Profitable Short Sea Market Not Before 2020

Marinelink.com
Thursday, August 29, 2013

The second Bloem Doze Nienhuis short sea study shows a cargo demand of around 1.8 billion tons between 2005 and 2012. In the same period the supply of the short sea fleet increases by 20%, from 38-47 million tons dwt.

In 2005, the short sea industry witnessed a reasonable level of profitability. With an annual growth of demand by 4% and a stable fleet size, the market will reach a new balance only in 2020.

The first Bloem Doze Nienhuis study signalled strongly volatile freight rates, mainly caused by a fragmented supply of tonnage. Mergers, joint-ventures and pooling agreements were suggested to improve utilization rates of vessels, as were as a better use of economies of scale.

Freight rates
During 2012 and the first half of 2013 freight rates reached new all-time lows. At the same time, demand from two main industry sectors using short sea transport (steel and forest industry) remains at the low level.

The authors propose the design and implementing of a reliable and representative short sea freight index, which professionalizes the industry and provides more transparency to stakeholders.

Financial performance
An analysis of five large players in the industry shows that asset light owners/operators perform better than competitors with large owned fleets. Problems with financing and losses seem to concentrate in the end of the chain, with the ship owner.

Financing is a key problem in the industry right now. Repayment on loans are postponed to avoid executions. When the markets will improve, these postponements will swallow the available cash flow for a number of years.

Bloem Doze Nienhuis
The study has been performed by Johan Wagelaar RA and Rabia Genç MSc. Johan Wagelaar is an associate partner at Bloem Doze Nienhuis and has a long standing experience in the maritime industry. Rabia Genç is a financial analyst at Bloem Doze Nienhuis.

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Gulf of Mexico Sees First LNG-powered OSV

A special Offshore Supply Vessel (OSV) has been delivered to Shell for its deepwater operations in the Gulf of Mexico.   The vessel, Harvey Energy, is chartered

Bestobell Bags Hat Trick Order in China

Bestobell Marine, part of the President Engineering Group, has received its third order in the past 12 months from Hudong Zhonghua shipyard in China. The deal

Panama Accredits Maritime Security Firm

The Panama Maritime Authority has accredited ESC Global Security personnel to offer protection aboard Panamanian-registered vessels, in what is thought to mark

Technology

GOST to Unveil New Products at MSE Conference

GOST (Global Ocean Security Technologies),announced today that it will highlight its newest commercial maritime products at the 2015 Maritime Security East conference in Jacksonville,

Sunken Japanese WWII Battleship Found

Seventy years after the conclusion of World War II, philanthropist and entrepreneur Paul G. Allen has located the Musashi, one of the two largest and most technologically

ThyssenKrupp Says Submarines Part of Growth Story

Germany's Thyssenkrupp sees its submarine business as making an important contribution to its growth targets, the head of its Industrial Solutions business area said on Tuesday.

Finance

Australia Announces Patrol Boat Tender

Tender announced for Pacific Patrol Boat Replacement Project   The Australian Government announced a Request for Tender (RFT) to replace the Pacific Patrol Boats

Port of Rotterdam 2014 Profit Dips

The Port of Rotterdam Authority said on Thursday its net profit for 2014 fell 4.9 percent to 215 million euros ($237 million) on higher financing costs. Europe's

UK Will Force Fridman to sell N.Sea Assets

Britain is ready to force the sale of Russian oligarch Mikhail Fridman's recently acquired North Sea energy assets unless it receives unspecified assurances within the next week,

News

Lamprell Delivers Jackup Rig to Greatship

Lamprell announced it has completed construction on jackup drilling rig Greatdrill Chaaru, delivering the rig to Greatship Global Energy Services Pte. Ltd.    Greatdrill

Gulf of Mexico Sees First LNG-powered OSV

A special Offshore Supply Vessel (OSV) has been delivered to Shell for its deepwater operations in the Gulf of Mexico.   The vessel, Harvey Energy, is chartered

Australia Announces Patrol Boat Tender

Tender announced for Pacific Patrol Boat Replacement Project   The Australian Government announced a Request for Tender (RFT) to replace the Pacific Patrol Boats

Vessels

Food Handling Products Ordered for Ovation of the Seas

ALMACO informs it has been contracted to deliver food handling products for the Royal Caribbean International’s Ovation of the Seas, the third Quantum-class ship

Gulf of Mexico Sees First LNG-powered OSV

A special Offshore Supply Vessel (OSV) has been delivered to Shell for its deepwater operations in the Gulf of Mexico.   The vessel, Harvey Energy, is chartered

Australia Announces Patrol Boat Tender

Tender announced for Pacific Patrol Boat Replacement Project   The Australian Government announced a Request for Tender (RFT) to replace the Pacific Patrol Boats

Consulting

GOST to Unveil New Products at MSE Conference

GOST (Global Ocean Security Technologies),announced today that it will highlight its newest commercial maritime products at the 2015 Maritime Security East conference in Jacksonville,

Navy Reserve Celebrates Centennial Anniversary

Service members and civilians packed the Pentagon Library Conference Center for the Navy Reserve Centennial Kickoff Celebration March 2. Chief of Navy Reserve Vice Adm.

“Bright Ideas” program - Ash Center - Harvard University

The Ash Center for Democratic Governance and Innovation at the John F. Kennedy School of Government, Harvard University, recognized the Port of Houston Partners

 
 
Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.4261 sec (2 req/sec)