Clarksons: Niche Sectors See Better Earnings in 2016

Illustration; Image Courtesy: MSC

Market conditions across most sectors of the shipping industry in 2016 have been highly challenging and things in many sectors appear to be as bad as they have ever been, according to Clarksons Research.

In the wider fleet some niche sectors have seen better earnings, but even so, most shipowners will surely be hoping that 2017 brings with it a significant change in fortunes, Clarksons said.

The ClarkSea Index, an average of earnings for tankers, bulkers, boxships and gas carriers, averaged USD 10,574 per day in November 2016, down 11% on the average since the start of 2009, a handy marker for the onset of the downturn. In the dry bulk sector, the market has been under significant pressure for some time, and in November 2016, Capesize spot earnings stood 14% below the average since 2009.

Meanwhile, oil tanker earnings have fallen this year, from a strong 2015, despite robust trade growth. Clarksons informed that firm fleet growth in both the crude and product tanker sectors has placed pressure on the tanker markets, with clean MR average spot earnings in November 23% below the average since start 2009.

The specialised shipping sectors are faring little better. LPG market conditions have deteriorated acutely this year, reflecting the impact of rapid fleet growth, taking the one year VLGC timecharter rate from over USD 70,000 per day in mid-2015 to just USD 17,466 per day in November 2016. LNG market conditions have remained challenging, but may have now bottomed out, according to Clarksons.

The PCTC market has also come under pressure, with the rate for a 6,500 ceu vessel averaging USD 16,000 per day in November, down 24% on the average since start 2009. In the general cargo sector, the boxship charter market has been notably depressed, with rates at bottom of the cycle levels. The 6-12 month charter rate for a 2,750 TEU boxship stood at USD 6,050 per day in November, 26% lower than the average since start 2009.

“However, in some of the niche general cargo areas, things look a little better,” as timecharter rates for Ro-Ro vessels have firmed this year, with the November rate for a 4,000 lm vessel up by 43% on the average since 2009.

Clarksons said that some niches are performing more strongly than others, with passenger ferry charter rates in November up 46% on their start 2015 level, and the cruise sector in full-on expansion mode.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Mar 2017 >>
MTWTFSS
27 28 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 31 1 2

Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

In addition to exceptional networking opportunities, Breakbulk Europe provides a dynamic conference, along with a range of educational and training workshops — intensive all-day classes held the day before the exhibition opens as well as many on-the-floor sessions.

  • Over 7,600 participants attended Breakbulk Europe 2016
  • Meet with over 400 exhibitors and sponsors
  • Hear from industry experts, including leading shippers, during the conference sessions
  • Learn new skills in the educational workshops held before the exhibition and on-the-floor micro-seminars and exhibitor-led sessions during the event

More info

read more >

Ferries Asia Summit

Propelling Regional Waterway Connectivity & Fleet-wide Operational Excellence

Ferry travel is in the limelight. The potential for driving tourism growth is immense – and for archipelago nations battling with urban congestion, ferry services pose a clean, efficient alternative in everyday public transport. But high-profile ferry accidents have brought ever greater attention to safety regulations for Asia’s maritime travel industry.

Amid these circumstances, how can vessel operators cope with ever-tightening safety requirements, while making the right decisions at the right time to capture rising demand? What are the smartest ways to improve service reliability and fleet quality, that maximize operating and capital spend? What are the industry’s best-practices for sustainable growth, and how can they be achieved?

Play your part! Join us at the Ferries Asia Summit 2017 to push forward the regional debate on making Asia’s ferry industry more progressive, safe, and commercially sustainable. Bringing together fast-ferry, RO-RO and ROPAX vessel owners along with international and domestic maritime regulators, classification agencies, shipbuilders and naval architects, this event connects the entire value chain for a meaningful holistic debate on ferry operations excellence in Asia.

WHAT’S ON THE AGENDA THIS YEAR?

Comprehensive debates on addressing the complexity of ferry safety in Asia: Is vessel age truly the greatest concern? How significant are other factors, and how can they be addressed?

Pathways to change through greater public-private collaboration

Contrasting viewpoints on the most effective ways to enhance operational stability & passenger management

Cost-efficient O&M strategies to extend vessel life & tips for stakeholder management to avoid purchasing mistakes

Integrating ferry business with tourism opportunities through strategic partnerships

Exciting formats including speed networking, panel discussions & a high-intensity fast-pitch ‘Shark Tank’!

For more information, click here to download the brochure.
If you would like to attend the event, register here before 3rd February to save USD 400.
Alternatively, email us at enquiry@iqpc.com.sg 
for any enquiries regarding the event.

More info

read more >

INMEX Vietnam 2017

The event is an exceptional meeting point for the global maritime community in Vietnam, a region where the industry remains buoyant and strong…

read more >

Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

read more >