Saturday, 17 Mar 2012
Transnet National Ports Authority data showed on March 13th 2012 that SA's bulk export volumes dropped by 21.2% MoM in February 2012 from January 2012 as mostly iron ore exports out of Saldanha slumped by 48.6% MoM to 2,571,174 tonnes.
Although 2012 is a leap year, there were still only 29 days in February 2012 compared with 31 days in January 2012, so ports had 6.5% less time to load goods. That is why the YoY comparison makes more sense, but weather can also disrupt port operations such as the recent Cyclone Irina.
The YoY change in February 2012 was a 9.4% drop to 10.651 million tonnes after January's 28.1% YoY surge to 13.513 tonnes. The high YoY growth rate is in part due to poor weather in January 2011 that disrupted port operations.
Bulk exports rose by 6.6% in 2011 to a record 141.493 tonnes after a 9.0% jump in 2010. The YoY increase in the first two months of 2012 was 8.3%.
The slower growth last year was in part due to weather related disruptions as well as cable theft on the Mpumalanga Richards Bay coal line, which has resulted in derailments and other disruptions to traffic.
The coal line was closed for 20 days in May and June 2011 to do necessary maintenance and in October exports out of Richards Bay exceeded 8 million tonnes or an annualized 96 million tonnes, but this eased to 7.3 million tonnes in November 2011 before rising to 7.5 million tonnes in December 2011 and 7.7 million tonnes or an annualized 92 million tonnes in January 2012. In February 2012 Richards Bay shipped 7 million tonnes and shipments for the first two months are up 22.8% YoY.
In 2011, shipments out of Richards Bay, which are mostly coal, disappointed with a 1.4% rise to 76 million tonnes in 2011, while mostly iron ore shipments out of Saldanha Bay increased by 12.3% to 53.3 Mt. In January 2012 the y/y increases were 34.4% and 25.0% respectively, indicating that demand for these commodities remains very strong despite the global growth concerns.
The star performer last year was agricultural and manganese exports out of the other South African ports, such as Durban and Port Elizabeth, which jumped by 18.7% to 12.2 million tonnes, but in January 2012 there was a small 1.8% YoY decline to 0.8 million tonnes, while February 2012 saw a larger 8.5% YoY decline.
The majority of bulk exports go to Asia as China, India and Japan require South African coal and iron ore to feed their steel mills and thermal coal power stations.
As nuclear power stations in Japan have reduced their output after the March 2011 earthquake, Japan requires more coal to burn in their thermal power stations.
Source - Net Bridge
Showing posts with label bulk cargo. Show all posts
Showing posts with label bulk cargo. Show all posts
Saturday, March 17, 2012
Thursday, February 16, 2012
Talks on mega-carrier access open in Brazil
Thursday, 16 February 2012
China and Brazil are negotiating access to Chinese ports for the fleet of giant vessels owned by the miner Vale SA. The talks come as a result of China's tightened regulations on large carriers and signal that the issue has intensified at the political level. During a meeting in the Brazilian capital, Brasilia, the country's Vice-President Michel Temer discussed the issue of access for Vale's Valemax vessels - the world's biggest dry-bulk carriers - with China's Vice-Premier Wang Qishan, according to Marco Aurelio Garcia, foreign policy adviser to Brazilian President Dilma Rousseff.
"It will be dealt with at a political level," Garcia was quoted as saying, according to a report by Bloomberg.
On Jan 31, the Chinese Ministry of Transport tightened port regulations, a move that has effectively prevented Vale's mega-vessels from docking at ports in the country.The ministry said its decision to bar giant ships was taken because of "maritime safety issues". Vale's Valemax vessels are designed to carry 400,000 metric tons of iron ore and are "too large for Chinese ports to accommodate", said Sun Guangqin, director of the Port and Shipping Institute at Dalian Maritime University.
"To tighten the regulations on giant vessels is necessary for the safe operation of ports and shipping routes," Sun said in a recent interview. Analysts said the trade in iron ore between the two emerging economies is also a factor. In 2009, China replaced the United States as Brazil's largest trading partner. The total trade volume between the two countries jumped 16 percent to $77.1 billion last year. Iron ore, one of the South American country's main export commodities, plays an important role in Sino-Brazilian trade.
China, the largest consumer of iron ore, imported 686 million tons of the material in 2011, an increase of 10.9 percent from the previous year, according to data from Chinese General Administration of Customs.
Miners such as Vale might attain monopolies on the transportation of iron ore by setting up their own fleets, Zhang Shouguo, executive vice-president of the China Shipowners' Association, said.
"It (the monopoly) will hurt China's shipping industry as well as the steel industry," said Zhang.
