Maritime Industry
2 Pages
English
Downloading requires you to have access to the YouScribe library
Learn all about the services we offer

Maritime Industry

-

Downloading requires you to have access to the YouScribe library
Learn all about the services we offer
2 Pages
English

Description

Maritime Industry Literated Market Research: Low Oil Price Impact on Shipping Industry The fall in global oil prices over the last one year has been beneficial to the shipping industry in more ways than one.

Subjects

Informations

Published by
Published 17 September 2015
Reads 1
Language English

Exrait

Maritime Industry
Literated Market Research: Low Oil Price Impact on Shipping Industry The fall in global oil prices over the last one year has been beneficial to the shipping industry in more ways than one. As some countries like China try to stockpile oil taking advantage of the lower oil prices, the demand for oil tankers have picked up and the operating costs of ships have gone down due to the lowered oil prices. This has created expectations that the profits for themaritime industrywould be good in 2015 and has had a positive effect on the shipping industry. From a peak of $115 a barrel in June 2014, oil prices have dropped to around and even below $50 a barrel in recent times. This reduction in oil prices has resulted in nearly halving of bunkering costs for the shipping industry compared to last year and the demand for oil tankers has gone up. The bunkering costs of very large crude carriers were around $40,000 per day last year and present, it has come down to around $20,000 per day. Bunkering costs are considered to be one of the major expenses of the shipping companies. One metric ton of bunker fuel now costs about $270 which is less than half of what it cost when the price of oil was more than $100 a barrel. This has allowed in ships to reach more markets profitably than ever before. For example, some tankers carrying refined petroleum to European markets are not using the Suez Canal as a shortcut, but are sailing around Africa which allows them to stop at more ports. The demand for tankers and ships are increasing as oil importing countries are trying to take advantage of the cheap oil prices. Countries like China, one the largest importer of crude oil, is stockpiling huge quantities of cheap oil so that it can benefit later when the prices of crude rise. Some other countries and companies are also following the same strategy as the market
anticipates a recovery in the future oil price. This has resulted in a sharp increase in demand of super large oil tankers. The daily rates of some of the largest oil tankers have been raised to as much as $90,000, far above the $10,000 a day it costs an owner, to pilot a ship laden with Mideastern crude to Asia. The same rates in 2012 and 2013 were about $25,000 a day. Cheap oil also means that shipping of dry cargo is cheaper and global producers and manufacturers are utilizing this opportunity to ship more products. This has also raised the demand for the shipping industry. For more information on Maritime Industry visit https://literated.com/industry/MaritimeAbout Literated.com Literated.com is a one stop market research and e-commerce platform catering to the needs of businesses and knowledge workers who are dependent on market research information for their work. Visithttps://literated.comfor more info.