Sunday, 19 Feb 2012
Bloomberg reported that steam coal may become the third commodity to surpass annual shipments by sea of 1 billion tonnes, joining crude oil and iron ore, as India raises imports of the solid fuel to feed new power plants.
According to data from Clarkson Research Services Ltd, a unit of the world’s largest shipbroker, seaborne coal trade will expand 4% to 956 million tonnes this year as Indian purchases gain 12% and imports into China climb 8%.
According to Mr Calum Kennedy, a senior analyst with Clarkson in London, deliveries may exceed 1 billion tonnes if Chinese power plants buy extra, cheaper foreign thermal coal.
Mr Ole Henry Senne COO of Singapore based SIVA Bulk Ltd whose vessels transport Indonesian coal to India said that “Before, the iron ore market was driving shipping markets. Now it’s India and China with their coal needs. If you took away the coal from India and the coal imported to China, there probably wouldn’t be a market.”
According to Clarkson, Indian imports of coal burned for power will have this year’s second strongest growth among all the 3.7 billion tonnes of global dry bulk commodities shipped by sea. The shipbroker projects a 17% increase to 104.2 million tonnes as Indian buying of coal used to make steel falls 3.4%. The fastest-growing trade is US iron ore imports, predicted to jump 33% to 1.6 million tonnes.
(Sourced from Bloomberg)
Showing posts with label dry bulk market. Show all posts
Showing posts with label dry bulk market. Show all posts
Sunday, February 19, 2012
Tuesday, February 7, 2012
Ship Prices Decline as Much as 20% as Rates Plunge, HSBC Says
Tuesday, 07 February 2012
Ship prices fell as much as 20 percent in the last few weeks as the Baltic Dry Index, a measure of rates to transport dry-bulk commodities, plunged to a 25-year low, HSBC Holdings Plc said.Three dry-bulk vessels built since 2000 were reported as sold last week, setting benchmarks for lower prices, the bank’s London-based shipping-services division said in an e-mailed report.
“These levels, a drop of 10 percent to 20 percent since the end of last year, may not be good news to owners, but buyers will welcome the correction,” HSBC said. “Now there has been some action, we do expect others to follow suit, especially if more ships come on the market for sale.”
Prices may be set to decline further as potential buyers seek cash to purchase vessels amid constrained bank financing, according to the report. The index on Feb. 3 dropped to 647, the lowest level since August 1986, according to the Baltic Exchange, a London-based assessor of commodity-shipping costs. The gauge last climbed on Dec. 12. (sourced Bloomberg)
Ship prices fell as much as 20 percent in the last few weeks as the Baltic Dry Index, a measure of rates to transport dry-bulk commodities, plunged to a 25-year low, HSBC Holdings Plc said.Three dry-bulk vessels built since 2000 were reported as sold last week, setting benchmarks for lower prices, the bank’s London-based shipping-services division said in an e-mailed report.
“These levels, a drop of 10 percent to 20 percent since the end of last year, may not be good news to owners, but buyers will welcome the correction,” HSBC said. “Now there has been some action, we do expect others to follow suit, especially if more ships come on the market for sale.”
Prices may be set to decline further as potential buyers seek cash to purchase vessels amid constrained bank financing, according to the report. The index on Feb. 3 dropped to 647, the lowest level since August 1986, according to the Baltic Exchange, a London-based assessor of commodity-shipping costs. The gauge last climbed on Dec. 12. (sourced Bloomberg)
Barry Rogliano Salles weekly Dry Bulk Newsletter no 770
Tuesday, 07 February 2012
It was another week of heavy losses in all dry bulk segments, but there were some signs of a reversal in the Cape market.The BDI reached 647 points, illustrating a decline of about 11% w-o-w. The BCI lost just 2%.
Source: Barry Rogliano Salles(BRS)
It was another week of heavy losses in all dry bulk segments, but there were some signs of a reversal in the Cape market.The BDI reached 647 points, illustrating a decline of about 11% w-o-w. The BCI lost just 2%.
Source: Barry Rogliano Salles(BRS)
Tuesday, January 31, 2012
Vale readies iron ore transshipment hub in Philippines
Tue Jan 31, 2012
* Ore Fabrica arrives in Philippines' Subic Bay port
* Ship is the biggest dry bulk floating storage vessel
* Comes ahead of two Valemaxes due in February
SINGAPORE, Jan 31 (Reuters) - The world's largest dry bulk floating storage vessel, owned by Vale, has arrived in the Philippines as the Brazilian miner readies a base in the country to onship iron ore to top market China, port and shipping sources said on Tuesday.
Ore Fabrica, to be stationed in Subic Bay Freeport, is part of Vale's plan to make the Philippines a transshipment hub to overcome Chinese opposition to its new 400,000-tonne iron ore carriers, known as "Valemaxes".
The 280,000-deadweight-tonne Ore Fabrica will serve as a platform to transfer iron ore from the Valemaxes to smaller vessels for transport to Asian markets like China, Japan and South Korea.
"It was anchored yesterday. The vessel, which has a crane on it, will be used by Vale to transship iron ore from Valemaxes to two or three other ships," said a maritime source involved in the management of the vessel.
Previously a crude oil tanker, Ore Fabrica was converted by a Chinese shipyard to a floating storage vessel to be based in Subic Bay Freeport, located in the Philippines' main Luzon island, according to shipping data.
China, the world's largest iron ore importer, has yet to fully open its seaports to the giant Valemaxes after domestic ship owners strongly protested the arrival of the first and only vessel of the type into the country in late December.
Officials at Vale in Singapore were not immediately available for comment. A spokeswoman for Subic Bay Freeport said she was still checking with the company's seaport department.
Two Valemaxes are headed for Subic Bay port next month.
The 400,000-deadweight-tonne Vale Brasil is expected to arrive in Subic Bay Freeport on Feb. 12, shipping data showed. It wll be followed by the similar-sized Vale China on Feb. 22.
Apart from the Philippines, Vale is also setting up a transshipment centre in Malaysia.
The Brazilian miner in October broke ground for a $1.3 billion iron ore distribution centre in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.
Vale is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete with Australian rivals BHP Billiton and Rio Tinto .
The 388,000-tonne Berge Everest was the first and only Valemax allowed into China, docking at Dalian Port on Dec. 28 to unload iron ore that has yet to be sold.
The China Shipowners Association has helped keep further ships from arriving at its domestic ports. The group fears the fleet will give Vale a monopoly on both the shipping and iron ore markets at China's expense.
(sourced Reuters)
* Ore Fabrica arrives in Philippines' Subic Bay port
* Ship is the biggest dry bulk floating storage vessel
* Comes ahead of two Valemaxes due in February
SINGAPORE, Jan 31 (Reuters) - The world's largest dry bulk floating storage vessel, owned by Vale, has arrived in the Philippines as the Brazilian miner readies a base in the country to onship iron ore to top market China, port and shipping sources said on Tuesday.
