Trade and freight markets

This chapter looks at the demand side of international seaborne trade by describing conditions and trends in trade and freight markets, covering the major tanker, bulk cargo and liner sectors. This chapter expands upon the general overview of international maritime trade as described in chapter 1. The start of 2008 continued the buoyant trend experienced in the preceding year in all sectors. However, by the middle of the year, things took a turn for the worse, as the global financial crisis began to affect demand. Trade volumes in the bulk cargo and liner sectors sustained dramatic declines, which continued for the remainder of the year and well into 2009. The tanker market fared slightly better during 2008 compared to other sectors, although by the middle of 2009 all sectors were experiencing similar declines. Initially, the record oil price reached in July 2008 had been pushing tanker rates up for the first half of 2008, and tankers being used for storage helped to maintain rates high until the global economic crisis took effect.

Related Subject(s): Transportation and Public Safety