Friday, 23 September 2011

Container Shipping Industry - 2011 1H - Osman Kaya TURAN - (ENGLISH)

Container Shipping Industry
In Container Shipping, trade outlook is still positive. Therefore, without going into detail, summarising the market through statements would be more suitable.

Developments relating to the container market in the first half of 2011 can be summarized as follows;
·                     Newbuildings delivery delays/cancellations and slow steaming have realigned supply to demand,

Supply and Demand Relation in Container Shipping


·         Idle capacity remains low having recovered from peak in 2009 and global fleet near full capacity as follows;


·         Container ships demand has recovered dramatically throughout 2010 and growing in 2011,

·         Charter rates and vessel values are extending their gains in 2011 and Vessel value sharp rebound reflects expectations for continued industry growth,

Charter rates, vessel values and idle capacities


·         Charter rate recovery benefits up-coming re-chartering activity (please see below graph),


Consequently, Container Shipping Industry has returned to normal activity levels.

In Container Shipping Industry, Long-term Growth Trends Based On;

·           World demographics and social trends 
·           World trade growth and Supply Balance as follows;


·         Long distances between production/consumption 
·         Containerization of transport 
·         Economies of scale 
·         Slow Steaming and fuel efficiency 
·         Supply side growth mainly in large sizes but limited supply growth in feeder sizes

Meanwhile, overall economic uncertainty raises questions about strength of imports by Europe and the US.

Best regards,

Osman Kaya TURAN

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