Ore Fabrica, to be stationed in Subic Bay Freeport, is part of Vale's plan to make the Philippines a transshipment hub to overcome Chinese opposition to its new 400,000-tonne iron ore carriers, known as "Valemaxes".
The 280,000-deadweight-tonne Ore Fabrica will serve as a platform to transfer iron ore from the Valemaxes to smaller vessels for transport to Asian markets like China, Japan and South Korea.
"It was anchored yesterday. The vessel, which has a crane on it, will be used by Vale to transship iron ore from Valemaxes to two or three other ships," said a maritime source involved in the management of the vessel.
Previously a crude oil tanker, Ore Fabrica was converted by a Chinese shipyard to a floating storage vessel to be based in Subic Bay Freeport, located in the Philippines' main Luzon island, according to shipping data.
China, the world's largest iron ore importer, has yet to fully open its seaports to the giant Valemaxes after domestic ship owners strongly protested the arrival of the first and only vessel of the type into the country in late December.
Officials at Vale in Singapore were not immediately available for comment. A spokeswoman for Subic Bay Freeport said she was still checking with the company's seaport department.
Two Valemaxes are headed for Subic Bay port next month.
The 400,000-deadweight-tonne Vale Brasil is expected to arrive in Subic Bay Freeport on Feb. 12, shipping data showed. It wll be followed by the similar-sized Vale China on Feb. 22.
Apart from the Philippines, Vale is also setting up a transshipment centre in Malaysia.
The Brazilian miner in October broke ground for a $1.3 billion iron ore distribution centre in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.
Vale is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete with Australian rivals BHP Billiton and Rio Tinto .
The 388,000-tonne Berge Everest was the first and only Valemax allowed into China, docking at Dalian Port on Dec. 28 to unload iron ore that has yet to be sold.
The China Shipowners Association has helped keep further ships from arriving at its domestic ports. The group fears the fleet will give Vale a monopoly on both the shipping and iron ore markets at China's expense.
(sourced Reuters)
Thursday, December 22, 2011
Vale looking to sell Valemax iron ore carriers - Report
Thursday, 22 Dec 2011
Vale is looking to sell off its large iron ore carriers amid fierce opposition from Chinese ship owners and embarrassing teething problems as the second largest mining company shifts its focus back to core projects.
Mr José Carlos Martins Vale executive director for iron ore and strategy said that the Brazilian company would sell its so called Valemax most of which have not yet been built, if it could take long term leases on them.
The multi billion dollar plan to control shipments to China by building 35 ships with decks the size of three football fields the biggest dry bulk carriers ever was dreamt up by Mr Roger Agnelli, Vale former headstrong chief executive but it has faced heavy criticism since.
None of the new carriers has been able to dock in China, Vale biggest market, because of opposition from local Shipowners and technical difficulties while a mysterious leak aboard the Vale Beijing on its maiden voyage this month has raised safety concerns.
The move to sell the ships also comes as Mr Murilo Ferreira Vale new more cautious and diplomatic chief executive is reviewing spending on all projects to help strengthen the company finances in the face of falling commodity prices.
Mr Martins said “It’s really all about capital allocation. We prefer to invest our capital in mining and contract the ships instead, declining to comment on whether negotiations were already under way. There is no reason we actually have to own them.”
Vale began placing orders in 2008 for the 35 Valemax of which it planned to own 19 in an attempt to control the price it paid to move its iron ore to China after years of wild gyrations in charter prices. Rates per day for capsize ships the largest dry bulk carriers reached as high as USD 233,988 per day in June 2008 but subsequently plummeted by December that year to as low as USD 2,400.
(Sourced from www.ft.com)
Vale is looking to sell off its large iron ore carriers amid fierce opposition from Chinese ship owners and embarrassing teething problems as the second largest mining company shifts its focus back to core projects.
Mr José Carlos Martins Vale executive director for iron ore and strategy said that the Brazilian company would sell its so called Valemax most of which have not yet been built, if it could take long term leases on them.
The multi billion dollar plan to control shipments to China by building 35 ships with decks the size of three football fields the biggest dry bulk carriers ever was dreamt up by Mr Roger Agnelli, Vale former headstrong chief executive but it has faced heavy criticism since.
None of the new carriers has been able to dock in China, Vale biggest market, because of opposition from local Shipowners and technical difficulties while a mysterious leak aboard the Vale Beijing on its maiden voyage this month has raised safety concerns.
The move to sell the ships also comes as Mr Murilo Ferreira Vale new more cautious and diplomatic chief executive is reviewing spending on all projects to help strengthen the company finances in the face of falling commodity prices.
Mr Martins said “It’s really all about capital allocation. We prefer to invest our capital in mining and contract the ships instead, declining to comment on whether negotiations were already under way. There is no reason we actually have to own them.”
Vale began placing orders in 2008 for the 35 Valemax of which it planned to own 19 in an attempt to control the price it paid to move its iron ore to China after years of wild gyrations in charter prices. Rates per day for capsize ships the largest dry bulk carriers reached as high as USD 233,988 per day in June 2008 but subsequently plummeted by December that year to as low as USD 2,400.
(Sourced from www.ft.com)
Thursday, November 3, 2011
Dry Bulk Market officially in the "Red" on lower cargo demand - Nikos Roussanoglou, Hellenic Shipping
Thursday, 03 November 11
The dry bulk market kept falling yesterday, on lower iron ore demand, which has caused the industry’s benchmark, the BDI (Baltic Dry Index) to plunge to more than one-month lows, ending the session down to 1,859 points, or by 2.77%.
All shipping segments were down yesterday, with the Capesize market sustaining the biggest losses by 3.23%. The Panamax market was down by 1.20%.
According to the latest report from Shiptrade Services, after the previous weeks’ steady increase, the market turned downwards with Capesizes suffering the most. Commenting on the Capesize market, it mentioned that “the week began positively, but lack of cargoes in the Pacific forced Owners to lower their levels, or start ballasting towards the Atlantic.
Atlantic basin was active, with good cargo volume mostly coming ex Brazil.
Rates for Transatlantic rounds concluded at USD 34.000 per day, while on the Fronthaul trade, rates for trips to F.East, levels concluded at USD 49.000 per day. On the Tubarao/Qingdao trade rates were fluctuating between USD 30.00 – 30.50 pmt but week’s closing rates softened as an effect of the ballasters from the Pacific.
Pacific basin was quiet due to the absence of the iron ore majors but Owners could see a few alternative cargoes ex S.Africa / W.Canada. Rates softened, and at weeks closing, rates for the Australia/China trade concluded at USD 11.00pmt, while on TCT basis, rates for Pacific round concluded at USD 25.000 per day basis N.China delivery” said Shiptrade.
In a separate report Fearnley’s said that “after a relatively long period with improving rates, the Cape market experiences a correction mid last week. Rates kept dropping throughout this week, with West Australia/China being done just bellow usd 10 pmt. Tubarao/Qingdao was done last week around usd 32 pmt, the lowest done this week is just below usd 25 pmt. The drop in spot rates has resulted in less period activity with chrtrs aiming around mid teens, a level perceived to be of non interest to the owners. The rest of the week is remained to be quiet with Eisbein going on in Germany” said the report.
