The global shipping industry has been enjoying its most meaningful days of earnings since 2008 when the combination of rapidly growing demand for freight and the collapse of global supply chains under the weight of the Covid19 virus has driven freight prices up like never before.
Whether it's giant container ships with 40-foot steel crates, bulk carriers holding thousands of tons of coal, or specialized ships designed to be built into cars and trucks, profits for most ships are skyrocketing.
With merchant ships attracting about 80% of world trade, the increase reaches all corners of the economy. The explosion back in 2008 brought a massive wave of new shipping orders. Still, the rally was quickly postponed by a collapse of demand as the financial crisis caused a sharp global economic downturn for decades.
The causes of the boom are twofold - the economic reopening after Covid that has fueled the demand for goods and services. In addition, the virus continues to wreak havoc on the world's supply chain, crowding ports and delaying ships, all of which limit the number of available goods to haul goods from the sea. That has left most of the shipping industry earning heavily in recent months.
The bonanza focuses on shipping containers - where rates rise sharply on new records but are not limited to them, the shipping industry has been delivering its strong daily earnings since 2008, the world's most prominent ship merchant. The only thing left behind is the oil and gas tank markets, where many bearish forces are playing.
"I'm not sure if a complete storm covers us - this is just amazing," said Peter Sand, a senior ship analyst at the Bimco trading group. "The positive collapse of the hot container shipping market in other sectors."
Vessel shipping remains a star. It now costs $ 14,287 to remove a 40-meter steel box from China to Europe. The freight rates have increased 5 times over the past year.
A.P.Moller-Maersk A / S, the world's most extensive container line, which increased its estimated revenue this year by about $ 5 billion last month is evidence of higher freight rates. As a sign of how much the industry has made a profit, CMA CGM SA - the world's third-largest company - has said it is ending its standards for maintaining long-term customer relationships. In other words, the company removes profits.
While demand for commodities raises the container markets, the returning world economy is also developing by using a wide range of items - increasing the available income of large cargo ships. In that regard, wages have recently reached the top 11 years and show little sign of slowing down spending, expected to remain stable throughout the year.
"Strong demand for natural resources is linked to Covid's performance disruption," backing prices for future and future assets, Ted Petrone, vice-chairman of Navios Maritime Holdings, which owns a large number of carriers, said a revenue call last week. "The foundations of supply and demand for things that continue are going very well."
Such is the power of overpowering other packers who have even turned to carry containers in their pockets. Golden Ocean Group Ltd. is among the companies that have been looking at the idea.
While Covid has brought significant increases in many shipping sectors, the oil tanks have defined the monetary trade for most of 2021, and the owners have successfully funded crude oil exports.
As OPEC + maintains an offline supply chain, too many ships and few cargoes keep wages under pressure. That burned one of the hottest trades in the sector earlier this year - the positions of used oil tanks in the hope of increasing summer demand for oil.
However, with the decline in global oil prices, analysts continue to expect a return. Fees could begin to rise sharply in October as stock declines and demand for tanks grows; Pareto Securities analysts, including Eirik Haavaldsen, wrote a letter to clients.
But for now, the tank market remains the only bullet in the industry where it carries freight. The Clarke index, which tracks daily earnings in various export sectors, has already posted its most prolonged record performance per month.
Those great benefits are also evident in many esoteric markets. Carriers have now become more expensive to rent since 2008. Prices for standard heavy cargo ships are also on the rise, adding to container-led and bulk shipping.
"Contract prices written on containers are crazy and the same for dry quantities," said Alexandra Alatari, a shipping analyst at Arrow Shipbroking Group. "The foundations are solid and support prices that could be the highest value in any other year."