Wednesday, 11 Jan 2012
Bloomberg reported that the cost of hauling iron ore and coal fell to a four-month low, extending this year decline to 47% amid concerns a Chinese economic slowdown will curb steel production, the biggest driver of global shipping demand.
According to the London based Baltic Exchange rates to hire a capesize ship, the largest in the fleet of dry-bulk vessels dropped 6.1% to USD 14,535 a day. That’s less than half the 2011 high of USD 32,889 reached on December 12.
Ms Natasha Boyden an analyst at New York-based Cantor Fitzgerald LP said “Concerns about a Chinese economic slowdown mean that there are real risks to weaker Chinese steel production growth in 2012 which the capesize sector is highly leveraged to.”
According to the exchange which publishes rates for more than 50 maritime routes the Baltic Dry Index a measure of charter costs for four classes of vessels declined 2.9% to 1,308 points. That the lowest level since August 15. The gauge has fallen 25% in 2012, as earnings for the other vessel types also declined while at a lower pace than capesizes.
Cantor Fitzgerald said a surge in new vessels being delivered from shipyards in January will entrench hire costs for the fleet of 1,335 capesize ships at current lows. Rainy weather in Australia and Brazil, the largest exporters of iron ore, also cut shipments amid falling demand ahead of the Chinese New Year shutdown later this month.
According to the most recent data from the World Steel Association China steel production has declined for six straight months falling to 49.8 million tonnes in November.
(Sourced from Bloomberg)
Showing posts with label capessize vessel. Show all posts
Showing posts with label capessize vessel. Show all posts
Wednesday, January 11, 2012
Sunday, December 11, 2011
Vale SA in advanced negotiations to sell 19 vessels - Report
Sunday, 11 Dec 2011
Bloomberg reported that Vale SA, the iron ore producer building a fleet of the world's largest commodities ships, confirmed it's in advanced talks to sell 19 of the vessels after the plan spurred opposition from Chinese ship owners.
Mr Murilo Ferreira CEO of Vale has said that he is willing to sell the ships only if the company can lease them back under long term contracts. The talks were reported earlier by the O Globo newspaper, which cited an interview with Mr Ferreira.
Vale is spending at least USD 8.1 billion on the so called valemax vessels, including buying 19 very large ore carriers and leasing another 16 in long term contracts, as at seeks to lower freight costs from Brazil to China, its biggest market. The China Shipowners Association, whose members control about 80% of the nation’s shipping capacity, advised companies not use the vessels, according to Executive Vice Chairman Zhang Shouguo. None of the six vessels already in operation since April have called at Chinese ports.
(sourced from Bloomberg.net)
Bloomberg reported that Vale SA, the iron ore producer building a fleet of the world's largest commodities ships, confirmed it's in advanced talks to sell 19 of the vessels after the plan spurred opposition from Chinese ship owners.
Mr Murilo Ferreira CEO of Vale has said that he is willing to sell the ships only if the company can lease them back under long term contracts. The talks were reported earlier by the O Globo newspaper, which cited an interview with Mr Ferreira.
Vale is spending at least USD 8.1 billion on the so called valemax vessels, including buying 19 very large ore carriers and leasing another 16 in long term contracts, as at seeks to lower freight costs from Brazil to China, its biggest market. The China Shipowners Association, whose members control about 80% of the nation’s shipping capacity, advised companies not use the vessels, according to Executive Vice Chairman Zhang Shouguo. None of the six vessels already in operation since April have called at Chinese ports.
(sourced from Bloomberg.net)
Wednesday, March 16, 2011
Adani buys 1st Russian coal cargo
Mar7, 2011 8:35pm IST
New DelhiEW DELHI (Reuters) - Adani Enterprises has bought its first cargo of Russian coal in a bid to diversify its coal supply, Adani Coal and Carbon Credit Chief Executive Officer Vinay Prakash said on Monday.
Low freight rates particularly for capesize vessels were shrinking the difference in delivered costs for coal from origins such as South Africa, Colombia, Australia and Russia, allowing Indian importers to take a wider variety of coal, he said.
The March loading capesize cargo of low-sulphur coal will be shipped from a Pacific port by one of Russia's biggest exporters, he said.
He declined to name the Russian supplier.
The price was close to the current levels for South African coal, he added.
"We finalised our first Russian coal shipment yesterday," Prakash said.
"We have looked at taking panamax cargoes from Vostochniiy in the Pacific before but the freight was too high, in cape sizes it's much more viable," he added.
Prompt South African coal cargoes are currently trading at around $118-120 a tonne free-on-board Richards Bay. (Reporting by Jackie Cowhig,Reuters)
Tags ;Colombian coal, Australia, Pacific Port, South African coal price $118- 120 a tonne FOB Richards Bay
Low freight rates particularly for capesize vessels were shrinking the difference in delivered costs for coal from origins such as South Africa, Colombia, Australia and Russia, allowing Indian importers to take a wider variety of coal, he said.
The March loading capesize cargo of low-sulphur coal will be shipped from a Pacific port by one of Russia's biggest exporters, he said.
He declined to name the Russian supplier.
The price was close to the current levels for South African coal, he added.
"We finalised our first Russian coal shipment yesterday," Prakash said.
"We have looked at taking panamax cargoes from Vostochniiy in the Pacific before but the freight was too high, in cape sizes it's much more viable," he added.
Prompt South African coal cargoes are currently trading at around $118-120 a tonne free-on-board Richards Bay. (Reporting by Jackie Cowhig,Reuters)
Tags ;Colombian coal, Australia, Pacific Port, South African coal price $118- 120 a tonne FOB Richards Bay
Subscribe to:
Posts (Atom)
Posts
