Scrapping Record Fails to End ‘Nightmare’ for Shipowners: Freight Markets

Transportation Jun 29, 2011 No Comments

Container shipRates will remain below about $11,000 a day for the rest of the year, compared with a breakeven point of about $23,000, according to Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong.

The surge in scrapping has failed to revive capesize rates because 117 new vessels have been launched this year as yards work through orders placed in anticipation of a surge in iron ore and coal shipments to China. Instead, China is paring commodity imports to help cool growth, while Vale SA (VALE), the world’s largest iron-ore miner, is adding vessels larger than capesizes to cut its reliance on the charter market.

via Scrapping Record Fails to End ‘Nightmare’ for Shipowners: Freight Markets – Bloomberg.

Jefferies Group’s Leung on Asia Shipping Industry

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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