Shipping has shown signs of recovery in 2014 since credit crunch in 2008. Charter rate and asset value has firmed up across dry bulk and tanker sector. Even container sector, some big owners have announced great profit. Private funds, institute banks have been showing great interest in investment of ship asset. The historical worst shipping crisis may have ended in 2014.
3rd Party Spare vs. Original
Quality third party spare part makers with low cost have been squashed hardly by original makers. Most of original makers are creating a dominated spare parts market, where they can create massive profit. As some ships owners are superstition to original maker’s spare parts, original makers are taking this advantage to continue increasing the spare parts price.
Finance
Shipping finance is one of the important key factors to drive ship owner’s success. Equity, bond, security, debt and lease are good channels to finance shipping project. Finance institutes all over the world are moving slowly towards shipping investment, but the cost is very different. The price is from over 10% to less than 2%. A reliable ship finance consultancy will help owner to find the best finance resource to fund their shipping projects.
Container Ship
The Federal Maritime Commission (FMC) has asserted P3 Network Vessel Sharing Agreement to become effective on 24 March. It is based the world’s three largest container lines agreement will not raise transportation costs or reduce service.
LNG
The LNG market will remain supply-constrained for longer, may be until the end of the decade. The continuing long haul cargo to Asia, plus Qatar, Malaysia, Australia and Yemen managed to increase their output, and new regasification terminals began operating last year with three nations – Israel, Malaysia and Singapore – joining the importers’ club will continues to tighten the demand and supply balance.
Bulk Carrier
Some cautious on the dry bulk market, Australia will be the main resources of the majority of extra 2014 iron ore production instead of the long haul Brazil. China is moving towards to cleaner energy policy, and it will reduce coal imports. The market generally is looking for a strong recovery in 2014 but it seems the recovery is slow, given the excess capacity within also slowsteaming.
Tanker
VLCC is becoming a new favourite investment sector. Charter rate and new building price continues firming up. Primarily, demand expansion in the year is expected to be driven by non- OECD Asia. In terms of supply, oil production is projected to increase by 1.8% y-o-y in 2014. Within OPEC, the growth in Saudi Arabian production is projected to support an overall increase of 0.7% in output from all members, following a decline of 0.3% y-o-y in 2013.
