Drewry News

15 Apr 2019

Drewry: After the sugar rush

Container operations at the port of Hong Kong, one of the world’s busiest. (Photo: Adobe Stock / © Marco 2811)

Following the tariff-induced cargo rush of late-2018, container shipments from Asia to West Coast North America dived in Q1, denting carriers’ hopes of securing higher annual contracts.Things can change very quickly in the Transpacific container market. In our previous analysis of the Asia-West Coast North America trade at the end of last year, the market was booming with eastbound spot freight rates at a six-year peak. However, now that the sugar rush caused by the threatened tariffs on Chinese goods has passed…

12 Apr 2019

S.Korea's LPG Imports to Grow: Drewry

Image: BP Shipping

South Korea’s liquid petroleum gas (LPG) imports are expected to increase 9.5% in 2019 on account of the growth is due to stronger demand from the petrochemical sector.The recent policy change that will allow LPG-fueled vehicles in the private sector is another booster, said Drewry.South Korea’s LPG market was starting to look saturated with low demand, but as the government is reconsidering cleaner fuels, its demand is likely to shoot up.Drewry said that severe air pollution…

08 Apr 2019

Satisfaction in Container Transport Declines

Graph: Drewry Shipping Consultants Limited

The level of satisfaction regarding container carriers among exporters, importers, and freight forwarders reduces marginally, according to the third annual shipper satisfaction survey of Drewry and the European Shippers’ Council (ESC).The joint ESC and Drewry survey reveals that the 249 shippers and forwarders who took part in the survey rated the service of container shipping lines with a score of 3.1 on average (which is 0.1 lower than last year) on a scale of 1 (very dissatisfied) to 5 (very satisfied).Customer satisfaction was reported least favourable for clarity of prices and surcharges…

04 Apr 2019

Drewry Cautiously Optimistic on Container Shipping

Pic: Drewry Shipping Consultants Limited.

The container Shipping industry is facing an exceptionally high level of uncertainty, ranging from the extra cost associated with IMO 2020 and how much carriers will recover from shippers, to the possibility of a trade recession and unknown future engagement by shipowners in large vessel building programmes.According to the recently published Container Forecaster from global Shipping consultancy Drewry, every region is expected to see container port handling growth in each and every year of the five-year forecast…

03 Apr 2019

Port of Dover Prepared for Brexit: Drewry

Pic: Drewry Shipping Consultants Limited

Alternative capacity could be provided by short-sea container services between the UK and EU to alleviate possible congestion at the Port of Dover post-Brexit.The Port of Dover is the cross-channel port situated in Dover, Kent, south-east England. It is the nearest English port to France, at just 34 kilometres (21 miles) away.According to a new study by global shipping consultancy Drewry the Port of Dover had the capacity to cope with moderate Brexit disruption.The earlier study, validated by the Port of Dover, concluded that of the 2.5 million trailers going via Dover, around 20% (i.e.

28 Mar 2019

Will Shipping IPOs Comeback in 2019?

Pic: Star Bulk Carriers Corp.

The market for Initial public offerings (IPOs) across the global shipping industry has remained understandably muted in recent years but secondary offerings continue to be an important funding mechanism, according to a recent report from Drewry Maritime Financial Research.Despite low interest in shipping IPOs in the US over the last few years, listed shipping companies continue to raise money through secondary/additional offerings and bond offerings in the US market with Oslo…

11 Mar 2019

Drewry Benchmarking Club Reaches Milestone

Pic: Drewry’s Benchmarking Club

Drewry  has welcome one of the world’s leading automotive and energy companies to its exclusive, online ocean freight cost comparison service, Benchmarking Club.With this latest addition, Drewry Benchmarking Club now counts more than 10% of its members in the S&P 100 and Nasdaq 100.Launched in 2014, Drewry Benchmarking Club is a closed user group designed exclusively for shippers and is one of a number of ocean freight procurement support services from Drewry’s logistics consultancy arm…

27 Feb 2019

Port Dover Faces Brexit Heat

Pic: Port of Dover

Britain's Port of Dover has the resilience to cope with moderate disruption arising from Brexit and there is latent short sea capacity to absorb significant overflow at the port in the event of capacity constraints, according to an independent study by global shipping consultancy Drewry.Among the political arguments about Brexit and its consequences, there has been a surprising lack of objective and quantitative analysis of the implications for the future of the vital short sea trade between the UK and the EU…

