|
Faced
with the ever increasing panamax
orderbook, which now stands at 14
per cent over the existing fleet,
the only way out for the sector of
shipping to arrest the declining
freight rates is to implement an
aggressive scrapping policy.
Making
this observation, London-based
Drewry Shipping Consultants said
although newbuilding ordering was
less than 2.5m dwt during the
third quarter of 2001 and an
improvement on year on year
figures, supply forecasts
indicated that the current
depressed freight market will
continue into the coming year,
unless scrapping levels increase.
“The
supply situation is the key to the
freight market problems, as Drewry
has said on numerous occasions,
demolition must increase for rates
to improve,” said the analyst in
its latest Dry Bulk Quarterly.
The
expansion of the dry bulk carrier
fleet during the third quarter of
the year rose to 284.4m dwt,
compared to 281.6m dwt over 2Q01,
attributed to the flood of
newbuildings entering the market
last quarter.
“A
total of 42 vessels, 2.9m dwt,
were reported to have started
their maiden voyages this quarter
and worryingly this number is
expected to increase as time goes
on,” said Drewry.
Against
the additions, Drewry calculates
that just 28 ships, 1m dwt, were
sent for scrap over the third
quarter, compared to 1.7m dwt in
the second.
“This
is a particularly worrying trend
given the direction of the freight
market,” warned the consultant.
The
freight market for the dry bulkers
is certainly down. Industry
estimations put present capesize
earnings at more than halve
2000’s average earnings.
The
situation in the container liner
market appears just as bad as
containerships are heading for
lay-up in considerable numbers as
both owners and carriers struggle
to cope with plummeting rates.
Shipping
lines are already withdrawing some
of their biggest ships from
service for the duration of a
round voyage because of the
collapse of freight rates brought
about by so much excess tonnage.
Shipping
sources said shipowners are
planning to follow suit and
mothball tonnage as charter rates
plunge, reducing earnings to less
than breakeven.
A
number of ocean carriers that have
a high proportion of chartered
tonnage in their fleets are now
taking advantage of the slump in
hire rates to fix ships with
plenty of options attached in the
hope of locking into low prices
even if the market recovers.
Mediterranean
Shipping Co, CMA CGM, CP Ships,
and the Japanese lines have all
been seen playing the market,
according to shipbrokers.
|