On the Panamax front, the Nordic-based shipbroker it said “fair activity with mineral requirements in the North Atlantic from USEC and Baltic catering for healthy levels as market is tight for prompt loaders. Fixing levels in the 20´s for Baltic rounds, upper teens for TA rounds. Less activity and weakness in the USG and ECSA from an increasing number of
ballasters appears from the Med and Far East. Levels for trip out hovering in the 26 + 600 range basis APS. In the Far East activity is low, tonnage lists grow, and rates are under downward pressure. NOPAC rounds 12500, period activity scant. The general sentiment is losing confidence from a slow and descending forward market” said Fearnley’s.
Shiptrade Services mentioned that “Panamax rates dropped slightly since the cargo volume was not enough to cover the available tonnage. In the Atlantic basin, the USG market remained the driving force, especially for the Fronthaul cargoes with fixtures at USD 26.500+650.000 GBB basis APS USG. Rates for Transatlantic round remained at USD 17.500 - 18.000 per day. In the Pacific basin activity remained flat with many Charterers waiting for rates to drop further. At week’s closing, rates for S.China/S.E.Asia positions interested for
Indonesia round, concluded at USD 14.000 – 14.500 per day. Positions at N.china/Japan range interested for trips ex NOPAC could get USD 13-14.500 per day” said Shiptrade.
On the Supramax trades the Piraeus-based shipbroker mentioned that “the market followed the same trend, with less cargoes and rates dropping. In the Atlantic basin, we could notice a decrease in the number of cargoes, but some areas were more attractive. In the USG region rates for trip to continent/East Mediterranean remained steady close to USD 30.000 per day, while for trips to F.East fixtures reported at USD 38.000 per day.
On the Mediterranean/Bl.Sea market, rates for trips to F.East held around USD 24 - 25.000per day, while rates for trips to USG were between USD 9 -10.000per day. On the ECSA region, vessels concluded at rates close to USD 18-19.000per day + 400.000 ballast bonus basis APS ECSA delivery for trips to F.East, and for trips to Continent/Med rates concluded at USD 16-17.000per day. In the pacific basin, rates dropped, as there were not many cargoes from Indonesia, and many Charterers preferred not to move and see how the market will proceed.
Some fixtures concluded to direction India but levels were fluctuating between USD 8.000 – 11.000per day. On the other hand, for the N.China positions, a few cargoes ex NOPAC remained an attractive solution at rates of USD 12.000per day (M/V Prabhu Jivesh 50956 / 02’)” concluded the shipbroker.
By:Nikos Roussanoglou, Hellenic Shipping
If you believe an article violates your rights or the rights of others, please contact us.
(sourced coalspot.com)
The dry bulk market kept falling yesterday, on lower iron ore demand, which has caused the industry’s benchmark, the BDI (Baltic Dry Index) to plunge to more than one-month lows, ending the session down to 1,859 points, or by 2.77%.
All shipping segments were down yesterday, with the Capesize market sustaining the biggest losses by 3.23%. The Panamax market was down by 1.20%.
According to the latest report from Shiptrade Services, after the previous weeks’ steady increase, the market turned downwards with Capesizes suffering the most. Commenting on the Capesize market, it mentioned that “the week began positively, but lack of cargoes in the Pacific forced Owners to lower their levels, or start ballasting towards the Atlantic.
Atlantic basin was active, with good cargo volume mostly coming ex Brazil.
Rates for Transatlantic rounds concluded at USD 34.000 per day, while on the Fronthaul trade, rates for trips to F.East, levels concluded at USD 49.000 per day. On the Tubarao/Qingdao trade rates were fluctuating between USD 30.00 – 30.50 pmt but week’s closing rates softened as an effect of the ballasters from the Pacific.
Pacific basin was quiet due to the absence of the iron ore majors but Owners could see a few alternative cargoes ex S.Africa / W.Canada. Rates softened, and at weeks closing, rates for the Australia/China trade concluded at USD 11.00pmt, while on TCT basis, rates for Pacific round concluded at USD 25.000 per day basis N.China delivery” said Shiptrade.
In a separate report Fearnley’s said that “after a relatively long period with improving rates, the Cape market experiences a correction mid last week. Rates kept dropping throughout this week, with West Australia/China being done just bellow usd 10 pmt. Tubarao/Qingdao was done last week around usd 32 pmt, the lowest done this week is just below usd 25 pmt. The drop in spot rates has resulted in less period activity with chrtrs aiming around mid teens, a level perceived to be of non interest to the owners. The rest of the week is remained to be quiet with Eisbein going on in Germany” said the report.
On the Panamax front, the Nordic-based shipbroker it said “fair activity with mineral requirements in the North Atlantic from USEC and Baltic catering for healthy levels as market is tight for prompt loaders. Fixing levels in the 20´s for Baltic rounds, upper teens for TA rounds. Less activity and weakness in the USG and ECSA from an increasing number of
ballasters appears from the Med and Far East. Levels for trip out hovering in the 26 + 600 range basis APS. In the Far East activity is low, tonnage lists grow, and rates are under downward pressure. NOPAC rounds 12500, period activity scant. The general sentiment is losing confidence from a slow and descending forward market” said Fearnley’s.
Shiptrade Services mentioned that “Panamax rates dropped slightly since the cargo volume was not enough to cover the available tonnage. In the Atlantic basin, the USG market remained the driving force, especially for the Fronthaul cargoes with fixtures at USD 26.500+650.000 GBB basis APS USG. Rates for Transatlantic round remained at USD 17.500 - 18.000 per day. In the Pacific basin activity remained flat with many Charterers waiting for rates to drop further. At week’s closing, rates for S.China/S.E.Asia positions interested for
Indonesia round, concluded at USD 14.000 – 14.500 per day. Positions at N.china/Japan range interested for trips ex NOPAC could get USD 13-14.500 per day” said Shiptrade.
On the Supramax trades the Piraeus-based shipbroker mentioned that “the market followed the same trend, with less cargoes and rates dropping. In the Atlantic basin, we could notice a decrease in the number of cargoes, but some areas were more attractive. In the USG region rates for trip to continent/East Mediterranean remained steady close to USD 30.000 per day, while for trips to F.East fixtures reported at USD 38.000 per day.
On the Mediterranean/Bl.Sea market, rates for trips to F.East held around USD 24 - 25.000per day, while rates for trips to USG were between USD 9 -10.000per day. On the ECSA region, vessels concluded at rates close to USD 18-19.000per day + 400.000 ballast bonus basis APS ECSA delivery for trips to F.East, and for trips to Continent/Med rates concluded at USD 16-17.000per day. In the pacific basin, rates dropped, as there were not many cargoes from Indonesia, and many Charterers preferred not to move and see how the market will proceed.
