Thursday, February 2, 2012

ITF newsletter on the economic crisis

ITF newsletter on the economic crisis

Link to Economic Crisis Newsletter

Company shorts - 02 Feb. 12

Posted:

Belfast Harbour has reported record volumes of 17.64 billion tonnes for 2011. Steel break-bulk and ro-ro volumes were particularly strong.

Costmare, the Greece based container line, impressed analysts with profits of $26 million for the final quarter of 2011. The line's active fleet expanded by 15%, while operating expenses only increased 3.4%. 

Damco, the logistics and freight forwarding subsidiary of AP Moller - Maersk, will now be line managed by ports company APM Terminals instead of Maersk Line.

Hanjin Shipping, the South Korea container line, posted an operating loss of $436 million for 2011

Japanese shipbuilder Kawasaki Heavy Industries suffered a 45% drop in new orders for the last nine months of 2011.

Thoresen Shipping has announced plans to buy ten new dry bulk vessels by 2014, in order to take advantage of low prices in second hand market.

Vale has confirmed its order for 29 400, 000 dwt very large oil carriers (VLOCs), despite ambiguity from the Chinese government about whether they will be allowed into Chinese ports.

Sources: International Freighting Weekly, Lloyds List; 02 February 2012

Container rates down until summer

Posted:

Overcapacity in the container market is set to continue until at least 2014, which will create highs and lows in the short term. According to analysts CIMB, lines have little room to manoeuvre as the global fleet is relatively young, making scrapping a costly option. At the same time, the current global order book will increase capacity by one third over the next few years. In the short term, rates on the Asia - Europe and Asia to US West Coast routes are falling following the traditional rush around Chinese New Year. Rates are predicted to fall over the next few months, but rise again in the summer season.

Sources: International Freighting Weekly, Lloyds List; 02 February 2012

Large profits expected by Dubai Ports World

Posted:

DP World, the world's third largest Global Network Terminals Operator, has reported a 10% increase in volumes for 2012. The company has outperformed the market average of 6% growth, and says it is on course to meet profit expectations. Volume growth in the home region was of the United Arab Emirates was 12%, and an improved 16% for the first quarter of 2012. The company says it has accumulated $4 billion in cash reserves, and is confident that it can renew a $3 billion loan due to expire this year.

Source: Lloyd's List 02 February 2012

Difficult year for Indian shipping lines

Posted:

India's shipping lines face difficult trading conditions in 2012, according to ratings agency Fitch. Low global rates will make things difficult to local operators. Although domestic shipping is protected by cabotage, local rates must be in line with global ones. Iron ore exports come under pressure following an export ban by the State of Karnataka and a national increase in export duty. India's third party logistics sector, however, is in better financial health. Operating profit margins for warehousing are predicted to be between 20 - 25%.

Source: Lloyd's List; 02 February 2012

Baltic Dry Index slumps, short term recovery expected for dry bulk

Posted:

The Baltic Dry Index fell to 662 points this week, down from a peak of 2,173 in 2014. Although this is lower than any point during 2008, average charter rates for capsizes and panamaxes remain above 2008 levels. Low prices on backhaul routes and capsize rates for Pacific loaded coal and ore are mainly responsible for driving the index down. In contrast to the container market, the immediate aftermath of Chinese New Year is a traditionally strong period for the bulker market, and rates are predicted to recover over the coming months. Capacity continues to increase. 248 capesizes were delivered in 2008, 5 times more than in 2008. The global fleet has increased by 28% since to 2009 to 611 million dwt.

Source: Lloyd's List; 02 February  2012