homebusiness Newscompanies NewsRed Sea crisis causing tighter product tankers market, says GE Shipping
Red Sea crisis causing tighter product tankers market, says GE Shipping
Product tanker rates have surged significantly, outperforming the October-December quarter and the corresponding period from the previous year. However, crude tankers have experienced a slight dip, being 20% lower than their rates at the same time last year, G Shivakumar, Executive Director and Chief Financial Officer of Great Eastern Shipping said.
The ongoing tensions in the Red Sea have significantly tightened the market for product tankers, impacting shipping rates and availability, said G Shivakumar, Executive Director and Chief Financial Officer of Great Eastern Shipping.
In a conversation with CNBC-TV18, he said, "There was a big trade of refined products from the Middle East, from the west coast to India towards Europe. However, due to the Red Sea crisis, a large part of that trade is now being rerouted around the Cape of Good Hope, doubling travel time. This redirection necessitates more ships, subsequently leading to a tighter market."
Crude tankers have experienced a relatively modest impact, given that a smaller portion of their trade route involves the Suez Canal, he said.
Product tanker rates have surged significantly, outperforming the October-December quarter and the corresponding period from the previous year. However, crude tankers have experienced a slight dip, being 20% lower than their rates at the same time last year, he said.
The dry bulk sector has defied expectations by showing strength in the first quarter, historically considered the weakest due to the Chinese New Year. Larger ships, in particular, have seen stronger rates compared to the same quarter last year.
Also Read | Suez Canal crisis: GE Shipping says tanker rates stable so far but may spike if situation worsens
GE Shipping has a market capitalisation of ₹14,076.84 crore.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Elections 2024 | How critical is Phase-5 for both NDA and I.N.D.I.A
May 20, 2024 7:30 AM
Lok Sabha Election Phase 5 Voting Live Updates: Leaders, actors among early voters as 49 seats poll today
May 20, 2024 6:34 AM