Still battling the storm
PwC have published their fifthannual Global Shipping Benchmarking Analysis providing an overview of the factors that had impacted the shipping industry in the previous year and analysing how these have been reported by a large number of shipping companies from around the world.
In the current publication, PwC have also chosen to look at sustainability reporting for shipping for the second year in a row. Analysis shows that shipping is still lagging behind other industries in this field with only a minority of shipping companies reporting about sustainability.
Year 2013 Outlook
Based on performance to date, there arefew signs for optimism in 2013.Albeit at a lower level than in previousyears, the delivery of large numbersof ships will continue into a depressedfreight market already marked byovercapacity. It is expected that in2013, 120m dwt will be delivered, whileaccording to brokers in 2014 deliveriesare expected to fall to around 102mdwt.
The orderbook which appearedin the past to be as high as 50% of thefleet, has now been decreased to 15% ofthe fleet.The bulk carrier market continuesto look vulnerable with an expected5% growth in dry bulk trade and anestimated 63m dwt of deliveries in2013. The demand growth reflects thecontinued strong performance of Asianeconomies.
But despite the firm growthin demand the fleet oversupply remainsan overhang on charter rates.Meanwhile the crude fleet growth isprojected to slow in 2013 to 2.2% downfrom 5% in 2012 but pressure remainsdue to surplus of tonnage. With 12%of the fleet on order and a modernfleet in service there are only a fewcandidates to be scrapped.
On the otherhand demand growth from developingeconomies will continue to beoverwhelmed by the adverse economicconditions in developed economies.The crude tanker market also remainschallenged mainly due to the growthof U.S. oil production that is likely toreduce global demand of seabornecrude imports in the future.
For one more year the globalcontainership demand will remainunevenly distributed across tradelanes. Current oversupply and limiteddemand growth from liners will resultin continued underutilization of lessorshipping capacity holding down charterrates for vessels
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Sustainability Taking into account the recent developments regarding CO2monitoring, reporting and verification asproposed by the European Commission as well as the interest for the topic of sustainability from theshipping industry, PwC still see a mismatch with the way shipping companies report about sustainability. Although reporting about CO2emissions has increased, on most other indicators we have investigated thescores went down compared to last year’s survey. This still indicates that sustainability by the majority ofthe shipping companies is still seen as a matter of compliance |
Further information may be found by reading the Global Shipping Benchmarking Analysis Report published by PwC (please click at image below)
