Aug 26, 1999|
Shipping industry to benefit from price fixing
According to newspaper reports, the India Pakistan Bangladesh Ceylon Conference has said that it will hike export container rates by $ 300 to $ 1,200 per TEU (twenty-foot equivalent unit) October 1, 1999 onwards. The consortium is the only one of its kind on the UK-Europe sector.
The move to hike charges is likely to come as a shot in the arm for shipping companies, which have been reeling under the pressure of lower volumes and still lower prices. The fall, triggered by the Southeast Asian crisis, was precipitated as the crisis spread to Brazil and Russia and finally impacted overall world growth.
However, there now seems to be an economic recovery in the Southeast Asian nations and, most importantly, in Japan. With the US economy continuing to steam ahead and UK likely to join by the end of 1999 (EIU forecast), the world economy is set for an overall good performance. The direct fallout of this will be on trade traffic, on the basis of which the consortium has hiked the export rates for containers.
In the immediate future, Indian shipping companies would benefit only to the extent to which they are exposed to this sector. However, as the trickle down effect gains momentum, Indian companies will benefit from higher rates as well as higher traffic.
There is, however, as in the past, a possibility that the shipping lines may undercut each other to grab a larger share of the market. Although the volumes would be higher, this would lead to lower realisations, thus adversely affecting growth in profitability.
More Views on News
Aug 18, 2017
GE Shipping reported a subdued performance on the back weak offshore segment.
May 9, 2017
GE shipping registered a loss in 4QFY17 due to weak global shipping market and lower crude prices which negatively impacted the offshore segment.
Feb 16, 2017
G E Shipping has reported a 22.8% YoY decline in the topline while the bottomline has declined by 33.4% YoY.
Aug 1, 2017
Should you subscribe to the IPO of Cochin Shipyard Ltd?
Nov 21, 2016
G E Shipping has reported a 20.2% YoY decline in the topline while the bottomline has declined by 24% YoY.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407