Vale has invested $2.3 billion in 19 of the 400,000-ton giant bulk carriers and will control another 16 under long-term contracts, according to the company.Scheduled for delivery by the end of 2013, the vessels will reduce freight costs from Brazil to China by between 20 and 25 percent and will significantly reduce carbon emissions compared with other vessels, Vale said.
The miner currently operates five Valemax vessels, but none has reached a Chinese port since being put into service in May.In the meantime, Vale managed to unload its 388,000-ton Berge Everest at Dalian port on Dec 28, prompting protests from domestic shipping companies and the China Shipowners' Association.
Source: China Daily
China and Brazil are negotiating access to Chinese ports for the fleet of giant vessels owned by the miner Vale SA. The talks come as a result of China's tightened regulations on large carriers and signal that the issue has intensified at the political level. During a meeting in the Brazilian capital, Brasilia, the country's Vice-President Michel Temer discussed the issue of access for Vale's Valemax vessels - the world's biggest dry-bulk carriers - with China's Vice-Premier Wang Qishan, according to Marco Aurelio Garcia, foreign policy adviser to Brazilian President Dilma Rousseff.
"It will be dealt with at a political level," Garcia was quoted as saying, according to a report by Bloomberg.
On Jan 31, the Chinese Ministry of Transport tightened port regulations, a move that has effectively prevented Vale's mega-vessels from docking at ports in the country.The ministry said its decision to bar giant ships was taken because of "maritime safety issues". Vale's Valemax vessels are designed to carry 400,000 metric tons of iron ore and are "too large for Chinese ports to accommodate", said Sun Guangqin, director of the Port and Shipping Institute at Dalian Maritime University.
"To tighten the regulations on giant vessels is necessary for the safe operation of ports and shipping routes," Sun said in a recent interview. Analysts said the trade in iron ore between the two emerging economies is also a factor. In 2009, China replaced the United States as Brazil's largest trading partner. The total trade volume between the two countries jumped 16 percent to $77.1 billion last year. Iron ore, one of the South American country's main export commodities, plays an important role in Sino-Brazilian trade.
China, the largest consumer of iron ore, imported 686 million tons of the material in 2011, an increase of 10.9 percent from the previous year, according to data from Chinese General Administration of Customs.
Miners such as Vale might attain monopolies on the transportation of iron ore by setting up their own fleets, Zhang Shouguo, executive vice-president of the China Shipowners' Association, said.
"It (the monopoly) will hurt China's shipping industry as well as the steel industry," said Zhang.
Vale has invested $2.3 billion in 19 of the 400,000-ton giant bulk carriers and will control another 16 under long-term contracts, according to the company.Scheduled for delivery by the end of 2013, the vessels will reduce freight costs from Brazil to China by between 20 and 25 percent and will significantly reduce carbon emissions compared with other vessels, Vale said.
The miner currently operates five Valemax vessels, but none has reached a Chinese port since being put into service in May.In the meantime, Vale managed to unload its 388,000-ton Berge Everest at Dalian port on Dec 28, prompting protests from domestic shipping companies and the China Shipowners' Association.
Source: China Daily
Wednesday, January 11, 2012
Vale yet to sell huge iron ore cargo in China-traders
Wed Jan 11, 2012
* Vale cargo stored in bonded warehouse in Dalian
* Shipment may be sold in spot market at discount
* Vessel carried 350,000 tonnes of iron ore
SINGAPORE, Jan 11 (Reuters) - Brazilian miner Vale has not yet sold its first mega iron ore cargo delivered to China two weeks ago, and has instead stored the material near a port for now, traders said on Wednesday.
The 388,000-deadweight-tonne vessel Berge Everest, which carried 350,000 tonnes of iron ore, unloaded at China's Dalian port in late December, ending months of delays in getting the world's biggest dry bulk ships into China.
"It was discharged into a bonded warehouse in Dalian," said an iron ore broker in Singapore. "From Vale's point of view, it's not particularly wise to sell right now given the lacklustre demand from Chinese mills."
"There's a lot of material in bonded warehouses across the coast at the moment because of the demand situation," he said.
Vale may be waiting for Chinese demand to pick up, possibly after the week-long Lunar New Year break in late January, before selling the cargo, traders said.
The world's biggest iron ore miner, hoping to slash shipping costs to China by using a new fleet of mega dry bulk carriers, was not planning to sell the maiden cargo from Berge Everest immediately, said an iron ore trader in Hong Kong.
Vale, which sells about 40 percent of its ore to China, is counting on a fleet of 35 Valemaxes to cut shipping costs and better compete with Australian rivals BHP Billiton and Rio Tinto.
"Vale just wanted to show its Chinese clients that its vessel can berth in China," he said, adding the cargo is likely to be sold into the spot market, instead of to a single buyer on a long-term contract.
