Join our crew and become one of the 104,727 members that receive our newsletter.

Egyptian-Japanese Friendship Bridge suez canal ship shipping capesize bulk carrier

LNG and Product Ships Seen Rising If Egypt Turmoil Affects Canal

Bloomberg
Total Views: 7
July 11, 2013
Egyptian-Japanese Friendship Bridge suez canal ship shipping capesize bulk carrier
A capesize bulk carrier approaches the Egyptian-Japanese Friendship Bridge, aka
Suez Canal Bridge. Image by Aashay Baindur
By Isaac Arnsdorf

July 11 (Bloomberg) — Rates to ship liquefied natural gas and petroleum products would jump if turmoil in Egypt disrupts the Suez Canal, extending the historical effect on crude-oil tankers, according to Wells Fargo Securities LLC.

“While crude tankers typically garner the quickest and the steepest Suez risk premium amid any expected or real risk to the canal, given changing global trade patterns, specifically higher volumes of LNGand refined product (and less crude) moving through the canal compared to previous periods, we believe LNG carrier rates and product tanker rates are much more likely to see significant upside potential should the canal close compared to past cycles,” Michael Webber, a New York-based analyst at the bank, said in an e-mailed report today.

The canal was “secure” and ship traffic along the waterway was normal, Tarek Hassanein, a spokesman for the Suez Canal Authority, said yesterday by e-mail.

Copyright 2013 Bloomberg.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 104,727 members delivered daily straight to your inbox.

Join Our Crew

Join the 104,727 members that receive our newsletter.