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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Maersk to Scrap Ships at India's Alang Beaches, NGO Dismayed

Maersk Line said on Friday it had chosen four shipbreaking yards along India's Alang beaches to handle an increase in vessels that need to be scrapped, to the dismay

Teknotherm Marine Moves HVAC Arm to Bergen

Maritime heating, ventilation and air conditioning (HVAC) firm Teknotherm Marine has established a new subsidiary is established with the name Teknotherm Marine HVAC AS.

Technology

Sentinel Launches New Rudder Feedback Unit

Sentinel, a Beier Radio company, has designed and manufactured a new Rudder Feedback Unit (RFU) with many new features, including watertight components and connections

Innovative Equipment Will Help Unload Listing Ship

Following Smit Salvage’s salvage of the stricken ship Modern Express in the Gulf of Biscay, another Rotterdam company has now become involved in the rescue operations.

Sea IT, Veritas Tankers Ink Long-term Software Deal

Sea IT has entered a long term ICT agreement with Veritas Tankers. The agreement comprises installation of BlueCORE Generation 4, an ICT platform specifically developed for the marine industry,

Offshore

Premier Oil and Rockhopper Abandon Ocean Rig Contract

Two of the major British players in Falkland Islands offshore oil development, Premier Oil and Rockhopper Exploration, cancelled a joint venture contract with Ocean Rig UDW.

US Oil Drillers Cut Rigs to Least in 6 Years

U.S. energy firms this week cut oil rigs for an eighth week in a row to the lowest levels since January 2010, data showed on Friday, as energy firms continue to

Eni, Exxon, Statoil Win Irish Offshore O&G Licences

The Irish government said on Thursday it had awarded oil and gas licences to companies including oil majors Eni, Exxon and Statoil , allowing them to explore for hydrocarbons off the coast of Ireland.

Bulk Carrier Trends

Indiana Ports Sets Cargo Record in 2015

State's three ports handle 12 million tons for first time in 54-year history  INDIANAPOLIS (Feb. 11, 2016) - The Ports of Indiana handled over 12.2 million tons of cargo in 2015,

Nordana Sea Delivered to Symphony Shipping

After successful sea trials, M.V. Nordana Sea was delivered to Symphony Shipping on February 11, 2016. Constructed by builder Ferus-Smit in the Netherlands (yard number 419),

Baltic Index Rises for First Time in 2016

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose for the first time this year on Friday, helped by higher rates for panamax vessels.

Finance

Brazil's CEEE to sell stakes in Wind Farms, Dams

Brazil's Companhia Estadual de Energia Elétrica (CEEE), a power utility controlled by the state of Rio Grande do Sul, will sell assets including stakes in wind farms,

DP World Bolsters Investment in India

DP World Pvt. Ltd, the world’s fourth biggest container port operator majority owned by the Dubai government, has plans to invest over $1 billion in India for augmenting its port-related operations.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

News

Brazil's CEEE to sell stakes in Wind Farms, Dams

Brazil's Companhia Estadual de Energia Elétrica (CEEE), a power utility controlled by the state of Rio Grande do Sul, will sell assets including stakes in wind farms,

N.E. Fishermen Warned of Extreme Cold, Wind Chills

The Coast Guard is urging the Massachusetts and Rhode Island fishing fleet to take caution heading into the weekend when life threatening temperatures and wind chills are forecasted.

Hapag-Lloyd Enhances Conosur Service

Hapag-Lloyd has informed about its service enhancements on the Conosur Service (South America West Coast to South America East Coast). This is being upgraded by

Vessels

Hapag-Lloyd Enhances Conosur Service

Hapag-Lloyd has informed about its service enhancements on the Conosur Service (South America West Coast to South America East Coast). This is being upgraded by

Submarine Tourism in Turkey's Waters

The first tourist submarine in Turkey is waiting to be sent on a voyage that will reveal the wonders of the undersea world of the Mediterranea.   The first submarine

Nordana Sea Delivered to Symphony Shipping

After successful sea trials, M.V. Nordana Sea was delivered to Symphony Shipping on February 11, 2016. Constructed by builder Ferus-Smit in the Netherlands (yard number 419),

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | 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: 0.1413 sec (7 req/sec)