World News
BIMCO: Newbuild Ordering Growth "Not What Industry Needs"
Peter Sand, Chief Shipping Analyst at BIMCO, in a new report has said that a recent boost in newbuilds orders is "not what the industry needs."
BIMCO says 22 tankers have already contracted so far in June, amounting to a total of 2.6 million DWT.
In the crude oil tanker segment, 1.9 million DWT in orders has been entirely for Suezmax ships.
Meanwhile, the product tanker fleet has seen 0.7 million DWT ordered and 0.5 million DWT dry bulk ships contracted so far in June.
"BIMCO expected newbuild activity to pick up, so the recent development is not surprising. It is however not what the industry needs given the present challenges in the market, as the earnings in all three segments gives little incentive for adding more capacity to the industry," said Peter Sand, BIMCO’s Chief Shipping Analyst.
"As the dry bulk, crude oil, and oil product tanker shipping sectors are all struggling with very low freight rates, it is important that the recent development in contracting activity reflects a short-term trend."
Last month, Alphaliner said the container ship orderbook-to-fleet ratio had reached a new low, having dropped to just 14.1 percent as of May 1, 2017.
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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