Tanker

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.

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.

In recent years, much attention has focussed on the major changes that have been taking place in crude trade patterns, including the recent growth in long-haul trade. However, whilst perhaps less-heralded, seaborne oil products trade has also put in a strong performance, after growth began to accelerate from 2004 onwards. In total, products have accounted for 73% of all seaborne oil trade growth 2004-18.

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.

 

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.

The US has traditionally been one of the most significant importers of energy commodities globally, given its large population’s heavy demand for energy (12.8 MWh/capita in 2016, treble that of China). However, US seaborne energy imports peaked in 2005, and more recently exports have taken off, owing to the shale boom. This led to the US becoming a net seaborne exporter of energy commodities in 2018.

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

The S&P markets have been highly active in recent years, with over 7,000 vessels sold since the start of 2014, and 2017 marking a record year in tonnage and value terms. The Analysis in SIW 1364 examined which sectors have seen large volumes, but looking at the flow of ships between owner nationalities is also illuminating, with most of the liquidity in the market linked to owners in a small number of countries.

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