RA BRS 2003 GB >pdf

46
dwt
600,000
500,000
400,000
300,000
200,000
100,000
Shipping and Shipbuilding Markets 2003
0
delivered in 2002
The North European market remained at healthy
levels with freight rates improving by about 10 %
at the beginning of the year. Then following a
good volume of contractual nominations, freights
fluctuated around previous levels up until the third
quarter, to finally rise significantly at the end of the
year thanks to a very sustained spot market.
The Mediterranean trade is still divided in two,
based on the age of vessels and the approvals
required by the main charterers. Consequently
there is a two-tiered market, which basically
stayed steady over the whole year.
On the other zones of trade, from the Mediterranean
to North Europe and back, rates had mixed
fortunes. For North Europe the supply of carriers is
becoming progressively reduced, following a fear
by certain owners of tighter controls and multiple
inspections by authorities in the main ports.
Consequently on this traffic, charterers faced a
shortage of supply and variations in freight rates
from 10 to 20 % within two to three months, with
peaks in the spring and the end of the year, whereas
the rest of 2002 was relatively stable.
Spot Mediterranean bound movements remained
at slightly lower levels with the main volume of
business being covered under term contracts.
Renewal of contracts for 2003 were mostly made
at unchanged levels to 2002 or else very similar,
with some obtaining a modest increase of about
5%.
Chemical carriers on order as at January 1, 2003
(in deadweight)
2003
2004
3,500-6,000 dwt
6,000-10,000 dwt
10,000-20,000 dwt
Over 20,000 dwt
2005
It is necessary to adjust these rates on European
movements as owners pay today for their bunkers
at much higher prices and some are suffering from
the dollar devaluation against the euro as numerous
freight contracts are based in dollars.
Long distance movements
On the U.S. / Europe traffic, the market suddenly
took off at the beginning of March, to peak in
April. Significant movements of styrene and cumene
were fixed by producers and traders following
some technical shutdowns in Europe. As a result
rates for lots of 2,000 tons went from $ 35 to $ 45
per ton. Thereafter freights experienced a steady
drop with rates finding levels as at the end of
2001.
On westbound Atlantic trade, the market firmed
up as from the beginning of the second quarter,
then experienced a peak during the summer with
a falling off down to $ 40 per ton for 2,000 ton
lots, to finally finish the year with a 15 % increase.
The main spot movements out of Europe were with
cargoes of methanol, MTBE and sulphuric acid.
Movements from Europe to Asia were largely term
contracts, with steady volumes in the hands of the
four main chemical owners. Spot freight rates for
1,000 tons of chemical products remained at
about $60 per from the Rotterdam area to main
Asian ports, with the same for 2,000 ton lots,
which increased in the summer and improved progressively
to $ 50 to $ 60 per ton.