Demand for alternative fuel newbuildings will spur expansion of shipbuilding capacity, including bringing some of the collapsed yards back to life. But the boom seen in the 2000s, which later led to severe overcapacity problems, is unlikely to be repeated. The bounceback will mainly be led by demand for fresh tonnage using alternative marine fuels, especially those in the dry bulker and tanker sectors, said MSI managing director Adam Kent during a Sea Asia shipbuilding outlook seminar. Read more at Lloydslist
Month: April 2023
Longer voyages, aging fleet to boost global tanker freight despite OPEC+ output cuts
MSI’s London-based Director Tim Smith in a report said VLCC spot rate fluctuations are often associated with movements in crude prices and their substantial drop in the first half of March certainly affected freight. Read more at S&P Global.com
Shipyards build up to the challenge of launching a zero-emission fleet
A huge part of the world fleet will have to be replaced with zero-emission vessels in little more than two decades if regulators set a goal of decarbonising shipping by 2050. “Based on the evidence to date, it seems likely that most shipyards will make the step up in capability to meet demand for new green technologies, especially as the technology matures and becomes commodified,” says MSI director Stuart Nicoll. Read more at TradeWinds
Chemical tanker markets are finely balanced
MSI senior chemical tanker market analyst Bonita Nightingale said the market segment is likely to remain tight for the next two years. Read more at Riviera
Slow steaming can partially offset newbuilding surge, says consultant
Any recovery in the container shipping market will be overwhelmed by the flood of new vessels entering the market, according to maritime consultancy MSI. “On average larger vessels have seen average speeds drop by around 1 knot between mid-2022 and Q1 23, which if maintained would represent a meaningful reduction in effective vessel supply,” said MSI. Read more at The Loadstar
Pain ahead for dry bulk market?
Weaker rates, though still profitable, expected to persist through the year, followed by a minor improvement in 2024 and a more meaningful recovery from 2025, says MSI. Read more at Lloydslist
Will the time-charter market turn around, stick or twist?
Topsy-turvy markets over the past three years have seen freight rates see-saw wildly, caused by supply chain congestion, and that had the effect of raising charter rates and extending charter periods, writes Daniel Richards from MSI. Read more in The Loadstar
Mixed signals: Container shipping downturn not following the script
According to MSI, spot freight rates are still eroding, while “in contrast, charter markets not only found a floor but also recorded slight upticks across different vessel size categories.” MSI said the “disconnect between the spot freight and the charter markets continued to widen in recent weeks.” Read more at Freightwaves
Where does the tanker market go next?
Short-term geopolitical turbulence and longer-term fleet dynamics paint a positive, volatile picture for earnings, utilisation and efficiency, reports MSI director Tim Smith. Read more Riviera
Longer voyages, aging fleet to boost global tanker freight despite OPEC+ output cuts
MSI’s Director Tim Smith comments in this article on the state of the market and says “VLCC spot rate fluctuations are often associated with movements in crude prices and their substantial drop in the first half of March certainly affected freight”. Read more at S&P Global