Industry experts say that the uncertainty in Europe coupled with excess supply of new tonnage would continue to pose a straight challenge to the shipping industry, affecting their margins for some more time. Of course, the Chinese trade also plays a vital role now. It is said that the ship owners who opted for long-term contracts stood to benefit as against the spot market that remained relatively more unpromising and depressed. Mr.A.R.Ramakrishnan, Managing Director of Essar Shipping shared his experience on this long-term contract: “This strategy is keeping us going strong. A tanker on a one-year time charter, for instance, earned between $18,000 and $21,000 a day while the same asset on the spot market could hardly get $4,000 a day.” The Time Charter Yield (TCY) , it is clear, has not yielded much to the ship owners across various segments such as dry bulk ships, product carriers. With scrapping activity being less in volume and, on the other hand, year-on-year fleet addition, the ship owners were driven to be extremely cautious in their acquisition schedules. In short, they have to keep fingers crossed for a few more months to see a growth in business and, so, in margin.
Thursday, 23 August 2012
Shipping Industry sees no lightning in the dark cloud yet
Industry experts say that the uncertainty in Europe coupled with excess supply of new tonnage would continue to pose a straight challenge to the shipping industry, affecting their margins for some more time. Of course, the Chinese trade also plays a vital role now. It is said that the ship owners who opted for long-term contracts stood to benefit as against the spot market that remained relatively more unpromising and depressed. Mr.A.R.Ramakrishnan, Managing Director of Essar Shipping shared his experience on this long-term contract: “This strategy is keeping us going strong. A tanker on a one-year time charter, for instance, earned between $18,000 and $21,000 a day while the same asset on the spot market could hardly get $4,000 a day.” The Time Charter Yield (TCY) , it is clear, has not yielded much to the ship owners across various segments such as dry bulk ships, product carriers. With scrapping activity being less in volume and, on the other hand, year-on-year fleet addition, the ship owners were driven to be extremely cautious in their acquisition schedules. In short, they have to keep fingers crossed for a few more months to see a growth in business and, so, in margin.
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