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S h i p p i n g M o n t h l y R e p or t – F e b r u a r y 2 0 1 2
• The year 2012 began on a disastrous note for the Baltic Dry
Index (BDI), which crashed by 61% MoM to 680 in January,
2012. Capesize, Panamax and Supramax indices declined on
an MoM bias by 56%, 56%, and 44%, respectively. Lack of
Chinese activity in the commodity markets owing to the
Chinese New Year celebrations and high volume of new ship
deliveries led to lower fleet utilisation and pushed freight
rates downwards
• The Dirty Tanker Index declined 13% MoM to 813 while the
Clean Tanker Index fell sharply by 28% to 651 level in
January 2012. Both indices opened gap down by more than
10% in January 2012 after the year end closing in the last
week of December 2011. Though both indices declined on an
MoM basis due to huge gap down openings, average vessel
rates across categories showed positive momentum post the
subdued opening in January 2012. The rates displayed some
weakening towards the end of the month
• LPG freight rates in January 2012, displayed a mixed trend.
VLGCs recorded smart gains of ~ 5% MoM while other
vessel categories remained flattish in the range of -1% to 2%
• Utilisation levels for drill ships declined from 82% to 78%,
while semi-subs and jack-ups utilisation remained stable at
85% and 81%, respectively, in January 2012
Outlook
Dry bulkers
In the near term, dry bulk freight rates are expected to rebound after the
Chinese industrial sector restarts post the New Year holidays, which
would lead to an increase in seaborne trade and increased demand for
vessels. Over the longer term, freight rates are expected to remain weak
due to high level of Chinese iron ore inventory and significantly high fleet
addition over the next two years.
Tankers
In the near term, tanker freight rates could see a positive momentum
owing to escalating tension between European nations and Iran. However,
over the longer term, crude oil tanker freight rates are expected to remain
subdued owing to the oversupply of tonnage with 11% of present fleet
expected to be delivered in 2012, which would handicap the market.
LPG carriers
LPG freight rates are expected to continue the positive momentum,
particularly for VLGCs, while MGCs freight rates are expected to remain
range bound with a positive bias.
Offshore vessels
Utilisation levels for offshore vessels are expected to improve while
charter rates are expected to remain range-bound with a positive bias in
January 2012. High capex spend by major global oil exploration/drilling
companies is likely to lead to higher utilisation levels for offshore vessels.