Some fixtures concluded to direction India but levels were fluctuating between USD 8.000 – 11.000per day. On the other hand, for the N.China positions, a few cargoes ex NOPAC remained an attractive solution at rates of USD 12.000per day (M/V Prabhu Jivesh 50956 / 02’)” concluded the shipbroker.
By:Nikos Roussanoglou, Hellenic Shipping
If you believe an article violates your rights or the rights of others, please contact us.
(sourced coalspot.com)
Tuesday, August 16, 2011
Europe crisis won't hit dry bulk trade
Tuesday, 16 August 2011
Business from China and India is robust enough for shippers such as Paragon Shipping, Box Ships Inc and Seanergy Maritime Holdings not to be losing sleep over financial crises in the United States and Europe, executives said.
Brokers, including Intermodal and Wells Fargo Securities, have said the market volatility sparked by Standard & Poor's US sovereign debt rating cut and Europe's debt crisis could trip the global economy into a double-dip recession and land a body-blow to dry bulk trade and the shipping sector generally.
Aristides Pittas, CEO at Euroseas, said the market turmoil could slow growth in global and US gross domestic product.
'This is something we will continue to monitor closely as dry bulk and container trades closely follow GDP developments,' he said on a conference call.
The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities such as coal and iron ore, has declined by nearly a third this year as growth in demand to ship commodities has lagged the increase in vessel supply.
Companies do not expect much short-term impact on the dry bulk market.
'The dry bulk market is not affected by what we see today . . . the instability in the United States and Europe,' said Michael Bodouroglou, founder and CEO of Paragon Shipping, a dry bulk shipper. 'This is because the dry bulk market is primarily driven by the emerging economies . . . China, India and others.'
China's exports hit a record in July and the world's No 2 economy's imports of raw materials such as copper and iron ore saw strong gains. The recent fall in global commodity prices is expected to result in more Chinese buying.
Mr Bodouroglou, who also heads container shipper Box Ships, said the dry bulk market would remain challenging for the next couple of years. The business of transporting containers, however, looks much healthier.
'We're looking at buying container ships because we believe this sector is in a different point in the cycle,' he told Reuters by telephone from Greece. 'The order book is much healthier and demand is being driven by Asian economies.'
Growing overcapacity in world shipping is setting the market on course for a fresh crisis over the next two years, and weaker operators will fail, the head of ship financier DVB Bank said.
Seanergy Maritime CEO Dale Ploughman said the market uncertainty could make it tougher for companies to access funds.
'The dry bulk sector is not the flavour of the day and banks have their own problems and will be very picky on who they're prepared to support,' he told Reuters.
Mr Bodouroglou warned that some companies may default on loans, although he added he did not see any liquidity issue at his companies. 'There are companies which have breached covenants, and they may breach covenants,' he said.
sourced Reuters
Business from China and India is robust enough for shippers such as Paragon Shipping, Box Ships Inc and Seanergy Maritime Holdings not to be losing sleep over financial crises in the United States and Europe, executives said.
Brokers, including Intermodal and Wells Fargo Securities, have said the market volatility sparked by Standard & Poor's US sovereign debt rating cut and Europe's debt crisis could trip the global economy into a double-dip recession and land a body-blow to dry bulk trade and the shipping sector generally.
Aristides Pittas, CEO at Euroseas, said the market turmoil could slow growth in global and US gross domestic product.
'This is something we will continue to monitor closely as dry bulk and container trades closely follow GDP developments,' he said on a conference call.
The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities such as coal and iron ore, has declined by nearly a third this year as growth in demand to ship commodities has lagged the increase in vessel supply.
Companies do not expect much short-term impact on the dry bulk market.
'The dry bulk market is not affected by what we see today . . . the instability in the United States and Europe,' said Michael Bodouroglou, founder and CEO of Paragon Shipping, a dry bulk shipper. 'This is because the dry bulk market is primarily driven by the emerging economies . . . China, India and others.'
China's exports hit a record in July and the world's No 2 economy's imports of raw materials such as copper and iron ore saw strong gains. The recent fall in global commodity prices is expected to result in more Chinese buying.
Mr Bodouroglou, who also heads container shipper Box Ships, said the dry bulk market would remain challenging for the next couple of years. The business of transporting containers, however, looks much healthier.
'We're looking at buying container ships because we believe this sector is in a different point in the cycle,' he told Reuters by telephone from Greece. 'The order book is much healthier and demand is being driven by Asian economies.'
Growing overcapacity in world shipping is setting the market on course for a fresh crisis over the next two years, and weaker operators will fail, the head of ship financier DVB Bank said.
Seanergy Maritime CEO Dale Ploughman said the market uncertainty could make it tougher for companies to access funds.
'The dry bulk sector is not the flavour of the day and banks have their own problems and will be very picky on who they're prepared to support,' he told Reuters.
Mr Bodouroglou warned that some companies may default on loans, although he added he did not see any liquidity issue at his companies. 'There are companies which have breached covenants, and they may breach covenants,' he said.
sourced Reuters
Saturday, August 13, 2011
Dry-bulk cargo up 10.9 percent on US Great Lakes
Monday, 15 August 2011 |By steelorbis
The Lake Carriers' Association reported Friday that US-flag Great Lakes freighters carried 11.1 million tons of dry-bulk cargo in July, a 10.9 percent increase from June, and a 5.2 percent jump from July of last year.
Iron ore cargos for the steel industry were up 17 percent year-over-year, however coal shipments were down 11.4 percent. Aggregate and fluxstone for the construction and steel industries slipped 3.8 percent.
Through July US-flag cargos stand at 44.8 million tons, an increase of 3 percent compared to the same point in 2010. Iron ore has increased 9.6 percent, but coal and limestone are down by 5.1 percent and 4.6 percent respectively. Compared to the 5-year average for the first seven months of the year, US-flag cargos are down 2.1 percent.
The Lake Carriers' Association reported Friday that US-flag Great Lakes freighters carried 11.1 million tons of dry-bulk cargo in July, a 10.9 percent increase from June, and a 5.2 percent jump from July of last year.
Iron ore cargos for the steel industry were up 17 percent year-over-year, however coal shipments were down 11.4 percent. Aggregate and fluxstone for the construction and steel industries slipped 3.8 percent.
Through July US-flag cargos stand at 44.8 million tons, an increase of 3 percent compared to the same point in 2010. Iron ore has increased 9.6 percent, but coal and limestone are down by 5.1 percent and 4.6 percent respectively. Compared to the 5-year average for the first seven months of the year, US-flag cargos are down 2.1 percent.
Sunday, August 7, 2011
Anchor Ship may double fleet to meet rising iron ore demand
Sun, Aug07, 2011
Bloomberg reported that Anchor Ship Investment Co may more than double its fleet to as many as 50 vessels because of rising imports of coal and iron ore in China and India.
Mr Hajime Tsuji president of Anchor Ship said that "Our customers are asking for more bulk carriers to feed that demand and we are filling it." He added that Anchor Ship will use its second fund of about JPY 200 billion to add to the 24 vessels it currently owns or has on order.
