Markets fell, but not a ripple for shipping
The recent unrest in global stock markets may have worried many analysts about the stability of the US and Chinese economies, with the fall of Chinese stocks creating a chain reaction around the world. However, shipping markets hardly felt a ripple. As the global stock market is regaining its previous balance, the worries remain, since the recent drop has signified how unsteady the international system can be. Shipping, on the other hand, has managed to remain stable, with dry-bulk indices continuing their rise and with certain activity in tankers, too, particularly in VLCCs (very large crude carriers) and loadings from the Arab Gulf. Instability and uncertainty may be factors which have a direct impact on the chartering market, but listed shipping companies have never shown signs of «sensitivity» in similar situations. Judging by the recent conditions, the market (particularly in the US) maintains relatively high levels of freight rates, despite the constant delivery of newly built ships in the market. Several analysts had expected that 2006 would have been a year of significant decline for freight rates. Others suggested that this year cannot maintain these high levels of rates, which already seems to be proving wrong. Many people now expect oil prices to soar to $100 per barrel, with a simultaneous free fall for freight rates. Nevertheless, the market keeps proving all of them wrong every day, teaching «never too soon,» as you simply cannot put the cart before the horse.
