The danish amarda

By Michele Warren,2014-07-13 16:37
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The danish amarda

The Danish Armada had made $460m of profits in 2010

    compared with a loss of more than $740m Feb 21st 2011, 23:38 by The Economist online

    the year before. This year is likely to be plain sailing too. Shipping rates are rising

    and Maersk reckons global trade could BIGGER ships have sailed the seven seas.

    grow by 8%. Clarksons, the world’s But the scrappers have ensured that the

    biggest shipbroker, is predicting fleet of massive container vessels ordered

    something closer to 10%. by Denmark’s Maersk Line will be the world’s biggest afloat by the time the first If the future for container-shipping lines of them is launched in 2013. looks promising, the same cannot be said Maerskannounced on February 21st that for the bulk carriers, despite China's Daewoo Shipbuilding of South Korea will continuing hunger for raw materials. The construct ten of the ships in an order worth Baltic Dry Index, a measure of shipping $1.8 billion; the Danish company has an rates for bulk goods such as coal, iron ore option to order 20 more. And if the new and grain, has foundered as container-ships claim no overall record for size they shipping rates have picked up. The reason, will significantly alter the economics of explains Michael Lewis of Deutsche Bank, container shipping. is the rapid growth in bulk-shipping

    capacity: the worldwide bulk fleet is The three previous ships whose size

    expected to grow by 16% this year, double exceeded that of these giants were all oil

    the rate at which freight volumes will grow. tankers. Maersk’s new "Triple-E" fleet will

    be the biggest container ships yet seen Bulk shippers ordered lots of new vessels (artist's impression above). They will carry when China’s demand for raw material 18,000 boxes, 2,500 more than the sent the index soaring to nearly 12,000 in biggest container ship currently in service, 2008. But it closed on Monday at just which is also operated by Maersk. The 1,301. The current bulk fleet weighs in at new vessels will use 50% less fuel per 623m tonnes, with 277m tonnes (ie, 44% container than the present average. That of existing capacity) on the order books. will be good news for the environment and Container-shipping order books, in for Maersk's profitability, as crude oil sails contrast, are back to normal, at around past $100 a barrel. 25% of the existing fleet. Container

    shipping has fared better because it is far The new ships will ply the routes between

    less fragmented than bulk shipping. There Asia and Europe, so the order is a bet by

    are just 20 or so global container carriers: Maersk that China will prosper long into

    Maersk's container fleet is around 500-the future and so will its exports. Container

    strong. The bulk-shipping business, shipping has bounced back remarkably

    however, has few dominant firms, with quickly from the post-credit-crisis lows of

    most lines owning no more than a handful 2009. The recovery in shipping in the first

    of vessels. That container shipping is half of 2010 took many in the industry by

    dominated by just a few big lines made it surprise as China’s resilience was

    easier for the industry to take out excess buttressed by growth in parts of Europe

    capacity in the 2009 downturn and will particularly in poorer countries such as

    reduce the chances of reckless expansion Russia and Turkeyand in America.

    now that good times are back. Profits ahoy

     Maersk’s annual results are due to be delivered on February 23rd and should make pleasant reading for investors. That the industry is steaming ahead was

    confirmed last week by Asia’s largest

    container line, Neptune Orient. It said it

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