Shipping сompanies benefit from higher freight rates
Shipping companies such as Hanjin Shipping are enjoying rising freight rates amid strong cargo demand and a fall in fuel prices, according to industry sources yesterday.
The Howe Robinson Container Index (HRCI), a measure of the container shipping rate, rose 12.8 percent to 1,140.4 on March 2. The index was established on July 7, 1997 with a base of 1,000.
The Baltic Dry Index (BDI), a yardstick of dry bulk shipping rates that is seen as a good indicator of future economic growth
and production, has risen 6.4 percent this year to 4,766 on March 2, the sources said. The BDI was set up January 4, 1985 with a base index of 1,000.
Since 2002, container shipping has risen 10 percent annually, while the supply of container ships is tight,’’ Yonhap News quoted Ji Hun-seok, an analyst at NH Securities, as saying.
Shipping rates may continue to rise largely due to an increase in global trade and partly because of the booming demand for raw materials from Chinese steel makers, analysts said.
To meet the rising demand for shipping commodities, local shippers are realigning their routes and adding more ships to their lines.
Hyundai Merchant Marine, the country’s No.2 shipper, plans to add seven more container ships this year, while Hanjin Shipping, the leading shipping company, is considering placing more ships on lines that secure high freight rates.
At the same time, prices of bunker fuel used for ships are expected to hover around $250 per ton on average this year, down 7.2 percent from last year.
The shipping industry is forecast to remain in an up-cycle until 2009 on rising shipping rates and stable fuel prices,’’ Yang Ji-hwan, an analyst at Daishin Securities, was quoted as saying.
The Howe Robinson Container Index (HRCI), a measure of the container shipping rate, rose 12.8 percent to 1,140.4 on March 2. The index was established on July 7, 1997 with a base of 1,000.
The Baltic Dry Index (BDI), a yardstick of dry bulk shipping rates that is seen as a good indicator of future economic growth
and production, has risen 6.4 percent this year to 4,766 on March 2, the sources said. The BDI was set up January 4, 1985 with a base index of 1,000.
Since 2002, container shipping has risen 10 percent annually, while the supply of container ships is tight,’’ Yonhap News quoted Ji Hun-seok, an analyst at NH Securities, as saying.
Shipping rates may continue to rise largely due to an increase in global trade and partly because of the booming demand for raw materials from Chinese steel makers, analysts said.
To meet the rising demand for shipping commodities, local shippers are realigning their routes and adding more ships to their lines.
Hyundai Merchant Marine, the country’s No.2 shipper, plans to add seven more container ships this year, while Hanjin Shipping, the leading shipping company, is considering placing more ships on lines that secure high freight rates.
At the same time, prices of bunker fuel used for ships are expected to hover around $250 per ton on average this year, down 7.2 percent from last year.
The shipping industry is forecast to remain in an up-cycle until 2009 on rising shipping rates and stable fuel prices,’’ Yang Ji-hwan, an analyst at Daishin Securities, was quoted as saying.