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Containership Scrapping: Sizing Up The Suspects…
http://www.hellenicshippingnews.com/cont...-suspects/

Dry Bulk Ship Values up by 20% in just 30 days
http://www.hellenicshippingnews.com/dry-...t-30-days/

http://www.hellenicshippingnews.com/wp-c...017-1b.pdf

Weekly shipping market update Week 14
By Allied Shipping Research
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Shipping Confidence Survey
March 2017
By Moore Stephens

http://www.globalmaritimehub.com/custom/...ch_845.pdf

“For those who can effectively manage risk and volatility, shipping is still the place to be.” (Ha-ha !)
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Sorry to pour cold water, i feel that no recovery expected as long as cheap credits resulting in over-supply of ships..
it's a long drawn process...

Hi Brattzz,

This is what is happening at the international containership segment. National Shipping companies having access to liquidity with financiers under the illusion they are backed by their respective govt. And as you explained has caused a consistent oversupply.

Fortunately, the other segments of shipping are still not adversely affected by this phenomenon - tankers/ feeder containership. This is because they are of a smaller scale which means attention is turning to them albeit slowly. It has taken about 8 years for the feeder containership segment to tank (due to oversupply). This was why small liners like Samudera maintained their profits until recent FY16.

It applies too to the oil tanker industry where the VLCC/Suez/afra market is now being flooded with newbuilds. IMO, it will gradually trickle down to the MR/LR class and eventually to the handymax classes. However, this will take time. In the meantime, as value investors, we just have to quickly understand the industry and its subsections quickly and position our investments accordingly.

(16-04-2017, 11:55 AM)brattzz Wrote: [ -> ]Sorry to pour cold water, i feel that no recovery expected as long as cheap credits resulting in over-supply of ships..
it's a long drawn process...

Are you disagreeing with the statement “For those who can effectively manage risk and volatility, shipping is still the place to be.” on the basis of your pessimistic long term outlook" ?
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The international container segment is kinda like a commodity where shippers try to build bigger ships to get greater economies of scale hence lowering their cost. The shipping situation that they face today is due to it. It will continue until the weaker players drop out (NOL, Hanjin) and leaving only a few big players. Then it will become like a 'oligarchy' as the remaining big players increased their hold on the market. Now we are kinda seeing higher rates because of less 'competition' by the big players. Maersk, the biggest in this segment has kinda at the moment decided not to build more new ships but to buy out weaker players.

For the feeder segment, it is like a niche market. The ports that the feeder ship visiting might be too shallow for the bigger ship, less economies of scale to transport goods to a smaller port where demand is lower and where time is essence and etc.

The latest development in container transportation is the train service direct from Northern China to Cities in Europe in 18 days .

How many containers on the train? Now we are talking about 20,000 teu on a single ship.

http://splash247.com/maersk-line-quietly...its-fleet/

http://www.bbc.com/zhongwen/trad/business-38493764