The OPEC+ countries will not be able to increase their collective oil production levels in the second half of 2019 without having a detrimental effect on oil prices. However, the production cuts required by OPEC+ in order to support prices need not be as much as 1.5 million barrels per day (bpd), according to Rystad Energy.
AJOT | June 11, 2019 | Air Cargo | Airlines | By The Numbers
After sinking in the previous weeks, rates have rebounded slightly reflecting an on-going turbulent market. Forward markets and the current spot market show a year on year prospective decline on both China to Europe and US lanes of 3 to 4% annually.
In 2018, Saudi Arabia reported burning an average of 0.4 million barrels per day (b/d) of crude oil for power generation, the lowest amount since at least 2009, the earliest year that data are available from the Joint Organizations Data Initiative (JODI).
AJOT | June 03, 2019 | Maritime | Liner Shipping | By The Numbers
Manning costs have risen moderately over the past 12 months, checked by easing officer supply shortage, and are forecast to rise at a similar pace over the next five years, according to the latest Manning Annual Review and Forecast report published by global shipping consultancy Drewry.
Brazil is the second-largest producer of hydroelectric power in the world, after only China, and hydropower accounted for more than 70% of the country’s electricity generation in 2018. Brazil’s latest 10-year energy plan seeks to maintain this level of hydro generation while increasing the share of nonhydro renewables, particularly solar.
Spot markets continue to act erratically, largely positive price moves have been weighted down by a weakening of rates into Frankfurt. Carriers are looking to redress the supply/demand balance by limiting schedules and parking aircraft over the summer season.
In January 2019, Consolidated Edison, Inc., (Con Edison)—the largest utility provider in the New York City area, serving 10 million customers—announced a moratorium on new natural gas connections in most of Westchester County, effective March 16.
AJOT | May 21, 2019 | Intermodal | Trucking | By The Numbers
American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index surged 7.4% in April after decreasing 2% in March. In April, the index equaled 121.8 (2015=100) compared with 113.4 in March.
Reacting in line with the tariff-driven boost to Asia-US prices last week, prices this week into the US have retracted to base levels reflecting a settling of the market. Interestingly there is a convergence between annual contract rates and the spot market, diminishing the benefit of fixed annual BSAs.
US shale operators are on course to increase oil production significantly in 2019. The growth in US onshore production from the first quarter through the fourth quarter could come in at around 1.1-1.2 million barrels per day (bpd), or 16% for the full year, according to Rystad Energy.