Gearbulk Integrated Report 2023 - Report - Page 41
INTEGRATED REPORT 2023
Baltic Exchange Average Time Charter Earnings
13 February 2024
USD/d
d/d
w/w
m/m
y/y
Feb-24
Mar-24
Apr-24
Q2 24
Q3 24
Q4 24
Cal 25
Capesize
11 515
-0.2%
0.6%
-2.9%
67.5%
12 000
14 900
15 400
15 200
14 550
12 875
12 850
Handysize
10 202
-0.3%
-1.7%
-6.4%
30.2%
10 800
13 350
14 000
13 700
13 450
12 025
12 175
For the rest of 2024, freight markets may ease further but
pitch has maintained relatively strong during 2023, while Asia
remain elevated due to re-routing keeping capacity tight.
demand for Bitumen has been relatively weak. The prices for
However, once Red Sea disruption eases, underlying supply-de-
aluminium have remained at historical low levels during 2023,
mand trends are likely to reassert, leading to more challenging
and price levels are maintained very much the same in the
markets in the second half of 2024. Container ship speeds may
beginning of 2024, hence a bearish market. The smelters in
increase initially due to re-routing but could trend towards
the Persian Gulf has maintained demand for Pitch, and some
slower speeds later to absorb capacity growth.
clients also seek to expand the capacity in the years to come,
Looking into 2025, assuming the Red Sea disruption eases,
which may result in increased volumes.
the container shipping market is expected to face chal-
Pulp Market
lenges due to continued 昀氀eet growth, as the 昀氀eet at the end
The trend of a growing South America pulp market continued in
of 2025 is expected to be over 20% greater than the 昀氀eet at
2023. The same trend is expected for 2024 onwards with new
the start of 2023. E昀昀orts to manage capacity and potential
pulp mills coming into operation for major pulp clients in the
reductions in vessel speeds could mitigate supply pressure,
region. Total South American market pulp production capacity
while container trade volume growth is projected to be solid.
expected to increase with more than 40% volume growth in
the period from 2024 to 2028.
Pitch and Bitumen Market
The market for transportation of high temperature cargoes
G2 Ocean’s market position is strong, and the Company will
of coal tar pitch and Bitumen is very limited and deemed to
pursue further market options with existing major and new
be a niche market and segment within Gearbulk’s business
pulp clients and continue to develop high quality transporta-
activity portfolio. The market for transportation of coal tar
tion services.
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