Cosco Shipping Energy Transportation (CSET) has warned that it expects to turn to a net loss of between RMB235m ($34.5m) to RMB305m in the first half from a profit of RMB865m in the first six months of 2017.
Already a strong advocate of the switch to low sulphur fuel oil instead of using scrubbers, Precious Shipping md Khalid Hashim suggested that not only is a switch to cleaner burning fuel the right thing to do, but could also be positive for the market.
Dry bulk shipowners are not helping their own cause by a failure to scrap vessels, which will lead to an “extremely volatile” market recovery warns Precious Shipping.
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.
China’s ship scrapping and newbuilding subsidy scheme aimed at encouraging owners to renew their fleet and creating jobs for shipyards may no longer be a feasible policy, according to an industry veteran.
Cosco Shipping Holdings Co has announced that it will send eight container vessels totaling 409,914 dwt to the scrapyard for a price of RMB212m ($30.9m).
Containership scrapping could hit a record 750,000 teu of capacity in 2017 according to analyst Alphaliner.
Dry bulk shipowners need to accelerate the scrapping of older tonnage from the second half of 2016 to see continued recovery in the sector.
Struggling Singapore shipping trust Rickmers Maritime is scrapping a traditional panamax at just seven years old.