Thursday, 05 Jan 2012
Reuters reported that physical prompt coal prices moved slightly higher on Wednesday, in line with gains in oil due to growing tension between Iran and the United States and European Union.
A few index inked DES ARA trades took place but no fixed price trades.
A January loading South African cargo was bid at USD 108.50 and offered at USD 112.50, up 25 cents.
A February cargo was bid at USD 104.50, while a March cargo was bid at USD 105.00, unchanged.
A January DES ARA cargo was bid at USD 108, up USD 1.00
A February DES ARA cargo was bid at USD 110.00 and offered at USD 115.00, up USD 1.50
Unless there are fresh supply disruptions, prices look set to continue to drift lower, traders and utilities said.
Coal would not be immune to a spike in oil prices if the United States and EU decide to place an embargo on Iranian oil imports and this escalates.
The US and EU on Wednesday agreed in principle to ban Iranian oil imports but have yet to decide when an embargo would come into effect.
Iran has threatened to close the Strait of Hormuz to oil shipping in response to sanctions.
(Sourced from Reuters)
Showing posts with label shipping. Show all posts
Showing posts with label shipping. Show all posts
Thursday, January 5, 2012
Tuesday, October 11, 2011
India shipping firms eye expansion in dire market
Tue Oct 11, 2011
* Indian shipping firms eye low asset prices
* Shipping Corp of India says will keep buying vessels
* India looking to nearly treble port capacity by 2020
By Aniruddha Basu and Siddesh Mayenkar
MUMBAI, Oct 11 (Reuters) - Indian shipping firms are planning to expand their fleet to take advantage of falling vessel prices and a sharp downturn in the global freight markets, industry executives said on Tuesday.
India's shipping firms view the difficult economic environment as a buying opportunity, as they expect to see a huge boom in seaborne trade in Asia's third largest economy over the next decade.
"We will look at expanding our fleet because asset prices are low, but it has to be strategically done," said Yudhishthir Khatau, vice chairman and managing director of oil carrier Varun Shipping , on the sidelines of the India Shipping Summit.
"With added capacity, we still have to face low freight rates."
A flood of new vessels this year has pushed the crude tanker market to unprecedented lows, with average daily earnings falling to negative territory for the first time.
A similar situation is expected to hit the dry bulk market over the next few months, as industry experts believe the oversupply of ships will reverse a recent rally.
Despite the adverse market conditions, state-run Shipping Corp of India has not received any directive from the government to stop acquiring vessels, a top official said.
Shipping Corp of India has an order book of 28 vessels, worth around $1.4 billion, for delivery by 2013/14 and plans to order at least 10 more vessels, said Chairman and Managing Director S Hajara.
India's shipping industry is considered vital to the country's efforts to secure the necessary crude oil, coal and other commodities necessary to maintain its strong economic growth.
In preparation for this fleet expansion, India expects to boost port capacity to 3.2 billion tonnes by 2020 from the current 1.1 billion tonnes, Shipping Secretary K. Mohandas said at the conference.
PIRACY
One of the biggest risks facing the growth of India's shipping industry is the threat of piracy, which is becoming more pronounced off the country's southwest.
Pirate attacks on oil tankers and other ships are costing the world economy billions of dollars a year and navies have struggled to combat the menace, especially in the vast Indian Ocean. Experts say seaborne gangs are set to ramp up attacks in the area after the monsoon season abates.
Maritime insurance premiums have increased due to the growing risks, but experts believe the added costs will not significantly impact India's shipping industry for now.
"The Indian market is relatively young and so will survive for awhile without paying too much premium," said a foreign insurance broker, who wished not to be identified.
Around 90 Indian seafarers have been taken hostage this year and 50 are still in captivity, according to the International Chamber of Shipping.
India has stationed a warship near the Gulf of Aden which has thwarted dozens of hijacking attempts and escorts vessels passing through the region. India is also detaining more than 100 pirates captured in rescue operations.
(sourced Reuters)
* Indian shipping firms eye low asset prices
* Shipping Corp of India says will keep buying vessels
* India looking to nearly treble port capacity by 2020
By Aniruddha Basu and Siddesh Mayenkar
MUMBAI, Oct 11 (Reuters) - Indian shipping firms are planning to expand their fleet to take advantage of falling vessel prices and a sharp downturn in the global freight markets, industry executives said on Tuesday.
