The Murphatollah doubles down on shipping

In my view this is an over supply of tonnage in the shipping world. Shipping companies went on a massive building programme just before the last recession in 2008 and this is the result. Simplistically, shipping has always been cyclical, and more tonnage drives down freight rates. Shipowners will lay their ships up for a while to try and ride out the downturns. Older ships get scrapped. It will come back but I don’t see that people are buying less than before. Oil levels are pretty much maintained and consumer products from the Far East continue unabated.

Reply
Richard Murphy says:
April 23 2016 at 3:48 pm
If tonnages are down so is consumption

A claim that the supply of shipping tonnage has increased leading to lower freight rates is taken as proof that the tonnage being shipped has fallen.

7 thoughts on “The Murphatollah doubles down on shipping”

  1. I don’t suppose it occurs to him, the total of shipping tonnage available is a reflection of foecasts of tonnage needs made some years ago, allowing lag times between ordering & commissioning carriers etc.
    So it says absolutely nothing about current shipping requirments.

  2. is he confusing tonnage of vessels available with tonnage of goods shipped? The man’s a balloon.

  3. The man should stick to what he knows best..tax. Oh, I forget, he knows even less about tax than he does about shipping.
    It’s simple economics, more tonnage available = lower freight rates. The man’s a buffon

  4. The most recent generation of cargo vessels are much larger than those of previous years. As it is cubic capacity that matters and not just length and breadth the effect on available cargo space has been immense. It is difficult to work out the implications given the complexity of trading patterns, but things ain’t what they used to be.

  5. Bloke in North Dorset

    Adding to Demetrius’s comment:

    Ships are now faster and more fuel efficient and ports can load and unload larger ships faster than a number of smaller ships, as well has having made many efficiency gains through automation.

    In 1968 the Encounter Bay was launched with a capacity of 1,530 containers and in 2015 the MSC Oscar was launched with a capacity of 19,000 TEU. That’s 12 crews you don’t need.

    The next generation of ships to be launched in 2018 are expected to carry 22,000+ containers.

    Its the Opex savings that are driving the move to ever larger ships.

  6. Soon the bottleneck will be waiting in dock until there’s enough stuff to fill 20,000 containers ready to load.

  7. Bloke in Costa Rica

    By the same logic, Murphy presumably thinks that because fewer people are employed in steelmaking, we are making less steel. He’s such a fucking idiot it’s practically criminal.

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