Page 15: of Maritime Logistics Professional Magazine (Jul/Aug 2019)

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Asian TBMs for Melbourne & Sydney

Today freight rates for international ocean-going trade have been largely governed by the tumultuous global political landscape. The trade spat between the United States and China has put the brakes on several commodities, including steel – with direct repercussions for the multipurpose market – and bulk cargoes like coal, grain, and iron ore.

port’s sliding Baltic Dry Index early in 2019, has further oil prices and revitalise the energy market, unlocking invest- pushed dry bulk vessels across market lines into the MPV sec- ment into infrastructure projects.

tor for a piece of the project cargo pie. Meanwhile, instability These resolutions are however dependent on movements on of oil prices – equally hinged on global politics, and now in the global political stage, away from national protectionism part on growing tensions within key trade lanes – are dissuad- and towards a more collaborative, solutions-driven mindset, ing energy majors from signing off on oil & gas projects which and the optimism towards this eventuality at the beginning of constitute a large portion of the multipurpose market’s core 2019 has yet to be rewarded.

customer base. Over the longer term, oil prices are expected to average under USD $70 per barrel and at this price there will THE (SOMEWHAT) SUNLIT UPLANDS be limited appetite for FIDs and new project investments. It is not all doom and gloom. The addressable demand for

Freight rate recovery will depend on decreased capacity and the multipurpose vessel (MPV) ? eet is looking at an average increased cargo options, both of which hinge on the resolu- annual growth of 1.2% to 2023, according to Drewry. And the tion of current political debates. A trade agreement between increasing environmental awareness has also shifted investors’ the US and China and the reduction or dissolution of current perspectives onto alternative methods of power generation. tariffs should improve global economic sentiment and see the Policymakers, ? nanciers, and the general public have given ? ow of bulk cargos revive, driving demand for bulk carriers in great support to investment in, renewable energy projects – their primary markets. Likewise, this could restore stability to chief among them, onshore and offshore wind.

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