India's shipping firms view the difficult economic environment as a buying opportunity, as they expect to see a huge boom in seaborne trade in Asia's third largest economy over the next decade.
"We will look at expanding our fleet because asset prices are low, but it has to be strategically done," said Yudhishthir Khatau, vice chairman and managing director of oil carrier Varun Shipping , on the sidelines of the India Shipping Summit.
"With added capacity, we still have to face low freight rates."
A flood of new vessels this year has pushed the crude tanker market to unprecedented lows, with average daily earnings falling to negative territory for the first time.
A similar situation is expected to hit the dry bulk market over the next few months, as industry experts believe the oversupply of ships will reverse a recent rally.
Despite the adverse market conditions, state-run Shipping Corp of India has not received any directive from the government to stop acquiring vessels, a top official said.
Shipping Corp of India has an order book of 28 vessels, worth around $1.4 billion, for delivery by 2013/14 and plans to order at least 10 more vessels, said Chairman and Managing Director S Hajara.
India's shipping industry is considered vital to the country's efforts to secure the necessary crude oil, coal and other commodities necessary to maintain its strong economic growth.
In preparation for this fleet expansion, India expects to boost port capacity to 3.2 billion tonnes by 2020 from the current 1.1 billion tonnes, Shipping Secretary K. Mohandas said at the conference.
PIRACY
One of the biggest risks facing the growth of India's shipping industry is the threat of piracy, which is becoming more pronounced off the country's southwest.
Pirate attacks on oil tankers and other ships are costing the world economy billions of dollars a year and navies have struggled to combat the menace, especially in the vast Indian Ocean. Experts say seaborne gangs are set to ramp up attacks in the area after the monsoon season abates.
Maritime insurance premiums have increased due to the growing risks, but experts believe the added costs will not significantly impact India's shipping industry for now.
"The Indian market is relatively young and so will survive for awhile without paying too much premium," said a foreign insurance broker, who wished not to be identified.
Around 90 Indian seafarers have been taken hostage this year and 50 are still in captivity, according to the International Chamber of Shipping.
India has stationed a warship near the Gulf of Aden which has thwarted dozens of hijacking attempts and escorts vessels passing through the region. India is also detaining more than 100 pirates captured in rescue operations.
(sourced Reuters)
Monday, March 28, 2011
Limited access at Japan quake-hit ports, 7 oil terminals shut
Mon Mar 28, 2011 7:21am GMT
* Only 30 pct of shipping berths at quake-hit ports open
* Radiation levels at Tokyo Bay ports remain "very safe"
* Undamaged ports able to absorb lost northeast capacity
By Randy Fabi and Chikako Mogi
SINGAPORE/TOKYO, March 28 (Reuters) - Seven small oil terminals and most of the shipping berths at Japan's northeastern ports remain closed more than two weeks after a devastating earthquake, government and industry officials said.
All 15 key ports damaged by the March 11 disaster have reopened for recovery efforts, Japan's transport ministry said on its website, but access was limited. As of Sunday, only 30 percent of the 208 shipping berths at the facilities were open.
A terminal operated by Mitsubishi Chemical was likely to stay shut for months, while inspections were being conducted at facilities run by Shin Etsu Chemical , Kashima Denkai, Kashima Kyobi and Kashima Oil.
JX Nippon Oil & Energy's terminal at the Port of Sendai and Onahama Petroleum's loading facility at Onahama were also closed and it was not known when operations would resume, maritime firm Inchcape Shipping Services said.
Despite ports reopening, seaborne trade was at a standstill in parts of northeast Japan as shipping companies divert their vessels away from the quake-crippled Fukushima nuclear plant due to radiation fears. [ID:nL3E7EP0DC]
Engineers have been battling to control the six-reactor complex since the magnitude 9.0 earthquake and ensuing tsunami, which left more than 27,000 people dead or missing.
Fires, explosions and radiation leaks have repeatedly forced them to suspend work on averting a catastrophic meltdown at the plant, which lies 240 km (150 miles) north of Tokyo.
RADIATION FEARS
Radiation levels as of late Sunday in Tokyo Bay ports were below exposure levels the World Health Organisation considered normal, the ministry said.
"Currently, the level of radiation (at ports) in Tokyo City, Yokohama City, Kawasaki City, and Ichikawa City were shown to be at very safe levels to health," it said.
Most shipping companies have limited their exclusion zone from the nuclear plant to around 100 km, halting seaborne trade to the ports of Soma, Onahama and Sendai.
