Fair winds ahead, SISI expects Baltic Dry Index to rise 30pc in 2013
THE Shanghai International Shipping Institute (SISI) says there is reason to believe 2013 will be a turning point for the recovery of the international shipping market.
SISI predicts the Baltic Dry Index (BDI) will rise from 904 points to somewhere between 1,200 to 1,500 points with a growth faster than 30 per cent, Xinhua reports.
The report said world economic recovery was slow in 2012 and growth is expected to be weak this year. Container shipping market's recovery is satisfactory with the China Containerised Freight Index (CCFI) up 18.44 per cent to 1,174 points. But dry bulk plunged 40 per cent year on year to a 10-year low of 904 points.
SISI said carriers are more prudent on vessel investment after having experienced years of loss. Many of them are scrapping more ships and even selling new ones to improve financial structure.
As new growth gains momentum this year, regional trade will become stronger and near-sea shipping will take up a greater proportion of sea freight volume.
Meanwhile, more shippers are ordering new ships to form their own fleets. In future, shippers will join traditional carriers in the shipping market. The two will also tend to set up joint ventures in offering shipping services.
As vessel sizes grow, transport costs of mega carriers are becoming less, providing more advantages. This will put greater pressure on small and medium carriers. Market monopoly trends will become stronger, said the report.
As a result of market downturn and rising costs, carriers are accelerating the dismantling of old ships to optimise their fleets. They are also focussing more on technological innovation and the use of new energy sources in an effort to cut costs and enhance service.
In 2013, stimulated by the rate increase plans of the carriers, the CCFI is expected to be on an average level of 1,150 points.
As major economies are launching more infrastructure investments, the dry bulk shipping market is expected to see modest growth this year. Dry bulk tonnage is predicted to grow 6.61 per cent, but will grow more slowly than before, said the SISI report.
THE Shanghai International Shipping Institute (SISI) says there is reason to believe 2013 will be a turning point for the recovery of the international shipping market.
SISI predicts the Baltic Dry Index (BDI) will rise from 904 points to somewhere between 1,200 to 1,500 points with a growth faster than 30 per cent, Xinhua reports.
The report said world economic recovery was slow in 2012 and growth is expected to be weak this year. Container shipping market's recovery is satisfactory with the China Containerised Freight Index (CCFI) up 18.44 per cent to 1,174 points. But dry bulk plunged 40 per cent year on year to a 10-year low of 904 points.
SISI said carriers are more prudent on vessel investment after having experienced years of loss. Many of them are scrapping more ships and even selling new ones to improve financial structure.
As new growth gains momentum this year, regional trade will become stronger and near-sea shipping will take up a greater proportion of sea freight volume.
Meanwhile, more shippers are ordering new ships to form their own fleets. In future, shippers will join traditional carriers in the shipping market. The two will also tend to set up joint ventures in offering shipping services.
As vessel sizes grow, transport costs of mega carriers are becoming less, providing more advantages. This will put greater pressure on small and medium carriers. Market monopoly trends will become stronger, said the report.
As a result of market downturn and rising costs, carriers are accelerating the dismantling of old ships to optimise their fleets. They are also focussing more on technological innovation and the use of new energy sources in an effort to cut costs and enhance service.
In 2013, stimulated by the rate increase plans of the carriers, the CCFI is expected to be on an average level of 1,150 points.
As major economies are launching more infrastructure investments, the dry bulk shipping market is expected to see modest growth this year. Dry bulk tonnage is predicted to grow 6.61 per cent, but will grow more slowly than before, said the SISI report.