Thursday, 18 December 2014 15:52

Market Report - December 19, 2014

After last week’s declines, the Capesize market is suffering a Christmas melt down. The Baltic Dry Index closed on Thursday on 814 points compared to 887 points last week and 1019 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index         517         929      925
Last week        879       1026      953
Spot time charter      $   5,100/day       $ 7,400/day  $   9,700/day 
One week ago $   6,800/day  $ 8,200/day  $ 10,000/day

Tankers: Daily spot market earnings for VLCC’s continue to climb and this week found themselves in the $90-$100,000 per day range for a voyage from the Middle East to Asia – a level last seen in the giddy days of 2008. Not wishing to throw cold water on a good news story but there are 92 VLCCs on order which if not balanced out by scrapping of older tonnage could soon begin to undermine improved earnings.

Thursday, 11 December 2014 23:59

Market Report - December 12, 2014

There is no Christmas cheer whatsoever in the Capesize market which this week experienced a bloodbath. The Baltic Dry Index closed on Thursday on 887 points compared to 1019 points last week and 1187 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index         879       1026      953
Last week      1452       1097      980
Spot time charter      $   6,800/day       $ 8,200/day  $ 10,000/day 
One week ago $  19,700/day  $ 8,800/day  $ 10,300/day

 

Thursday, 04 December 2014 17:03

Market Report - December 5, 2014

The Baltic Dry Index closed on Thursday on 1019 points compared to 1187 points last week and 1332 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       1452       1097      980
Last week      1347       1099      984
Spot time charter      $  19,700/day       $ 8,800/day  $ 10,200/day 
One week ago $  18,900/day  $ 8,800/day  $ 10,300/day

Containers: The 15 member TransPacific Stabilization Agreement has announced a much needed General Rate Increase (GRI) of $1,000 per FEU effective December 15 on all cargo from all origins and destinations - the highest in recent TSA history. In addition, the group will impose any port congestion surcharges that carriers deem necessary.

Tankers: The oil glut continues to encourage buyers to stock up thereby keeping larger tankers busy. VLCCs are slightly off last week’s rates but were still hovering in the $60,000/day range this week – a big improvement on recent months.

Thursday, 27 November 2014 17:36

Market Report - November 28, 2014

Under Chinese pressure on producers to reduce prices, iron ore was this week trading below $70 for the first time in five years. This signals another period of misery for Capsizes which has pulled down the Baltic Dry Index this week to close on Thursday on 1187 points compared to 1332 points last week and 1264 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       2347       1099      984
Last week      3130       1053      926
Spot time charter      $  18,5900/day       $ 8,800/day  $ 10,300/day 
One week ago $  23,500/day  $ 8,500/day  $   9,700/day

Containers: Despite FMC pressure to the contrary, some ocean carriers this week reinstated port congestion surcharges for container imports into the U.S. West Coast. Fees average $800 per TEU and $1,000 per FEU.

Tankers: VLCCs had an encouraging week with a sudden flurry of activity lifting rates from the Middle East to China to more than $50,000/day in some cases. Product tankers also gained a lift in the Atlantic thanks to cold weather ahead of the Thanksgiving long weekend in the U.S.


Friday, 21 November 2014 00:29

Market Report - November 21, 2014

The Baltic Dry Indexwas largely treading water this week to close on Thursday on 1332 points compared to 1264 points last week and 1436 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       3130       1053      926
Last week      2972       1112      873
Spot time charter      $  23,500/day       $ 8,500/day  $   9,700/day 
One week ago $  21,200/day  $ 8,900/day  $   9,100/day

Containers: Given the extent of the issues they are facing, ocean carriers have been announcing surcharges to compensate for delays at USWC ports but this has caught the attention of the Federal Maritime Commission which has reminding the carriers that they cannot impose congestion surcharges without giving customers 30-days notice. The Transpacific Stabilization Agreement had last weekend announced an immediate $1,000 per FEU and $800 per TEU congestion surcharge but this is now on hold.

Tankers: Owners fortunate enough to have Aframax and Suezmax tonnage in the Mediterranean were doing exceptionally well this week. Tankers are reaping the rewards of a regional boom where spot earnings are reaching $80-90,000 per day compared to only $35,000 per day last week. It surely won’t last so enjoy while you can.

Friday, 14 November 2014 09:57

Market Report - November 14, 2014

The shine came off Capesizes this week resulting in the Baltic Dry Index closing on Thursday on 1264 points compared to 1436 points last week and 1424 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       2972       1112      873
Last week      3612       1205      886
Spot time charter      $  21,200/day       $ 8,900/day  $   9,100/day 
One week ago $  26,500/day  $ 9,600/day  $   9,300/day



 

Friday, 07 November 2014 09:33

Market Report - November 7, 2014

The Baltic Dry Index managed to consolidate last week’s gains to close on Thursday on 1436 points compared to 1424 points last week and 1155 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       3612       1205      886
Last week      3543       1222      891
Spot time charter      $  26,500/day       $ 9,600/day  $   9,300/day 
One week ago $  25,600/day  $ 9,800/day  $   9,300/day

Members of the Transpacific Stabilization Agreement are planning to increase low-sulphur charges for westbound trades from January 1 when the new ECA standards kick in by recommending a charge of $47 per FEU and $38 per TEU from the US West Coast, and $95 per FU and $76 per YEU from the East and Gulf Coasts. 

