DP world has recently announced its intention to delist from Nasdaq Dubai citing the board’s decision that the disadvantages of remaining listed outweigh the advantages. Even though we share the company’s view, we believe the decision to delist will further deteriorate its already higher leverage. Moving forward, a lot will depend on the company’s ability to generate synergies from recently concluded ’bolt-on’ acquisitions.
Increasing biodiesel consumption due to the rollout of B20 biodiesel programme in Malaysia and B30 programme in Indonesia coupled with low production of palm oil will tighten its supply. Top importers like India and China will counterbalance this gap by switching to soybean oil and sunflower oil. This trade shift will result in increased tonne-mile demand and firm vegoil freight index in 2020.
While it is still too early to make any comparison between the current coronavirus outbreak and any previous epidemic, our Maritime Financial Research team look at some of the historical precedents to give context to the current outbreak.
The IEA in its latest OMR report projected a 7% growth in India’s jet fuel demand in 2020, in view of wider economic growth. After plummeting to less than 5% in 3Q19, the country’s GDP is expected to grow 6% this year owing to government corporate tax cuts, coupled with a plan to sell low-performing and loss-making state-owned companies such as Air India where the government has a 100% stake.
With 25% tariff on LNG still in play, the Phase-1 deal between the US and China is not expected to bring any significant change in the LNG trade between the two countries. However, with China requiring additional LNG supplies in the coming years, the US still has the opportunity to become an important supplier for the soon-to-be world’s largest LNG market.
Drewry’s freight cost benchmarking and procurement support division, is pleased to announce the launch of a new range of fuel advisory and management services designed exclusively for shippers and forwarders.
As part of a series of initiatives aimed at bringing greater transparency to fuel costs resulting from the new IMO 2020 low-sulphur regulation, Drewry is pleased to announce the publication of its first low-sulphur reference bunker index tracker.
Underlying vessel operating cost inflation accelerated moderately in 2019 on higher repair & maintenance and insurance spend, while costs are expected to continue rising at a similar pace in 2020, according to Drewry’s latest Ship Operating Costs Annual.
Join us at 0900 or 1600 GMT on Tues, 10 March 2020 to find out more on our latest research covering the container ports and terminals market. The session will be hosted by Eleanor Hadland, Senior Analyst in Drewry’s Ports and Terminals practice and Martin Dixon, Director - Head of Research Products at Drewry. Both executives will be available to take questions following a short 20 minute presentation.