We close a year of mostly gloomy news of continuing overcapacity, disastrous freight rates, regulatory uncertainties and corporate failures with a selection of more hopeful news. This will be our last Weekly News for 2016, but we’ll be back with more in the New Year.
Further Upside Seen for Asian Aframax Rates
December 12, 2016 — The Asian Aframax market has been strengthening steadily, with rates for the Indo/Japan route up by w25 points w-o-w at w135. The Baltic Exchange’s benchmark TD14 route reached w127.50 Tuesday, jumping by w29 points w-o-w. This is partly due to underlying seasonality as refiners in the region typically raise utilization rates during Q4 in order to meet winter demand. An early and colder-than-usual winter in North Asia has led to increased heating fuel demand, lending further support to refinery runs. Japanese refiners increased their average utilization rate from 90 percent to 92.3 percent for the week ending December 3. This has led to growing demand for crude imports and subsequently cargoes, providing a seasonal boost to Aframax rates.
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Ten Ship Order from Iran for Hyundai Heavy Industries
December 10, 2016 — South Korean shipbuilder Hyundai Heavy Industries has received a $650 million order to build 10 ships for Iran’s state-owned shipping company.
US-flag Lakes cargoes up 6.7 percent in November
December 13, 2016 — (CLEVELAND) — U.S.-flag Great Lakes freighters (lakers) moved 8.4 million tons of cargo in November, an increase of 6.7 percent compared to a year ago. However, the November float was 6.7 percent below the month’s five-year average.
Harvey Gulf’s Formula for Success
December 6, 2016 — A formula for success – in good times and bad: Harvey Gulf International Marine hasn’t deviated from its long term plans and goals, even as the price of oil negatively impacts all sectors. Apparently, this isn’t rocket science.
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