LNG shipping rates have surged to $130,000pd currently from around $80,000pd at the end of September due to tight vessel supply and seasonal firmness in demand. Furthermore, the upward momentum in rates is expected to be maintained.
The recent drone attack in Saudi Arabia affected around 60% of the country’s LPG production. However, Saudi Arabia’s stockpile and increased exports from the US minimised the effect of the production cuts on the global shipping market.
Indonesia’s ban on exports of unprocessed ores and minerals will result in reduced nickel ore trade, hurting the demand for small bulkers. However, with bauxite trade shifting to Guinea-China from Indonesia-China, large bulk carriers will gain employment.
Global spare production capacity is not enough to compensate for the decline in Saudi Arabia’s oil production after the recent attacks on two of the country’s oil facilities and the consequent inventory drawdown will therefore underpin oil prices and adversely affect tanker demand if supplies take longer to be restored.
Drewry and the European Shippers’ Council (ESC) have published a bunker adjustment factor indexing mechanism to help shippers monitor and control bunker charges in the run-up to and following the introduction of the IMO 2020 low-sulphur regulation.
The mood-music surrounding the container market has deteriorated further in the last three months, resulting in Drewry downgrading its outlook for world container port throughput for the current year and the rest of the five-year horizon, in its latest Container Market Annual Review and Forecast.
Online technology platforms where shipping lines and their customers can negotiate forward contracts could help improve vessel utilisation levels and reduce freight rate volatility, according to a joint study conducted by global shipping consultancy, Drewry and maritime supply chain technology provider, CyberLogitec.
Car carrier shipping is expected to continue its slow recovery, supported by improving utilisation and minimal vessel ordering, according to Drewry’s latest Finished Vehicle Shipping Annual Review and Forecast.