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Drewry all earnings shipping index slips 20% in August

Petroleum Review; 11/09/2014

The Drewry All Earnings Index, which covers the main bulk shipping markets, fell 20% in August and stood at 152, according to the Shipping Insight report published in September by shipping consultancy Drewry. The index was held back by weaker tanker and LPG charter rates, but overall earnings would have fallen further were it not for some recovery in dry bulk sectors. The fall in August’s earnings followed a month in which the index had soared 46%, indicating the volatile state of the shipping market. The index is an average of time charter earnings for dry bulk, tankers and LPG markets, weighted according to estimated market share.

‘The tanker market is expected to remain volatile in September, as strong demand for crude in Asia-Pacific supports the market, while refinery shut-downs in Europe act as a dampener,’ said report author Rahul Sharan. ‘The tanker market may suffer further if escalating violence in Iraq and threats of increased sanctions on Russia lead to supply disruptions.’

The dry bulk market revived thanks to an increase in demand for iron ore and coal. Sharan elaborated: ‘Supramaxes and Panamaxes were employed in the Pacific to ship coal, grain and minerals. As a result, freight rates surged on major routes.’

News Item details

Journal title: Petroleum Review

Countries: Worldwide -

Subjects: Marine transportation, Transportation, Transmission and Distribution