World News
Nordea : Shipping Recovery Will Begin Next Year
Major Scandinavian shipping lender Nordea Bank AB predicts the shipping industry will start a recovery next year, with freight rates and asset prices both rising, Bloomberg reports.
"Once we get through this year, deliveries of new ships will be a lot lower," said Hans Kjelsrud, head of the bank's shipping unit.
"We believe 2014 will be better than 2013 and that 2015 will be better than 2014."
Kjelsrud said a reduction in ship deliveries, along with improving economic conditions, should boost rates.
"What we're seeing right now is that the U.S. seems to be firming up and while there were some uncertainties about China earlier in the year, it seems to be doing OK," he said.
"Europe seems to at least have hit the bottom."
Shipbroker Clarkson Plc. says its measure of industry-wide earnings fell to its lowest level since 1990 this year, hitting $9,187 per day, but ship values rose 2.9 percent in August and may see an annual gain for the first time since 2007.
Nordea is the world's fifth largest shipping bank and, unlike some other banks, has continued to participate in the industry.
Germany's Commerzbank AG announced last year that it would wind up its ship finance unit, and other German banking leaders have called the downturn in the shipping industry a significant financial threat.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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