World News
Analysts Back Off Prediction of 2014 Recovery for Shipping
Investment analysts are backing off predictions for a gradual shipping rebound in 2014 as dry bulk rates and shipping stocks have dropped in recent weeks, industry news site ShippingWatch reports.
"Another worry for many investors is the growing orderbooks which many fear will hamper the recovery story sooner or later," writes analyst agency RS Platou Markets.
"We are less worried than many investors as we still see moderate fleet growth the next two years which is likely to underpin higher rates."
Platou writes that the weak rates in most segments reflect seasonal issues, but investors who are on the fence about the industry may wait for rebounding rates to be sure a recovery is underway.
Last week, dry bulk rates for major Capesize vessels dropped 33 percent to $11,000 per day, although Platou and other analysts predict improvement in that market.
Shipping shares in many segments—though not liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers—have decreased by 20 percent, including Scorpio Tankers and dry bulker Golden Ocean, which rose significantly last year.
Analysts have also noted a lack of investor interest in New York, with product tank carrier Diamond S Shipping and chemical tank company Stalwart Tankers deciding against initial public offerings.
Major maritime lender HSH Nordbank recently said it does not expect a shipping recovery this year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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