The retreat of COVID-related disruptions will restore market efficiency and freight rates to better reflect underlying supply and demand fundamentals.
Dry bulk owners enjoying a welcome bounce in earnings and asset values should be prepared for pressure in the second half of the year as the impact of China stimulus wanes and port efficiency improves. Read more here
Owners of wind turbine installation vessels can expect to see earnings and demand grow, but oversupply might be looming if too many vessels area ordered. Read more in Riviera
China is the world’s dominant player in liquid chemicals, but will growing domestic production displace imports? asks Maritime Strategies International’s director, Stuart Nicoll. Read more in Riviera
Crude tanker owners are still facing difficult market conditions in the months ahead due to slow growth in seaborne trade, senior analysts told an industry forum.
The gloomy outlook comes as spot tanker earnings remain below break-even levels for many shipowners in various segments, despite forecast increases in Opec+ supply and oil demand later this year. Read more in TradeWinds
Indian Railways is discussing if its current 25% discount for moving empty containers inland along some routes needs to be extended beyond March. Read more
“Exporters and their industry groups are noisier and more active lobbyists on these types of issues,” said Daniel Richards, a senior analyst at Maritime Strategies International Ltd., a shipping consultancy. “When you add to that the importance of the export sector to most Asian economies you can see why these governments have at least made efforts to be seen to be proactive. Read more in Bloomberg
The ability to separate exuberance from inefficiency is key to understanding how long higher earnings are likely to be maintained. Read more, written by MSI’s Managing Director, Adam Kent, in TradeWinds
MSI’s forecasts and data used in BHP’s economic and commodity outlook. Read more here
According to a report from the research consultancy Maritime Strategies International, only 7.5m people took cruises in 2020, compared with almost 30m in 2019. MSI said that it expected 11.9m people to take a cruise this year. Read more in the Financial Times
“A flurry of large containership order at the end of 2020 has increased the industry orderbook back to just over 10% of the fleet, although almost all were orders we already had anticipated would take place in either 2020 or 2021,” said analysts at Maritime Strategies International. Read more in Lloyd’s List