Archives for posts with tag: Overview

In the old song “It’s a long way to Tipperary”, the Irish county in question is “a long way back home”. For shipping it must feel a little like that too. Despite more positive sentiment, a supportive world economy, robust trade growth and slowing capacity expansion in many sectors, truly strong markets might still seem in many cases some distance away. But how far along the way are the shipping markets really?

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

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Shipping markets are by their nature cyclical, but anticipating the timing of market cycles is rarely easy in practice, not least because shipping’s cycles are so enmeshed with other economic cycles, notably in underlying commodity markets. For example, while some of the key shipping sectors appear to be moving into the next phase of the cycle, current oil market uncertainties are complicating matters elsewhere.

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

The shipping markets are renowned for their volatility but today there is one aspect of the industry where the last cycle has taken 20 years. The orderbook expressed as a percentage of the existing fleet, a widely used statistic, is basically back where it was twenty years ago, following a very long cycle indeed, and the trajectory in the meantime is well worth a closer examination.

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

At the start of April, the commencement of joint operations between the major Japanese liner companies in the form of ‘ONE’ ushered in the latest step along the road in the consolidation of the container shipping sector. In February 2017 we took a look at how the concentration in the sector was evolving, and now seems like a good time to review how the profile looks today.

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

Fluid dynamics is the study of non-solid matter: that which is mutable, volatile and mercurial! The analogies with the complex world of gas and seaborne LNG trade are obvious. But just as fluid dynamics is a framework for analysing the maelstrom of physical reality, so too can the gas trade be viewed through various helpful frameworks, for example that of the changing global energy mix.

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

 

Since the 2H 2014 offshore downturn, when investment in new exploration and development dried up, many offshore vessel owners will have tended to agree with the child heroine of the 1976 musical Annie: “It’s a hard knock life”. However after three years of setbacks and weak markets, some are now starting to see positives, as a few indicators show encouraging signs. But does that mean it’s time to invest?

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

The Economist’s ‘Big Mac’ Index is a well-known comparison of the relative cost of an item (in this case the ubiquitous burger) in different countries, once the local currency has been converted into US dollars, to provide an indication of the cost of living in various places around the world. In shipping, largely, the dollar rules, but investors still need ways of measuring the cost of potential returns…

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