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Thursday, November 14, 2019

Drewry News

Image: Drewry Shipping Consultants Limited.

Drewry Cuts Global Port Throughput Forecast

Drewry Shipping Consultants has revealed that it now expects global port throughput to rise by 2.6% in 2019, down from the previous 3.0% expectation.The mood-music surrounding the container market has deteriorated further in the last three months, resulting in Drewry downgrading its outlook for world container port throughput for the current year and the rest of the five-year horizon in the Container Market Annual Review and Forecast.The weight of risks pressing down on the container market seems to be getting heavier by the day…

Graph: Drewry

Car Carrier Shipping in Rough Weather

As car carrier shipping is expected to continue its slow recovery, backed by better utilization and minimal vessel ordering, costs are increasing while the trade outlook seems vulnerable to emerging geopolitical risk. Slow car carrier recovery is expected to lead to more distressed vessel sales as shipping lines focus on landside investments in search of profitability, according to the  global shipping consultancy Drewry.Seaborne trade in finished vehicles, including high & heavy and used autos…

Image: UK Major Ports Group

UK: Strong Ports More Vital Than Ever

As Brexit approaches,  the UK needs to follow some key characteristics of the Strong Ports to thrive post its exit from the EU, given that the global trade and the maritime sector face many challenges.Global trade, and the maritime sector that enables so many of its flows, faces uncertain and challenging times, according to the UK Major Ports Group.Nowhere more so than the UK, with Brexit - in whatever form it takes - dominating the agenda. But ports are long horizon businesses…

Credit: Port of Cleveland

BREAKBULK SHIPPING: Breakbulk Breaks the Mold

In the cargo shipping world, there’s the bulk sector, the container segment, and then, there is “everything else.”When it comes to ‘everything else,’ breakbulk is the cargo that resides in between, comprising much of that remainder, including forest products (lumber, baled pulp) and steel. Breakbulk may, at times, share space on multipurpose vessels that also handle heavylift and project cargo, but can also be transported on vessels that handle drybulk. Prior to the advent of containerization, bales, barrels and pallets dominated.

File IMage: Hapag Lloyd Reefer boxes.

Drewry: Reefer Container Equipment Availability to Remain Tight

Reefer container equipment availability will remain tight over the next few years which will impact shipping capacity supply and freight rates at seasonal peaks, according to Drewry’s latest Reefer Shipping Annual Review and Forecast 2019/20 report, published this month.After the dramatic halt in reefer equipment expenditure by cash-strapped shipping lines in 2016 which led to acute shortages in several regions, production of new refrigerated container equipment recovered during 2017 and continued to gather pace in 2018.

A typical, one-of-a-kind, multi-purpose offshore transfer of cargo. CREDIT: AAL

Trust and Independence:

Key metrics for a consolidating market of Multi-Purpose Vessels.The multipurpose sector has experienced a tough first half of 2019, following a trend of difficult market conditions spanning over a decade. Fallout from ongoing global political trade discussions is taking its toll on both project and commodity trades, cutting down volumes at a time when external competition from non-MPV carriers is at its most fierce and the MPV fleet is still struggling with overcapacity. Still…

Image: Yilport Holding

Yilport Pact for 49-Year Concession at Taranto

Turkey's Yilport Holding signed a concession agreement with Port Network Authority of the Ionian Sea (PNAIS), the managing institution of the Port of Taranto in Italy for the multipurpose terminal.The deal was signed on 30 July 2019, at Castello Aragonese in Taranto, Italy by Robert Yuksel Yildirim, Yilport Holding Chairman, and Sergio Prete, the President of Taranto Port Authority.The agreement appoints Yilport to undertake all operations at the multipurpose terminal of Taranto Port for 49 years.This is the 22nd marine port in Yilport Holding’s portfolio, and its first terminal in Italy.

© mandritoiu / Adobe Stock

Drewry: Box Terminal Utilization Rates to Rise

The outlook for global container port demand is modest growth and numerous uncertainties, but in the face of this, capacity expansion plans are also muted. This means that most world regions will see an increase in average terminal utilization, according to the Global Container Terminal Operators Annual Review and Forecast 2019 by global shipping consultancy Drewry.Drewry’s container port demand forecast for the next five years is for global growth of 4.4% per annum on average…

Andy Barrons, Navis Chief Strategy Officer

TERMINAL OPERATING SOFTWARE: Compass Leads the Way

As YILPORT Rolls Out the Navis’ Compass Visual Workflow Management Application, the collaborative tool promises improved planning and greater visibility across five terminals. And, that’s just the beginning.In May, Navis announced that YILPORT Holding Inc. would roll out Navis’ Compass visual workflow management application to five terminals that already use Navis N4. The goal is to bring enhanced visibility, communication and collaboration to the planning process across all of the terminals.

Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster.

Container Market Challenges Likely as Uncertainty Mounts

Today’s container market is confronting more than its fair share of headwinds.The recently published Container Forecaster from global shipping consultancy, Drewry, highlights concerns of a slowing global economy stoked by the ongoing US-China trade war (albeit paused for the moment), escalating geo-political tension in many regions of the world and an industry grappling with challenging new emission regulations. Beyond these, however, a series of existential fears are also beginning to present themselves that could dent demand for shipping in the future…

Container operations at the port of Hong Kong, one of the world’s busiest. (Photo: Adobe Stock / © Marco 2811)

Drewry: After the sugar rush

Following the tariff-induced cargo rush of late-2018, container shipments from Asia to West Coast North America dived in Q1, denting carriers’ hopes of securing higher annual contracts.Things can change very quickly in the Transpacific container market. In our previous analysis of the Asia-West Coast North America trade at the end of last year, the market was booming with eastbound spot freight rates at a six-year peak. However, now that the sugar rush caused by the threatened tariffs on Chinese goods has passed…

Pic: Drewry Shipping Consultants Limited

Port of Dover Prepared for Brexit: Drewry

Alternative capacity could be provided by short-sea container services between the UK and EU to alleviate possible congestion at the Port of Dover post-Brexit.The Port of Dover is the cross-channel port situated in Dover, Kent, south-east England. It is the nearest English port to France, at just 34 kilometres (21 miles) away.According to a new study by global shipping consultancy Drewry the Port of Dover had the capacity to cope with moderate Brexit disruption.The earlier study, validated by the Port of Dover, concluded that of the 2.5 million trailers going via Dover, around 20% (i.e.

Pic: Drewry’s Benchmarking Club

Drewry Benchmarking Club Reaches Milestone

Drewry  has welcome one of the world’s leading automotive and energy companies to its exclusive, online ocean freight cost comparison service, Benchmarking Club.With this latest addition, Drewry Benchmarking Club now counts more than 10% of its members in the S&P 100 and Nasdaq 100.Launched in 2014, Drewry Benchmarking Club is a closed user group designed exclusively for shippers and is one of a number of ocean freight procurement support services from Drewry’s logistics consultancy arm…

Pic: Port of Dover

Port Dover Faces Brexit Heat

Britain's Port of Dover has the resilience to cope with moderate disruption arising from Brexit and there is latent short sea capacity to absorb significant overflow at the port in the event of capacity constraints, according to an independent study by global shipping consultancy Drewry.Among the political arguments about Brexit and its consequences, there has been a surprising lack of objective and quantitative analysis of the implications for the future of the vital short sea trade between the UK and the EU…

Pic: Drewry

Drewry Sees Balanced Supply-Demand in ULCVs

Maritime research consultancy Drewry believes that the industry’s supply-demand balance will benefit from a reduced appetite for Ultra Large Container Vessels (ULCVs) among the major carriers, some of which now have their eyes fixed on a bigger prize of becoming global logistics integrators."Aside from feeder ship replenishment, there has been no reaction from other lines to HMM’s mega-ship order and as such we have greatly reduced our projected new orders for 2020 onwards,” said Simon Heaney…

File Photo: Hyundai Merchant Marine Co

Drewry Predicts Better Freight Rates and Profits

The shipping industry’s supply-demand balance will benefit from a reduced appetite for Ultra Large Container Vessels (ULCVs) among the major carriers, some of which now have their eyes fixed on a bigger prize of becoming global logistics integrators, said Drewry.Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster said: "Aside from feeder ship replenishment, there has been no reaction from other lines to Hyundai Merchant Marine (HMM)’s…

Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster.

Supply Chain Battle to Aide Container Supply-Demand Balance

“We believe that the industry’s supply-demand balance will benefit from a reduced appetite for Ultra Large Container Vessels (ULCVs) among the major carriers, some of which now have their eyes fixed on a bigger prize of becoming global logistics integrators. Aside from feeder ship replenishment, there has been no reaction from other lines to HMM’s mega-ship order and as such we have greatly reduced our projected new orders for 2020 onwards,” said Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster.

