While there appears to be little short-term hope of a rebound in freight rates on the Asia-North Europe trade, there are emerging signs that a demand recovery over the medium term could be under way, according to the latest analysis from MSI. Read more at The Loadstar.
After three torrid years of low profitability, a combination of falling costs and rising prices put yards on a stronger footing, writes Stuart Nicoll from MSI. Read more at Splash247.com
A lot of what’s happening economically on the ground in India mirrors China’s explosive growth at the start of the 21st century, but can the newly crowned world’s most populous nation deliver the fortunes for shipping? Read MSI’s Managing Director, Dr Adam Kent’s, thoughts on this topic at Splash247.com
The trajectory of newbuild prices which have soared up by as much as 50% in less than three years is dividing experts with owners facing tricky decisions on when to kickstart fleet renewal programmes ahead of stricter 2030 green targets for shipping agreed at the International Maritime Organization this July.
MSI believes that newbuild prices might finally cool down over the next couple of years, a point of view not widely shared with shipbroking houses. Read more at Splash247.com
One reason for the decline is “the fact that liners have now well-equipped networks to serve the current level of demand”, argues London-based MSI. Read more at TradeWinds
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
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
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