Zacks: 2015 Will Be a "Good Year" For Shipping, Cheap Bunkers will be a "Major Positive"

by Ship & Bunker News Team
Thursday February 12, 2015

2015 is expected to be a "good year" for the shipping industry as low crude prices continue to ensure cheaper bunker fuel, according to Zacks Investment Research. 

The low bunker prices are expected to be a "major positive" throughout the rest of the year, with very large crude carriers (VLCC) forecasted to be the big winners overall. 

Already, the latter months of 2014 saw VLCC rates rise to five-year highs. 

Recent months have also seen the advent of mega-containerships and alliances among some of the world's largest shippers, both of which are part of attempts to cut operating costs. 

Despite larger ship sizes, overall tonnage is expected to remain unchanged or even decline as larger ships replace smaller ones and vessel sharing agreements (VSA) reduce the number of ships in operation. 

Opinion on whether the moves will ultimately prove profitable, however, are still divided, according to Zacks.

The company added that ultimately, it will be a company's ability to cope with recently implemented tougher Emission Control Area (ECA) regulations that will determine whether it is successful.

Since the beginning of the year, sulfur content in marine fuel used in ECAs have been limited to 0.10 percent.

Earlier this week is was reported that containership size could be a "nightmare" for insurers.

Ship & Bunker News Team
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