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http://content.icicidirect.com/mailimages/ICICIdirect_FreightForward_April2012.pdf
S h i p p i n g M o n t h l y Re p o r t – A p r i l 2 0 1 2
• BDI continued its recovery after the crash in January 2012. In
March 2012, it recorded gains for the second consecutive
month with an MoM increase of 25% to 934. Panamax and
Supramax indices rose on an MoM basis by 26% and 45%,
respectively, and led to the rise in BDI in spite of BCI
declining by 8%. Increase in shipments of minor bulks and
coal within the Pacific Basin has resulted in higher demand
for smaller vessels like Panamax, Supramax and Handysize
while lower iron ore export from Brazil to Asia has resulted
in lower demand for Capesize vessels leading to weakness in
Capesize freight rates
• The Dirty Tanker Index rose by 4% MoM to 818 while the
Clean Tanker Index declined by 11% to 642 in March 2012.
VLCC and Suezmax rates showed an uptrend on a MoM
basis but Aframax freight rates weakened and ended with an
MoM decline of 8% in March 2012
• LPG freight rates in March 2012 displayed a mixed trend.
VLGCs, after three consecutive months of gains, recorded a
decline of 4.6% in March 2012. LGCs and MGCs remained
flat with MoM marginal gains in the range of 0%-1%
• Utilisation levels for drill ships, semi-subs and jack-ups
increased from 80%, 85% and 80% to 82%, 88% and 81%,
respectively, in March 2012
Outlook
Dry bulkers
In the near term, dry bulk freight rates are expected to remain range
bound with a positive bias. The BDI has risen by nearly 250 points in the
last two months and is likely to consolidate at current levels before
resuming its gradual upward move, which is expected to be supported by
higher demand for smaller vessels for trade of minor bulks and coal.
However, over the longer term, freight rates are expected to remain weak
due to the 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 show a marginal positive bias,
particularly for VLGCs while MGCs freight rates are expected to remain
range bound 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
April 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 �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_FreightForward_April2012.pdf
S h i p p i n g M o n t h l y Re p o r t – A p r i l 2 0 1 2
• BDI continued its recovery after the crash in January 2012. In
March 2012, it recorded gains for the second consecutive
month with an MoM increase of 25% to 934. Panamax and
Supramax indices rose on an MoM basis by 26% and 45%,
respectively, and led to the rise in BDI in spite of BCI
declining by 8%. Increase in shipments of minor bulks and
coal within the Pacific Basin has resulted in higher demand
for smaller vessels like Panamax, Supramax and Handysize
while lower iron ore export from Brazil to Asia has resulted
in lower demand for Capesize vessels leading to weakness in
Capesize freight rates
• The Dirty Tanker Index rose by 4% MoM to 818 while the
Clean Tanker Index declined by 11% to 642 in March 2012.
VLCC and Suezmax rates showed an uptrend on a MoM
basis but Aframax freight rates weakened and ended with an
MoM decline of 8% in March 2012
• LPG freight rates in March 2012 displayed a mixed trend.
VLGCs, after three consecutive months of gains, recorded a
decline of 4.6% in March 2012. LGCs and MGCs remained
flat with MoM marginal gains in the range of 0%-1%
• Utilisation levels for drill ships, semi-subs and jack-ups
increased from 80%, 85% and 80% to 82%, 88% and 81%,
respectively, in March 2012
Outlook
Dry bulkers
In the near term, dry bulk freight rates are expected to remain range
bound with a positive bias. The BDI has risen by nearly 250 points in the
last two months and is likely to consolidate at current levels before
resuming its gradual upward move, which is expected to be supported by
higher demand for smaller vessels for trade of minor bulks and coal.
However, over the longer term, freight rates are expected to remain weak
due to the 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 show a marginal positive bias,
particularly for VLGCs while MGCs freight rates are expected to remain
range bound 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
April 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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