Clarksons: Shipping Sees Lack of Heat in 2016

Illustration; Image Courtesy: Gazprom

The shipping industry has experienced a particular blast of cold air during 2016, with few sectors escaping the frosty grasp of the downturn, according to Clarksons Research.

The shipping markets have in the main been pretty icy since the onset of the global economic downturn back in 2008, Clarksons said. Since the start of the fourth quarter of 2008, the ClarkSea Index has averaged USD 11,948 per day, compared to USD 23,666 per day between the start of 2000 and the end of the third quarter of 2008.

Investor appetite for vessel acquisition has often added ‘heat’ to the market in the form of investment in newbuild or secondhand tonnage, even when earnings remained challenged.

According to data on historical newbuild and secondhand asset investment in terms of value, shipping appears to be as cold as back in early 2009. This year the ‘Heat Index’ has averaged 36, standing at 34 in fourth quarter of 2016, which compares to a four-quarter average of 43 between the same quarter in 2008 and the third quarter in 2009.

This, in part, reflects the earnings environment as the ClarkSea Index has averaged USD 9,329 per day in the year to date and is on track for the lowest annual average in 30 years. In August 2016, the index hit USD 7,073 per day, with the major shipping markets all under severe pressure, Clarksons informed.

“The investment side has seen the temperature drop even further. Newbuilding contracts have numbered just 419 in the first eleven months of 2016, heading for the lowest annual total in over 30 years, and newbuild investment value has totalled just USD 30.9 billion,” according to Clarksons.

Such weak volume sector markets, and a depressed offshore sector, have outweighed positivity in some of the niche sectors as 50% of the value of newbuild investment this year has been in cruise ships.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >