Global Fleet Capacity to Bulge as More Containerships are Delivered in 2018; Baltic Dry Index Down 21%, Hyundi Heavy Up

I'm going to have to learn how to say "Boom-and-bust cycle" in Korean.

First up, from The Loadstar via gCaptain:

There will be a 5.6% growth in container fleet capacity this year, according to scheduled newbuild deliveries of 1.49m teu and expected in scrapping of some 350,000 teu, says Alphaliner.

After 2017’s slight supply-demand rebalancing, the pent-up flood of newbuild deliveries this year will be a challenge for shipowners and container lines – especially if there is a dip in demand.

And notwithstanding a softening of demand and seasonal fluctuations, analysts cited higher oil prices and increased protectionism as additional threats to demand growth this year and next.

Alphaliner noted that orders placed in 2017 were up a massive 140% on the previous year, to 671,641 teu, and expected a “marginal increase” this year as ocean carriers renew their newbuild appetite and take advantage of discounts and incentives from embattled Asian shipyards.

Indeed, some of the smaller liner players, such as Hyundai Merchant Marine (HMM) and Yang Ming, have made no secret of their intentions to place new orders on the back of improved trading in 2017
In his new year message to HMM staff yesterday, chief executive and president CK Yoo restated the South Korean carrier’s aggressive growth aspirations, including plans to order ultra-large container vessels (ULCVs).

HMM would “continue to consider ways of doubling our vessel capacity by 2022 [from the current 347,000 teu] including the launching of mega containerships....MORE

From the Financial Times:

World’s largest shipbuilder surges 10% on sales outlook

Hyundai Heavy Industries surged as much as 10 per cent on Wednesday after the group announced its sales outlook for 2018. The world’s largest shipbuilder by sales said on Wednesday its sales outlook for this year was Won7.98tn ($7.5bn), compared to sales of about Won10tn in 2017....MORE

And from ZeroHedge: 

Baltic Dry Index Plunges Most In 2 Years (Despite Global Coordinated Growth)

The last six months have seen an almost unprecedented surge in world macro-economic data upside-beats as the so-called 'global coordinated growth' narrative surprised more dismal economists. Until recently, The Baltic Dry shipping index had confirmed that narrative...

But The Baltic Dry Index has dropped for 8 straight days, tumbling over 21% - the biggest drop since Jan 2015...

...MORE