Mr Tsuji said that the company's first fund has posted annual returns of more than 5% since its formation in 2007 as signing more than half of contracts in yen, with the rest in dollars, has helped it hedge against currency fluctuations. A policy of only leasing out vessels on contracts of 10 years has also allowed it avoid a slump in spot market rates.
According to customs data tracked by Bloomberg, Anchor Ship, whose customers include Japanese shipping lines Nippon Yusen KK and Kawasaki Kisen Kaisha Limited, plans to expand its dry bulk fleet as China's construction of bridges, roads and railways drives demand for iron ore, a key steelmaking ingredient. The country, the world's biggest iron ore buyer, increased imports of the commodity 8.1% in the first half of the year to 335 million tonnes.
That increase in demand has failed to prevent the Baltic Dry Index, a benchmark for commodity shipping rates, plunging 36% in the past year, as Chinese shipyards work through a glut of new vessels ordered with government support. Anchor Ship intends to continue relying on longer term deals to guard against market fluctuations.
Mr Tsuji said that "We charter ships for 10 years and we are not considering shortening that period. That way, the company only faces market risk when the contract ends."
Mr Tsuji said that Anchor Ship has 12 vessels in operation, comprising four container vessels, five tankers, a car carrier, one liquefied petroleum gas tanker and a bulk ship. The company's order backlog includes 3 container ships, 2 Capesize dry bulk vessels, 3 Panamax and 4 Handysize.
(sourced Bloomberg)
Bloomberg reported that Anchor Ship Investment Co may more than double its fleet to as many as 50 vessels because of rising imports of coal and iron ore in China and India.
Mr Hajime Tsuji president of Anchor Ship said that "Our customers are asking for more bulk carriers to feed that demand and we are filling it." He added that Anchor Ship will use its second fund of about JPY 200 billion to add to the 24 vessels it currently owns or has on order.
Mr Tsuji said that the company's first fund has posted annual returns of more than 5% since its formation in 2007 as signing more than half of contracts in yen, with the rest in dollars, has helped it hedge against currency fluctuations. A policy of only leasing out vessels on contracts of 10 years has also allowed it avoid a slump in spot market rates.
According to customs data tracked by Bloomberg, Anchor Ship, whose customers include Japanese shipping lines Nippon Yusen KK and Kawasaki Kisen Kaisha Limited, plans to expand its dry bulk fleet as China's construction of bridges, roads and railways drives demand for iron ore, a key steelmaking ingredient. The country, the world's biggest iron ore buyer, increased imports of the commodity 8.1% in the first half of the year to 335 million tonnes.
That increase in demand has failed to prevent the Baltic Dry Index, a benchmark for commodity shipping rates, plunging 36% in the past year, as Chinese shipyards work through a glut of new vessels ordered with government support. Anchor Ship intends to continue relying on longer term deals to guard against market fluctuations.
Mr Tsuji said that "We charter ships for 10 years and we are not considering shortening that period. That way, the company only faces market risk when the contract ends."
Mr Tsuji said that Anchor Ship has 12 vessels in operation, comprising four container vessels, five tankers, a car carrier, one liquefied petroleum gas tanker and a bulk ship. The company's order backlog includes 3 container ships, 2 Capesize dry bulk vessels, 3 Panamax and 4 Handysize.
(sourced Bloomberg)
Friday, July 29, 2011
China shippers lobby to foil Vale ore fleet
Friday, 29 Jul 2011
Bloomberg reported that China largest shipping companies are lobbying the government to foil Vale SA plan to build a USD 2.3 billion fleet of the world biggest iron ore carriers that will haul the steelmaking material to the nation.
Mr Zhang Shouguo executive vice chairman of the China Shipowners Association said Vale, the world largest iron ore producer, should engage the shipping companies to run the fleet. Rio de Janeiro based Vale is building 19 of the 400,000 tonnes vessels and will control another 16 under long term contracts aiming to stabilize freight costs and iron ore prices.
Mr Zhang who was a former deputy director of the water transport division of China Ministry of Transport said “Let the shipping industry do the transport thing. Vale is seeking to control the freight market as it has done with iron ore prices.”
Mr Zhang said Chinese regulators haven’t approved any of its ports to increase accommodation capability to more than 300,000 dead weight tons for dry bulk carriers because of safety and environmental concerns.
He said that “Many shipping companies may incur losses because of the monopoly on the route. We’ve made it clear to the government that we object to the major cargo owners building their own fleets.”
Mr Zhang said without elaborating that the association which represents 85% of China total shipping capacity is trying to seek cooperative shipping contracts with Vale. Should the need arise, it may also ask the government to investigate whether Vale breached the Chinese regulations against market manipulation or monopoly.
A Vale official in Rio de Janeiro, declining to be named according to corporate policies said the company won’t comment.
(Sourced from Bloomberg)
Bloomberg reported that China largest shipping companies are lobbying the government to foil Vale SA plan to build a USD 2.3 billion fleet of the world biggest iron ore carriers that will haul the steelmaking material to the nation.
Mr Zhang Shouguo executive vice chairman of the China Shipowners Association said Vale, the world largest iron ore producer, should engage the shipping companies to run the fleet. Rio de Janeiro based Vale is building 19 of the 400,000 tonnes vessels and will control another 16 under long term contracts aiming to stabilize freight costs and iron ore prices.
Mr Zhang who was a former deputy director of the water transport division of China Ministry of Transport said “Let the shipping industry do the transport thing. Vale is seeking to control the freight market as it has done with iron ore prices.”
Mr Zhang said Chinese regulators haven’t approved any of its ports to increase accommodation capability to more than 300,000 dead weight tons for dry bulk carriers because of safety and environmental concerns.
He said that “Many shipping companies may incur losses because of the monopoly on the route. We’ve made it clear to the government that we object to the major cargo owners building their own fleets.”
Mr Zhang said without elaborating that the association which represents 85% of China total shipping capacity is trying to seek cooperative shipping contracts with Vale. Should the need arise, it may also ask the government to investigate whether Vale breached the Chinese regulations against market manipulation or monopoly.
A Vale official in Rio de Janeiro, declining to be named according to corporate policies said the company won’t comment.
(Sourced from Bloomberg)
Thursday, July 21, 2011
Dry bulk rates edge further down on weak market sentiment
Thursday, July 21, 2011
The dry bulk market fell once again on Wednesday marking the ninth straight day of losses. The industry’s benchmark, the Baltic Dry Index (BDI) was down to 1,328 yesterday, retreating by 0.15%
on the day. Once again it was the bigger ships which suffered. The Capesize segment fell by 0.96% to 1,886 points, while the Panamax market was down by 0.32% to 1,536 points. Among the silver linings of the market was the Handysize/Handymax market with a gain of 0.43% to 695 points.
The first half of the year ended with the average value of the BDI standing at 1,372 points, down by 57 % from the first half of 2010 when the BDI was at 3,166 points and capesizes were earning $11,507/day more than today’s levels. “However, shipping investments have shown a 7% increase from the first quarter of the year with bulk carriers being protagonists in the secondhand market and containers dominating in the newbuilding scene” said Golden Destiny in a relative analysis.
