Friday, 13 May 2016 12:18

Market Report - May 13, 2016

The Baltic Dry Index (BDI) declined week-over-week, with Capesize earnings off 22 percent to $6.6K/day and Panamax earnings down 8 percent to $6.2 K/day. However, this is expected to improve as capesize chartering activity was up 17 percent week-over-week last week and up 14 percent year-over-year: 64 percent will carry iron ore (vs. 76 percent the previous week) and 33 percent will carry coal (vs. 10 percent the previous week).

 

  Capesize    

   Panamax        

  Supramax 

Index 

         798

      597

        553

Two weeks ago

         892

      591

        578

Spot time charter     

 $   6,300/day     

 $ 4,750/day 

$  5,800/day 

Two weeks ago  

 $   7,025/day

 $ 4,725/day 

$  6,050/day

 

 

Friday, 06 May 2016 14:23

Market Report - May 6, 2016

Capesize rates have been slashed by around 20% over the past week due to a decline in activity due to the Golden Week in Japan and public holidays in many parts of the world.

 

  Capesize    

   Panamax        

  Supramax 

Index 

          892

      591

        578

Two weeks ago

        1137

      685

        578

Spot time charter     

 $   7,025/day     

 $ 4,725/day 

$  6,050/day 

Two weeks ago  

 $   9,000/day

 $ 5,500/day 

$  5,990/day

 

Friday, 29 April 2016 14:05

Market Report - April 29, 2016

 

 

  Capesize    

   Panamax        

  Supramax 

Index 

        1137

      685

        578

Two weeks ago

        1085

      736

        558

Spot time charter     

 $   9,000/day     

 $ 5,500/day 

$  5,990/day 

Two weeks ago  

 $   7,600/day

 $ 5,900/day 

$  5,7500/day

Containers: After three straight weeks of decline, the spot rate for shipping a 40-foot-equivalent unit container from Shanghai to the West Coast shot up 18 percent this week. According to the Shanghai Containerized Freight Index the spot rate to the West Coast this week was $857 per FEU, up from $725 last week. The spot rate to the East Coast was $1,694 per FEU, up from $1,599 last week.

Friday, 22 April 2016 14:03

Market Report - April 22, 2016

The Baltic Capesize Index remained strong through the week, settling at 1,085 points on Friday versus 949 points on April 15. The average weighted time charter rate climbed 16% to $8,216 per day, the highest level since early December.

 

  Capesize    

   Panamax        

  Supramax 

Index 

        1085

      736

        558

Two weeks ago

         949

      727

        525

Spot time charter     

 $   7,600/day     

 $ 5,900/day 

$  5,750/day 

Two weeks ago  

 $   7,075/day

 $ 5,800/day 

$  5,1500/day

Friday, 15 April 2016 13:57

Market Report - April 15, 2016

Since hitting rock bottom at 290 in mid-February, the BDI has risen 93% to 560.  Drewry reports that this recent rise in performance has been driven by panamaxes first, as the ECSA grain export season got underway.  February is usually the worst month of each year, and perhaps, with more demolition and layups, will again be the low point in earnings for this year.  Global steel production remains very weak, including China, but has recently started to improve.  Australian iron ore exports to Asian customers remain strong while a considerable portion of rising Brazilian exports have been channeled through Vale’s Malaysian blending terminal.  Q1 cargo demand was very depressed, and led to the record low BDI.  Q2 cargo demand is improving in all sizes, partially driven by a strong ECSA grain season.  Somewhat improved global steel raw material demand in Q2 will also help, but nothing exciting.  The fleet is growing, even with very high demolition.  Idle ships have artificially reduced fleet supply, especially in capesize sector.

 

  Capesize    

   Panamax        

  Supramax 

Index 

         949

      727

        525

Two weeks ago

         562

      627

        485

Spot time charter     

 $   7,075/day     

 $ 5,800/day 

$  5,500/day 

Two weeks ago  

 $   4,500/day

 $ 5,000/day 

$  5,100/day

 

Friday, 08 April 2016 12:57

Market Report - April 8, 2016

The Baltic Dry Index is up 62 percent from its record-low reading of 290 on Feb. 11, and just two points below its year-high of 473 on Jan. 4. There has been a significant rise in Capesize rates due to higher steel demand and China restocking iron ore stockpiles.

 

  Capesize    

   Panamax        

  Supramax 

Index 

         562

      627

        485

Two weeks ago

         345

      535

        476

Spot time charter     

 $   4,500/day     

 $ 5,000/day 

$  5,100/day 

Two weeks ago  

 $   3,000/day

 $ 4,275/day 

$  4,980/day

In case you hadn't guessed, shipping consultants Drewery's outlook for the container sector is not positive. Container ships will continue to struggle as with 66 cancelled sailings in February, rates still did not improve or appear to reduce overcapacity.  Radical capacity management decisions are likely to occur on specific trade routes.

Friday, 01 April 2016 10:16

Market Report - April 1, 2016

While the BDI has improved over the last two weeks analyst remain bearish on the short term outlook.  The overall index has gained about 55 percent since touching its lowest of 290 points on Feb. 10.  Capesizes have benefitted from the decision of Chinese steel makers to increase steel production - iron ore account for about a third of seaborne volumes on the larger capesizes, and pricing remains a key factor for dry freight.