17 Feb 2019

Epic Gas Bullish on LPG Carriers Market

Pic: Epic Gas

Global seaborne liquefied petroleum gas (LPG) volume is expected to grow by over 6% in 2019 and surpass 100 million tonnes for the first time.Singapore based provider of pressurised LPG vessels, Epic Gas said that it is well positioned to benefit from the improving fundamentals of the LPG shipping market.For the fourth quarter of 2018, freight levels for most sizes in the pressurised sector were similar to the stronger levels seen in the third quarter. Rates for the 3,500cbm, 5…

14 Feb 2019

Drewry Sees Balanced Supply-Demand in ULCVs

Pic: Drewry

Maritime research consultancy Drewry believes that the industry’s supply-demand balance will benefit from a reduced appetite for Ultra Large Container Vessels (ULCVs) among the major carriers, some of which now have their eyes fixed on a bigger prize of becoming global logistics integrators."Aside from feeder ship replenishment, there has been no reaction from other lines to HMM’s mega-ship order and as such we have greatly reduced our projected new orders for 2020 onwards,” said Simon Heaney…

03 Feb 2019

Venezuela Sanctions to Boost VLCCs

Pic: Drewry Shipping Consultants Limited

US sanctions on Venezuela are likely to change the pattern of crude tanker trade, with long-haul trade replacing the short-haul trade, said Drewry. While the prospective change in trade pattern will favour VLCCs, it will work against Aframaxes.The US government has imposed sanctions against Venezuela’s state-owned energy company Petroleos de Venezuela (PDVSA) in order to choke Venezuelan oil revenues and oust Nicolas Maduro, the Venezuelan president.According to Drewry, the sanctions…

14 Jan 2019

Drewry Predicts Better Freight Rates and Profits

File Photo: Hyundai Merchant Marine Co

The shipping industry’s supply-demand balance will benefit from a reduced appetite for Ultra Large Container Vessels (ULCVs) among the major carriers, some of which now have their eyes fixed on a bigger prize of becoming global logistics integrators, said Drewry.Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster said: "Aside from feeder ship replenishment, there has been no reaction from other lines to Hyundai Merchant Marine (HMM)’s…

04 Jan 2019

Small LNG Projects Crucial for Market: Drewry

Graph: Drewry Maritime Research

Low prices, abundant supply and an aggressive shift towards cleaner gas for energy generation are creating strong demand for LNG, not just from large buyers, but also from small importers, said Drewry.In its market opinion report, Shefali Shokeen, Senior Research Analyst, Drewry Maritime Research said that small-scale LNG projects (production and regasification capacity of less than 500,000 tonnes per annum) have reduced capex and are suitable for countries with low LNG consumption.For example Gibraltar has set up a small LNG import terminal with a total storage capacity of 5…

17 Dec 2018

Drewry: Ocean Freight Shipping Rates Fall in Q4

Graph: Drewry Shipping Consultants Limited

Ocean freight rates for cargoes moving under contracts on major East-West routes decreased by 7% in the fourth quarter, according to the results of Drewry’s Benchmarking Club Contract Index.The cost reduction, based on contract freight rate data provided confidentially by Asian, American and European retailers and manufacturers to the Benchmarking Club, shows that shippers who negotiate well with carriers can continue to reduce their multi-million freight spend on most East-West routes, despite the increases in bunker prices during the past year.

09 Dec 2018

Moody's Downgrades Maersk

Image: Maersk

Moody's Investors Service has downgraded ratings for AP Moller-Maersk after a review of the Denmark-based shipping and oil company. Moody's expressed concerns about lower economic growth and the US-China trade war."The downgrade reflects our expectation that Maersk will face increased market and execution risks and, as a result, operate at a higher leverage than is commensurate with a Baa2 rating for a company in such a volatile and cyclical business as container shipping," said Maria Maslovsky…

22 Nov 2018

Ship Operating Costs Rise for Second Successive Year: Drewry

Graph: Drewry Shipping Consultants Limited

As the cost inflation is set to accelerate on higher insurance premiums, average vessel operating costs rose modestly for the second year in succession following two years of marked declines, according to the latest report published by global shipping consultancy Drewry.The report titled 'Ship Operating Costs Annual Review and Forecast 2018/19' said that typical ship operating costs accelerated moderately in 2018 as the uncertain recovery in freight markets across most cargo sectors gained momentum.Opex costs are heavily linked to developments in the wider shipping market as some costs…