"We're quite sure it's not sold yet. It should be put in the spot market, we're quite confident," said the Hong Kong trader, who sells iron ore to mills in mainland China.
SHORT-TERM PLOY
Vale may offer a discount for the cargo of high-grade ore with 65-percent iron content given that it was the first material shipped on its Valemax, he said.
Offering a discount for the cargo could be a "short-term ploy" by Vale to draw customers to its big shipments, said Mark Pervan, global head of commodity research at Australia and New Zealand Bank.
"From a short-term point of view there potentially could be some discount. But they won't want to be doing this on an ongoing basis because it defeats the whole purpose.
"The whole reason for those ships was to try and be competitive against the Australians. So if you're going to be selling it to the market at a big discount, you'll lose any upside from the lower freight cost," Pervan said.
A spokesperson for Vale was not immediately available for comment.
Vale's first megaship cargo to China was forced to turn back in June last year due to the lack of permits . In early December, Vale Beijing, the newest member of the "Valemax" fleet -- 50 percent bigger than most ore carriers and one of the largest afloat -- developed cracks in its hull on its maiden voyage.
The China Shipowners Association has opposed Vale's fleet, worried that the vessels will give the miner monopoly on both the shipping and iron ore markets at China's expense.
The low quality of China's iron ore has made it heavily reliant on imported material, a market controlled by Vale, Rio Tinto and BHP Billiton .
A Reuters poll of analysts in mid-December showed China's iron ore imports would jump to a record 720 million tonnes in 2012, with its steel output rising to 728 million tonnes, also an all-time high.
China's iron ore imports rose nearly 11 percent to 686.06 million tonnes in 2011, and traders said firm Chinese demand should keep spot iron ore prices .IO62-CNI=SI, which stood at a seven-week high of $142.30 a tonne on Tuesday, high.
(sourced Reuters)
* Vale cargo stored in bonded warehouse in Dalian
* Shipment may be sold in spot market at discount
* Vessel carried 350,000 tonnes of iron ore
SINGAPORE, Jan 11 (Reuters) - Brazilian miner Vale has not yet sold its first mega iron ore cargo delivered to China two weeks ago, and has instead stored the material near a port for now, traders said on Wednesday.
The 388,000-deadweight-tonne vessel Berge Everest, which carried 350,000 tonnes of iron ore, unloaded at China's Dalian port in late December, ending months of delays in getting the world's biggest dry bulk ships into China.
"It was discharged into a bonded warehouse in Dalian," said an iron ore broker in Singapore. "From Vale's point of view, it's not particularly wise to sell right now given the lacklustre demand from Chinese mills."
"There's a lot of material in bonded warehouses across the coast at the moment because of the demand situation," he said.
Vale may be waiting for Chinese demand to pick up, possibly after the week-long Lunar New Year break in late January, before selling the cargo, traders said.
The world's biggest iron ore miner, hoping to slash shipping costs to China by using a new fleet of mega dry bulk carriers, was not planning to sell the maiden cargo from Berge Everest immediately, said an iron ore trader in Hong Kong.
Vale, which sells about 40 percent of its ore to China, is counting on a fleet of 35 Valemaxes to cut shipping costs and better compete with Australian rivals BHP Billiton and Rio Tinto.
"Vale just wanted to show its Chinese clients that its vessel can berth in China," he said, adding the cargo is likely to be sold into the spot market, instead of to a single buyer on a long-term contract.
"We're quite sure it's not sold yet. It should be put in the spot market, we're quite confident," said the Hong Kong trader, who sells iron ore to mills in mainland China.
SHORT-TERM PLOY
Vale may offer a discount for the cargo of high-grade ore with 65-percent iron content given that it was the first material shipped on its Valemax, he said.
Offering a discount for the cargo could be a "short-term ploy" by Vale to draw customers to its big shipments, said Mark Pervan, global head of commodity research at Australia and New Zealand Bank.
"From a short-term point of view there potentially could be some discount. But they won't want to be doing this on an ongoing basis because it defeats the whole purpose.
"The whole reason for those ships was to try and be competitive against the Australians. So if you're going to be selling it to the market at a big discount, you'll lose any upside from the lower freight cost," Pervan said.
A spokesperson for Vale was not immediately available for comment.
Vale's first megaship cargo to China was forced to turn back in June last year due to the lack of permits . In early December, Vale Beijing, the newest member of the "Valemax" fleet -- 50 percent bigger than most ore carriers and one of the largest afloat -- developed cracks in its hull on its maiden voyage.
The China Shipowners Association has opposed Vale's fleet, worried that the vessels will give the miner monopoly on both the shipping and iron ore markets at China's expense.