It went on to mention that although bulk carriers have lost their strength in the secondhand and newbuilding market they are still holding the lion share in both markets, 35% of the total volume of transactions. “The lost of confidence is mainly attributable to the weak environment of the dry market as the BDI still hovers below the psychological barrier of 1,000 points mark and Chinese commodities’ demand appears not enough to absorb the ongoing flow of newbuilding deliveries. But, when the demand side will be rebalanced with the supply? The recovery of the market remains pending from the start of the year. During June, the BDI managed to gain a 6% month-on-month rise, but it seems that the high levels of 2010 are not yet feasible. Capesize time charter equivalent earnings have shown a 39.5% growth from May levels, but China’s high iron ore port stockpiles, barriers in electricity consumption and persistent high levels of commodities’ inflation cannot still narrow the gab with the supply side. According to data from the General Administration of Customs, China’s imports of iron ore fell to 51.09 million tones in June, compared with 53.30 million tones in May. The agency said that imports rose 19.3% year-on-year last month, versus the 24.8% rate expected by the economists. The June result was below the 28.4% rate in May and the lowest annual growth rate since the -6.4% posted in October 2009, which was the last of 12 consecutive months year-on-year declines that started in November 2008 after the global financial crisis” said Golden Destiny.
In a separate weekly report from shipbroker Fearnley’s, it was mentioned that the lack of direction in the Capesize market has continued this week, but now showing signs of weakening. “The West Australia market was struggling to decide which side of usd 8.00 the market should be, and fixture have been concluded on both sides, though the most recent reported is at a low usd 7. 75. Also the Front haul market was stable, just over the usd 20.00 mark, but has now dropped below and is not closer to usd 19.50pmt. The Atlantic again was living in its own world, but saw a significant down turn towards the end of the week, but has now stabilized at a healthier usd 13,000 level p/d. This market may not last as we suspect re-let charterers have cleared their tables pending the holiday season, but it should be noted that the tonnage supply is still tight. On the period front some more short period deals have been done in the usd 11,500-12,000 level which is only slightly down from the last rally. One can attribute this to fewer vessels idle (not trading) due to the low market level” said the shipbroker.
Referring to the Panamax market Fearnley’s said “it faced a slow start to the week, with limited activity in all basins. Atlantic rounds have stabilized around mid teens, however the north continent is somewhat tighter on tonnage, so this area might improve somewhat in the next few days. Ballasters for the Pacific are keeping the EC South American market down, in spite of quite a few cargoes out of that area. A few fresh cargoes emerged as well out of Indonesia and Aussie, but not enough to support any rise in rates for the time being. However the fall in rates seems to flatten out. With a tic more positive tone in both basins the last day, the end of the week may bring a steadier market, but this remains to be seen”.
As for the Handy market, “Atlantic softening across all segments with little fresh enquiry ex Bsea/Cont/USG and ECSA. Trips to Feast remain healthy. More cargoes expected for 1st half of August but this remains to be seen. Overall sentiment remains soft in Pacific, however few enquiries keeping market busy. For Indo-India, supras in South China are getting close to 12k. Nickel-ore rounds are getting firm rates in low mid-teens. Very quiet on iron ore front due to monsoons as WCI-China rates slided to 10k and from ECI around 9k. Few cargoes seen from RBCT. As a result, RBCT biz fixed on ECI tonnage around 11k. Red Sea, ferts on handymax/ supras are fixed at very mid 20´s pmt on voy bss to WC India. Period deals done at 13k for large supras” concludedd Fearnley’s.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
The dry bulk market fell once again on Wednesday marking the ninth straight day of losses. The industry’s benchmark, the Baltic Dry Index (BDI) was down to 1,328 yesterday, retreating by 0.15%
on the day. Once again it was the bigger ships which suffered. The Capesize segment fell by 0.96% to 1,886 points, while the Panamax market was down by 0.32% to 1,536 points. Among the silver linings of the market was the Handysize/Handymax market with a gain of 0.43% to 695 points.
The first half of the year ended with the average value of the BDI standing at 1,372 points, down by 57 % from the first half of 2010 when the BDI was at 3,166 points and capesizes were earning $11,507/day more than today’s levels. “However, shipping investments have shown a 7% increase from the first quarter of the year with bulk carriers being protagonists in the secondhand market and containers dominating in the newbuilding scene” said Golden Destiny in a relative analysis.
It went on to mention that although bulk carriers have lost their strength in the secondhand and newbuilding market they are still holding the lion share in both markets, 35% of the total volume of transactions. “The lost of confidence is mainly attributable to the weak environment of the dry market as the BDI still hovers below the psychological barrier of 1,000 points mark and Chinese commodities’ demand appears not enough to absorb the ongoing flow of newbuilding deliveries. But, when the demand side will be rebalanced with the supply? The recovery of the market remains pending from the start of the year. During June, the BDI managed to gain a 6% month-on-month rise, but it seems that the high levels of 2010 are not yet feasible. Capesize time charter equivalent earnings have shown a 39.5% growth from May levels, but China’s high iron ore port stockpiles, barriers in electricity consumption and persistent high levels of commodities’ inflation cannot still narrow the gab with the supply side. According to data from the General Administration of Customs, China’s imports of iron ore fell to 51.09 million tones in June, compared with 53.30 million tones in May. The agency said that imports rose 19.3% year-on-year last month, versus the 24.8% rate expected by the economists. The June result was below the 28.4% rate in May and the lowest annual growth rate since the -6.4% posted in October 2009, which was the last of 12 consecutive months year-on-year declines that started in November 2008 after the global financial crisis” said Golden Destiny.
In a separate weekly report from shipbroker Fearnley’s, it was mentioned that the lack of direction in the Capesize market has continued this week, but now showing signs of weakening. “The West Australia market was struggling to decide which side of usd 8.00 the market should be, and fixture have been concluded on both sides, though the most recent reported is at a low usd 7. 75. Also the Front haul market was stable, just over the usd 20.00 mark, but has now dropped below and is not closer to usd 19.50pmt. The Atlantic again was living in its own world, but saw a significant down turn towards the end of the week, but has now stabilized at a healthier usd 13,000 level p/d. This market may not last as we suspect re-let charterers have cleared their tables pending the holiday season, but it should be noted that the tonnage supply is still tight. On the period front some more short period deals have been done in the usd 11,500-12,000 level which is only slightly down from the last rally. One can attribute this to fewer vessels idle (not trading) due to the low market level” said the shipbroker.
Referring to the Panamax market Fearnley’s said “it faced a slow start to the week, with limited activity in all basins. Atlantic rounds have stabilized around mid teens, however the north continent is somewhat tighter on tonnage, so this area might improve somewhat in the next few days. Ballasters for the Pacific are keeping the EC South American market down, in spite of quite a few cargoes out of that area. A few fresh cargoes emerged as well out of Indonesia and Aussie, but not enough to support any rise in rates for the time being. However the fall in rates seems to flatten out. With a tic more positive tone in both basins the last day, the end of the week may bring a steadier market, but this remains to be seen”.
