Dry Bulk Freight News

Throughout the first half of the year, talk of a new dry bulk super cycle has been on many lips as commodity prices have soared to multi-year highs. Freight rates and ship values have also risen but although they exceed prices seen during most of the 2010s, they are still far below super cycle levels.“Commodity prices have staged a comeback and are hovering around or above 2007 and 2008 levels. This has fuelled talk of a commodity super cycle. However, while dry bulk freight rates and ship values are currently high compared to the past 10 years…

A lack of orders for new ships is providing further support to the dry bulk freight market as demand for commodities accelerates, a senior executive at U.S. agribusiness giant Cargill said.The Baltic Exchange's main sea freight index, which gauges the cost of shipping commodities such as grain, iron ore, cement, coal and fertilizer, has rallied close to an 11-year high this week, helped by rising rates for larger capesize ships.Shipping officials say orders for new vessels are…

A decline in the rate of infections in China provides yards with the opportunity to reorganize their delivery schedules to address an approaching output slump, says Maritime Strategies International (MSI)The welcome news of declining rates of coronavirus infections in China, together with steps already in place and still to come in terms of government intervention, provide the barest glimmer of good news in the dry bulk market.But the impact on dry bulk shipping has gone much further than demand…

The World Health Organization (WHO) has declared the outbreak of the novel coronavirus a pandemic. There is little doubt that this will have significant implications for the shipping industry. But to what extent? BIMCO expects that the strict containment measures imposed by governments around the world will result in substantially lower global economic growth and consequentially, lower demand for shipping. Container and dry bulk shipping are at the front line when it comes to feeling the fallout…

While the Capesize segment has been massively impacted by the coronavirus, the smaller dry bulk segments are starting to recover towards profitable territory, partly on the back of seasonally higher grain exports from South America. Nonetheless, as the coronavirus continues to spread, the risks are skewed towards the downside.Capesize remains extremely unprofitable, but what about the rest?The Baltic Exchange Capesize index drew headlines lately, as it, for the first time ever, went into negative territory.

The Bermuda registered, Norway based dry bulk shipping company Golden Ocean Group (GOGL) announced a net income of $36.7 million and earnings per share of $0.26 for the third quarter of 2019 compared with net loss of $33.1 million and loss per share of $0.23 for the second quarter of 2019.EBITDA stood at $81.1 million for the third quarter of 2019, compared with $21.5 million for the second quarter of 2019.Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management AS, said: “Our strong performance in the third quarter is the result of our strategic decision to gear our fleet towards modern, fuel-efficient vessels in…

The dry bulk freight market is expected to benefit in the second half of 2019 and early 2020 from many larger ships being taken out of service for several weeks for scrubber installation, said Hong Kong-based Pacific Basin Shipping Limited.The maritime transport company engaged in international dry bulk shipping through the operation of a fleet of vessels to carry diverse cargoes for many of the world's leading commodity groups said: "We believe the market for smaller dry bulk ships like ours will benefit also over the longer term, as they will consume more expensive low-sulphur fuel and therefore be incentivized to operate at slower…

VesselsValue has, together with Oslo-based shipping consultancy firm ViaMar, released forecasted asset values in which it was indicated that bulker values would continue to slide in the current year.It has been a tumultuous six months in the dry bulk sector, with China imposing quotas limiting coal imports during November and December 2018, the US China trade war providing uncertainty in the markets as well as the catastrophe of Vale’s dam collapse on the 25th January 2019, causing hundreds of civilian casualties.These iron ore and coal developments have put downward pressure on dry bulk freight rates after a seasonal soft fourth quarter, said the report.Capesize freight rates have tumbled and dragged freight rates for all dry bulk segments with it.

Norway-based dry bulk shipping company Golden Ocean Group Limited (GOGL) has acquired a 15% ownership interest in Singapore Marine, a dry bulk freight operator sponsored by Peter Weernink, the former Chief Executive Officer of Swiss Marine SA.Singapore Marine, which has offices in Singapore, Geneva and Verbier, will initially focus on the Post Panamax to Capesize vessel segments and seek to generate returns in all market conditions by employing an asset-light business model.Thomas Semino, Chief Commercial Officer of Golden Ocean, will be appointed as a Director of Singapore Marine.Semino said: "While Singapore Marine will operate independently from Golden Ocean and our participation in the company is primarily financial, we expect to derive additional value through this relationship.

Art Regan, who has been the Executive Chairman at Genco Shipping and Trading (NYSE: GNK) since October 2016, personifies the new type of shipping executive, savvy on all things maritime (he is a graduate of SUNY Maritime College at Fort Schuyler) coupled with a keen understanding of market dynamics. Regan commenced his maritime industry career at sea, rising through the shipboard officer ranks completing as a Master Mariner during a more than ten-year period sailing on oil tankers and dry bulk vessels.

Breakwave Advisors, in partnership with ETF Managers Group (ETFMG), launched the Breakwave Dry Bulk Shipping ETF (NYSE Arca: BDRY), the first freight futures exchange-traded product focusing exclusively on dry bulk shipping. BDRY is designed to provide investors direct access to an instrumental part of the global commodity market, that historically has been uncorrelated with other major asset classes. BDRY provides long exposure to the dry bulk shipping market through a portfolio of near-dated freight futures contracts on dry bulk indices.

The Baltic Exchange is looking into launching a freight index for liquefied natural gas (LNG) and is working with leading ship brokers to explore potential shipping routes that might be used as the LNG market grows, the company said on Thursday. Founded in 1744 as a forum for chartering vessels, the Baltic Exchange now produces benchmark indexes for global shipping rates, including ones used by the multi-billion dollar freight derivatives market. Singapore Exchange acquired the exchange in 2016 and since then the Baltic has been looking for new markets to develop.

