Palm & Veg Report, October 2018
It has been a bruising year for everyone involved in the shipping industry and some companies could well require life-support if things don’t improve soon, especially those owners who have had vessels sitting spot for long periods of time waiting for a workable cargo! Owners operating vessels within Europe, the Atlantic basin and out of South America have probably suffered the most as these markets have been particularly gruesome. The geopolitical tensions between the US and China don’t seem to be abating and both the commodity and freight markets are extremely difficult environments to operate in at the moment and rapidly escalating crude oil values is only adding to the gloom. The last time bunkers topped 500 US/dollars per tonne in Singapore was almost exactly 4 years ago to the day in 2014. Palm oil rates averaged mid US$ 80ies for 18,000 MTS and low US$ 60ies for 40,000 MTS from 2 Malacca Straits to Rotterdam then. The EPCA was also being hosted in Vienna not that that has anything what so ever to do with it!