- Demolition age drops as the dry bulk market enters another challenging year
The dry bulk market faced a lot of headwind in 2015 as dwindling demand and over-supply created very unfavourable market conditions. 2016 has shown no improvements so far and prospects for the rest of the year are not looking promising. With poor earnings across the board the average scrapping age has dropped among all the dry bulk segments.
- Tanker Shipping: Still a strong market as demand stays high
One of the most characteristic developments in 2015 was the declining price of crude oil during the second half of the year. Brent crude oil dropped from USD 57 a barrel (bbl.) on 1 July to hit USD 37 a bbl. on the last trading day in 2015.
- Container Shipping: A difficult market is helped along by low supply growth in 2016
Overall, container volumes being moved around the world have grown by an average GDP-to-trade multiplier of just 1.1 since 2010 and we expect this to continue in coming years. With IMF expecting GDP growth of 3.4% in 2016, this translates into container demand of 3.5-4%.
- Dry Bulk Shipping: A miserable start to a new year, where the market struggles to grow at all
The global production of steel dropped in 2015 compared to 2014, to a larger extent outside China, as China exported its surplus of steel to destinations across the globe; it is too complex to single out whether this is positive or negative for the seaborne dry bulk transport demand.
- Macro Economics: Uncertainty in Asia echoes around the world
2016 continues where 2015 ended, with all eyes on China. This is mainly because of uncertainty surrounding the development of the world’s second-largest economy. When the first day of the Shanghai Stock Exchange of 2016 closed prematurely, the trading results echoed around the world. It warned us that we are in for a rough ride in 2016.
- The shipping market in 2015 and looking forward
2015 never really took off, even though the global economic activity looked stronger earlier in the year. The negative indicators seen at the end of 2014 were not overcome, and we saw a significantly lower level of growth for global GDP in 2015 than in the previous five years. This was primarily due to the struggling emerging markets and developing economies, led by changes in China’s economic focus.
- Not younger than 18 years, unless…
International dry bulk shipowners seem only to scrap ships aged 18 years or older. While a couple of Chinese owners have scrapped ships that were even younger than that...
- Despite tempting newbuilding prices, contracting in dry bulk remains low
The current newbuilding prices for dry bulk ships has dropped so much, that they are now at the lowest level since 2003. As they have just passed the lows of 2012 heading downwards.
- Meet BIMCO’s Market Analyst at the Intercem Shipping Forum 2016 in Lisbon - Member discount available!
Chief Shipping Analyst at BIMCO, Peter Sand, will be speaking at the INTERCEM Shipping Forum 2016 in Lisbon, Portugal on 25-26 January 2016. This will be the 5th shipping forum dedicated to the global cement and shipping community and this will be BIMCO's fourth appearance.
- Tanker Shipping: More optimism in sight for tankers in the winter season
2015 has been the year of the tanker. The fundamental improvements with slow supply-side growth for some years coupled with low oil prices from mid-2014 created strength on both sides.