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Thursday, July 15, 2010

Inventory of the Global Shipping Fleet

Here is an interesting table showing the size and status of the global vessel fleet (via Minyanville). Did you ever wonder how many commercial shipping vessels ply the world's oceans? This is the breakdown:

Updated          Current      |              Newbuilding                  |
07/09/10       # In     DWT   | # On  # Under  % Under      #   Orderbook |#Broken
            Service   ('000)  | Order  Constr   Constr Launched  As DWT % |     Up
Tankers       2,102   324,013 |   389     58    12.98      33     29.33   |    577
 Crude Oil    1,498    51,072 |   201     69    25.56      20     27.94   |    536
 Oil Product    341    26,910 |    23      5    17.86      15     10.22   |      6
 LNG            510    13,258 |    45     17    27.42      12      9.44   |    118
 Chemical       315     5,467 |    57     21    26.92      16     28.71   |    117
                              |                                           |
Carriers                      |                                           |
 Bulk         6,746   436,675 | 2,373    317    11.78     159     51.63   |    942
 Ore            125    29,185 |    98     11    10.09       1    113.43   |     27
 Vehicle        634    10,851 |    88     39    30.71      22     23.88   |    148
 Gen Cargo    4,581    57,832 |   438    305    41.05     109     22.72   |  1,172
 Ro-Ro          439     4,747 |    32     13    28.89       6     14.04   |     82
                              |                                           |
Containers                    |                                           |
Containerships 4,555  173,564 |   510    106    17.21      73     27.9    |    457
                              |                                           |
Combination                   |                                           |
 Chemical/Oil  2,780   70,463 |   374    149    28.49      90     22.87   |    180
                              |                                           |
Passenger                     |                                           |
 Cruise ships    159    1,374 |    14      8    36.36       4     18.02   |     22

DWT = Deadweight tonnage
LNG = Liquefied natural gas
LPG = Liquefied petroleum gas
Ro-Ro = Roll-on/roll-off vessel

The reason for the table is to show how there has been overbuilding in the shipping industry. Old ships, plus a large supply of new ships means that shipping rates will fall.

Stories related to the recent drastic fall in shipping rates:
Baltic dries up: shipping rates slump -- the decline in rates has been greatest for the biggest vessels, the sort used to carry iron ore and coal from Australia and Brazil to China, suggesting weaker demand in the world’s most vibrant big economy. Such ships cost $48,000 a day to charter in late May; they are now down to around $18,000 a day...

the flow of new ships is now in full flow: in the first half of this year the global fleet increased by 23% as new vessels came into service at the rate of 16 a month. There are now 23 such vessels arriving each month, adding to oversupply...

The Baltic Dry Index Has Been Annihilated...
Commodity-Shipping Rates Extend Decline, Led by Larger Vessels
Baltic Dry Massacre Enters 34th Straight Dry As BDIY Plunges 4.5% Overnight

Wall Street Journal:
Shipping Index, Once Global Trade Signal, Narrows In On China -- A plunge in an index long seen as a barometer of trade trends is further evidence of waning raw-materials demand from China, but analysts aren't relying on the Baltic Dry Index for clear signals on the strength of the global economy...

Concerns about having more ships than demand dictates has been an issue for the industry since the credit crunch, which spurred questions about how the record-setting number of vessels ordered when ship owners were flush with cash were going to affect shipping rates in a more-fragile demand environment...

How Big A Worry is the Baltic Dry Index? -- Industry data suggest there was a surge in orders for new cargo ships in 2007 and 2008 at the peak of the global commodity price boom...
It's also hard to believe that there is a total fleet of 159 cruise ships and that 22 were recently scrapped. The four new passenger cruise ships launched this year are:
  • MS Queen Elizabeth - Built in Italy. Launched in January 2010. Her maiden voyage was planned for October 2010.
  • Norwegian Epic - Built in France. Set sail on her maiden voyage on June 24, 2010 from Southampton, England. She arrived in New York on July 1st.
  • Nieuw Amsterdam - She was built in Italy and sailed on her first set of sea trials on May 16, 2010. She was christened in Venice on July 4, 2010 and set sail on her maiden voyage.
  • Celebrity Eclipse - Built in Germany. The ship was launched in February 2010. In response to the shutdown of UK airspace due to the eruption of Iceland's Eyjafjallaj√∂kull volcano, the newly completed Eclipse was used to rescue 2000 British tourists stranded in Spain as "an act of goodwill" by the owners. The ship departed from Southampton for Bilbao on April 21st, and returned on April 23rd.
cruise related:
Norwegian Cruise Line Says Its New Floating City (Norwegian Epic) Never Sleeps
USA Today:
The Netherlands' Princess Maxima christens new Holland America ship (Nieuw Amsterdam)
Stranded tourists return from Bilbao on Eclipse cruise

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