The ongoing overcapacity in the tanker shipping market is projected to persist in view of sharp increase in deliveries, putting pressure on freight rates up until after 2019, according to global shipping consultant Drewry.
The shine came off the commodities rebound this week, as the price of iron ore fell 4% on Wednesday (from a high above $90 per tonne this month) as traders anticipated a reduction of Chinese steel demand.
Pacific Basin Shipping saw its 2016 net loss widen to $86.5m from $18.5m previously as record low dry bulk market conditions significantly undermined its ability to generate satisfactory results and revenue slid 14% to $1.09bn from $1.26bn previously.
Fourteen container lines including CMA CGM and Evergreen Marine have been fined by China’s ministry of transport over their failure to be transparent over the disclosure of their freight rates.
The weak global container shipping market is expected to recover gradually over this year as freight rates are inching up, according to Anchor Chang, chairman of Taiwan’s Evergreen Marine.
After a rocky start, the freight market has set off for a campaign of recovering lost ground in 2017, in the process regaining some of the glory seen in the latter half of 2016.
The freight has ended the year of 2016 with its head held high, chest up and letting off a sigh of relief. The worst has been over and the market has showed its resilience by bouncing back from the nadir. Does the new year of 2017 offers further recovery or rather just more backslidings from all the hard-earned gains made in 2016?
Rates for LPG shipping are forecast to rise in 2017 despite declining fleet utilisation, against the backdrop of demand and fleet growth up till 2018, according to DNB Markets.
The world’s biggest container carrier Maersk Line remained in the red in Q3 reporting a $116m loss.