16 Oct 2018

Drewry Rolls-out ‘Cost Impact Calculator’ for Shippers

Pic: Drewry Shipping Consultants Limited

Responding to the concerns and needs of Beneficial Cargo Owners (BCOs) ahead of the IMO 2020 global emission regulation, global shipping consultancy Drewry announces the addition of a new BAF formula and fuel cost benchmarking service to complement its existing range of ocean freight procurement support services.In cooperation with both shipper members of the Drewry Benchmarking Club and other parties, Drewry has developed an IMO low-sulphur rule, “Cost Impact Calculator” based on robust market data…

10 Oct 2018

Optimism in Multipurpose Shipping: Drewry

Global consumption of primary energy by fuel type (million tonnes oil equivalent). Graph: Drewry Maritime Research

Surging growth in renewable energy generation around the world and a construction boom in South East Asia that is expected to run for the next 10 years bode well for the once ailing multipurpose shipping fleet.In the latest edition of Drewry’s Multipurpose Shipping Forecaster report we declare that we remain cautiously optimistic on the outlook for the sector. There are some caveats to this optimism as global general cargo demand is forecast to grow at a rate of just 2% per year to 2022…

05 Oct 2018

Drewry Downgrades Forecast for Container Demand

(Photo: Drewry)

A gloomier world economic outlook and rising trade tensions have forced Drewry to downgrade its forecast for container demand over the next five years, according to the global shipping consultancy’s latest edition of the Container Forecaster.Drewry’s long-term supply and demand prognosis for carriers has deteriorated since the last report. Previously, the company’s global supply-demand index was expected to take incremental steps upwards through 2022, by which time the industry would at long last be close to equilibrium.However…

02 Oct 2018

Unease Over IMO 2020 Low-Sulphur Rule: Drewry Survey

Graphics: Drewry Supply Chain Advisors - IMO 2020 Global Emissions Regulation Survey Sept 2018

There is considerable unease among global shippers/BCOs (Beneficial Cargo Owners) and freight forwarders ahead of the IMO’s 2020 global emissions regulations, due to come into force on 1 January 2020, according to a survey conducted by global shipping consultancy Drewry.Particular uncertainty and concern was expressed by respondents in both the survey and follow-up interviews about carriers’ methods of fuel cost recovery with more than half of all respondents (56%) stating that they did not consider their service providers’ existing approaches as either fair or transparent.Further to this…

06 Sep 2018

Drewry: Capesize Charter Rates to Go Up

Drewry maintains a positive outlook on the dry bulk market and expects charter rates to improve from current levels, driven by moderate increases in vessel demand and low growth in vessel supply as a result of restrained new ordering and a thin orderbook, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry.The uncertainty surrounding the dry bulk market, driven by trade wars could, nonetheless, slow down the increase in charter rates.

17 Aug 2018

Container Shipping Bankruptcy Lends Insight on Potential Fallout from Trade War

© MAGNIFIER / Adobe Stock

Global trade tensions have captured headlines in recent months, as the imposition of a series of tariffs and counter-tariffs by various global trade counterparts has raised questions about the possibility of a trade war. Such development could potentially have an impact on global trade flows, and, consequently, the companies which facilitate international movement of goods.Though the situation is still developing and the final impact is uncertain, Gregory Draco, the Chief U.S. Economist at Oxford, predicted in July that the tariffs would create an 0.1 percent to 0.2 percent drag on U.S. GDP.

08 Aug 2018

Seaborne Reefer Trade Continues to Expand: Drewry

Graphics: Drewry Shipping Consultants Limited.

Despite moderating perishable seaborne trade growth, continued modal shift will sustain expansion in the containerised reefer trade and so support freight rate development, according to Drewry’s latest Reefer Shipping Annual Review and Forecast 2018/19 report, by global shipping consultancy Drewry.Global seaborne reefer trade continues to expand, posting a gain of over 5% in 2017 to 124 million tonnes, a big improvement on trend growth over the past 10 years of 3.6% a year. Underpinning this progress was strong growth in banana…

Maritime Reporter Magazine Cover May 2019 - Propulsion Annual - Green Marine Tech

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News