 

  Capesize    

   Panamax        

  Supramax 

Index 

         345

      535

        476

Two weeks ago

         197

      463

        449

Spot time charter     

 $   3,000/day     

 $ 4,275/day 

$  4,980/day 

Two weeks ago  

 $   2,040/day

 $ 3,720/day 

$  4,700/day

 

Friday, 18 March 2016 12:51

Market Report - March 18, 2016

The Baltic Dry Index (BDI) ended its one-month rally on Wednesday when it slid one point to close at 393. On Thursday, the index fell another point and continued its drop today - which should not surprise many as China's Containerized Freight Index plunged to record lows. The announcement by the National People’s Congress in China regarding the economic stimulus appears to have caused the recent rally with iron ore prices contributing to the BDI’s rebound. 

 

  Capesize    

   Panamax        

  Supramax 

Index 

         197

      463

        449

Last week

         176

      477

        420

Spot time charter     

 $   2,040/day     

 $ 3,720/day 

$  4,700/day 

Last week

 $   2,170/day

 $ 3,825/day 

$  4,390/day

Today the Journal of Commerce reported that the global idle container ship fleet has soared to an all-time high, with rising numbers of larger ships unemployed, driven by a widening demand-supply gap.  There were 352 unemployed ships of more than 500 20-foot-equivalent unit capacity at the beginning of March, a combined capacity of 1.57 million TEUs, up from 346 vessels of 1.43 million TEUs two weeks earlier.  While this exceeds the previous peak of 1.52 million TEUs at the end of 2009, it represents just 7.8 percent of the total fleet, compared with a record 11.7 percent five years ago, as the fleet has since grown from 13 million TEUs to 20 million TEUs.

Friday, 11 March 2016 10:53

Market Report - March 11, 2016

The Baltic Dry Index has seen a bit of a rally this week as the market is seeing improved vessel demand and a surge in commodity prices over the past week.  However, freight rates continue to remain low due to the oversupply of available vessels.

 

  Capesize    

   Panamax        

  Supramax 

Index 

         176

      477

        420

Last week

         164

      386

        371

Spot time charter     

 $   2,170/day     

 $ 3,825/day 

$  4,390/day 

Last week

 $   2,220/day

 $ 3,100/day 

$  3,875/day

Containers: The Asia-Europe trade are approaching close to all-time lows with the latest Shanghai Containerised Freight Index shows spot market prices from China to northern Europe at a lowly $211 per teu, having fallen by a further 8.7% this week, and those to the Mediterranean slipping 14% to just $203, with rates for either route just $6 and $8 shy of their respective lowest ever values.  

Friday, 04 March 2016 11:23

Market Report - March 4, 2016

While the overall index has risen by three points this week, the capesize market has reached a new all-time low.  

 

  Capesize    

   Panamax        

  Supramax 

Index 

         164

      386

        371

Last week

         182

      346

        328

Spot time charter     

 $   2,220/day     

 $ 3,100/day 

$  3,875/day 

Last week

 $   2,500/day

 $ 2,800/day 

$  3,400/day

 

 

 

Thursday, 25 February 2016 14:12

Market Report - February 26, 2016

The message of over capacity is badly hitting shipyards with only 161 vessels of more than 10,000 tons DWT having been ordered so far this year in comparison to almost 500 new build orders for the same period in 2014, and just over 306 in 2013. In the markets, while still in the basement and Capesizes have plunged to a farcically low level, the overall Baltic Dry Index is at least moving in the right direction to close on Thursday on 325 points compared to 313 points last week and 290 points the week before. 

 

  Capesize    

   Panamax        

  Supramax 

Index 

         182

      346

        328

Last week

         220

      358

        270

Spot time charter     

 $   2,500/day     

 $ 2,800/day 

$  3,400/day 

Last week

 $   2,800/day

 $ 2,900/day 

$  2,800/day

 

 

 

Friday, 19 February 2016 09:13

Market Report - February 19, 2016

While it is early days, the smart people who forecast these things are predicting that close to 60 million tons of dry bulk tonnage will be scrapped this year which sounds a lot but is nowhere near enough to underpin market recovery. However, the Baltic Dry Index actually showed a faint pulse this week in hauling itself back to 313 points compared to 290 points last week and 298 points the week before. 

 

  Capesize    

   Panamax        

  Supramax 

Index 

         220

      358

        270

Last week

         206

      312

        244

Spot time charter     

 $   2,800/day     

 $ 2,900/day 

$  2,800/day 

Last week

 $   2,700/day

 $ 2,500/day 

$  2,500/day

Containers: The economics of the Suez and Panama Canals are under pressure from container carriers at the current low level of bunker prices. In particular, alternative routing between Asia and the US East Coast via the Cape of Good Hope is resulting in a falling number of container ships using the Suez Canal. With a warning from Maersk Line last week that container lines will struggle to make money this year, it seems inevitable that alternatives to expensive canal transits will face scrutiny since Chinese exports were down by 11% and imports by 19% in January compared to the same month in 2014 in contrast to the usual burst of shipping activity ahead of Chinese new year. The official growth rate of China’s economy fell to a 25 year low of 6.9% in 2015 but the international consensus is that this is overstated by at least 2%.

Tankers: With a dip in chartering activity over the Chinese New Year, VLCCs from the Middle East to Asia were trading at $50-55,000 per day this week, quite a bit softer than of late. The first order placed this year for a VLCC was announced with Japan’s Kyoei Tanker Company placing an order for a 311,000 DWT vessel with Japan Marine United Shipyard for delivery in early 2018. The contract price was said to be $93.5 million with the owners taking full advantage of the global shipyard hunger for new orders.

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