Algoma Central Corporation and Nova Marine Carriers SA today announced the creation of a new joint venture that will focus on short-sea dry-bulk shipping for global markets. This new joint venture, operating as NovaAlgoma Short-Sea Carriers, or NASC, is a 50/50 joint venture between Algoma Central Corporation (Algoma) and Nova Marine Holdings Limited (Nova), the parent company of Nova Marine Carriers. NASC was formed by Nova as an October 31, 2016 carve-out from the deep sea dry-bulk freight business operated by Nova Marine Carriers S.A. In accordance with its agreement with Algoma, Nova has transferred all short-sea commercial contracts to NASC and transferred its interest in NASC and its interests in any dry-bulk vessels of less than 15…

Shipping confidence held steady in the three months to end-February 2017, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens. In February 2017, the average confidence level expressed by respondents was 5.6 out of 10, unchanged from the previous survey in November 2016 and equal to the highest rating since August 2015. Owners were the only main category to show an improved level of confidence, up from 5.4 to 5.6.

Moody's outlook for the global shipping industry in 2017 is negative, reflecting continued oversupply and a 7%-10% decline in EBITDA. Dry bulk freight rates will remain low due to subdued demand, though deferred vessel deliveries, cancellations and scrapping will help curb net capacity growth. Airline profitability will weaken slightly in the year ahead, Moody's Investors Service says in its 2017 outlook for the global transportation industry. Aircraft lessors' margins will weaken amid stiff competition, while shipping companies will continue to be challenged by an oversupply of vessels. North American railroad operators will see prices rise as freight volumes stabilize.

Maritime Strategies International (MSI) is forecasting a firm festive season for the dry bulk market, swiftly followed by a New Year comedown. In its latest Dry Bulk Freight Forecaster* MSI notes that after a steady fall in average daily TCE spot earnings in October, November saw an inflection point for Capesizes, with rates soaring to over $16,000/day, the highest since mid-2015. Some of this strength has translated to the Panamax market, although Supramax and Handysize earnings have been broadly unaffected.

International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry fell by an average of 2.4% in 2015. This compares with the 0.8% average fall in costs recorded for 2014, and is the fourth successive overall year-on-year reduction in such costs. All categories of expenditure were down on those for the previous 12-month period. This suggests continued pragmatic management of costs by ship owners and operators, as well as a reduction in active trading for some owners as a result of the prolonged worldwide economic downturn.

Singapore Exchange Ltd (SGX) sees the potential to develop new freight derivatives centred on active Asian shipping routes and expand the use of freight derivatives with its acquisition of London's Baltic Exchange, a senior SGX official told Reuters. "We believe there are a number of opportunities that the Baltic Exchange and SGX can realise together, including the creation and adoption of new benchmarks of Asian shipping routes," Michael Syn, head of derivatives at SGX told Reuters. The Baltic's daily benchmark rates and indices are used to trade and settle freight contracts as well as for settling freight derivatives, or FFAs, that allow investors to take positions on freight rates in the future.

April 19, 2016. The latest Dry Bulk Freight Forecaster from Maritime Strategies International* analyses the recent uptick in the Capesize market and considers the positive trends and mitigating factors. MSI finds the indicators are relatively positive in the short-term for iron ore trade. On the supply-side, iron ore prices of $50-60/tonne are in profitable territory for the big iron ore miners and will no doubt support the ramp up of new export capacity in Australia and Brazil. On the demand side, an uptick in steel prices and steel production in China in March underpins more positive sentiment. In addition, concerns of high iron ore stockpiles in China are overplayed…

Drewry forecasts dry bulk freight rates in 2016 will be, on average, lower than in 2015, as the medium-to-long term fundamentals for dry bulk shipping will remain challenging, according to the latest edition of the Dry Bulk Forecaster report published by global shipping consultancy Drewry. The dry bulk sector has seen a period of recovery in recent months based on higher iron ore, coal and grain trade. The boom in iron ore trade that has resulted in record exports out of Australia and Brazil is expected to be a short term phenomenon as it has mainly been based on iron ore restocking due to low inventories, hence resulting in stronger Capesize engagement particularly in the Pacific basin.

Drewry forecasts dry bulk freight rates in 2016 will be, on average, lower than in 2015, as the medium-to-long term fundamentals for dry bulk shipping will remain challenging, according to the latest edition of the Dry Bulk Forecaster report published by global shipping consultancy Drewry. The dry bulk sector has seen a period of recovery in recent months based on higher iron ore, coal and grain trade. The boom in iron ore trade that has resulted in record exports out of Australia and Brazil is expected to be a short term phenomenon as it has mainly been based on iron ore restocking due to low inventories, hence resulting in stronger Capesize engagement particularly in the Pacific basin.

The buzzword for the post-Brexit landscape both in Europe and further afield is ‘uncertainty’. No-one really knows the long term effect that Brexit will have on local and global economies, says  Eversheds International. However, as the dust settles following the referendum, market experts, industry analysts and businesses are assessing the position with cooler heads and so, whilst certainty may be a little way off, more concrete predictions and assertions of intent are beginning to emerge. This is evident daily in commentary and news from the shipping and sea trade sector. The international shipping market is fuelled by trade, which in turn depends on the health of the global economy.

The Q4 bounce – a seasonal staple of the dry bulk markets – looks likely for Capesize and Panamax segments, but the effects may be limited. Independent research and consultancy firm Maritime Strategies International (MSI) is forecasting a fourth quarter bounce in dry bulk market earnings, driven by improving iron ore, coal and grain trades. In its latest Dry Bulk Freight Forecaster, MSI sees positive signs beyond the traditional summer lull in chartering activity for both the Capesize and Panamax sectors.