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S h i p p i n g M o n t h l y R e p o r t – M a r c h 2 0 1 2
• February 2012 saw some semblance of sanity after the Baltic
Dry Index (BDI) had crashed by 61% in January, 2012. The
BDI rose by 10% MoM to 750 levels. Capesize, Panamax and
Supramax indices recovered to an extent and increased on a
MoM basis by 6%, 15%, and 9%, respectively. Demand for
iron ore and coal fixtures rose towards the end of February
but the huge over-availability of tonnage kept tabs on the up
move in freight rates
• The Dirty Tanker Index declined by 4% MoM to 784 while the
Clean Tanker Index rose by 11% to 723 in February 2012.
VLCC, Suezmax and Aframax vessels started February on a
weak note but recovered in mid month only to see a decline
in freight rates towards the end of the month. Product
carriers, on the other hand, weakened during the first half of
the month and rose towards month end
• LPG freight rates in February 2012 displayed a strong trend.
VLGCs recorded smart gains of ~ 22% MoM while LGCs day
rates rose the highest with a gain of 58% while MGCs saw
an increase in day rates in the range of 11-33%
• Utilisation levels for drill ships declined from 80% to 78%
while semi-subs and jack-ups utilisation declined 100 bps
and stood at 84% and 81%, respectively, in February 2012
Outlook
Dry bulkers
In the near term, dry bulk freight rates are expected to rebound after the
Chinese industrial sector restarts post the New Year holidays, which
would lead to an increase in seaborne trade and increased demand for
vessels. Over the longer term, freight rates are expected to remain weak
due to high level of Chinese iron ore inventory and significantly high fleet
addition over the next two years.
Tankers
In the near term, tanker freight rates could see a positive momentum
owing to escalating tension between European nations and Iran. However,
over the longer term, crude oil tanker freight rates are expected to remain
subdued owing to the oversupply of tonnage with 11% of present fleet
expected to be delivered in 2012, which would handicap the market.
LPG carriers
LPG freight rates are expected to continue the positive momentum,
particularly for VLGCs while MGCs freight rates are expected to remain
rangebound with a positive bias.
Offshore vessels
Utilisation levels for offshore vessels are expected to improve while
charter rates are expected to remain range-bound with a positive bias in
January 2012. High capex spend by major global oil exploration/drilling
companies is likely to lead to higher utilisation levels for offshore vessels.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S h i p p i n g M o n t h l y R e p o r t – M a r c h 2 0 1 2
• February 2012 saw some semblance of sanity after the Baltic
Dry Index (BDI) had crashed by 61% in January, 2012. The
BDI rose by 10% MoM to 750 levels. Capesize, Panamax and
Supramax indices recovered to an extent and increased on a
MoM basis by 6%, 15%, and 9%, respectively. Demand for
iron ore and coal fixtures rose towards the end of February
but the huge over-availability of tonnage kept tabs on the up
move in freight rates
• The Dirty Tanker Index declined by 4% MoM to 784 while the
Clean Tanker Index rose by 11% to 723 in February 2012.
VLCC, Suezmax and Aframax vessels started February on a
weak note but recovered in mid month only to see a decline
in freight rates towards the end of the month. Product
carriers, on the other hand, weakened during the first half of
the month and rose towards month end
• LPG freight rates in February 2012 displayed a strong trend.
VLGCs recorded smart gains of ~ 22% MoM while LGCs day
rates rose the highest with a gain of 58% while MGCs saw
an increase in day rates in the range of 11-33%
• Utilisation levels for drill ships declined from 80% to 78%
while semi-subs and jack-ups utilisation declined 100 bps
and stood at 84% and 81%, respectively, in February 2012
Outlook
Dry bulkers
In the near term, dry bulk freight rates are expected to rebound after the
Chinese industrial sector restarts post the New Year holidays, which
would lead to an increase in seaborne trade and increased demand for
vessels. Over the longer term, freight rates are expected to remain weak
due to high level of Chinese iron ore inventory and significantly high fleet
addition over the next two years.
Tankers
In the near term, tanker freight rates could see a positive momentum
owing to escalating tension between European nations and Iran. However,
over the longer term, crude oil tanker freight rates are expected to remain
subdued owing to the oversupply of tonnage with 11% of present fleet
expected to be delivered in 2012, which would handicap the market.
LPG carriers
LPG freight rates are expected to continue the positive momentum,
particularly for VLGCs while MGCs freight rates are expected to remain
rangebound with a positive bias.
Offshore vessels
Utilisation levels for offshore vessels are expected to improve while
charter rates are expected to remain range-bound with a positive bias in
January 2012. High capex spend by major global oil exploration/drilling
companies is likely to lead to higher utilisation levels for offshore vessels.
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