Half of all index-linked contracts filed with the US Federal Maritime Commission reference Drewry’s Container Freight Rate Insight pricing benchmarks. Drewry Maritime Research’s container freight rate benchmarks are the index of choice in index-linked container contracts, according to the US Federal Maritime Commission (FMC). The agency also indicated that uptake of index-linked container contracts on US trades was fast growing. Index-linked contracts allow freight rates to be adjusted during the life of the agreement by reference to an external, independent market price index. Speaking at the Container Freight Derivatives Association’s (CFDA) Global Container Freight Forum in London last month, FMC chief of staff Lowry Crook said that over 50 index-linked contracts had been filed with its organisation this year. Many more are expected to be filed in the upcoming contracting season. “Of the roughly 50 service contracts filed with the FMC that reference freight indices, nearly half refer to Drewry’s index,” confirmed Crook. These benchmarks are published monthly and online in Drewry’s Container Freight Rate Insight. The FMC has a good knowledge of shipping agreements as all carrier-shipper service contracts covering US trades must be filed with the agency by law.
A fast expansion of the fleet in the panamax sector has outpaced trade and affected freight rates, shipbrokers on Monday. "Panamax freight rates are not weaker due to falling demand, but rather because the fleet is growing faster than trade," a broker said. Rates quoted on the Baltic Panamax Index reflected a negative trend across the board, with average daily rates for transatlantic round voyages and fronthaul charter starting to ease back, brokers said.
Moody's Investors Service downgraded its rating for the senior notes of Enterprises Shipholding Corp. to B2 from Ba3. The downgrade reflects Moody's expectation that the pressure on freight rates will continue to build beyond the normal level of seasonality, especially in the light of substantial excess capacities in the reefer industry. In addition, management faces the challenge of allocating operating cash flow and balance sheet liquidity between operating requirements
MISC Bhd expects freight rates for crude oil to remain soft over the next two years as competitors put more new tankers to sea. MISC earns 90% of its profits from shipping oil and liquefied natural gas (LNG). A subsidiary of Petroliam Nasional Bhd (Petronas), the world's largest carrier of LNG. LNG is shipped under long-term contracts, but MISC still faces significant exposure to oil freight rates, with crude oil tankers accounting for 40% of its profits.
P&O Nedlloyd announced that it achieved an operating profit of $84 million in 4Q 2003, compared with an operating loss of $49 million in 4Q 2002. Driving the improved performance: average freight rates increased 16 percent over 2002, and volumes shipped were up 5 percent. Commenting on the future, the company sees a favorable trend in freight rates, and provided trade growth continues as in 2003, the outlook for the container shipping industry remains positive for 2004 although cost
Drewry Shipping Consultants and The Cleartrade Exchange have announced that the World Container Index (WCI), the first Europe-based assessment of container freight rates and index production, is scheduled for launch in September 2011. The index will provide a new and important facility for the global market to hedge their freight rate risk and see major improvements in forward price discovery through the container derivatives market.