The low quality of China's iron ore has made it heavily reliant on imported material, a market controlled by Vale, Rio Tinto and BHP Billiton .
A Reuters poll of analysts in mid-December showed China's iron ore imports would jump to a record 720 million tonnes in 2012, with its steel output rising to 728 million tonnes, also an all-time high.
China's iron ore imports rose nearly 11 percent to 686.06 million tonnes in 2011, and traders said firm Chinese demand should keep spot iron ore prices .IO62-CNI=SI, which stood at a seven-week high of $142.30 a tonne on Tuesday, high.
(sourced Reuters)
Friday, November 18, 2011
Mundra Port up; bulk cargo to be growth driver
Friday, 18 Nov, 2011 Sourced:Reuters
Shares in Adani group company Mundra Port rose 3.7 percent on expectations that bulk cargo and containers handled by it to become group's key growth drivers over the next two years, an institutional sales person with a local brokerage said.
In May, Mundra Port agreed to buy Abbot Point Coal Terminal (with handling capacity of 50MMT) in Australia for $2 billion in an all-cash deal to tap into growing coal traffic in overseas market, which in analyst view was a good deal for Mundra port.
"Mundra Port handled 16.9 million tonnes of cargo in Q2 FY12 and management expects the port to handle 80 million tonnes in FY12 and 100 mn tonnes in FY13. In line with the strong growth in its cargo volumes, Mundra Port's revenue and net profit is expected to grow 39.1 percent and 16.6 percent respectively in FY12," First Global said in a note.
At 1.29 p.m., the stock was at 136.70 rupees, up 3.29 percent, bucking the trend in a weak Mumbai market, which was down 1 percent.
Shares in Adani group company Mundra Port rose 3.7 percent on expectations that bulk cargo and containers handled by it to become group's key growth drivers over the next two years, an institutional sales person with a local brokerage said.
In May, Mundra Port agreed to buy Abbot Point Coal Terminal (with handling capacity of 50MMT) in Australia for $2 billion in an all-cash deal to tap into growing coal traffic in overseas market, which in analyst view was a good deal for Mundra port.
"Mundra Port handled 16.9 million tonnes of cargo in Q2 FY12 and management expects the port to handle 80 million tonnes in FY12 and 100 mn tonnes in FY13. In line with the strong growth in its cargo volumes, Mundra Port's revenue and net profit is expected to grow 39.1 percent and 16.6 percent respectively in FY12," First Global said in a note.
At 1.29 p.m., the stock was at 136.70 rupees, up 3.29 percent, bucking the trend in a weak Mumbai market, which was down 1 percent.
Saturday, October 22, 2011
Capesize - Tubarao / Qingdao being fixed at strong US$ 29.75 PMT
Friday,Oct21, 2011
Handy
The Atlantic market is quite steady, and market seems to be around the same levels as last week. Fewer fixtures reported though. Fronthauls still around 25k, with a USD 3-4k premium for vessels willing to go through Aden. USG/Skaw fixing around USD 30k, and Skaw/USG concluded in the USD 8k range. The Pacific market remains firm with considerable cargoes seen from Indonesia. For Indo-India, large eco Supra can fetch close to USD 16k for S. China position and NOPAC RV close to USD 14k. Indian iron ore market bit quiet as not many cargoes seen in the market however rates from WCI fixing around USD 12k for WCI-China and 11k for ECI-China. RBCT India round rates around USD 13k. Red Sea fertilizers to India are fixed around mid 20s. Short period rates are around 15k for large Supras but seeing less takers.
Panamax
After two strong weeks and a quiet opening due to activity in CoalTrans in Madrid, the Continent and North Atlantic is still tight for tonnage for prompt loaders. There are less fresh requirements so market seems more in balance including some toppish signs in the USG and in ECSA.TA rounds generally at 18k, trip out 27k. In the Pacific the market is also more quiet after stronger levels above mid teens both for NOPAC grains and Indonesian coal. Some period fixtures are still in the 14 range for short period, but less activity on the longer deals. Decline in Chinese iron ore imports and steel production is adding fuel to the bearish signs and the FFA market is loosing faith in next year as well gradually.
