Thursday, 30 April 2015 23:51

Market Report -May 1, 2015

The market continues to tread water as the Baltic Dry Index closed yesterday on 591 points compared to 599 points last week and 593 points the week previously.

    Cape Size        Panamax            Supramax 
Index         565         658      625
Last week        543         680      621
Spot time charter      $   4,500/day       $ 5,200/day  $  6,500/day 
One week ago $   4,600/day  $ 5,400/day  $  6,500/day

Containers:  In a further move towards container industry consolidation, Hamburg Süd is deepening its level of cooperation with the Ocean Three Alliance in the east – west trade lanes. With this in mind, the Ocean Three grouping has already filed an amendment with the Federal Maritime Commission in Washington for plans for a new service from Asia to USEC via Panama that will include Hamburg Süd vessels. 

Thursday, 23 April 2015 16:07

Market Report - April 24, 2015

Over supply of vessels continues to hold back the market with the Baltic Dry Index closing yesterday on 599 points compared to 593 points last week and 580 points the week previously.

    Cape Size        Panamax            Supramax 
Index         543         680      621
Last week        521         636      612
Spot time charter      $   4,600/day       $ 5,400/day  $  6,500/day 
One week ago $   4,700/day  $ 5,100/day  $  6,400/day



Friday, 17 April 2015 08:54

Market Report - April 17, 2015

The Baltic Dry Index continues to bump along the bottom, closing yesterday on 593 points compared to 580 points last week and 588 points the week previously.

    Cape Size        Panamax            Supramax 
Index         521         636      612
Last week        461         591      617
Spot time charter      $   4,700/day       $ 5,100/day  $  6,400/day 
One week ago $   4,200/day  $ 4,700/day  $  6,400/day

Tankers:  Please see the latest outlook from Teekay presented by Christian Waldegrave


Thursday, 09 April 2015 16:38

Market Report - April 10, 2015

The Baltic Dry Index remains stuck in low gear after closing yesterday on 580 points compared to 588 points last week and 598 points the week previously.

    Cape Size        Panamax            Supramax 
Index         461         591      617
Last week        455         602      648
Spot time charter      $   4,200/day       $ 4,700/day  $  6,400/day 
One week ago $   4,200/day  $ 4,700/day  $  6,600/day

Containers: The Transpacific Stabilization Agreement has recommended a series of new short-term rate minimums to come into force in May. These include a minimum rate of $2,050 per FEU for Asia-US west coast shipments via Californian ports; $2,100 per FEU via Pacific northwest ports; $4,100 per FEU for east coast and gulf coast ports; and $4,400 per FEU for intermodal moves to midwestern interior points. Rates from Europe are meanwhile in virtual freefall and are currently hovering around only $500 per TEU  the lowest for two years..

Tankers: There were 22 VLCCs or almost 5% of the world fleet, waiting to load cargoes at Iraq’s Basra Oil Terminal last week. These vessels are still pulling in a steady $50-60,000/day on the spot market thanks to fleet utilization rate of around 90%. 

Thursday, 02 April 2015 09:32

Market Report - April 2, 2015

No Easter Joy for the markets as one of the most miserable quarters ever for many ship owners trying to earn a living in the dry bulk sector mercifully comes to an end. The Baltic Dry Index closed yesterday on 588 points compared to 598 points last week and 584 points the week previously.

     Capesize       Panamax      Supramax 
Index          455         602         648
Last week         455         602         648
Spot time charter     $ 4,200/day       $ 4,700/day    $ 6,600/day
One week ago    $ 4,300/day   $ 4,700/day      $ 6,800/day  
Thursday, 26 March 2015 22:23

Market Report - March 27, 2015

The bulk market continues to bump along the bottom with very little to drive an improvement this side of a trading break for Easter. The Baltic Dry Index closed yesterday on 598 points compared to 584 points last week and 560 points the week previously.

    Cape Size        Panamax            Supramax 
Index         455         602      648
Last week        407         613      627
Spot time charter      $   4,300/day       $ 4,800/day  $  6,800/day 
One week ago $   4,100/day  $ 4,900/day  $  6,600/day

Containers: Asia-Europe spot rates continue to be in a downward spiral and are now in the low $600’s per TEU. In response, ocean carriers have optimistically announced a General Rate Increase for April 1 of up to $950 per TEU. Trans-Pacific spot rates are also under pressure falling to around $1,750 per FEU from Shanghai to the U.S. West Coast.

Tankers: VLCC spot earnings have hovered around the $50,000 per day mark on the Middle East to Asia trade for most of March thereby providing a degree of unusual market predictability in our business. Thanks to plenty of cargoes to support the supply side, limited fleet growth, and rising ton/miles as more shipments from OPEC countries are made to Asia, rather than to the U.S. things are looking good for a while to come.

