Newbuilding orders across most shipping markets have started to drop off after a whopping $10bn was committed in the first quarter of 2018, but the prevailing trends suggest little has changed from the boom and bust cyclical mentality of ship owners aided and abetted by the prevailing attitude of financiers, according to VesselsValue.
Freight market is showing much lethargy this week, which is similar to the week before as the shipping activities slowed down in June.
The brewing trade war between the US and China is seen having varied effects on different parts of the shipping industry. While much will depend on if and when the tariffs actually kick in, analysts seem to agree that the worst effects will be felt by the container shipping industry, exacerbating an already difficult situation with oversupply of capacity and slowing global trade.
The Capesize market was hard hit after force majeure was being declared in Guinea this week. The declaration had increased the supply of vessels across the Asia-Pacific and Atlantic basins, thus bringing down Capesize freight rates in the process.
Continuing its consolidation of the sector Star Bulk Carriers is buying Songa Bulk in a cash and share deal worth $327.95m.
The Capesize rate has breached over the $20,000 level on Wednesday, supported by the bullish steel demand in China. Initially, the rally in Capesize rates started early in the week, making the biggest gains for front months on Tuesday, 8 May 2018.
The freight market has returned to pre-Labour Day holiday level by the end of the week, thanks to robust steel demand.