BIMCO forecasts freight rates to face pressure after the end of the high seasonal demand in Q4, as well as the boost from the sulphur cap. The fleet growth of 6.3% in the crude oil tanker market and the 4.8% growth in the oil product fleet will also affect the supply and demand balance.
The fundamental balance in dry bulk shipping has gotten worse during 2019, with supply growth outstripping demand, and BIMCO forecasts that this will continue into 2020. Namely, after peaking in September, the fundamentals of the market have started to drag on freight rates.
Freight rates to ship US crude to Asia are still on the rise, with costs to charter a supertanker increasing to a record $12 million on October the 3rd. This development comes as an aftermath of US’s sanction against two units of COSCO, alleging that they were involved in transporting crude out of Iran.
Drewry in cooperation with CyberLogitec launched a white paper stating that online platforms that enable shipping lines and their customers to communicate better, could enhance vessel utilisation vessels and decrease freight rate volatility.
In early August, Missouri Port Authorities collaborated to discuss a plan for statewide initiative that focuses on innovative inland waterway container-on-vessel freight service. The gathering focused on finding additional options to transport freight along the inland waterways and the how the existent waterway vessels could transport larger volumes of goods and commodities.
iContainers stated that there are two extra factors in 2019, that could cause “further disrupt” and throw a wrench in the day-to-day management of the shipping peak season. Namely, the ocean freight industry has recently been operating under a cloud of uncertainty due to Brexit and the unpredictable US-China trade war.
Port of Rotterdam Authority, Tilburg multi-modal terminal operator, GVT, and Chengdu International Railway Port Investment & Development Group announced that they have signed a declaration of intent. The aim of the cooperation is to transport more freight via rail between the largest European ports and Chengdu.
In accordance with the Great Lakes Pilotage Act of 1960, the US Coast Guard announced it is establishing new base pilotage rates and surcharges for the 2019 shipping season, effective from 10 June. This rule will result in an increase in pilotage rates.
WoodMac’s experts focused on the approaching IMO 2020 and the impacts it could possibly have beyond refining and shipping. Research director Sushant Gupta marks that the industry should expect wider light-heavy and sweet-sour crude price differentials.
The composite index decreased 0.3% this week, but increased by 12.8% when compared with same period of 2018. The Index, a composite of container freight rates on 8 major routes to/from the US, Europe and Asia is down 0.3% to $1,330.29 per 40ft container, as of 18 April.
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