Friday, 20 June 2014 02:47

Market Report - June 20, 2014

The summer solstice and the feast of soccer in Brazil are not providing any lift to the markets. The Baltic Dry Index closed on Thursday this week on 905 points compared to 939 points last week and 977 points the week previously.

       
    Cape Size      Panamax            Supramax 
Index       1919       474       708 
Last week      1792      635       760
Spot time charter      $14,900/day      $ 3,800/day  $ 7,400/day 
One week ago $14,100/day   $ 5,100/day $ 8,000/day

Tankers:  Despite oil market uncertainty on account of events in Iraq, rates for Aframax, Suezmax and VLCCs are forecast to languish in the $10,000-$20,000 per day range over the summer months while product tankers on benchmark routes from the Middle East Gulf to Japan are expected to sit in the  $7,500-$14,000 per day range.

Containers: The benchmark spot rate from Hong Kong to Los Angeles dropped this week to $1,650  - its lowest since December 2013 despite the Transpacific Stabilization Agreement members proposing a peak season surcharge of $400 per FEU, which was due to kick in this week. 

 

Friday, 13 June 2014 01:03

Market Report - June 13, 2014

Having hauled itself into four figures earlier this week, the index could not hold onto the gains as the appetite for Capesizes cooled off. The index closed on Thursday this week on 939 points compared to 977 points last week and 940 points the week previously.

       
    Cape Size      Panamax            Supramax 
Index       1792       635       760 
Last week      1689      758       811
Spot time charter      $14,100/day      $ 5,100/day  $ 8,000/day 
One week ago $13,700/day   $ 6,100/day $ 8,500/day
Friday, 06 June 2014 10:14

Market Report - June 6, 2014

Much voiced optimism for improved trading conditions has yet to materialize within the Baltic Dry Index which is stubbornly staying below 1000 points. The index closed on Thursday this week on 977 points compared to 940 points last week and 966 points the week previously.

       
    Cape Size      Panamax            Supramax 
Index       1689       758       811 
Last week      1379      904       839
Spot time charter      $13,700/day      $ 6,100/day  $ 8,500/day 
One week ago $10,900/day   $ 9,900/day $ 7,200/day

Containers:  The peak season cannot come fast enough for ocean carriers in the Trans-Pacific trade as notwithstanding successive GRIs, rates remain under intense pressure. The benchmark rate HKG to Los Angeles was this week down to around $1,750 per FEU, the lowest since mid December 2013 having lost $250 per FEU in the past two weeks alone.

314 Drewry

Friday, 30 May 2014 09:44

Market Report - May 30, 2014

The Baltic Dry Index remains pretty depressed, closing on Thursday on 940 points compared to 966 points last week and 1021 points the week previously.

       
    Cape Size      Panamax            Supramax 
Index       1379       904       839 
Last week      1302    1028       872
Spot time charter      $10,900/day      $ 9,900/day  $ 7,200/day 
One week ago $10,600/day   $ 8,200/day $ 9,100/day

 

 

Thursday, 22 May 2014 23:00

Market Report - May 23, 2014

Iron ore futures in Singapore were trading this week below $100 a metric thereby fuelling concern for the health of shipping markets this summer. The Baltic Dry Index still remains fairly directionless closing on Thursday on 966 points compared to 1021 points last week and 1008 points the week previously.

  Capesize     Panamax   Supramax 
Index  1302 1028 872
Last week 1546 1016 901
Spot time charter  $10,600/day $ 8,200/day $  9,100/day
One week ago $12,200/day     $ 8,100/day  $  9,400/day  

 

Containers: The P3 Alliance (Maersk, MSC and CMA CGM) start up has been delayed until at least the fall as regulatory approval from the EU and China is pending. Also of note, the number of inactive containerships has fallen to below 2% of the overall fleet for the first time since last September signalling optimism for a leap in rates during the upcoming peak season.

Tankers: The number of orders for new build VLCCs continues to cause concern. In 2013 there were 26 VLCCs ordered, however in the first quarter of 2014 alone a further with 15 were ordered. Of some interest is the news that the fleet of 15 VLCCs sold by Maersk Tankers to Euronav earlier this year for $980m is now worth $1.2 billion (up 24%). Unfortunately this is not reflected in short term rates where VLCCs trading the spot market were this week being fixed at around $11,000 per day, which is well below the $23,000 premium to take such a vessel for a full year time charter. Part of the problem is that U.S. crude imports have dropped to the lowest level since 1997 and are down to 6.5 million barrels/day. U.S. production on the other hand has risen to around 8.5 million barrels/day. The Teekay May 2014 tanker market report with Christian Waldegrave is available at  https://www.youtube.com/watch?v=Vx9CzMxFjCE&noredirect=1


Friday, 16 May 2014 09:43

Market Report - May 16, 2014

The Baltic Dry Index was largely static this week other than a little more interest in Panamaxes. The index closed on Thursday on 1021 points compared to 1008 points last week and 993 points the week previously.

  Capesize     Panamax   Supramax 
Index  1546 1016 901
Last week 1613 879 918
Spot time charter  $12,200/day $ 8,100/day $  9,400/day
One week ago $12,300/day     $ 7,100/day  $  9,600/day  

Containers: Following a GRI from Shanghai to Europe of $500 per TEU on May 1, rates have only modestly improved and currently sit at around $1,400 per TEU. A further GRI of $300 per TEU is therefore being contemplated for June 1. On the Transpacific trade lane, freight rates remain under a lot of pressure with Shanghai to the U.S. west coast down to $1,900 per FEU and to the US east coast to $3,316 per FEU.

 

On a more positive note, the number of laid up container ships has declined to its lowest level since October 2013. The number of inactive container ships has fallen to 2.1% of the total fleet at 264 vessels of a combined 367,000 TEU capacity.

 

Friday, 09 May 2014 09:50

Market Report - May 9, 2014

The Baltic Dry Index closed slightly stronger for the week on Thursday on 993 points compared to 962 points last week and 930 points the week previously.

  Capesize     Panamax   Supramax 
Index  1613 879 918
Last week 1600 871 919
Spot time charter  $12,300/day $ 7,100/day $  9,600/day
One week ago $ 9,000/day     $ 7,000/day  $  9,600/day  

 

Friday, 02 May 2014 06:50

Market Report - May 2, 2014

The Baltic Dry Index closed slightly stronger for the week on Thursday on 993 points compared to 962 points last week and 930 points the week previously.

  Capesize     Panamax   Supramax 
Index  1600 871 919
Last week 1692 852 909
Spot time charter  $ 9,000/day $ 7,000/day $  9,600/day
One week ago $ 9,800/day     $ 6,800/day  $  9,500/day  

 

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  

 

 

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