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WHY SHIPYARDS ARE AT A LOSS.
WHY SHIPYARDS ARE AT A LOSS.
JOIN THE CONVERSATION ON TWITTER
@XENETA_AS
ABOUTXENETA
At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.
With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution
WE ARE TRANSFORMING GLOBAL LOGISTICS
ARE YOU PAYING THE RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS POTENTIAL IN REAL
TIME.
CONTACT US.
AS WE REPORTED IN DECEMBER 2016, THERE IS BOTH GOOD AND BAD NEWS ON THE HORIZON IN 2017; IT WILL BE INTERESTING TO SEE WHETHER OR NOT THE CURRENT RISING RATES ARE THE VORTEX OF A TYPHOON, OR THE CALM AFTERMATH OF A TSUNAMI.
CERTAINLY "IMBALANCE" IS THE KEY WORD FOR THIS INDUSTRY AND
TRADE AS A WHOLE. SHIPYARDS ARE DEFINITELY SUFFERING FROM A LACK
OF BALANCE.
OVERSTAFFED SHIPYARDS WITH LITTLE DEMAND
A SERIOUS PART OF THE SHIPPING WORLD'S
IMBALANCE COMES FROM THE CHINESE AND S. KOREAN
SHIPYARDS.
THESE SHIPYARDS ARE GROSSLY OVERSTAFFED, AND TAKING ORDERS FOR SHIPS AT PRICES THAT GUARANTEE A LOSS BUT KEEP PEOPLE WORKING – OR AT LEAST MARGINALLY EMPLOYED.
OTHER THAN OIL, PARASTATEL INDUSTRIES TYPICALLY DON'T SUCCEED IN A FREE MARKET ECONOMY, AND WHEN LOOKING AT THE RECORD OF CHINA'S STEEL, CEMENT, ALUMINUM, AND SHIPBUILDING INDUSTRIES, THESE DON'T SUCCEED IN CHINA'S SEMI-REGULATED ECONOMY EITHER.
CONCERN IS MOUNTING ABOUT WHETHER SOUTH KOREAN SHIPYARDS WILL BE ABLE TO REPAY RECORD AMOUNTS OF DEBT COMING DUE IN 2017.
JOIN US ON JANUARY 17TH, 2017 AS WE ANALYZE CONTAINER
SHIPPING PRICES FOR THE MAIN GLOBAL ROUTES AS REPORTED IN
THE XENETA PLATFORM.
JOINNOW
LOW VESSEL PRICES. MORE SHIPS. EXTRA CAPACITY.
UGLY SPIRAL.
ALL THE SHIPYARDS HAVE INCURRED
MULTIPLE QUARTERS OF LOSSES IN THE PAST 18-24 MONTHS DUE TO
A DEADLY COMBINATION OF
POSTPONED ORDERS AND A PLUNGE IN
DEMAND FOR NEW VESSELS AND OIL
PLATFORMS.CHINESE AND
JAPANESE SHIPYARDS ALSO HAVE BEEN
AFFECTED.
COSCO SINGAPORE, WHICH IS OWNED BY A CHINESE COMPANY AND HAS ITS SHIPYARDS ON THE MAINLAND, SAW BULK-CARRIER ORDERS CANCELED AS SLOWER COMMODITIES DEMAND IN CHINA HAS LED TO OVERCAPACITY AND THE DECLINE IN THE BALTIC DRY INDEX THAT AFFECTED RATES AND THEREFORE PROFITABILITY.
HI CORP., CO-OWNER OF JAPAN’S SECOND-LARGEST SHIPBUILDER, LOWERED ITS NET INCOME TARGET FOR THE YEAR WHILE MITSUI ENGINEERING & SHIPBUILDING CO. ALSO CUT ITS FORECAST.
CONCERN IS MOUNTING ABOUT WHETHER SOUTH KOREAN SHIPYARDS WILL BE ABLE TO REPAY RECORD AMOUNTS OF DEBT COMING DUE IN 2017.
SIMILAR TO THE 20% CARGO VERSUS CONTAINER IMBALANCE THAT
CONTINUES TO AFFECT BOX RATES; TOO LITTLE DEMAND FOR NEWBUILDINGS
FORCES SHIPYARDS TO OFFER VESSELS AT PRICES THAT ENTICES CARRIERS TO BUY UNNEEDED VESSELS THAT SERVE TO DRIVE RATES DOWNWARD. THIS IS
AN UGLY SPIRAL.
LEARN HOW XENETA CAN HELPYOU GET INSIGHT INTO YOUR
GLOBAL OCEAN FREIGHT PRICES.
REQUEST DEMO NOW
THE GOOD NEWS
COMES FROM ANTWERP, WHERE THE PORT AUTHORITIES REPORTED A
RECORD YEAR IN BOX CARGO, EXCEEDING 10 MILLION TEU'S IN
2016. FINAL RESULTS ARE 10,056,603 TEU'S, A 4.2% INCREASE OVER 2015,
CARRYING 117,979,603 METRIC TONS.
UNKNOWN HOWEVER, IS HOW MUCH OF THIS CARGO COMES AT THE EXPENSE OF HAMBURG-LEHAVRE-ROTTERDAM PORTS DUE TO 2M, OCEAN ALLIANCE, AND THE ALLIANCE LANE AND SCHEDULING CHANGES THAT GIVE ANTWERP A STRONGER POSITION IN THE ASIA – N. EUROPEAN RANGE TRADES.
WHETHER IN CONTAINERS OR THE SHIPS HAULING THE CONTAINERS,
BAD THINGS HAPPEN UNLESS SUPPLY AND DEMAND IS ROUGHLY BALANCED. 2017 IS LOOKING TO BE
AN INTERESTING YEAR.
UNKNOWN HOWEVER, IS HOW MUCH OF THIS CARGO COMES AT THE EXPENSE OF HAMBURG-LEHAVRE-ROTTERDAM PORTS DUE TO 2M, OCEAN ALLIANCE, AND THE ALLIANCE LANE AND SCHEDULING CHANGES THAT GIVE ANTWERP A STRONGER POSITION IN THE ASIA – N. EUROPEAN RANGE TRADES.
