Between the start of October 2008 and start of April 2013 the global orderbook declined 55% in CGT terms. Following this, the orderbook has grown 12% to 5,086 vessels of 108.0m CGT, as of 1st April 2014. This month’s Shipbuilding Focus looks at the size of the global orderbook and what this means for yards.What’s on the Book?As the line on the Graph of the Month shows, the orderbook grew strongly during the contracting boom. This was driven by buoyant ordering between 2005 and 2008, when an average of 65.6m CGT was contracted annually compared to 31.2m CGT between 2001 and 2004.The orderbook p
In a Lloyd’s Register report released this Monday, it has been suggested that LNG will account for 13 percent of the global bunker fuel market by 2020, increasing to 24 percent in 2025.During a media briefing in Singapore, Lloyd’s global marketing manager, Luis Benito announced the statistics gathered from an ‘LNG Bunkering Infrastructural Survey’ conducted earlier in the year.Out of the 50 ports surveyed around the world, 22 responded to a questionnaire organised to better understand the scope of how LNG will influence the maritime industry in the coming years. 15 ports were located in Europe
The rapid rise in container and dry bulk trade within Asia has provided strong support to global trade in the last decade. Of the 9.9bt of estimated world seaborne trade in 2013, more than 10% was intra-Asian trade of containers and key dry bulk commodities.Since 2003, world seaborne trade has risen by 50%, and the doubling of intra-Asian trade of containers and selected dry bulk commodities (as shown on the graph) has driven 20% of this growth.All Boxed UpIntra-Asian container trade volumes have been one of the fastest growing parts of global container trade, increasing on average by 9% p.a.
During January 2014, the number of vessels in the bulkcarrier fleet (above 10,000 dwt) reached 10,000. This has been a result of remarkable growth in the fleet, with particularly unprecedented expansion in the last few years.Pacing Out Fleet GrowthIt took approximately nineteen years for the number of vessels in the bulkcarrier fleet to double from 5,000 to 10,000 vessels. During the first fifteen years of this period, the fleet grew from 5,000 vessels to 7,500. While, as shown by the Graph of the Month, the expansion of the fleet from 7,500 vessels to 10,000 vessels (33% growth) was much more
Ocean container lines and the shipowners that lease ships to them are suspending new ship orders for fuel-efficient mega-container vessels until they can assess the impact of the expanding carrier alliances like the P3 Network, the expanded G6 and the CKYHE, and now the new merger between Hapag-Lloyd and CSAV.This temporary halt to new orders will not be enough to offset the record amount of new container ship deliveries this year, which will continue to put a lid on freight rates, according to a panel of shipowners and investors at the annual Invest in International Shipping Forum held by Cap
News from the International Air Transport Association (IATA) recently has been decidedly upbeat, with information released over the past two months showing moderate growth for the carriage of cargo worldwide and generally increasing across most of the geographical air freight markets, with the most recent information predicting that the airline industry remains on track to deliver a second consecutive year of improved profitability.IATA claims that despite a slight downward revision to its industry outlook for 2014 to a sector profit of $18.7 billion from the previously forecast $19.7 billion,
Liner shipping companies are responsible for operating the world's 5,087-strong containership fleet. They own 52% of the capacity and charter in the rest from independent owners. In principle they then turn a profit on this by transporting containers around the world for cargo shippers.Up And DownRecent experience suggests that this can be a difficult business. Freight rates have become very volatile, creating unpredictable earnings. The graph shows a monthly weighted average index of spot freight rates on the peak legs of the two largest mainlane trades, the Far East-Europe and the Transpacif