Varun Shipping reportedly will invest $300m to buy at least four new vessels in the offshore segment this year, according to a Reuters report. Varun is positioning itself to expand its presence in the offshore segment, the news organization said, quoting a leading Varun executive. Freight rates in the offshore segment has risen around 15 percent due to higher crude oil prices, which hit new life highs in 2008, crossing $120 a barrel on demand growth
The rate for Suexmax vessels has jumped by 53% from $52,866 to $81,073 and that of Aframax vessels by 40% from $31,060 to $43,528 during the period. To capitalise on high freight rates, Indian shipping lines like Shipping Corporation of India, Great Eastern Shipping and Mercator Lines are planning to expand their fleet size. Shipping Corporation of India is planning to invest around Rs 350 crore in the next two years to acquire new vessels while Great Eastern Shipping is expected to
According to a Jan. 6 report from MarketWatch, as freight rates continue to recover and with demand for shipping expected to climb, shares of Asian shippers and shipbuilders are starting the year out trading broadly higher. Investors appeared to agree, lifting shares of major shipping stocks in the region. (Source: www.marketwatch.com)
Chinese shipyards offer to sell vessels at discounts of more than 20 percent to compete with Asian rivals Reuters report that rock bottom freight rates, slowing economic growth and an oversupply of ships have forced maritime firms to cancel or delay hundreds of new orders, leaving yards especially in China with unwanted vessels for sale. As many as half of China's 1,600 shipbuilding companies are expected to go bankrupt or be acquired by larger rivals in the next two to three years and
Container, bulk and tankship owners, Samudera Shipping Line, presents its 2012 financial report with the chairman's letter to shareholders. The following is extracted from Mr. Masli Mulia's letter to stakeholders: "The financial year ended December 31
Attempts by carriers to tackle the capacity overhang are being undone as new orders for Ultra Large Container Vessels (ULCVs) continue to make the headlines, according to Drewry’s monthly report Sea & Air Shipper Insight. The news that China Shipping Container Lines will join Maersk
Hamburg Süd’s performance in brief Following the powerful recovery of the world economy in 2010 and a weaker 2011, global growth continued in the past financial year, albeit at a slower pace. Against this backdrop, container shipments increased once again
Average global freight rates have fallen to a 15-month low, according to Drewry’s new online Container Freight Rate Insight. Drewry’s Global Freight Rate Index fell 12% in April to reach its lowest level since February 2012, when container shipping was still recovering from the last
Ocean and airfreight rates moved in opposite directions in January, according to Drewry’s monthly Sea and Air Shipper Insight. Ocean shippers moving cargo on the key East-West trades continued to see marginal increases for spot cargo in January due to a combination of a seasonal volume
China Cosco plans to sell Cosco Logistics to state-backed parent company China Ocean Shipping. The unit may be valued at about seven billion yuan, and the company is also considering selling other assests to China Ocean to raise as much as an additional 20-billion yuan
Freight rate up 3.2% on last year / Transport volume increases by 1.1%. Revenue rises by 12.1% to EUR 6.84 billion / Absence of peak season and persistently high energy costs weigh on business / Positive operating result of EUR 26 million / EBITDA of EUR 335 million.
The Board of Directors of France’s CMA CGM met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the year ended 31 December 2012. Consolidated revenue rose by 7% in 2012, to $15.9 billion from $14
Drewry's latest 'LNG Insight' saw heating demand subside in major importing regions in February & cargo availablilty also tightened. Regarding cargo availability, a few unplanned shutdowns, caused a 4% decline in the LNG Freight Index.
In a letter to unit holders First Lease Ship Trust (FSL Trust) chairman Wong Meng Heng comments on the Trust's 2012 financial report: excerpts as follows: "The industry witnessed another dismal year as weakness in freight rates and asset values persisted in 2012
The market continues to struggle, and Drewry's latest Tanker Insight report saw the Drewry Tanker Earnings Index suffer a further decline in February. Weak demand hammered freight rates on major routes, especially for the larger vessel segments
The continuing slump in global shipping is translating into brisk business for scrap yards at Gujarat's coastal town of Alang in India. Alang, which receives one out of every two ships destined for breaking, has retained the top slot amid stiff competition from Pakistan, Bangladesh and China
Stolt-Nielsen Limited reported unaudited results for the first quarter ended February 28, 2013. Net profit attributable to SNL shareholders in the first quarter was $1.5 million, with revenue of $519.4 million, compared with $18.2 million, with revenue of $510
As expected the industry just about scraped over the break-even line in 2012, albeit only because of the results of a handful of leading lights. There is every chance that lines will make decent money in 2013, but only if they refrain from old habits and stick to pricing and capacity discipline
The survey indicates freight-rate improvements and greater likelihood of new investment in the next 12 months. Overall confidence levels in the international shipping industry recovered to their highest level for two years in the three months ending February 2013, while U.K