However, at least three container firms -- Germany's Hapag-Lloyd , Claus-Peter Offen and Hong Kong's Orient Overseas Container Line -- have widened their "no-go" area to more than double the industry norm to include Tokyo Bay.
Hapag-Lloyd has diverted a total of 16 vessels from the ports of Tokyo, Nagoya and Yokohama. A spokesman said the world's fifth-biggest container shipper would resume voyages to Nagoya this week.
Orient Overseas has omitted stops at the three ports for six of its shipping lines.
Some industry officials believed the three companies were overreacting and did not see other firms diverting their cargoes away from Tokyo.
China detected what it said were "abnormal" radiation levels on a Mitsui O.S.K. Lines container ship entering the port of Xiamen in eastern Fujian province last week, local media said.
The vessel, MOL Presence, was rejected, said shipbrokers, was on its way back to Japan and was expected to arrive at the port of Kobe on Wednesday.
Japan has hundreds of ports throughout its coastline with enough capacity to absorb vessels avoiding the northeast, industry officials said. (sourced:Reuters)
* Radiation levels at Tokyo Bay ports remain "very safe"
* Undamaged ports able to absorb lost northeast capacity
By Randy Fabi and Chikako Mogi
SINGAPORE/TOKYO, March 28 (Reuters) - Seven small oil terminals and most of the shipping berths at Japan's northeastern ports remain closed more than two weeks after a devastating earthquake, government and industry officials said.
All 15 key ports damaged by the March 11 disaster have reopened for recovery efforts, Japan's transport ministry said on its website, but access was limited. As of Sunday, only 30 percent of the 208 shipping berths at the facilities were open.
A terminal operated by Mitsubishi Chemical was likely to stay shut for months, while inspections were being conducted at facilities run by Shin Etsu Chemical , Kashima Denkai, Kashima Kyobi and Kashima Oil.
JX Nippon Oil & Energy's terminal at the Port of Sendai and Onahama Petroleum's loading facility at Onahama were also closed and it was not known when operations would resume, maritime firm Inchcape Shipping Services said.
Despite ports reopening, seaborne trade was at a standstill in parts of northeast Japan as shipping companies divert their vessels away from the quake-crippled Fukushima nuclear plant due to radiation fears. [ID:nL3E7EP0DC]
Engineers have been battling to control the six-reactor complex since the magnitude 9.0 earthquake and ensuing tsunami, which left more than 27,000 people dead or missing.
Fires, explosions and radiation leaks have repeatedly forced them to suspend work on averting a catastrophic meltdown at the plant, which lies 240 km (150 miles) north of Tokyo.
RADIATION FEARS
Radiation levels as of late Sunday in Tokyo Bay ports were below exposure levels the World Health Organisation considered normal, the ministry said.
"Currently, the level of radiation (at ports) in Tokyo City, Yokohama City, Kawasaki City, and Ichikawa City were shown to be at very safe levels to health," it said.
Most shipping companies have limited their exclusion zone from the nuclear plant to around 100 km, halting seaborne trade to the ports of Soma, Onahama and Sendai.
However, at least three container firms -- Germany's Hapag-Lloyd , Claus-Peter Offen and Hong Kong's Orient Overseas Container Line -- have widened their "no-go" area to more than double the industry norm to include Tokyo Bay.
Hapag-Lloyd has diverted a total of 16 vessels from the ports of Tokyo, Nagoya and Yokohama. A spokesman said the world's fifth-biggest container shipper would resume voyages to Nagoya this week.
Orient Overseas has omitted stops at the three ports for six of its shipping lines.
Some industry officials believed the three companies were overreacting and did not see other firms diverting their cargoes away from Tokyo.
China detected what it said were "abnormal" radiation levels on a Mitsui O.S.K. Lines container ship entering the port of Xiamen in eastern Fujian province last week, local media said.
The vessel, MOL Presence, was rejected, said shipbrokers, was on its way back to Japan and was expected to arrive at the port of Kobe on Wednesday.
Japan has hundreds of ports throughout its coastline with enough capacity to absorb vessels avoiding the northeast, industry officials said. (sourced:Reuters)
Tuesday, February 15, 2011
ANALYSIS-Small ships to unlock rate boon for bulk owners
Feb8, 2011 17:32 EST
By Krishna N Das and Jonathan Saul
BANGALORE/LONDON, Feb8(Reuters) – Dry cargo shippers with smaller vessels are shifting to more-risk, more-reward spot markets, eyeing rising demand for sugar and grains — commodities well suited to versatile supramax and handysize ships.
