CHARTER RATES 1 year time charter tanker (USD) 1 year time charter bulker (USD) Sources: Clarkson “Oil and Tanker Trade outlook”, “Dry Bulk Trade outlook”, “Shipping Intelligence Network”
IS THE GAP SUPPLY/DEMAND GOING TO BE RECOVERED SOON?
IS DEMOLITION ACTUALLY HELPING TO REDUCE THE GAP? Sources: Banchero Costa research “Dry Bulk Market Update”
New orders growth: 55m dwt in 2012 179m dwt in 2013 66m dwt in 2014 First Quarter BANKS PRIVATE EQUITY FUND Sources: Clarkson “Shipping Review and Outlook”; Lloyd’s List on-line DO ECO SHIPS OFFER SIGNIFICANT RETURN ON INVESTED CAPITAL? VS
KEY FACTORS FOR CHOICE New building prices Second-hand prices Actual fuel saving Availability of good second-hand/resales Operational speed required by the market
ECO SHIP FUEL SAVING, HOW MUCH? TypeSizeDWT Convent. Ship - Average daily fuel oil consumption (Tons) 2006-2010 Eco Ship - Average daily fuel oil consumption (Tons) 2012-2013 Daily Save per ship (Tons) % Daily Save Speed (kn) Oil Tanker Handysize4000029.722.37.425% 14.4 RINA Analysis
IMO – Air emission: 0.1% SO x in ECA 01.01.2015 New and existing ships IMO – Air emission: -10% CO 2 EEDI 01.01.2015 (2020 & 2025) New ships IMO – Air emission – NO x in ECA 01.01.2016 New ships IMO – GBS 01.07.2016 New ships IMO – Ballast Water Treatment not yet into force New and existing ships REGULATORY FACTORS
SULPHUR OXIDES (SO X ) Exhaust gas cleaning systems (scrubbers) Nitrous Oxides (NO X ) SCR - Selective Catalytic Reduction Ballast Water Convention BWTS NEW ECO FEATURES : Is it worth investing?
An holistic approach is needed Regulation Financial Issues Technical Solutions Laws & Authorizations Logistic Scenario Social Perception IS LNG A SOLUTION?
The key to success in the risk/return game is not to minimize or maximize risk but to manage risk Mark A. Johnson
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