Friday, 20 March 2015 00:07

Market Report - March 20, 2015

The best that can be said is that at least the markets went in the right direction this week but not by much. The Baltic Dry Index closed yesterday on 584 points compared to 560 points last week and 561 points the week previously.

    Cape Size        Panamax            Supramax 
Index         407         613      627
Last week        394         586      596
Spot time charter      $   4,100/day       $ 4,900/day  $  6,500/day 
One week ago $   4,800/day  $ 4,700/day  $  6,300/day

Thursday, 12 March 2015 17:16

Market Report - March 13, 2015

352 sad face

    Cape Size        Panamax            Supramax 
Index         394         586      596
Last week        464         583      560
Spot time charter      $   4,100/day       $ 4,700/day  $  6,300/day 
One week ago $   4,800/day  $ 4,700/day  $  5,900/day

Thursday, 05 March 2015 23:42

Market Report - March 6, 2015

So now you have have a Capsize for less than $5,000 per day. Nobody is doing well at these levels other than scrap yards where prices are also in rapid decline as owners look to off-load older tonnage that they can hardly give away in today’s market. The Baltic Dry Index closed yesterday on 561 points compared to 533 points last week and 511 points the week previously.

    Cape Size        Panamax            Supramax 
Index         464         583      560
Last week        525         531      506
Spot time charter      $   4,800/day       $ 4,700/day  $  5,900/day 
One week ago $   5,400/day  $ 4,200/day  $  5,300/day

Friday, 27 February 2015 07:25

Market Report - February 27, 2015

Unsurprisingly given current market conditions, the number of orders placed for bulk carrier new buildings was dramatically down in January. Only 20 new orders were placed compared to 226 in January 2014. The total number of new building orders placed in January was for 109 vessels compared to 695 in January 2014. The Baltic Dry Index remains at historically depressed levels and closed yesterday on 533 points compared to 511 points last week and 540 points the week previously.

    Cape Size        Panamax            Supramax 
Index         525         531      506
Last week        539         516      483
Spot time charter      $   5,400/day       $ 4,200/day  $  5,300/day 
One week ago $   5,300/day  $ 4,100/day  $  5,000/day

Containers: In order to begin the long task of rebuilding some level of business stability,the Transpacific Stabilization Agreement for the eastbound Pacific trade confirmed this week their intent to raise freight rates by $600 per FEU for all shipments effective March 9, and a further $600 per FEU on April 9. 

Thursday, 19 February 2015 22:46

Market Report - February 20, 2015

In advance of the Chinese New Year when all trading in that part of the world takes a time-out, the Baltic Dry Index (BDI) hit yet another record low on Wednesday this week falling to an absolutely miserable 509 points, its lowest ever level since the index began in January 1985. The situation is made worse by prices for market driving iron ore which accounts for about 30% of all dry bulk freight, falling to their lowest level in almost six years.

The Baltic Dry Index fell to 553 points on Wednesday, 1 point below the previous record set in July and August, 1986. The Index closed yesterday at the abysmal level of 511 points compared to 540 points last week and 564 points the week previously.

    Cape Size        Panamax            Supramax 
Index         539         516      483
Last week        652         489      596
Spot time charter      $   5,300/day       $ 4,100/day  $  5,000/day 
One week ago $   6,400/day  $ 3,900/day  $  5,200/day

LNG:  Although there are currently a few spot market exposed LNG carriers anchored off Singapore Mr. Peter Evensen, Chief Executive of Teekay LNG partners, remarked this week that there is an estimated requirement for over 110 standard-size LNG carriers above the existing order book by 2020. In December 2014, the company signed long term time-charter contracts with extension options with Shell for five of the company’s new build LNG carriers and exercised its remaining options with Daewoo Shipbuilding & Marine Engineering (DSME) for the construction of three additional 173,400 cbm capacity vessels. The company also has on order six ice-class LNG carriers and two 173,400 cbm MEGI LNG carrier new builds that are to be taken on long term time charter by Cheniere Marketing of Houston to service that company’s Sabine Pass LNG liquefaction facility in Louisiana. Teekay currently operates 29 LNG carriers.

Thursday, 12 February 2015 16:03

Market Report - February 13, 2015

The global bulk fleet is paying a heavy price for excess capacity. The Baltic Dry Index fell to 553 points on Wednesday this week,  1 point below the previous record set in July and August, 1986. The Index closed yesterday at the still painfully low level of 540 points compared to 564 points last week and 632 points the week previously.

    Cape Size        Panamax            Supramax 
Index         652         489      496
Last week        680         428      538
Spot time charter      $   6,400/day       $ 3,900/day  $  5,200/day 
One week ago $   6,700/day  $ 3,400/day  $  5,600/day

Tankers:  There is increasing speculation that VLCCs are enjoying a short-lived boom before the onset of the seasonally weak spring season, when refineries traditionally close for revamps, inspections or maintenance. Earnings on the benchmark Middle East to Asia trade route continue to provide strong returns in the $60-70,000/day range. 

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