Experiencing stronger shipping markets

Experiencing stronger shipping markets
16/02/2022 https://www.hellenicshippingnews.com/experiencing-stronger-shipping-mark...

Members of the Institute of Chartered Shipbrokers in branches around the world are seeing benefits from stronger shipping markets. Although market improvements over the past twelve months were uneven, and some parts of the global shipping industry were not boosted, the general progress of the industry was a positive influence.

Looking at the main freight market sectors, the bulk carrier market retreated from high levels towards the end of last year and in early 2022, while the tanker market has remained subdued. In the container ship sector, box and charter rates have continued to perform strongly. The gas carrier market sometimes has seen more buoyant conditions.

Increased global seaborne trade last year was a substantial contributor to the market improvements unfolding. This upturn followed weakness in the previous twelve months, when the three largest sectors – dry bulk, oil and container – saw reduced trade volumes amid the severe economic recession caused by the coronavirus pandemic. Gas trade grew by only a minimal volume.

During 2021 world seaborne trade recovered. Dry bulk trade volume was 4% higher than seen in the previous year, oil trade (crude and products) was just under 1% higher, container trade increased by 6%, while gas trade (LNG and LPG) grew by well over 5%. The overall world seaborne volume, according to Clarksons Research provisional calculations, expanded by 3.6% in 2021, reaching 12 billion tonnes, fully reversing the previous year’s downturn.

What will happen in 2022? Despite some headwinds the world economy is widely expected to continue recovering, albeit probably not as quickly as seen in the initial recovery phase last year. This trend could provide a positive background for further advances of varying strength in all the seaborne trade categories. But rises may be less rapid than seen last year, except perhaps for oil where an acceleration seems more likely.

The Institute of Chartered Shipbrokers is a global organisation for all maritime professionals. The qualification, attained by examination, demonstrates extensive maritime knowledge at a high standard. Membership of the Institute also indicates competence and integrity. The London & South East Branch is the oldest and largest of the Institute’s 26 branches worldwide and provides frequent activities for members and students, including seminars, exam revision sessions and networking/social evenings.
Source: London & South East Branch, Institute of Chartered Shipbrokers (http://www.icslondonbranch.org.uk/)