Overcapacity and weak demand will dominate earnings.
“Although spot rates on some routes are already back to their last decade average or even lower, they are not expected to show any significant increase in the coming quarters as the supply-driven overcapacity will likely overshadow the market,” MSI said. Read more at Lloydslist
Tim Smith of MSI considers how changes in global energy consumption out to 2050 might impact global shipping demand. He also addresses the oft-mooted issue of ‘stranded assets’ in the context of the energy transition. Could ships become obsolete – from a technological and regulatory standpoint – before their assumed 25-year lifespan? Listen at ship.energy
Container spot rates are undergoing a slight revival, but the pain is beginning for the charter market and the prognosis is grim. A decline in the charter market over the past month is expected to gather pace, particularly for smaller vessels. Read more of MSI’s comments on the market in TradeWinds
Until recently the mid-size and large containership charter market has been relatively sheltered from the downturn in liner shipping, but a MSI believes a “material decline in charter rates is on the cards”. Read more at Theloadstar
The shipping industry has placed a massive bet on liquefied natural gas as an alternative fuel — as a bridge between traditional fuel oil and whatever comes next, whether it’s methanol, ammonia, hydrogen or something else. Shipowners have spent billions of dollars fitting ships to burn LNG.
MSI Managing Director, Adam Kent, contributes his thoughts to this article published in Freightwaves
In a recent report published by MSI they said the improving rig market was incentivising the reactivation of cold-stacked tonnage, but that operators remained “disciplined in their approach”. “Rig owners differ materially in their approach and attitudes towards their stacked fleets,” said MSI’s Offshore and Energy Analyst Pradip Adhikari. Read more at TradeWinds
Market preference for younger tonnage puts a newbuilding cycle on the horizon, writes MSI. Read more at Riviera
Strategies of market leaders with cold-stacked tonnage could signal the recovery of the deepwater drilling sector. The floating rig market has long since crossed an inflection point incentivising the reactivation of cold-stacked tonnage, yet operators remain disciplined in their approach, according to new research by MSI. Read more at Splash247.com
The Seatrade Maritime Podcast is joined by analysts from Maritime Strategies International to take a look at the outlook for containers, tankers, dry bulk, and shipbuilding in the second half the year. Listen to the podcast at Seatrade Maritime
Holding back a newbuilding tidal wave is key to sustaining market health against as cloudy outlook, writes Tim Smith, director at MSI. Tanker markets have moved markedly lower in Q2 2023, a moderation in earnings conditions that was in line with MSI’s expectations and a consistent feature of our outlook. Read more at Splash247.com