Shipping supply outlook improving after divergent Q3 performance - Jefferies

Safe Bulkers

16/10/2020 19:02

** Brokerage Jefferies says global shipping markets were
highly divergent during Q3 as floating storage demand reversed,
and dry bulk rates weakened, before rebounding recently
    ** Looking ahead, the supply picture for crude tankers
remains extremely positive; rates will remain under pressure
during Q4 before improving in 2021 - Jefferies 
    ** Has a "buy" rating on Eagle Bulk Shipping  EGLE.O ,
Danaos  DAC.N , Safe Bulkers  SB.F , and "hold" Diana Shipping
 DSX.N , Navios Maritime  NMM.N , Scorpio Bulkers  SALT.N  
    ** Expects refined products tanker rates to strengthen in Q4
as US Gulf refinery utilization ramps back up from the recent
hurricanes/storms
    ** Says LNG rates which bottomed in June, doubled during Q3,
and brokerage is of the view that LNG shipping market will
improve in 2021 as global demand for the fuel recovers
    ** The pace at which crude and refined product inventories
are destocked versus how quickly global demand for crude and
products rises is the major driver for tanker market volatility
- Jefferies
    ** Says the containership market is recovering faster than
anticipated due to a surge in US consumption of goods

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com;
twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776))