- GE Shipping Company anticipates a tight freight market with healthy rates next year, citing limited new capacity.
- Tanker rates have seen a slight increase, attributed partly to disruptions in the Red Sea route.
- While the Baltimore bridge collapse may affect dry bulk volumes, its impact on tankers is deemed minimal.
- GE Shipping is currently operating at full capacity, reflecting ongoing demand.
G Shivakumar, Executive Director & CFO of GE Shipping Company, anticipates that the freight market will remain constrained, with rates expected to sustain healthy levels in the upcoming year. This forecast is based on the limited influx of new capacity into the market, particularly in the crude tanker segment, contributing to a tight market scenario.
Current Operational Status
GE Shipping Company is presently operating at full capacity, indicating robust activity within its operations. The company’s operations at maximum capacity reflect the ongoing demand for its services amidst prevailing market conditions.
Factors Impacting Tanker Rates
Shivakumar highlights a marginal increase in tanker rates, especially for product tankers, during the fourth quarter, attributed in part to disruptions in the Red Sea route. Reduced transits through the Suez Canal, stemming from these disruptions, have contributed to the uptick in rates for certain tanker segments.
Assessment of Baltimore Bridge Collapse
While commenting on the Baltimore bridge collapse, Shivakumar notes its potential impact on dry bulk volumes, particularly for coal exports. However, he indicates that the full extent of the impact remains uncertain at this stage. The incident is not expected to significantly affect tanker operations, which form the bulk of GE Shipping’s fleet.
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Source: CNBCTV 18