As for the Handy market, “Atlantic softening across all segments with little fresh enquiry ex Bsea/Cont/USG and ECSA. Trips to Feast remain healthy. More cargoes expected for 1st half of August but this remains to be seen. Overall sentiment remains soft in Pacific, however few enquiries keeping market busy. For Indo-India, supras in South China are getting close to 12k. Nickel-ore rounds are getting firm rates in low mid-teens. Very quiet on iron ore front due to monsoons as WCI-China rates slided to 10k and from ECI around 9k. Few cargoes seen from RBCT. As a result, RBCT biz fixed on ECI tonnage around 11k. Red Sea, ferts on handymax/ supras are fixed at very mid 20´s pmt on voy bss to WC India. Period deals done at 13k for large supras” concludedd Fearnley’s.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
Thursday, March 10, 2011
Dry bulk market showing signs of stronger recovery - Nikos Roussanoglou
Thursday, 10 March 11
The dry bulk market jumped by 3.37% yesterday, with the industry’s benchmark, the Baltic Dry Index (BDI), moving up to 1,472 points, levels not seen in weeks. The recovery was led by the Capesize market, which burst forward by an impressive 6.52%, with the Baltic Capesize Index reaching 1,699 points, finally surpassing the relative earnings of the much smaller in size Supramax ship type (1,512 points). As for the Panamax segment, it still “rules” the dry bulk market with the highest earnings, with the Baltic Panamax Index rising yesterday by 2.29% to 2,095 points.
According to Fearnley’s latest weekly report, in the capesize market, “both actual and nominal levels rising throughout the week, assisted by improving paper values and ever-increasing bunker prices. Considering the market remains massively overtonnaged, however, this appears more of a "dead cat bouncing" situation than the start of a fundamental recovery. Atlantic stands out as the most active/promising area, with genuine end-users to a large extent making up spot demand. Average tc-levels are up some 65% to come in at around usd 8k - which at least makes it worthwile to sail instead of drifting. Period fixing is limited to a handful of key players - levels varying considerably from usd 10k done on 16,4000 dwt/blt 1996 delivery China prompt for 4-6 months, to 180kdwt/blt 2010 fixing 4-6 months at usd 15k also basis delivery china prompt - the latter interestingly almost on par with 12 months concluded on 177kdwt/blt 2004 delivering end march for major miners” said the shipbroker.
Regarding the Panamax market, it mentioned that “after a slow last week the Panamax market took a clear turn this week. Fresh grain cargoes out of ECSA appeared and owners starting to ballast their vsls from Pacific in the same direction. Typical rates to secure ECSA grain business around 19,000/Day. Moreover, a more active period market with operators booking short period tonnage to cover grain business at levels rising from mid 17 towards the 19,000 mark. Atlantic still fine balanced and Continent tight for prompt tonnage with TA rounds fixed at 16-18k. The Pacific spot market not as enthusiastic. However, owners able to secure levels around the healthy mid teens. Propelled by the fresh grain orders, more active short period market and a slightly positive forward curve, nervousness turned into a growing positive sentiment. As the cape market also show signs of a recovery owners are raising their levels for longer periods. Takers are still reluctant though” the report noted.
In a separate weekly analysis by Commodore Research & Consultancy, “Chinese iron ore fixtures have remained low due the near record amount of iron ore that is stockpiled at Chinese ports. 21 vessels were reportedly chartered to export iron ore to China last week, 1 less than the previous week. Chinese thermal coal fixtures have also remained low in recent weeks due to robust port stockpiles, but a greater than usual amount of coal fixtures did come to the market last week. Chinese steel production could come under a small amount of near-term pressure due to falling prices and the continued surge in domestic steel stockpiles. Market sentiment inside and outside of China remains firm. Similarly, Commodore mentioned that coastal shipping rates continue to rebound, with rates to haul grain along the Chinese coast now finding support (only rates to ship coal were previously finding support).
Rates to haul coal continue to find the most support; rates to haul iron ore remain flat. Coastal rates to ship coal from Qinhuangdao (located in northeastern China) to Shanghai have increased to about $6.71/ton, an increase of $1.06 (19%) from a week ago. Rates to haul coal from Qinhuangdao to Zhejiang province (located directly south of Shanghai) have increased to $6.87/ton, an increase of $0.92 (15%) from a week ago” said Commodore.
Thermal coal demand remains firm and the 6 vessels chartered to ship thermal coal to China last week were up slightly from the trailing four-week average. On average, 4 vessels were chartered to export thermal coal to China during the weeks ending February 4 to February 25. A large amount of coal remains stockpiled at Qinhuangdao and other major Chinese coal ports which continues to result in Chinese thermal fixture volumes remaining much lower than the robust fixture activity seen in late November through early December.
Source: Nikos Roussanoglou, Hellenic Shipping
Tags : Qinhuangdao port, thermal coal shipment,
According to Fearnley’s latest weekly report, in the capesize market, “both actual and nominal levels rising throughout the week, assisted by improving paper values and ever-increasing bunker prices. Considering the market remains massively overtonnaged, however, this appears more of a "dead cat bouncing" situation than the start of a fundamental recovery. Atlantic stands out as the most active/promising area, with genuine end-users to a large extent making up spot demand. Average tc-levels are up some 65% to come in at around usd 8k - which at least makes it worthwile to sail instead of drifting. Period fixing is limited to a handful of key players - levels varying considerably from usd 10k done on 16,4000 dwt/blt 1996 delivery China prompt for 4-6 months, to 180kdwt/blt 2010 fixing 4-6 months at usd 15k also basis delivery china prompt - the latter interestingly almost on par with 12 months concluded on 177kdwt/blt 2004 delivering end march for major miners” said the shipbroker.
Regarding the Panamax market, it mentioned that “after a slow last week the Panamax market took a clear turn this week. Fresh grain cargoes out of ECSA appeared and owners starting to ballast their vsls from Pacific in the same direction. Typical rates to secure ECSA grain business around 19,000/Day. Moreover, a more active period market with operators booking short period tonnage to cover grain business at levels rising from mid 17 towards the 19,000 mark. Atlantic still fine balanced and Continent tight for prompt tonnage with TA rounds fixed at 16-18k. The Pacific spot market not as enthusiastic. However, owners able to secure levels around the healthy mid teens. Propelled by the fresh grain orders, more active short period market and a slightly positive forward curve, nervousness turned into a growing positive sentiment. As the cape market also show signs of a recovery owners are raising their levels for longer periods. Takers are still reluctant though” the report noted.
In a separate weekly analysis by Commodore Research & Consultancy, “Chinese iron ore fixtures have remained low due the near record amount of iron ore that is stockpiled at Chinese ports. 21 vessels were reportedly chartered to export iron ore to China last week, 1 less than the previous week. Chinese thermal coal fixtures have also remained low in recent weeks due to robust port stockpiles, but a greater than usual amount of coal fixtures did come to the market last week. Chinese steel production could come under a small amount of near-term pressure due to falling prices and the continued surge in domestic steel stockpiles. Market sentiment inside and outside of China remains firm. Similarly, Commodore mentioned that coastal shipping rates continue to rebound, with rates to haul grain along the Chinese coast now finding support (only rates to ship coal were previously finding support).
