Shipping’s Half Year Report: Overall Shipping Transportation Index Close To Record High

Clarksons Research have released their half year statistics on to Shipping Intelligence Network. Reviewing the data points, Steve Gordon, Managing Director of Clarksons research, commented:

“After the resilience and then strong recovery of recent years, it has been another exceptional half year for shipping with our cross-segment ClarkSea (a weighted average of ship earnings in $/day across the tanker, bulker, containership and gas carrier sectors segments that represent 80% of global shipping capacity) for shipping cargo transportation averaging $38,844/day, up 7% on 2H 2021 and 157% on the 10-yr average.
Although 1H was not quite a record half year for the ClarkSea Index (1H 2008: $39,129/day), markets remain in exceptional territory.
With geopolitical turmoil added to Covid-19 disruption, shipping has again been placed at the centre of global events.
Our overall index continues to be skewed by containers (freight was steady on 2H 2021at record levels, ship charter rates rose to another record $85,731/day: a strong short term outlook for freight / charter rates seems balanced by 8% fleet growth in 2023, a slowing economy and, eventually, an easing of congestion).
Bulk Carriers have eased back ($24,440/day from $32,519 in the previous half) but still had their second best half since 2008 (world economy is a concern but a short orderbook and potential for some Chinese stimulus is more encouraging).
Tankers, buoyed by a very strong performance on oil products but held back by VLCC, averaged $25,698, up from three consecutive quarters 71m dwt of $28bn) have remained strong, although were slowing a little as we head for the summer. Demolition activity was weak (just 8m dwt: the second lowest six month period since 2008).

Our reviews of recent years have all advised “extra classes” around Green Transition and Fueling Transition as the shipping industry addresses its 2.4% contribution to global CO2 emissions. Re-enforcing this, a record 61% of new building orders (basis tonnage capacity) were alternative fueled in the 1H and the introduction of new emissions regulation in the EEXI, CII and EU ETS is now six months away. Fleet renewal and impacts of emissions policies on fleet supply will be themes for the decade and provide wide ranging investment opportunities. But, as we discussed in our LNG review, and as we are seeing with increased offshore oil and gas activity, energy security has also moved rapidly up the agenda.
So strong cashflow in most segments but plenty of uncertainties to ponder: perhaps one for after the summer!”

Clarksons Research are market leaders in the provision of independent data, intelligence and analysis around shipping, trade, offshore and maritime energy transition. Millions of data points are processed and analysed each day to provide trusted and insightful intelligence to thousands of organisations across maritime.