Friday, 25 April 2014 09:45

Market Report - April 25, 2014

Whilst continued weakness, especially in the Atlantic, is being touted as a short term problem, it is no less painful for the spot market. The Baltic Dry Index closed on Thursday marginally improved for the week on 962 points compared to 930 points last week and 1029 points the week previously.

  Capesize     Panamax   Supramax 
Index  1692 852 909
Last week 1591 812 908
Spot time charter  $ 9,800/day $ 6,800/day $  9,500/day
One week ago $ 8,800/day     $ 6,500/day  $  9,500/day  

 

 

Thursday, 17 April 2014 09:06

Market Report - April 17, 2014

This was an awful week for Capesizes and the lack of interest in this sector in the Atlantic has dragged the overall market back into three digits. The Baltic Dry Index closed on Thursday steeply down for the week on 930 points compared to 1029 points last week and 1235 points the week previously. In the year to date, 36 new Capesizes have entered the market while only eight have been sold for scrapping. There lies a large part of the problem.

  Capesize     Panamax   Supramax 
Index  1591 812 908
Last week 1865 787 936
Spot time charter  $ 8,800/day $ 6,500/day $  9,500/day
One week ago $11,000/day     $ 6,300/day  $  9,700/day  

Tankers: Just as things were starting to improve, owners are busy loading the gun to shoot themselves in the foot with 46 VLCC new builds ordered in the last six months alone. This could easily convert to the next era of tanker market depression kicking in sometime in 2016/17. The VLCC market is currently being supported by Chinese and Indian demand for West African crude oil which is generating welcome additional ton-miles at the decent rate of around $25,000 per day on the spot market.

Containers: Hard pressed carriers serving the world’s biggest trade lane, Asia to Europe, are seeking a General Rate Increase (GRI) of around $550 per TEU effective May 1. An attempt will also be made to apply a much smaller increase on the Europe to Asia return leg. Average 2014 Asia to Europe rates for the year to date at $1,575 per TEU are a modest improvement of the same period last year when the SCFI weekly average stood at $1,244 per TEU.

Thursday, 10 April 2014 23:15

Market Report - April 11, 2014

Market weakness across the board this week – thanks goodness we had the turmoil at the Canucks to distract us. The Baltic Dry Index closed well down for the week on Thursday on 1029 points compared to 1235 points last week and 1412 points the week previously.    

  Capesize     Panamax   Supramax 
Index  1865  787  936
Last week 2343  836 1025
Spot time charter  $11,700/day     $ 6,300/day $  9,700/day
One week ago $17,000/day     $ 6,700/day  $10,700/day  

 

 

Friday, 04 April 2014 09:52

Market Report - April 4, 2014

Capes and Panamaxes both took a battering this week which only serves to emphasize just how fragile any sort of recovery in the bulk markets really is. The Baltic Dry Index closed down for the week on Thursday on 1235 points compared to 1412 points last week and 1621 points the week previously.  

  Capesize     Panamax   Supramax 
Index  2343  836 1025
Last week 2579 1018 1139
Spot time charter  $17,000/day     $ 6,700/day $10,700/day
One week ago $19,850/day $ 8,200/day   $11,900/day  

 

 

Friday, 21 March 2014 08:21

Market Report - March 21, 2014

Another decent week for Capesizes has carried the market in the right direction for ship owners. The Baltic Dry Index closed up for the week on Thursday on 1621 points compared to 1468 points last week and 1480 points the week previously.  

  Capesize     Panamax   Supramax 
Index  3129 1120  1205
Last week 2654 1100  1173
Spot time charter  $25,800/day     $ 9,000/day $12,600/day
One week ago $20,800/day $ 8,900/day   $12,300/day  

 

 

Friday, 14 March 2014 00:00

Market Report - March 14, 2014

A bit of a roller coaster ride for Capesizes this week with some wild swings in the market. The Baltic Dry Index eventually closed on Thursday on 1468 points compared to 1480 points last week and 1250 points the week previously.  

  Capesize     Panamax   Supramax 
Index  2654 1100  1173
Last week 2830 1100  1100
Spot time charter  $20,800/day       $ 8,900/day      $12,300/day 
One week ago $22,300/day $ 8,500/day   $11,700/day  

 

 

Friday, 07 March 2014 00:00

Market Report - March 7, 2014

Capesizes are in the driving seat for the time being and helping the markets to achieve a hint of spring cheer. The Baltic Dry Index closed on Thursday on 1480 points compared to 1250 points last week and 1164 points the week previously.  

  Capesize     Panamax   Supramax 
Index  2830 1100  1100
Last week 2049 1123  1100
Spot time charter  $22,300/day       $ 8,500/day      $11,700/day 
One week ago $13,800/day  $ 9,100/day   $11,500/day 

Containers: The Chief Executive of Maersk Line, Mr. Soren Skou,  said this week that ocean carriers in the container trades need to learn to exist in an environment of excess capacity. Maersk today operates 2.6m TEU of capacity, the same as in the first quarter of 2012. In an effort to lift results, the company has embarked on a highly aggressive and successful cost reduction program over the past two years.

