#Ports&Shipping –The latest IMDO Weekly Shipping Market Review includes the following stories as detailed below.
Container Market: Further rate volatility predicted - Container shipping rates have been forecast to remain volatile for the coming months as carriers on Asia-Europe trades benefit from superior capacity management than on Transpacific and intra-Asia lanes, which continue to suffer from vessel cascading. The Shanghai Containerised Freight Index (SCFI) has continued to decline on Asia-Europe trades of late, however HSBC's latest Transport Indicator forecasts Asia-Europe freight rates will remain relatively high while Trans-pacific spot rates will struggle despite attempts from Transpacific Stabilization Agreement (TSA) lines to enforce General Rate Increases (GRI).
Product Market: Dramatic changes to Atlantic sector - Last year the transatlantic product tanker market saw positivity and strong earnings between $15,000-$20,000 a day, spurring a surge of new orders as optimism grew according to Clarksons Research Ltd. However at the moment MR product tanker earnings are between $4,000-$8,000 with year-to-date earnings averaging $8,0000-$14,000 a day. The market sea-change is attributed to the near-demise of Europe's refining industry, once the dominant region in the product sector, coupled with the resurgence of US refining due to their domestic shale boom.
Short Sea Market: Weekly update -The European Short Sea Bulk market experienced flat to soft activity last week according to H.C. Shipping & Chartering's latest report, in a replica vein to the recent period of sluggishness. Activity was said to be patchy with the current supply/demand imbalance becoming increasingly acute with an abundance spot tonnage and owners keen for whatever cargoes they can cover.
For more on each of the above and other stories click the PDF downloadable IMDO Weekly Markets Review (Week 23). In addition to coverage on Afloat.ie's dedicated Ports & Shipping News section.
