Clarksons: Boxships Sailing into More Positive Territory?

Image Courtesy: MSC

The container shipping market has seen a bit of a flop since the onset of the global financial crisis back in 2008, however, the things have started to look a little bit better recently, according to Clarksons Research.

Containership earnings have spent most of the period since the onset of the global financial crisis back in 2008 at bottom of the cycle levels.

The first building block was that the freight market appeared to bottom out in the second half of last year, with improvements in box spot rates on a range of routes backed by careful management of active capacity. In the first quarter of 2017, the mainlane freight rate index averaged 64 points, up 42% on the 2016 average.

However, containership charter rates remained in the doldrums into 2017, with the time-charter rate index stuck at a historically low 39 points at the end of February, before the market picked up sharply during March taking the index to 47, Clarksons informed.

This change in conditions was partly supported by liner companies moving quickly to charter to meet the requirements of new alliance service structures.

“The start of some upward movement at last was to some extent in line with expectations, with demand growth expected to outpace supply expansion this year, and no doubt accelerated charterer activity helped too. However, the market received additional impetus from recent sharp shifts in supply and demand,” Clarksons said.

The analysis of the monthly development of year-on-year growth in containership fleet capacity in TEU as well as the 3-month moving average of year-on-year growth in estimated seaborne container trade showed that in 2015, capacity growth reached 8%, and remained ahead of trade growth until the fourth quarter of 2016. In 2017, with capacity declining by 0.1% in the first quarter, backed by historically high demolition, and trade growth, notably in Asia, pushing along nicely, a big gap between the two factors has opened up.

Demand is projected to outgrow supply this year by 4% to 2%, but not by quite as much as seen so far. Full year expectations may be a little more restrained, but it is still a helpful switch, according to Clarksons.

“In the case of the recent changes in containership earnings, maybe a bit of extra heat from the charterers’ side helped, but it looks like fast-moving fundamentals have offered some support too. Perhaps it all goes to show that old methods can sometimes be as good as new ones,” Clarksons said.

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 >