LNG: The recent weak freight market for LNG carriers seems to be picking up. Whether this has anything to do with nervousness over Russian gas supplies following that country’s expedition into Ukraine is unclear but for sure many buyers are looking at where they will source form in the future. Spot rates are currently hovering around $18,000/day whilst it is estimated that given the large capital investment in these vessels, at least $30,000/day is needed to break even. On the other hand, the vast majority of LNG carriers are tied to long term charters which insulate them from the swings of the spot market.

 

Friday, 28 February 2014 06:00

Market Report - February 28, 2014

Nobody is yet calling it a recovery but at least the markets are stable thanks to a bit of lift from Capesizes. The Baltic Dry Index closed on Thursday on 1250 points compared to 1164 points last week and 1097 points the week previously.  

  Capesize     Panamax   Supramax 
Index  2049 1123  1100
Last week 1680 1261  1087
Spot time charter  $13,800/day       $  9,000/day      $11,500/day 
One week ago $ 9,700/day  $10,100/day   $11,400/day 

 

 

Friday, 21 February 2014 10:06

Market Report - February 21, 2014

No big changes but the Baltic Dry Index did at least go in the right direction this week to close on Thursday on 1164 points compared to 1097 points last week and 1092 points the week previously.  

  Capesize     Panamax   Supramax 
Index  1680 1261  1087
Last week 1557 1313   965
Spot time charter  $ 9,700/day       $10,100/day      $11,400/day 
One week ago $ 8,400/day  $10,500/day   $10,100/day 


Containers:
The world’s container ship fleet is this year expected to add around 9.6% of new tonnage this year, the slowest rate in a decade. However, a record amount of scrapping and deferral of deliveries will reduce net growth to 5.5%, the lowest annual net increase since 1999, as carriers scrap Panamax ships that don’t provide the economies of scale. Global demand is expected to increase by 4.4% this year. 

298 COSCO

COSCO and China Shipping have this week signed a “Strategic Cooperation Framework Agreement” (picture above taken at COSCO’s Beijing HQ). It was revealed that the two companies will establish a comprehensive strategic partnership and a resource sharing mechanism in areas of shipping, terminal operations, logistics, shipbuilding, ship repair, etc.

Tankers: VLCC rates from the Arabian Gulf to Asia have recovered from their wobble a couple of weeks ago and as can be seen from the graph below are now riding in the $45-50,000 range per day range. Despite the continued slowdown in U.S. oil imports, a slow but sure improvement across the tanker industry is taking place but the rush to an excessive number of new buildings to take advantage of continuing attractive prices remains the torpedo that could yet again sink the wet market.

298 VLCC

Friday, 14 February 2014 09:33

Market Report - February 14, 2014

Helping to tighten the market a little was the recent one week municipal power failure at South Africa’s Richards Bay Coal Terminal (RBCT) which has resulted in a backlog of seven weeks with 28 vessels now swinging on the hook. The terminal has a nominal export capacity of 90 million tons/year over 5 berths. However, overall the Baltic Dry Index was steady this week and closed on Thursday on 1097 points compared to 1092 points last week and 1127 points the week previously.  

  Capesize     Panamax   Supramax 
Index  1557 1313  965
Last week 1575 1307  937
Spot time charter  $ 8,400/day       $10,500/day      $10,100/day 
One week ago $ 8,600/day  $10,400/day   $ 9,800/day 

 

Friday, 07 February 2014 10:50

Market Report - February 7, 2014

No Sochi Olympic celebrations for the Baltic Dry Index which closed down again on Thursday at 1092 points compared to 1127 points last week and 1271.  

  Capesize     Panamax   Supramax 
Index  1575 1307  937
Last week 1527 1347 1018
Spot time charter  $ 8,600/day       $10,400/day      $  9,800/day 
One week ago $ 8,400/day  $10,700/day   $10,600/day 

 

Friday, 31 January 2014 00:53

Market Report - January 31, 2014

The Baltic Dry Index continued to slide this week closing on Thursday at 1127 points compared to 1271 points last week and 1398. 

  Capesize     Panamax   Supramax 
Index  1527 1347 1018
Last Week 1775 1468 1121
Spot time charter  $ 8,400/day       $10,700/day      $10,600/day 
One week Ago $11,100/day $11,700/day   $11,700/day

 

Containers: Members of the Transpacific Stabilization Agreement (TSA) are planning a two phase effort to raise Transpacific eastbound rates beginning on March 15 with $300 per FEU following by a further increase on May 1.  This follows the January 15 GRI of $300 per FEU. Rates are currently at $4-4,500 per FEU.

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