Shipping Prices Rebounding
World Economy

Shipping Prices Rebounding

The CEO of the world’s largest shipping firm by capacity has given his unique insight into the rebound seen in global shipping prices in the last few months.
Speaking to CNBC Wednesday at the World Economic Forum in Davos, Soren Skou, the chief executive officer of Maersk Group, said the global freight index for container shipping had more than doubled in the last nine months.
“It’s simply driven by the fact that the carriers have taken a lot of capacity out of the market,” he said. “They are losing significant sums of money every day, and continuing to do that is simply not sustainable. Today, about 5% of the global container fleet is actually idle ... That has helped to support prices.”
“We and others were surprised by the fact that global trade was not growing nearly as much as one would have expected five years ago.”
The Baltic Dry Index—traditionally used as a barometer of global shipping—is up around 150% in the last year. Some have speculated that proposed infrastructure spent with the incoming Donald Trump presidency could have buoyed the sector while others suggest traders have weighed into a marker that had seen extreme weakness in recent years.
Meanwhile, one day after a Korean stock exchange official called the shares of Hanjin Shipping Co. “trash,” investors piled in, sending them 15% higher Bloomberg reported.
The company, on the verge of bankruptcy, is a darling of retail investors. Volatility is reaching a record, while the stock was the most-traded on the Kospi index in the past two days.
 “Retail investors are buying the stock so they can make double-digit profits—0% or 20% a day,” said Kim Seung Churl, an analyst at Meritz Securities in Seoul. “The volatility for this kind of company is really high.”


Short URL : https://goo.gl/9bQSWI
  1. https://goo.gl/KTgsOv
  • https://goo.gl/q6USl2
  • https://goo.gl/AyhikW
  • https://goo.gl/gxKLBd
  • https://goo.gl/G3kT1F

You can also read ...

The 2017 “WannaCry” cyber attack demanded affected users wire ransom money via Bitcoin.
You don’t have to be a digital whizz kid to know that the wars...
South Africa Wants to Increase VAT Rates
With an economic downgrade to junk status, a slowly growing...
A woman protests a planned coal-fired plant  in southern Thailand.
Southeast Asian governments are finding themselves caught...
Singapore to Hike GST for First  Time in Decade
Singapore is expected to raise goods and services tax for the...
Malaysia has shown willingness to move towards  a market-oriented mechanism.
Forty-three World Trade Organization members who participated...
62% of Japan Loan Rate  Below 1%
After two years of the Bank of Japan guiding key interest...
China’s Commerce Ministry says the proposed US measures are groundless.
China said proposed US tariffs on imported steel and aluminum...
Fitch Upgrades Greece
Fitch Ratings raised Greece’s sovereign credit rating by one...

Add new comment

Read our comment policy before posting your viewpoints