Interesting Week

Hi All

Interesting week ahead for the shipping markets. The indices have dropped significantly over recent times and shipowners are starting to get nervous.

Lots of good news coming out of the developing worlds with regards to growth but there is still a huge questionmark as to whther this growth is sustainable (mostly based on government spending) and also the effect of freight rates on things such as stockpiling by the Chinese.

China imported record levels of iron ore last month and although freight rate firmed they did no go ballistic like previous years. There is concern now that we may see a sustained market sofening in the short to mid terms.

Also on the horizon is a huge influx of new ships coming ex yard. This means an increase in the supply side equation and hence more pressure on freight rates. In order to balnce this the market is waiting to see if shipowners start to scrap older vessles in order to keep the market at reasonable levels.

BTW a big thank you to all those who continue to support the blog and the books. Yesterday sold a book to someone in South Africa. Sofar people in 26 countries have read about the mysteries of international shipbroking as explained by VS. The feedback is always appreciated.

Have a nice week wherever you may be!

Yours
VS