Archives for posts with tag: SIN

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.

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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.

Building trade tension between the US and China featured heavily in the headlines in 2018, driving concerns over the possible impact of the ‘trade war’. Both countries imposed new tariffs on a wide range of goods during the year (see SIW 1340 for discussion of the ‘shipping context’), but how has the seaborne trade environment actually been impacted by the dispute?

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

In 2018 the ClarkSea Index had a very strong Q4, with the average in the final quarter well above that registered across the first three. It’s well known that shipping markets can be seasonal, and studying our ClarkSea Index illustrates that fairly well. But how seasonal actually are they, how far did last year’s Q4 stand out, and how much does a strong Q4 tell us about the year to come?

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

We all know shipbuilding is one of the toughest businesses around but just how tough was 2018? Well it seems the answer depends on which unit of measurement you use! Using DWT, ordering fell 14% to 77m dwt while using CGT, a better reflection of the work content of building vessels, ordering increased by 2%. On balance its seems that conditions remain challenging but still improving on the 2016 lows.

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

On a full year basis, containership earnings made further progress in 2018 compared to the previous year, but in many ways it was a mixed year for the liner sector, with the freight market seeing limited improvement overall and vessel charter earnings easing back in the second half of the year. Against this backdrop, what do the end year statistics actually show us?

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

The ClarkSea Index made steady progress in 2018 (+13% to $12,144/day) taking it above the average since the financial crisis. Tankers had a miserable year before being “saved” by a strong Q4, bulkers consolidated their 2017 gains and LNG finished the year on a high. Fleet growth continues to trend below 3%, with just 11% of the fleet on order, while trade growth eased and needs to be watched closely.

 

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