The container market is facing “a series of existential fears” that could dent shipping demand in the future, according to Drewry, prompting the consultant to downgrade its growth forecast.
The business case for retrofitting scrubbers will eventually “disappear” as the price spread between high sulphur fuel oil (HSFO) and low sulphur fuel oil (LSFO) will keep on narrowing, according to Drewry Maritime Research.
The service provided by container shipping lines has deteriorated since 2016 and is now seen by exporters, importers and freight forwarders as more problematic, but performance in terms of sustainability/green and carrier financial stability has improved, according to the second annual shipper satisfaction survey by Drewry and the European Shippers’ Council (ESC).
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 shipping fleet trading in chemicals and vegoils is projected to expand and outpace the clean petroleum products (CPP) fleet on the back of rising demand for methanol and vegoil, according to global shipping consultancy Drewry.
The scrapping of tanker vessels will gain pace over the next two years as a result of persistent weakness in freight rates as well as the coming into force of the IMO regulation on ballast water, according to global shipping consultancy Drewry.
A gradual recovery for the container shipping market can be expected after the demise of Hanjin Shipping, despite continuing concerns of weak trade growth and tonnage oversupply, according to shipping consultancy Drewry.
South Korea’s troubled shipowner Hyundai Merchant Marine (HMM), which is trying to overcome its financial difficulties through disposing of assets and business units, could look at a merger with compatriot Hanjin Shipping to increase their chances of survival, according to Drewry Maritime Equity Research.
Chemical tanker freight rates are anticipated to stay under pressure throughout 2016 against the backdrop of low bunker prices and increased newbuilding deliveries, according to shipping consultancy Drewry.