Capesize
A large share of the decision makers were gathered in Madrid at the beginning of the week, resulting in less activity. However towards the end of the week, activity picked up and rates improved. It is mainly the front haul market being the main driver, with Tubarao /Qingdao being fixed at strong USD 29.75 pmt for first half November dates. West Australia round remain around steady USD 12 pmt despite lack of requirements from the big three. Period and short period markets have been inactive, whit takers following closely but generally rating touch below owners ideas.
source FearnBulk
Handy
The Atlantic market is quite steady, and market seems to be around the same levels as last week. Fewer fixtures reported though. Fronthauls still around 25k, with a USD 3-4k premium for vessels willing to go through Aden. USG/Skaw fixing around USD 30k, and Skaw/USG concluded in the USD 8k range. The Pacific market remains firm with considerable cargoes seen from Indonesia. For Indo-India, large eco Supra can fetch close to USD 16k for S. China position and NOPAC RV close to USD 14k. Indian iron ore market bit quiet as not many cargoes seen in the market however rates from WCI fixing around USD 12k for WCI-China and 11k for ECI-China. RBCT India round rates around USD 13k. Red Sea fertilizers to India are fixed around mid 20s. Short period rates are around 15k for large Supras but seeing less takers.
Panamax
After two strong weeks and a quiet opening due to activity in CoalTrans in Madrid, the Continent and North Atlantic is still tight for tonnage for prompt loaders. There are less fresh requirements so market seems more in balance including some toppish signs in the USG and in ECSA.TA rounds generally at 18k, trip out 27k. In the Pacific the market is also more quiet after stronger levels above mid teens both for NOPAC grains and Indonesian coal. Some period fixtures are still in the 14 range for short period, but less activity on the longer deals. Decline in Chinese iron ore imports and steel production is adding fuel to the bearish signs and the FFA market is loosing faith in next year as well gradually.
Capesize
A large share of the decision makers were gathered in Madrid at the beginning of the week, resulting in less activity. However towards the end of the week, activity picked up and rates improved. It is mainly the front haul market being the main driver, with Tubarao /Qingdao being fixed at strong USD 29.75 pmt for first half November dates. West Australia round remain around steady USD 12 pmt despite lack of requirements from the big three. Period and short period markets have been inactive, whit takers following closely but generally rating touch below owners ideas.
source FearnBulk
Tuesday, September 6, 2011
China COSCO not in formal talks with Vale over mega bulk ship sale-official
Tue Sep 6, 2011
SINGAPORE, Sept 6 (Reuters) - China's COSCO Group, the country's top shipping conglomerate, was not holding talks with Vale over the sale of the Brazilian miner's mega dry bulk carriers, a COSCO official told Reuters on Tuesday.
"I never heard about this. I don't think the COSCO head office has had any official talks with Vale in the form of meetings or teleconference as far as I know," said the COSCO official, who wished not to be named because he is not authorized to speak to the media on the subject.
A Vale official told Reuters on Monday the mining giant was in talks with Chinese and other shipowners to sell or lease its planned fleet of giant bulk carriers.
COSCO Chairman Wei Jiafu told Reuters last November that it was not interested when initially approached by Vale to be a partner in the project.
SINGAPORE, Sept 6 (Reuters) - China's COSCO Group, the country's top shipping conglomerate, was not holding talks with Vale over the sale of the Brazilian miner's mega dry bulk carriers, a COSCO official told Reuters on Tuesday.
"I never heard about this. I don't think the COSCO head office has had any official talks with Vale in the form of meetings or teleconference as far as I know," said the COSCO official, who wished not to be named because he is not authorized to speak to the media on the subject.
A Vale official told Reuters on Monday the mining giant was in talks with Chinese and other shipowners to sell or lease its planned fleet of giant bulk carriers.
COSCO Chairman Wei Jiafu told Reuters last November that it was not interested when initially approached by Vale to be a partner in the project.
Monday, August 8, 2011
India: Gujarat Bans Ships Over 25 Years Old After MV RAK Carrier Sinks
Monday, August08, 2011
Ships over 25 years old will be banned from entering India’s key oil, container and dry cargo ports situated in the country’s west coast state of Gujarat in the wake of a coal carrier sinking near the port of Mumbai, according to a circular sent by a Mundra port official.
“In light of MV RAK Carrier sinking off the coast of Mumbai and the resulting pollution, which is now threatening the Mumbai Coastline, the state maritime regulator GMB has decided to ban entry of ships over 25 years of age,” an official from Mundra’s port operation center said in the circular.
“The formal notification to this effect will be issued shortly by GMB.” The Gujarat Maritime Board or GMB, which is the maritime authority of the state, oversees the safety and regulatory aspects at ports such Kandla, Mundra, Sikka, Dahej, Vadinar and Hazira.
According to a shipping agency source, the ban on vessels over the age of 25 years is also applicable to tankers.
“I hope they don’t relax the restrictions once the monsoon is over. They had made such moves earlier, too, but again the authorities became a little lenient in allowing older vessels into the Indian ports,” the source said about moves made earlier when accidents happened.
The MV Rak Carrier, a 27-year-old Panama-flagged dry bulk carrier sank off the Mumbai coast late last week while it was on its way from Indonesia’s Tutung port with 60,000 tonnes of coal to Dahej.
