SSG No 10 - Shipgaz

MARKET REPORTS
VLCC rates continued to climb
Although not as significant as for dry
bulk shipping (see below), Chinese
imports have had a large impact also for
tanker shipping. According to Clarkson
Research, China imported 105 million
tonnes of tanker cargo in 2000. Today
this has increased to 257 million tonnes,
or about one fourth of the country’s total
import. The current annual growth in this
trade is about eight per cent.
The VLCC sector continues to regain on
the rate fall that started in November last
year and continued to February this year,
followed by some ups and some downs until
the beginning of April. By the end of week
19, A VLCC booked for a trip Persian Gulf
to Singapore could reach WS 205, corresponding
to daily earnings of USD 162,300
according to Stockholm Chartering. A trip
to UK/Cont could be booked at WS 120,
with USD 113,100 in daily earnings.
At the same time, a Suezmax cross med
trip would get about USD 25,000 less than
the week before, but still earnings would be
above USD 100,000 per day.
China has boosted world trade by more
than 100 million tonnes of cargo every
year since 2000, and this is only counting
imports. In its latest Shipping Intelligence
Weekly, Clarkson research highlights the
incredible impact China’s import development
has had on the world’s shipping
industry. According to Clarkson, if the
average ship carries seven tonnes of cargo
for each deadweight ton of capacity, this
requires 14–15 million deadweight tons of
extra ships each year. For comparison, this is
about one additional South Korean-flagged
merchant fleet per year, according to statistics
from ISL that puts South Korea on rank
13 on its list of the world’s merchant fleets.
For dry bulk, iron ore, accounting for
44 per cent, dominates Chinese import. Its
growth rate has decreased to about 15 per
cent the last year, while coal and grain has
increased by the same rate. Minor bulk is
up by 30 per cent.
Last months’ upward bounce in all large
bulk sectors has continued, and spot earnings
are sniffing at the record levels dur-
Aframax rates in the North Sea has continuously
firmed during the last month,
with the worldscale level reaching 220
points by the end of week 19, corresponding
to USD 73,000 in daily earnings according
to Stockholm Chartering.
The oil price took a hefty hike in week
19, to USD 124 per barrel Brent when the
International Petroleum Exchange spot
market opened on Friday. Bunker prices
followed suite, and as example a tonne of
marine diesel was priced at USD 1,095 in
Rotterdam the same day. 380 IFO stood at
about half, or USD 537 per tonne.
On May 24, ExxonMobil fixed Maersk Promise for a trip Ras Laffan to Singapore – Maersk
Promise for 80,000t at WS 175.
What would we do without China?
ing last autumn. The Clarkson average
earnings index for modern Capesizes has
passed USD 160,000 per day, the Panamax
index is closing in on USD 75,000 and the
Handymax tripcharter average earnings
index reached USD 61,500 on 9 May.
On the Capesize market, daily earnings
200,000
150,000
100,000
50,000
0
for a 165,000-tonner on the iron ore trade
Tubarao–Rotterdam passed USD 200,000
by the end of week 19.
At the same time, an aframax gained in
average USD 80,000 per day for a transatlantic
round trip.
rolf p nilsson
Dry bulk freight development
Atlantic round voyage,USD/day ■ Capesize ■ Panamax ■ Handymax
Jul ’06
Oct ’06
86 SCANDINAVIAN SHIPPING GAZETTE • MAY 16, 2008
Jan ’07
Apr '07
Jul ’07
Oct ’07
Jan ’08
Apr ’08
Source: Fearnleys/SSG, May 9, 2008
ZEE-PHOTO