FreightWaves Ocean Archives - Page 59 of 60

Tanker pitch goes back to basics as floating storage fades

24 May 202021 May 2020

Until very recently, the narrative in the tanker market went like this: The coronavirus has destroyed oil demand, excess oil will be forced into storage on tankers, a huge portion of the fleet will be tied up for an extended period, far fewer ships will be left in the spot market, ergo rates will rise.

Sure, the lengthy and inevitable storage drawdown will be painful for rates, but that’s the future. The near term looks great and tanker stocks are trading at a discount, so buy the stocks.

The new...

https://s29755.pcdn.co/news/tanker-pitch-goes-back-to-basics-as-floating-storage-fades

Q&A: Why Amit Mehrotra is still (very) bullish on transport stocks

24 May 202019 May 2020

COVID-19 is a game-changer for every link in the transport chain, from cargo ships to trucks, trains and air freighters. Amit Mehrotra, the managing director of air freight, surface transportation and shipping at Deutsche Bank (NYSE: DB), is one of the rare professionals who covers the entire gamut.

During a lengthy interview with FreightWaves on Monday, Mehrotra opined on coronavirus consequences for the world’s supply chains and explained why he believes some transport companies will see stock...

https://www.freightwaves.com/news/qa-why-amit-mehrotra-is-still-very-bullish-on-transport-stocks

Container-ship owners in crossfire as liners slash service

24 May 202019 May 2020

Container-ship lessors represent one of the most crowded segments in the U.S.-listed shipping arena – and one of the most highly leveraged to COVID-19.

Such owners, known as “tonnage providers,” lease vessels for varying lengths of time to liner companies, which use chartered ships to complement their owned fleets.

If global consumer demand rebounds robustly, stocks of tonnage providers should surge. If there’s an extended downturn, they face years of pain.

Liners have heavily “blanked”...

https://www.freightwaves.com/news/box-ship-owners-in-crossfire-as-liners-slash-service

Why COVID-19 rebound hopes are weighing down tanker stocks

24 May 202018 May 2020

It was a huge day for U.S. stocks, with the Dow surging by over 900 points on news of a potential vaccine breakthrough and positive stimulus comments from Federal Reserve Chairman Jerome Powell.

Many shipping stocks, particularly dry bulk stocks, showed strong gains, with Star Bulk (NASDAQ: SBLK) surging 15%, Eagle Bulk (NASDAQ: EGLE) up 13%, Scorpio Bulkers (NYSE: SALT) up 9%, Golden Ocean (NASDAQ: GOGL) up 8% and Genco (NYSE: GNK) up 7%.

Tanker stocks were conspicuously absent from the party.

At...

https://s29755.pcdn.co/news/why-covid-19-rebound-hopes-are-weighing-down-tanker-stocks

Container import roller coaster: down, up, down … up?

24 May 202016 May 2020

U.S. container imports are certainly on a wild ride.

The numbers plunged after the initial coronavirus outbreak in Wuhan, China. They briefly bounced back when delayed bookings were loaded after China came back online. Then they sank again after social-distancing rules shut down U.S. businesses and container carriers “blanked” (canceled) sailings.

Now, it looks like there could be at least some momentum in the positive direction, which might mean that container lines that blanked around 20% of...

https://s29755.pcdn.co/news/container-import-roller-coaster-down-up-down-up

IMF develops real-time intel on container, tanker, bulker moves

24 May 202015 May 2020

The modern history of global trade will be divided into B.C. and A.C. — before-corona and after-corona. What happened B.C. might as well have occurred in an alternate universe and the pace of change A.C. is so frenetic that even one-month-old data has lost much of its value.

With make-or-break business decisions in the balance, the focus has predictably turned to data that signals future trends, such as container-shipping “blank sailing” information from companies such as eeSea and...

https://s29755.pcdn.co/news/imf-develops-real-time-intel-on-container-tanker-bulker-moves

Stranded crew crisis is ticking time bomb for global trade

24 May 202013 May 2020

You may have read those Kafkaesque stories about seafarers marooned on cargo ships month after month, unable to go home at the end of their work contracts due to COVID-19 travel restrictions.

You may have thought, “How unfortunate,” then turned your attention back to your own pressing business problems amid the pandemic.

A crisis for an Indian seafarer stuck on a Liberian-flagged ship because Indonesian authorities won’t allow passage to the airport may seem distant from the challenges of a U.S....

https://www.freightwaves.com/news/stranded-crew-crisis-is-ticking-time-bomb-for-trade

Maersk: Container volumes could fall 25%

24 May 202013 May 2020

Container volumes will drop sharply in the second quarter but the industry is in better position to manage the coronavirus crisis than previous downturns, according to Soren Skou, chief executive officer of A.P. Moller-Maersk (APM, Copenhagen: MAERSK-B), the owner of the world’s largest container line.

On Wednesday morning, APM reported net income of $209 million for the first quarter of 2020 compared to a net loss of $656 million in the same period last year, with ocean shipping revenues up 3%...

https://www.freightwaves.com/news/maersk-container-volumes-could-fall-25

Will ocean carriers scale back sailing cancellations?

24 May 202012 May 2020

Container-liner schedules are about to provide a telling clue on U.S. cargo demand.

Arrival schedules for May and June are set. U.S. ports will see double-digit declines in inbound capacity. Whether carriers will keep “blanking” (canceling) sailings on the same scale into the third quarter remains unknown, but not for much longer.

If mass cancellations extend into July at elevated May-June levels, it means that carriers are not receiving enough bookings from shippers, implying a weak recovery...

https://www.freightwaves.com/news/will-ocean-carriers-scale-back-sailing-cancellations

Capesize shipping rates sink 21% in a single day

24 May 202011 May 2020

The Baltic Dry Index (BDI) rose to fame in the mid-2000s as a leading indicator of the global economy. If the BDI went up, industrial production was set to increase; if it went down, vice versa.

The BDI lost its luster as a macro bellwether during the decade after the financial crisis, as the index became overwhelmingly driven by shipping oversupply, not cargo demand.

Is it time once again to view the BDI as a signal of global industrial demand? If so, it’s looking scary.

Capesize rates crash

There...

https://www.freightwaves.com/news/capesize-shipping-rates-sink-21-in-a-single-day

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