The vessel had about 290 mt of fuel oil and 50 mt of marine gasoil on board, local media reports said Monday.
“GMB has however advised MPSEZ those ships of 25 years of age which have already been chartered and are proceeding to GMB administered ports will be permitted to enter GMB owned port after they have taken clearance from GMB on case to case basis as an interim measure,” the Mundra’s port operation center official said.
“It is however to be noted that no new chartering of vessel over 25 years old is to be henceforth carried out if the vessels are planning to work cargo at any GMB owned port. Such vessels will be banned from entering GMB administered port.” Ports in Gujarat are key for crude discharge as well as for product loading since many refineries are located there while several in India’s hinterland receive their crude through pipelines from the area.
(sourced Platts)
Ships over 25 years old will be banned from entering India’s key oil, container and dry cargo ports situated in the country’s west coast state of Gujarat in the wake of a coal carrier sinking near the port of Mumbai, according to a circular sent by a Mundra port official.
“In light of MV RAK Carrier sinking off the coast of Mumbai and the resulting pollution, which is now threatening the Mumbai Coastline, the state maritime regulator GMB has decided to ban entry of ships over 25 years of age,” an official from Mundra’s port operation center said in the circular.
“The formal notification to this effect will be issued shortly by GMB.” The Gujarat Maritime Board or GMB, which is the maritime authority of the state, oversees the safety and regulatory aspects at ports such Kandla, Mundra, Sikka, Dahej, Vadinar and Hazira.
According to a shipping agency source, the ban on vessels over the age of 25 years is also applicable to tankers.
“I hope they don’t relax the restrictions once the monsoon is over. They had made such moves earlier, too, but again the authorities became a little lenient in allowing older vessels into the Indian ports,” the source said about moves made earlier when accidents happened.
The MV Rak Carrier, a 27-year-old Panama-flagged dry bulk carrier sank off the Mumbai coast late last week while it was on its way from Indonesia’s Tutung port with 60,000 tonnes of coal to Dahej.
The vessel had about 290 mt of fuel oil and 50 mt of marine gasoil on board, local media reports said Monday.
“GMB has however advised MPSEZ those ships of 25 years of age which have already been chartered and are proceeding to GMB administered ports will be permitted to enter GMB owned port after they have taken clearance from GMB on case to case basis as an interim measure,” the Mundra’s port operation center official said.
“It is however to be noted that no new chartering of vessel over 25 years old is to be henceforth carried out if the vessels are planning to work cargo at any GMB owned port. Such vessels will be banned from entering GMB administered port.” Ports in Gujarat are key for crude discharge as well as for product loading since many refineries are located there while several in India’s hinterland receive their crude through pipelines from the area.
(sourced Platts)
Thursday, February 24, 2011
Dry bulk market keeps losing ground, Capesizes suffering - Nikos Roussanoglou,Hellenic Shipping
Thursday,Feb24, 2011
The dry bulk market lost further ground yesterday, as the industry’s benchmark, the Baltic Dry Index was rapidly falling, ending the session down by 2.03% to 1,253 points. As has been the established trend so far this week, the bigger ships have been taking the biggest toll, with Capesizes losing 3.24 percent on the day to just 1,345 points (Baltic Capesize Index), with daily rates still below break-even point, while the Panamaxes have also seen thin demand, with the Baltic Panamax Index retreating yesterday by 3.86% to 1,845 points, which is still way above the capesize segment, in yet another odd signs of the current times. On the positive side, Supramax owners have been enjoying the current robust demand for their carriers, with their rates up by 1.91% on the day.
Commenting on the Capesize market, Fearnley’s latest weekly report said yesterday that although there was a little more activity last week, this has slowed down and rates have fallen slightly. This combined with increased bunker prices result in even lower returns for owners. Despite an increasing number of vessels not trading the oversupply is still the major problem, and with new cyclones hitting major loading ports in East Australia the market becomes even more frustrated. Presently owners are willing to fix out their tonnage at usd 16000 per day for 12-month period, which is a considerable premium over the spot market, but these are new record low levels for this kind of fixture.
On the Panamax front it mentioned that “the positive trend from last week gradually faded out, lead by lack of fresh USG/ECSA grain requirements in the Atlantic, a sliding forward curve followed by a falling period market in the Pacific. Despite prompt vessels under pressure still some healthy numbers achieved in the Atlantic; typically 25000 + 500BB for Fronthaul and mid teens for transatlantic rounds. The Pacific saw rates coming off significantly to lower teens for Nopac rounds and a growing spread between spot- and period rates.
Charterers and operators are holding back and reducing their activity. Takers for longer periods clearly stand off as the forward curve test very low teens and most Owners still hope for a recovery to do high teens for same. On a positive note there is growing local enthusiasm with the commencement of the Nordic World ski championships in Oslo” said the shipbroker.
