Oneglobal Shipping Market Report 2023 May

2023-05-24 10:31By： Xinde Marine News

Economy:

China's imports and exports are softening after the first quarter's strong recovery from the reopening of covid-19 lockdown, and weak Chinese demand pushed iron ore prices to a low level. Interest rates raised to one of the highest levels since 2008, pushing the cost of capital to drive economic growth to become expensive. Some regulators urge outsourcer's customers, including insurers and pension funds, to examine data loss, which could push cyber security insurance to become mandatory. Group of Seven (G7) leaders will impose further shipping-related sanctions on Russia.

Bulk Carrier:

The Ukraine Black Sea grain deal has been extended for two more months. Indonesian seaborne coal exports are expected to rise significantly better than last year. India is set to increase its purchases of Russian coking coal this year to cash in on lower prices and diversify its imports. China’s soybean imports from the U.S. rise. But, later, the dry bulk market could receive a further boost from a record Brazilian soybean crop.

Tanker:

The tanker charter market is still at a high level but lost momentum to improve further. As a result, the market is facing short-term corrections. shipyards' pace of deliveries so far this year is faster than contracting, and the order book to fleet ratio continues to shrink. Prices of secondhand tankers have reached their highest level in 15 years, backed by high new building prices and high earnings due to high tonnage demand as the sanction separates the original market into two markets and makes the fleet utilization less efficient.

Containership:

As the freight is softening, container carriers are starting a rates war. But container liners are in a super-rich position. At $25bn, CMA CGM’s profits last year were the highest recorded by any French company in history, and it agreed $5.5bn price take over Bolloré Logistics. Also, its subsidiary CEVA Logistics entered the car carrier trades. Continuing to buy ships in the last two years will make MSC the first liner firm in the world to operate a fleet over 5m TEU.

Gas carrier:

The LNG spot market is softening. But the new building market still is booming. New order of 170K CBM LNG ship has reached $277m comparing less than $200m two years ago. Rich shipyards are bringing innovative designs of LNG units, introducing three cargo tanks instead of the traditional four, an improved boil-off rate of more than 5%, and securing additional loading space of up to 8%.

Offshore:

The offshore charter market has reached its five years high and is under downside correction. The offshore wind market is a new favorable investment area. UK offshore support vessel owner and operator North Star has returned to Fincantieri-controlled Norwegian shipbuilder Vard with an order for up to four offshore wind farm commissioning service operation vessels (CSOVs). Japanese companies have committed to invest more than $22bn in the UK, including funding for offshore wind, low-carbon hydrogen, and other clean energy projects.

The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.

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