Ship owners generally prefer long-term charters in a weak market. The Baltic Dry Index <.BADI> o-year lows in recent weeks but confidence has been rocked by South Korean dry bulk group Korea Line Corp <005880.ks> filing for bankruptcy protection, highlighting the risk of charter-party defaults.
“Concerns now persist industry-wide, as speculation grows as to whether faults,” Deutsche Bank analyst Justin Yagerman said.
“Continued charterer defaults could bring into question many companies’ above-market charters.” Flooding in Australia, the world’s biggest coal exporter, and weather-srupted coal shipments and dented sentiment for capesize vessels — the giants of seaborne trade routes, typically hauling 150,000 tonne cargoes such as iron ore and coal.
Demand for grains, though, has soared. Wheat prices in the European Union, the world’s No.2 exporter, a year, aided by a Russian export ban due to drought and strong demand from North Africa and Middle East countries.
Global food prices, which hit their highest level on record last month, is a mounting worry for world leaders. Recent catastrophic weather around the globe could put yet more pressure on the cost of food, an issue that has already helped spark protests across the Middle East. Egypt is the world’s biggest wheat importer.
Eagle Bulk Shipping , which operates supramax vessels that typically have around half the capacity of a capesize, lowing them to haul a wider range of cargoes, has placed half its ships in the spot market.
That strategy has been welcomed by investors, and Eagle Bulk Shipping’s price-to-earnings ratio of almost 35 is the highest among its peers, Thomson Reuters StarMine data shows.
“We prefer smaller vessels due to the more favorable supply dynamics, more diverse cargo loading options, record spot fixture activity for the last five months due to a recovering worldwide economy, and the increasing ton-mile in the grain trade,” FBR analyst Doug Garber said in a note.
Genco Shipping and Trading could be another to gain from a near-term rebound in day rates — the cost of renting a ship by the day — as it has roughly half its 2011 days in open or linked-to-index charters.
Conversely, Diana Shipping , DryShips , Navios Maritime Partners LP and others whose fleets are dominated by bigger ships, have placed more vessels in long-term contracts, hoping for steady returns. Diana and DryShips trade at just above 5 and 8 times forward earnings, respectively.
Iron ore and coal are the main drivers of the dry bulk trade, accounting for some two-thirds of demand, but both are highly dependent on China, making the shippers that own bigger vessels more vulnerable to demand swings in the world’s biggest commodity consumer.
Sterne Agee expects Baltic Dry Index spot rates to drop 16 percent this year and 9 percent in 2012, noting these declines will be hardest felt by those owning capesizes, where fleet growth is seen at 17 percent this year and 14 percent in 2012.
For capesizes, the brokerage forecast a 25 percent fall in spot rates this year to below $25,000 a day. Only three years ago, owners of these vessels could charge day rates in excess of $100,000 a day.
Supramax rates are seen dropping about 7 percent to $20,845.
“The largest part of the order book concerns the larger ships, the capes. It is actually the capes that are of a bigger concern to everybody in the industry,” said Michael Bodouroglou, chairman and CEO of Greece’s Paragon Shipping Inc , which has smaller supramax and handymax vessels among its fleet.
“The panamaxes, the supramaxes and in particular the handies I think they will fare a lot better particularly in the second quarter which is the season where the grain trades pick up from South America etc — these are trades which are accommodated in the smaller sizes,” he told Reuters.
The Baltic capesize Index <.BACI> has fallen by two-thirds in the past 3 months to its lowest in more than 2 years. Rates for supramax vessels were faring slightly better, though the Baltic’s supramax index <.BASI> has dropped by a quarter in the last 3 weeks.
“In the next few months, a moderate amount of cargo demand is likely to continue to surface, which is likely to result in supramax and handysize rates remaining at healthy levels,” said Jeffrey Landsberg, managing director of dry bulk consultancy Commodore Research.
“Global grain demand remains strong and will lend support to rates once the South American export season kicks in to full gear.” (sourced:reuters)
BANGALORE/LONDON, Feb8(Reuters) – Dry cargo shippers with smaller vessels are shifting to more-risk, more-reward spot markets, eyeing rising demand for sugar and grains — commodities well suited to versatile supramax and handysize ships.
