Report: Chem Tanker Rates Slide

(Press Release)
Monday, May 14, 2012

Drewry’s Chemical Tanker Freight Rate Index dropped during the first quarter, registering its first quarterly decline since 3Q10. Transpacific westbound rates lost as much as 13%. The next quarter is traditionally a lean period, with Drewry forecasting rates to bottom out before climbing in the latter stages of the year, but this might not be good news for everyone. Overcapacity remains the bane of the market, so owners are hoping for a surge in freight rates coupled with a fall in bunker prices, which have eroded their earnings. Otherwise, they will struggle to maintain service levels and avoid serious cash-flow problems and insolvencies. Owners are responding by reducing their fleets to cut costs. There are still several companies struggling with bankruptcy or under court protection from their creditors. BLT-Chembulk is restructuring its debt by declaring a moratorium on repayments until a new schedule can be worked out, thus enabling then to maintain operating cash flows. However, some ships have been withdrawn from the pool as owners were not willing to agree to the restructuring.
It will be a quiet year in the shipyards. The orderbook now stands at 5.7% of the number of ships and 6.9% of the dwt tonnage, making it the smallest since 2003. Deliveries in a single quarter have not been so low since 2005.
Since the end of 2011, the average capacity of the fleet grew by 0.7% to 20,660 dwt as larger vessels are delivered and smaller ones scrapped. The ships in chemical and vegetable oil trades were 1.1% larger at 14,570, dwt whereas CPP ships decreased in average size by 2.3% to 30,902 dwt as smaller ships were released from arrest or layup. Rohit Pattnaik of Drewry Maritime Research stated, “While the decline in newbuilding activity is commendable, there is a noticeable lack of investment in the specialised chemical tanker category, which could hurt the sector in the long run.”
This hardly seems the time for owners to think of new tonnage, but investment in the specialised tanker category might just give owners a chance to secure future demand.  “Chemical Forecaster 1Q12” is published by Drewry Maritime Research. Released in April 2012 and is priced at £2770 for a yearly subscription, based on 4 quarterly issues.
The report will be available in pdf format which can be downloaded from the Drewry website www.drewry.co.uk.
 

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

Tanker Trends

Libya Plans to Sell Ex-rebel Tanker

Libya plans to sell a tanker that a former rebel group used in an attempt to bypass the Libyan government and export oil on its own last year, the Tripoli-based state prosecutor said on Thursday.

G E Shipping delivers “Jag Aakash” to Buyers

The Great Eastern Shipping Company Ltd. delivered the new building Kamsarmax Dry Bulk Carrier “Jag Aakash” (81,600 dwt) to the buyers.  The vessel was contracted for sale in August 2015.

Dorian Acquires 2 ECO VLGC

Dorian LPG, an owner and operator of modern Very Large Gas Carriers ("VLGCs"), reported today that it has taken delivery of the ECO VLGC Commodore from Hyundai

Finance

HII Wins $109.4mln U.S. Navy Contract

Huntington Ingalls  has received a $109.4mln contract modification to carry out support services for the U.S. Navy’s nuclear submarines.   The company will work to engineer,

Russia’s Novatek Sells 10% Of Yamal LNG To Chinese Fund

Russia’s second-biggest gas producer Novatek is selling a 9.9 percent stake worth an estimated US$1.4 billion in its Yamal liquefied natural gas (LNG) project

Colachel to Become Major Port

The government of India would soon build a major port at Colachel in the southernmost tip of Tamil Nadu at an estimated cost of $3.2 billion (Rs 21,000 crore),

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair 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: 0.3439 sec (3 req/sec)