Meanwhile, the container market has yet to “recover” on the news of Maersk’s huge newbuilding order for 10 firm plus 20 optional 18,000 TEU container vessels. AP Møller has been in talks with DSME regarding the 18,000 TEU design for quite some time, and now finally confirmed. According to AP Møller, these vessels will burn 35% less fuel per container compared to the more standard 13,000 TEU container vessels operating today. In another report on the newbuilding market, Clarksons said that with the holidays now firmly behind us we continue to see the yards reporting new business being concluded. “As previously discussed, container enquiries in particular look to be the leading factor in generating this momentum as dry and wet remains relatively stagnant. With the container story continuing to press forward - this is ultimately inhibiting the shipyards willing to push pricing on other sectors and attempt to bridge the bid offer spread, that continues to stifle the potential for further volume.
In the short term, we don't anticipate this dynamic to change - and yards will want to exploit the shipbuilding demand that exists outside of dry and wet - and try to extend their forward orderbook coverage and take the pressure off themselves to yield to what is a weaker demand story so far. In terms of reported business; In Dry, Hanjin Shipping have contracted a pair of 180,000dwt Capesize bulk carriers at Daehan, these are scheduled for delivery in 2012 and the reported price for these is USD58.5 Mill per vessel. In China meanwhile, it has been reported that Shanhaiguan have won an order from Greathorse Shipping Holdings for 4 option 4 x 76,000dwt panamax bulkers, with the firm vessels due to deliver in 2H 2012 and 1Q 2013. It is understood that these vessels may have been signed at the end of last year and are only fully coming to light now” said Clarksons.
Commenting on the Capesize market, Fearnley’s latest weekly report said yesterday that although there was a little more activity last week, this has slowed down and rates have fallen slightly. This combined with increased bunker prices result in even lower returns for owners. Despite an increasing number of vessels not trading the oversupply is still the major problem, and with new cyclones hitting major loading ports in East Australia the market becomes even more frustrated. Presently owners are willing to fix out their tonnage at usd 16000 per day for 12-month period, which is a considerable premium over the spot market, but these are new record low levels for this kind of fixture.
On the Panamax front it mentioned that “the positive trend from last week gradually faded out, lead by lack of fresh USG/ECSA grain requirements in the Atlantic, a sliding forward curve followed by a falling period market in the Pacific. Despite prompt vessels under pressure still some healthy numbers achieved in the Atlantic; typically 25000 + 500BB for Fronthaul and mid teens for transatlantic rounds. The Pacific saw rates coming off significantly to lower teens for Nopac rounds and a growing spread between spot- and period rates.
Charterers and operators are holding back and reducing their activity. Takers for longer periods clearly stand off as the forward curve test very low teens and most Owners still hope for a recovery to do high teens for same. On a positive note there is growing local enthusiasm with the commencement of the Nordic World ski championships in Oslo” said the shipbroker.
Meanwhile, the container market has yet to “recover” on the news of Maersk’s huge newbuilding order for 10 firm plus 20 optional 18,000 TEU container vessels. AP Møller has been in talks with DSME regarding the 18,000 TEU design for quite some time, and now finally confirmed. According to AP Møller, these vessels will burn 35% less fuel per container compared to the more standard 13,000 TEU container vessels operating today. In another report on the newbuilding market, Clarksons said that with the holidays now firmly behind us we continue to see the yards reporting new business being concluded. “As previously discussed, container enquiries in particular look to be the leading factor in generating this momentum as dry and wet remains relatively stagnant. With the container story continuing to press forward - this is ultimately inhibiting the shipyards willing to push pricing on other sectors and attempt to bridge the bid offer spread, that continues to stifle the potential for further volume.
In the short term, we don't anticipate this dynamic to change - and yards will want to exploit the shipbuilding demand that exists outside of dry and wet - and try to extend their forward orderbook coverage and take the pressure off themselves to yield to what is a weaker demand story so far. In terms of reported business; In Dry, Hanjin Shipping have contracted a pair of 180,000dwt Capesize bulk carriers at Daehan, these are scheduled for delivery in 2012 and the reported price for these is USD58.5 Mill per vessel. In China meanwhile, it has been reported that Shanhaiguan have won an order from Greathorse Shipping Holdings for 4 option 4 x 76,000dwt panamax bulkers, with the firm vessels due to deliver in 2H 2012 and 1Q 2013. It is understood that these vessels may have been signed at the end of last year and are only fully coming to light now” said Clarksons.
