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 The main focus of the presentations were an examination of the current situation in the marketplace, what can we expect as new tighter regulations move closer to enactment, and what lies ahead from a macro economic standpoint. All these dynamics will continue to determine future prices and quality for bunker.
Let us first look at the current state of the deep sea fleet. With the now widely adapted practice of slow steaming we have seen a rapid expansion of the active fleet since the recession. According to Lloyd’s 2011 statistics the deep sea fleet is as follows:
A large order book in these 3 segments, similar growth in other segments (cruise industry),
and idled fleets back in service will further pressure fuel prices higher. Tight supply and
high prices are key elements to the potential for both quantity and quality issues.
Other dynamics are also playing a role on the maritime side:
? Shipping rates are now falling
? Regulations raising fuel costs
? Bank loans more difficult to obtain
? Interest rates are rising
? China spending on shipyards and with low building costs may continue to build. Over 40% of all new builds were produced in Chinese yards in 2010
? Lower fleet values make refinancing very difficult yet if fleet values improve banks may try to increase foreclosures.
? KG (German Investment) spending way down
? Ship values are currently flat
One of the by-products of all of these issues is and will continue to be tighter credit lines with fuel suppliers. As shipping rates fall in many key sectors and fuel prices remain very high (and most likely heading higher) suppliers will be placing more scrutiny on payment terms and sizes of credit lines.
More info download attached file:
Rob Leventhal
V.P. Sales and Marketing
Source: Oiltest, Inc-The OTI Group – 67 Walnut Avenue, Suite 107 – Clark, NJ 07066 – Tel: 732-396-0565 – Fax: 732-396-0685
Web : www.oiltest.com
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