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03 Oct 2012

DNB Market Report Says: 'Just Look at the Car Carriers'

In its latest shipping sector report DNB Bank, focuses on how ship speed optimization has changed fundamental supply/demand balances. Speed optimisation has completely changed the fundamental supply/demand balances. Over the past year we have pointed out how high bunker prices and speed optimisation have completely changed the fundamental supply/demand balances in the shipping industry. We calculate that utilisation in commodity shipping (dry bulk, tankers, container), is relatively high – around 84% – when reflecting the reported reduced sailing speeds, but 15% lower at 69% when assuming full speed. For those sceptical on our market views, just look at the car carriers.

29 Oct 2004

When the Bubble Bursts

Soaring shipping stocks may have attracted a raft of new investors including private equity funds and hedge funds, particularly in the U.S., but buyers should beware that shipping has always been and will remain a cyclical business, financier Paul Slater told the Mare Forum meeting in Amsterdam. “The economics of the shipping industry can appear simple to the outsider but the recent increase in shipping stock values can obscure the risks of the business,” he said. Pointing out that the wet and dry fleets will expand by 25-40% between now and the end of 2007 while the capacity of the container fleet is due to grow by almost 50%, Slater has a clear warning for newcomers to shipping stocks who believe their stock will continue to rise in value.