The U.S. Department Homeland of Security has until July to meet a federal mandate requiring all U.S.-bound containers to be scanned at nearly 750 foreign ports.DHS isn’t going to make it. Instead, Congress will likely grant the agency an extension like it did in 2012, when it gave DHS two more years to meet the mandate called for through the SAFE Port Act, according to sources familiar with the issue. Even though DHS has previously said the mandate is “neither the most efficient nor cost-effective approach to securing our global supply chain,” the mandate isn’t likely to go away. That’s despit
In the movie Super Size Me, a film-maker investigated what would happen to him if he ate nothing but fast food for a month, consuming a ‘super-sized’ meal every time. A casual glance at industry headlines over recent years would reflect the fact that shipping is involved in its own super sizing experiment, with news of larger and larger ‘megaships’ hitting the water in many sectors.Super SizingThe average vessel size in the world cargo fleet covered by Shipping Intelligence Weekly has increased from 17,470 dwt at the start of 2000 to 28,572 dwt today. Whilst broad ship size ranges are often we
China is expected to surpass the European Union as the world's leading consumer of pork on a per capita basis by 2022, while its dairy product consumption is expected to rise by 38 percent, according to the U.N. Food and Agriculture Organization."As Southeast Asia develops economically, you have demand for better quality, high-protein diets, and ports don't (necessarily) have the infrastructure for bulk vessel receiving," said Brian Bickford, president of AgriLogistics, a U.S. company specialising in grain shipping."You've got a lot of small growing businesses in South East Asia that can affor
Pete Seeger, who died this week, knew how to get his message across. His well-known Where Have All The Flowers Gone topped the pop charts and was one of the New Statesman’s top 20 political songs. Its lyrical style softens the theme that human beings never really learn, but in the end it doesn’t matter much. Words with a familiar ring for shipping folk.No Hammer? Try a Steel BoxThe shipping industry doesn’t have a folk singer, but if it did, he could write a shanty about the disappearing bulkers. It’s a story which raises questions about what we are up to. These basic steel boxes crawled into
At the start of 2014 there were 899 ships of 3,000+ TEU, with a beam of less than 32.3m ? the maximum able to currently transit the Panama Canal ? in the global containership fleet. They accounted for 3.76m TEU, 22% of global fleet capacity.However, since 262 such vessels were ordered in 2006-08, further Panamax contracting has been negligible, as demand for the design has collapsed. In 2013, Panamax charter rates were severely depressed and demolition soared.Rock Bottom EarningsSo why has the sector struggled so badly? Over the course of 2013, on average about 50 Panamaxes were laid up, the m
Chemicals of all types have increasingly been shipped via containers in ocean transportation over the last 12 years, although some chemical types continue to move primarily as bulk cargoes, according to Seabury Group.The advisory firm reported that photography chemicals showed the most significant increase in containerization from 2000 to 2012, moving from 55 percent containerization to 83 percent, or an extra 457,904 TEUs. Pharmaceutical chemicals registered the second highest jump during the same period, with a 27 percentage point increase in container shipments, or an additional 1.9 million
Drewry Maritime’s 4Q13 Container Forecaster report highlights that freight rates are now largely determined by carrier behaviour. Furthermore, industry profitability has little to do with carrying more boxes since freight rates remain historically weak. Profitability is driven by cost cutting which is also bolstered by the continued sale of non-core assets.Despite ten GRI attempts last year on the Asia-North Europe trade, average spot rates were still some $450 per feu below where they stood at in previous January 2013. Ocean carriers managed capacity well in the headhaul east-west trades last
2014년 4월 3일 울름 도나우홀에서 세계화에 따른 물류 네트워크의 변화를 주제로 ‘제7회 울름(Ulm) 물류의 날’이 개최될 예정이다. 2년마다 한 번씩 열리는 울름 물류의 날은 독일연방물류 협회(BVL)와 울름, 슈바벤지역 산업 무역부의 후원으로 열리게 된다.지난 2002년에 처음 시도된 울름 물류의 날 행사는 회를 거듭할수록 기업가 및 전문경영인들, 물류인들 간 이른바 ‘만남의 장소’로 자리를 굳혀왔다. 최근 이슈가 되고 있는 흥미진진한 주제들로준비될 이번 박람회에는 29개의 기업과 학교, 연구소가 참여할 계획이다.“세계화에 따른 물류 네트워크의 변화”2012년 세계은행이 발표한 연구 결과에 따르면 물류 네트워크의 중요성이 점점 더 증대되고 있다. 전세계에 영향력을 행사할 수 있는 국가들의 공통점은 자유로운 국제 물류 네트워크를 형성하고 있다는 점이다. 이러한 네트워크 형성으로 만들어진 부가가치는 국가의 특성에 따라 다양한 모습으로 나타난다. 해당 경제권의 경제적인 능력이 더 높으면 높을수록, 무역장벽이 낮으면 낮을수록, 더 큰 폭으로 무역이 성장했으며 수출도 다양해진 점을 발견할 수 있다. 결과적으로 국가간 경계는 점차 약해지는 반면 부가가치의