Source: Nikos Roussanoglou, Hellenic Shipping
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Thursday, January 20, 2011
Industry: Great Lakes cargo shipping way up in '10
JANUARY 19, 2011, 6:19 P.M. ET, Associated Press
TRAVERSE CITY, Mich. — Shipments of bulk cargo such as iron ore on the Great Lakes jumped by one-third last year, a hopeful sign for a region battered by the recession, an industry spokesman said Wednesday.
The Lake Carriers Association credited a gradually healing economy for the increase in waterborne transport of coal, limestone, sand and other raw materials. But the dramatic statistical improvement in 2010 also reflects the industry's dismal showing the previous year.
"We obviously have a ways to go," said Glen Nekvasil, spokesman for the association, which represents 18 companies that operate 55 U.S.-flagged vessels on the Great Lakes.
The ships hauled 88.7 million tons of dry bulk freight last year, up from 66.5 million tons in 2009, an increase of 33.4 percent.
The biggest improvement was in iron ore for the steel industry, which shot up 75 percent — from 24 million tons in 2009 to 42 million tons last year.
"The steel industry is still a very important barometer of our economic health," Nekvasil said. "It's the basic material of so many things in our life — autos, refrigerators, washing machines, the frames of office buildings and malls."
Despite the uptick, overall cargo tonnage for 2010 was about 10 percent below the average for the previous five years. Bulk shipment totals regularly exceeded 100 million tons annually before plunging in 2009, when iron ore transport hit its lowest level since 1938.
"Our industry was in a pretty depressed state," said Dale Hemmila, a spokesman for Cliffs Natural Resources, which manages two iron ore mines in Michigan's Upper Peninsula and three in Minnesota. "We certainly have seen a big improvement since then."
Coal shipments totaled 21.5 million tons, a 4.1 percent increase over 2009 — but nearly 13 percent below the previous five-year average.
Similarly, limestone loads were up 19.6 percent in 2010 but were nearly 18 percent below the five-year average.
Limestone demand has lagged with a construction slowdown in the region, while coal shipments have been affected by the Ontario government's push to phase out coal-fired power plants, Nekvasil said.
Shipments of salt on the lakes rose about 10 percent last year, while cement and sand totals dropped.
Shipping on the upper lakes ended for the winter on Wednesday with closure of the Soo Locks, which elevate and lower vessels between Lakes Huron and Superior. They will reopen March 25, said Steven Rose, operations chief with the U.S. Army Corps of Engineers office in Sault Ste. Marie.
Source: Associated Press and the wall street journal
TRAVERSE CITY, Mich. — Shipments of bulk cargo such as iron ore on the Great Lakes jumped by one-third last year, a hopeful sign for a region battered by the recession, an industry spokesman said Wednesday.
The Lake Carriers Association credited a gradually healing economy for the increase in waterborne transport of coal, limestone, sand and other raw materials. But the dramatic statistical improvement in 2010 also reflects the industry's dismal showing the previous year.
"We obviously have a ways to go," said Glen Nekvasil, spokesman for the association, which represents 18 companies that operate 55 U.S.-flagged vessels on the Great Lakes.
The ships hauled 88.7 million tons of dry bulk freight last year, up from 66.5 million tons in 2009, an increase of 33.4 percent.
The biggest improvement was in iron ore for the steel industry, which shot up 75 percent — from 24 million tons in 2009 to 42 million tons last year.
"The steel industry is still a very important barometer of our economic health," Nekvasil said. "It's the basic material of so many things in our life — autos, refrigerators, washing machines, the frames of office buildings and malls."
Despite the uptick, overall cargo tonnage for 2010 was about 10 percent below the average for the previous five years. Bulk shipment totals regularly exceeded 100 million tons annually before plunging in 2009, when iron ore transport hit its lowest level since 1938.
"Our industry was in a pretty depressed state," said Dale Hemmila, a spokesman for Cliffs Natural Resources, which manages two iron ore mines in Michigan's Upper Peninsula and three in Minnesota. "We certainly have seen a big improvement since then."
Coal shipments totaled 21.5 million tons, a 4.1 percent increase over 2009 — but nearly 13 percent below the previous five-year average.
Similarly, limestone loads were up 19.6 percent in 2010 but were nearly 18 percent below the five-year average.
Limestone demand has lagged with a construction slowdown in the region, while coal shipments have been affected by the Ontario government's push to phase out coal-fired power plants, Nekvasil said.
Shipments of salt on the lakes rose about 10 percent last year, while cement and sand totals dropped.
Shipping on the upper lakes ended for the winter on Wednesday with closure of the Soo Locks, which elevate and lower vessels between Lakes Huron and Superior. They will reopen March 25, said Steven Rose, operations chief with the U.S. Army Corps of Engineers office in Sault Ste. Marie.
Source: Associated Press and the wall street journal
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