Friday, 31 October 2014 08:48

Market Report - October 31, 2014

Having forced down the prices of iron ore and coal, China is again buying and Capesizes are in lift off mode as there is no stopping the market at the top end. The Baltic Dry Index closed on Thursday on 1424 points compared to 1155 points last week and 963 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       3543       1222      891
Last week      2258       1099      906
Spot time charter      $  25,600/day       $ 9,800/day  $   9,300/day 
One week ago $  16,400/day  $ 8,800/day  $   9,500/day

Tankers: On the back of heavy Chinese buying to take advantage of the current low price of oil, VLCCs spot rates to Asia this week climbed by around  $9,000/day to the $45-50,000/day range – a major improvement on the rates at the beginning of October. China’s oil demand in September was 42.3m tons, or an average of 10.3m barrels per day — up 7.4% from the same month a year ago, according to Platts.

335 Tankers

Thursday, 23 October 2014 12:50

Market Report - October 24, 2014

The Baltic Dry Index gained a shot in the arm from a sudden spurt in Capesize rates this week to close on Thursday on 1155 points compared to 963 points last week and 974 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       2258       1099      906
Last week      1544        865      970
Spot time charter      $  16,405/day       $ 8,801/day  $   9,471/day 
One week ago $  10,300/day  $ 6,900/day  $ 10,100/day

Containers: The Transpacific Stabilization Agreement is to raise rates between mid-November and early December on account of “congested US port terminals, harbour and over-the-road truck driver shortages, slower trains and longer rail terminal dwell times”.   Increases of $100 per FEU  and $90 per TEU are to take effect on or around November 15but by no later than December 1. The organizationhas also announced its recommended low sulphur fuel surcharge effective January 1 2015 of $67 per FEU to the US east coast and $53 per FEU to the west coast. Charges per TEU will be assessed at 90% of the FEU levels.

Thursday, 16 October 2014 23:03

Market Report - October 17, 2014

Still on life-support, the Baltic Dry Index closed on Thursday on 963 points compared to 974 points last week and 1041 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       1544        865      970
Last week      1580        8645      980
Spot time charter      $  10,300/day       $ 6,900/day  $ 10,100/day 
One week ago $  10,500/day  $ 6,900/day  $ 10,300/day

Bunkers: Oil prices are at their lowest in about 22 months due in part to large U.S. stockpiles. Oil futures have largely collapsed as shale supplies boost U.S. output to the highest level in almost 30 years at a time of weakening global demand. OPEC’s response has been to cut prices in an effort to preserve market share but the group is not scheduled to meet to discuss a coordinated strategy until November 27 in Vienna.

Containers: The world’s container fleet continues to grow in both capacity and number of ships. In November there were an additional 12 ships in the fleet, equating to an additional 82,000 TEU of capacity. This took the world’s container fleet to 5,035 vessels comprising a total of 17.8m TEU.

Thursday, 09 October 2014 21:18

Market Report - October 10, 2014

The Baltic Dry Index has again dipped below its benchmark 1000 points, closing on Thursday on 974 points compared to 1041 points last week and 1038 points the week previously. Last week’s holiday in China for National Day celebrations seems to have done shipping markets no favors at all.

       
    Cape Size        Panamax            Supramax 
Index       1580        864      980
Last week      1788        878     1033
Spot time charter      $  10,500/day       $ 6,900/day  $ 10,300/day 
One week ago $  12,200/day  $ 7,000/day  $ 10,800/day

Containers:  The US Federal Maritime Commission (FMC) this week announced approval of the 2M Alliance between Maersk Line and Mediterranean Shipping Co. The US was the only jurisdiction in which the new alliance was required to gain formal regulatory approval, however in order to pacify shippers, the FMC is to impose reporting requirements on the two carriers in order to monitor the implementation of the agreement.

Friday, 03 October 2014 09:23

Market Report - October 3, 2014

The Baltic Dry Index remains completely directionless closing on Thursday on 1041 points compared to 1038 points last week and 1089 points the week previously.

       
    Cape Size        Panamax            Supramax 
Index       1788        878     1033
Last week      1837        799     1046
Spot time charter      $  12,200/day       $ 7,000/day  $ 10,800/day 
One week ago $  12,600/day  $ 6,400/day  $ 10,900/day

 

 

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