Ship owners generally prefer long-term charters in a weak market. The Baltic Dry Index <.BADI> o-year lows in recent weeks but confidence has been rocked by South Korean dry bulk group Korea Line Corp <005880.ks> filing for bankruptcy protection, highlighting the risk of charter-party defaults.
“Concerns now persist industry-wide, as speculation grows as to whether faults,” Deutsche Bank analyst Justin Yagerman said.
“Continued charterer defaults could bring into question many companies’ above-market charters.” Flooding in Australia, the world’s biggest coal exporter, and weather-srupted coal shipments and dented sentiment for capesize vessels — the giants of seaborne trade routes, typically hauling 150,000 tonne cargoes such as iron ore and coal.
Demand for grains, though, has soared. Wheat prices in the European Union, the world’s No.2 exporter, a year, aided by a Russian export ban due to drought and strong demand from North Africa and Middle East countries.
Global food prices, which hit their highest level on record last month, is a mounting worry for world leaders. Recent catastrophic weather around the globe could put yet more pressure on the cost of food, an issue that has already helped spark protests across the Middle East. Egypt is the world’s biggest wheat importer.
Eagle Bulk Shipping , which operates supramax vessels that typically have around half the capacity of a capesize, lowing them to haul a wider range of cargoes, has placed half its ships in the spot market.
That strategy has been welcomed by investors, and Eagle Bulk Shipping’s price-to-earnings ratio of almost 35 is the highest among its peers, Thomson Reuters StarMine data shows.
“We prefer smaller vessels due to the more favorable supply dynamics, more diverse cargo loading options, record spot fixture activity for the last five months due to a recovering worldwide economy, and the increasing ton-mile in the grain trade,” FBR analyst Doug Garber said in a note.
Genco Shipping and Trading could be another to gain from a near-term rebound in day rates — the cost of renting a ship by the day — as it has roughly half its 2011 days in open or linked-to-index charters.
Conversely, Diana Shipping , DryShips , Navios Maritime Partners LP and others whose fleets are dominated by bigger ships, have placed more vessels in long-term contracts, hoping for steady returns. Diana and DryShips trade at just above 5 and 8 times forward earnings, respectively.
Iron ore and coal are the main drivers of the dry bulk trade, accounting for some two-thirds of demand, but both are highly dependent on China, making the shippers that own bigger vessels more vulnerable to demand swings in the world’s biggest commodity consumer.
Sterne Agee expects Baltic Dry Index spot rates to drop 16 percent this year and 9 percent in 2012, noting these declines will be hardest felt by those owning capesizes, where fleet growth is seen at 17 percent this year and 14 percent in 2012.
For capesizes, the brokerage forecast a 25 percent fall in spot rates this year to below $25,000 a day. Only three years ago, owners of these vessels could charge day rates in excess of $100,000 a day.
Supramax rates are seen dropping about 7 percent to $20,845.
“The largest part of the order book concerns the larger ships, the capes. It is actually the capes that are of a bigger concern to everybody in the industry,” said Michael Bodouroglou, chairman and CEO of Greece’s Paragon Shipping Inc , which has smaller supramax and handymax vessels among its fleet.
“The panamaxes, the supramaxes and in particular the handies I think they will fare a lot better particularly in the second quarter which is the season where the grain trades pick up from South America etc — these are trades which are accommodated in the smaller sizes,” he told Reuters.
The Baltic capesize Index <.BACI> has fallen by two-thirds in the past 3 months to its lowest in more than 2 years. Rates for supramax vessels were faring slightly better, though the Baltic’s supramax index <.BASI> has dropped by a quarter in the last 3 weeks.
“In the next few months, a moderate amount of cargo demand is likely to continue to surface, which is likely to result in supramax and handysize rates remaining at healthy levels,” said Jeffrey Landsberg, managing director of dry bulk consultancy Commodore Research.
“Global grain demand remains strong and will lend support to rates once the South American export season kicks in to full gear.” (sourced:reuters)
Tags: coal, drybulk, grains, iron ore, shipping, dry cargo shippers, vessels, spot market, Supramaxes, Handysizes, The Baltic Supramax Index, The Baltic Dry Index, Eagel Bulk Shipping, FBR analyst, Genco Shipping, Conversely, Diana Shipping , DryShips, Navios Maritime Partners LP
Subscribe to:
Posts (Atom)
Posts
