tions of buyers. Buyers’ expectations of falling prices are supported by weakening charter rates seen over more than the past six months, and it remains to be seen whether we have already reached the lowest point in this development. “As a glimmer of hope, we are witnessing fair to relatively high prices being under discussion for well-specified and well-maintained vessels which fit into trades with special requirements, e.g. ice-class, ro-ro ramps and/ or heavy-lift cranes,” Breiding said. Whether Hanjin’s demise will lead the MPP market to that other side remains to be seen. If that happens, carriers need to keep a weather eye on capacity levels, said Ulrichs. “It remains to be seen whether remaining players in the market act thoughtfully and do their necessary part to keep capacity on a sound level. To kick off a new round
of huge orders for even larger vessels as soon the market picks up would certainly be the wrong signal. An extensive scrapping program is what is required in the container and bulk sectors to improve the situation of the global shipping industry, which would have a positive effect also on the MPP sector.” In the meantime, there is little that MPP ship owners can do to better compete on costs. Mergers, joint ventures, consolidation … these moves only serve to minimize the pain. The only real action, concluded Panayides, that will help now is to send more ships to the scrapyard. BB Carly Fields has reported on the shipping industry for the past 16 years, covering bunkers and brokering and much in between.
THE DECLINE CONTINUES Time charter rates head further south. JAN. ‘16 FEB. ‘16 MAR. ‘16 APR. ‘16 MAY ‘16 JUNE ‘16 JULY ‘16 AUG. ‘16
5.8
6.0
6.2
6.4
6.6
6.8
7.0
Time Charter Rate Per Day ($)
7.2
Note: The Toepfer Transport Index is based on a 12,500 deadweight ton MPP/HL “F-Type” vessel for a 6-12 month time charter and represents the monthly assessment from operators, owners and brokers. Source: Toepfer Transport
SHIP BEYOND THE RAILS. FROM RAIL TO SEA TO ROAD, WE DO IT ALL.
The Alaska Railroad does more than you might expect. We ship freight to and from anywhere in North America. Even places without rail access. And we handle all the logistics along the way. So whatever it takes to get it there - barge, train, truck - you only need to deal with one point of contact and one invoice. So, next time you need to ship, sit back, relax and let us handle all the weight. Call for a free quote today: 800.321.6518 | alaskarailroad/freight
www.breakbulk.com BREAKBULK MAGAZINE 15