File Image: AdobeStock © dbvirago

Shipping Ponders the Ultimate Cost of ‘Green’

Low sulphur fuels, scrubbers, LNG and other solutions are all part of the mix. Handicapping the impact of any of these options for the bottom line is anything but easy. Getting greener is not the problem; determining the best way to get there is quite another.By any measure, the business of running vessels will not be the same after January 1, 2020, when the present 3.5% limit on sulfur content will ratchet downward to 0.5%. With the implementation date for the changes, enacted…

Graph: Drewry Shipping Consultants Limited

Drewry: Ocean Freight Shipping Rates Fall in Q4

Ocean freight rates for cargoes moving under contracts on major East-West routes decreased by 7% in the fourth quarter, according to the results of Drewry’s Benchmarking Club Contract Index.The cost reduction, based on contract freight rate data provided confidentially by Asian, American and European retailers and manufacturers to the Benchmarking Club, shows that shippers who negotiate well with carriers can continue to reduce their multi-million freight spend on most East-West routes, despite the increases in bunker prices during the past year.

Graph: Drewry Shipping Consultants Limited

Ship Operating Costs Rise for Second Successive Year: Drewry

As the cost inflation is set to accelerate on higher insurance premiums, average vessel operating costs rose modestly for the second year in succession following two years of marked declines, according to the latest report published by global shipping consultancy Drewry.The report titled 'Ship Operating Costs Annual Review and Forecast 2018/19' said that typical ship operating costs accelerated moderately in 2018 as the uncertain recovery in freight markets across most cargo sectors gained momentum.Opex costs are heavily linked to developments in the wider shipping market as some costs…

File Image / CREDIT: AdobeStck © Kalyakan

Drewry: Car Carrier Sector Recovering Despite Rising Uncertainty

Car carrier shipping is expected to continue its recovery from the trough of 2016, supported by improving utilization.But increasing localisation and the threat of trade wars will slow finished vehicle cargo growth, while carrier operational efficiency will be challenged by the emergence of new trades and ports of call, according to the Finished Vehicle Shipping Annual Review and Forecast 2018/19 report published by global shipping consultancy Drewry.Seaborne trade in finished vehicles has recovered strongly from a low in 2016, recording growth of approaching 6% in 2017 to 37.5 million ceu.

Global consumption of primary energy by fuel type (million tonnes oil equivalent). Graph: Drewry Maritime Research

Optimism in Multipurpose Shipping: Drewry

Surging growth in renewable energy generation around the world and a construction boom in South East Asia that is expected to run for the next 10 years bode well for the once ailing multipurpose shipping fleet.In the latest edition of Drewry’s Multipurpose Shipping Forecaster report we declare that we remain cautiously optimistic on the outlook for the sector. There are some caveats to this optimism as global general cargo demand is forecast to grow at a rate of just 2% per year to 2022…

Graphics: Drewry Shipping Consultants Limited.

Seaborne Reefer Trade Continues to Expand: Drewry

Despite moderating perishable seaborne trade growth, continued modal shift will sustain expansion in the containerised reefer trade and so support freight rate development, according to Drewry’s latest Reefer Shipping Annual Review and Forecast 2018/19 report, by global shipping consultancy Drewry.Global seaborne reefer trade continues to expand, posting a gain of over 5% in 2017 to 124 million tonnes, a big improvement on trend growth over the past 10 years of 3.6% a year. Underpinning this progress was strong growth in banana…

(Photo: Drewry)

Drewry Downgrades Forecast for Container Demand

A gloomier world economic outlook and rising trade tensions have forced Drewry to downgrade its forecast for container demand over the next five years, according to the global shipping consultancy’s latest edition of the Container Forecaster.Drewry’s long-term supply and demand prognosis for carriers has deteriorated since the last report. Previously, the company’s global supply-demand index was expected to take incremental steps upwards through 2022, by which time the industry would at long last be close to equilibrium.However…

© MAGNIFIER / Adobe Stock

Container Shipping Bankruptcy Lends Insight on Potential Fallout from Trade War

Global trade tensions have captured headlines in recent months, as the imposition of a series of tariffs and counter-tariffs by various global trade counterparts has raised questions about the possibility of a trade war. Such development could potentially have an impact on global trade flows, and, consequently, the companies which facilitate international movement of goods.Though the situation is still developing and the final impact is uncertain, Gregory Draco, the Chief U.S. Economist at Oxford, predicted in July that the tariffs would create an 0.1 percent to 0.2 percent drag on U.S. GDP.

Image: Drewry Shipping Consultants Limited

Container Terminal Utilisation Levels Set to Rise: Drewry

The medium term outlook for global container port demand growth is positive thanks to strong underlying economic momentum across the world’s major economies. While there may be clouds on the horizon in the form of tariff and trade war fears, economic fundamentals are likely to win-out in the long run, according to the Global Container Terminal Operators Annual Review and Forecast 2018 by global shipping consultancy Drewry.Against this positive picture near term container port capacity expansion will remain relatively subdued following several years of under investment…