Rates to haul coal continue to find the most support; rates to haul iron ore remain flat. Coastal rates to ship coal from Qinhuangdao (located in northeastern China) to Shanghai have increased to about $6.71/ton, an increase of $1.06 (19%) from a week ago. Rates to haul coal from Qinhuangdao to Zhejiang province (located directly south of Shanghai) have increased to $6.87/ton, an increase of $0.92 (15%) from a week ago” said Commodore.
Thermal coal demand remains firm and the 6 vessels chartered to ship thermal coal to China last week were up slightly from the trailing four-week average. On average, 4 vessels were chartered to export thermal coal to China during the weeks ending February 4 to February 25. A large amount of coal remains stockpiled at Qinhuangdao and other major Chinese coal ports which continues to result in Chinese thermal fixture volumes remaining much lower than the robust fixture activity seen in late November through early December.
Source: Nikos Roussanoglou, Hellenic Shipping
Tags : Qinhuangdao port, thermal coal shipment,
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Wednesday, March 2, 2011
Mixed fortunes for dry bulk owners this week - Nikos Roussanoglou, Hellenic Shipping
Wednesday, 02 March 11
Although the dry bulk market has been on the positive side this week, things still look quite uncertain in the near term, with most owners puzzled as to what their next move should be in such a fluid market environment. Still, the industry’s benchmark, the Baltic Dry Index (BDI) managed to edge higher yesterday, ending the session up by 0.88% to 1.262 points. But the irregularities among the various sub-segments still are the new “regularities”, with Capesizes (larger ship sizes of 150,000 tons) still earning significantly lower daily income than their smaller counterparts. Up until recently, this had been the case with Panamaxes, with the gap among the two markets, now being among the largest recorded. But, the Supramaxes good fortunes during the past couple of weeks, has helped the even smaller and more flexible ships of this type, to edge forward and surpass even the Capesize segment. The relative Baltic Supramax market is now standing at 1,418 points (+1.43% on the day), versus just 1,314 points of the Baltic Capesize Index.
According to the latest weekly report from Shiptrade Services, on the capesize market iron ore majors are once again out of play this week with new cylcones hitting major ports in Australia. “As a result hardly any fixtures were concluded. The negative freight market, further burdened by the rising bunker prices is shrinking owners returns, who more
often than not have been considering pulling their vessels out of the market until the it picks up again. On the other hand the period market has been quite active this week with good returns, as a result, it often stands as a good alternative to owners” the shipbroker said.
Regarding the booming as of late Supramax market, it mentioned that “the sentiment was positive this week in the Mediterranean, mostly for trips to the US as well as the Continent as a result of fresh cargoes entering the market and a rush of activity deriving thereof. Rates in the Atlantic mainly stayed at similar levels to last week with little fresh enquiry recorded within the Atlantic. The Pacific continued its improvement this week with much activity being directed towards India. Rates have been rising in the spot market as a result. Here too the rise in the paper market has given rise to some significant gains in the short period rates. However many doubt the longevity of this positive sentiment” it said.
As for the Panamax market, it has softened in the Atlantic since last week, with grain demand noted then from the ECSA, now fading, thus resulting in dropped rates. “In the Pacific, the sentiment was mixed with few NOPAC round being concluded while rates hovered at similar levels to last week. On the other hand, the paper market firmed up giving rise to higher returns in the short period market. Finally, in the smaller HandySize market, no significant change has been recorded since last week. The Atlantic healed more or less steady with a generally balanced supply ratio. A spike of activity was seen in the Pacific for trips to the USG and ECSA boosting rates for backhaul trips by over 20% .
In terms of ship purchasing activity, Shiptrade noted that purchase interest has been reduced compared to the previous week. “The Asia markets are holding the leading position, followed by Greek and other markets. In the dry sector, purchase interest concentrated on Handysize, Handymax and Panamax vessels. Furthermore the market is still trying to find a consensus and an equilibrium point with regard to price estimation differences between what buyers are willing to pay for vessel acquisitions and on what levels sellers are willing to sell.
In this regard it would be helpful to mention that although for quite some time we have not witnessed a deal in the late nineties built handymaxes, market rumor has it that a large Japanese handymax bulk carrier built 1996 has been committed to Asian buyers, who were willing to pay a firm very high teens for her” concluded the report.
Source: Nikos Roussanoglou, Hellenic Shipping
According to the latest weekly report from Shiptrade Services, on the capesize market iron ore majors are once again out of play this week with new cylcones hitting major ports in Australia. “As a result hardly any fixtures were concluded. The negative freight market, further burdened by the rising bunker prices is shrinking owners returns, who more
often than not have been considering pulling their vessels out of the market until the it picks up again. On the other hand the period market has been quite active this week with good returns, as a result, it often stands as a good alternative to owners” the shipbroker said.
Regarding the booming as of late Supramax market, it mentioned that “the sentiment was positive this week in the Mediterranean, mostly for trips to the US as well as the Continent as a result of fresh cargoes entering the market and a rush of activity deriving thereof. Rates in the Atlantic mainly stayed at similar levels to last week with little fresh enquiry recorded within the Atlantic. The Pacific continued its improvement this week with much activity being directed towards India. Rates have been rising in the spot market as a result. Here too the rise in the paper market has given rise to some significant gains in the short period rates. However many doubt the longevity of this positive sentiment” it said.
As for the Panamax market, it has softened in the Atlantic since last week, with grain demand noted then from the ECSA, now fading, thus resulting in dropped rates. “In the Pacific, the sentiment was mixed with few NOPAC round being concluded while rates hovered at similar levels to last week. On the other hand, the paper market firmed up giving rise to higher returns in the short period market. Finally, in the smaller HandySize market, no significant change has been recorded since last week. The Atlantic healed more or less steady with a generally balanced supply ratio. A spike of activity was seen in the Pacific for trips to the USG and ECSA boosting rates for backhaul trips by over 20% .
In terms of ship purchasing activity, Shiptrade noted that purchase interest has been reduced compared to the previous week. “The Asia markets are holding the leading position, followed by Greek and other markets. In the dry sector, purchase interest concentrated on Handysize, Handymax and Panamax vessels. Furthermore the market is still trying to find a consensus and an equilibrium point with regard to price estimation differences between what buyers are willing to pay for vessel acquisitions and on what levels sellers are willing to sell.
In this regard it would be helpful to mention that although for quite some time we have not witnessed a deal in the late nineties built handymaxes, market rumor has it that a large Japanese handymax bulk carrier built 1996 has been committed to Asian buyers, who were willing to pay a firm very high teens for her” concluded the report.
Source: Nikos Roussanoglou, Hellenic Shipping
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