The Drewry All Earnings Index surged 53% in October to stand at 200 points due to large gains for tanker owners, the Shipping Insight monthly report has revealed.
Published by shipping consultancy Drewry, the report said that Suezmax tankers reported a 400% gain on West Africa to US East Coast routes, as oil prices dropped and the demand for imported oil recovered in the US.
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According to the report, October’s earnings were the highest since January and took the index 61% above its three-year average.
In December 2013, Drewry’s All Earnings Index reached a four-year high of 310 points due to strong recovery in time charter rates across all sectors; however, the other bulk shipping sectors activity was low, the report stated.
During August and September, the index slumped 32% due to the low earnings by tanker and LPG owners.
Drewry lead bulk shipping analyst Rahul Sharan said: "Near term, activity will remain strong in the tanker market on a seasonal increase in crude demand.
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By GlobalData"However, looking further ahead, supply disruptions associated with civil unrest in Iraq and Syria, as well as slackening economic growth in China risk adversely impacting cargo demand."
On the other hand, the Baltic Index reading for very large gas carriers (VLGCs) on the Arabian Gulf to Japan route slipped $5 per tonne over the month to reach $98 per tonne, according to the report.
At the same time, Drewry’s freight rate assessment for conventional LNG carriers improved marginally to $48,000 a day on subdued market activity.
In October, all sectors except the dry bulk market were subdued,while Panamax remained strong, as grain exports from EU and South America increased due to good yields.
