The Trade And Freight Markets

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2008 saw the beginning of an economic crisis which saw the failure of numerous shipping companies and shipyards resulting in a remarkable decrease in the quantity and cost of newbuilding orders. However, 2013 marked the beginning of a market revival following trippled orderbooks compared to 2012, from 148 m dwt (1800 ships) to 54 m dwt (842 ships), aswell as a 10-20% increase in selling prices following an 11 year all time low. Similarly, world order book which had decreased by half in 5 years, between 2008 and 2012, increased significantly from 245 m dwt (3,766) to 272 dwt (3,589 ships) which now amounts to 18% of fleet in service compared to 17% in 2012 and 53% in 2008. China remains by far the largest market share holder with 47% followed by Korea and Japan which hold 28% and 15% of the market respectively and Europe owning a mere 1%. The maritime trade and freight markets took a similar turn to recovery despite economic growth dropping to 3% in 2013 from 3.1% in 2012, far below the forecast 3.9%. Trade on the other hand continued to suffer and reached 2.7%, far below 2011 and 2012 which had 6.1 and 12.6%. There is reason for optimism however as shown by the Baltic Dry Index which started off very low in the first quarter at 796 but rose significantly in the second of half of the year resulting in an average of 1,198 compared to 920 in 2012. Despite falling short of the 2011 and 2010 indices of 1584 and 2758 respectively, the trend seems to be a positive one as
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