Marine link
 

Rates Hold

Tanker Trends

Rates Steady Despite Strong VLCC Demand Strong demand for VLCC tankers in the Middle East failed to create a massive breakout in rates, but owners were happy as bunker fuel prices continued to fall, brokers said early last week. Expectations that a lack of modern tonnage would hike rates for mid-April oil major-approved vessels failed to come true. An Exxon cargo for Singapore lifting from three Mideast ports finally got done at the going rate of W77.5 (about $5.00 per ton) after early week offers of W100 had excited dreams W87.5 ($5.50) could be achieved. Other eastern rates held ground or crept up with the average for Japan W77.5 ($8.50 per ton) and W75 ($7.00) for South Korea. Western prices also inched up to around W65 ($11.25 per ton) for the U.S. Gulf while Red Sea fixtures achieved W72.5-75. Falling bunker prices - now around $25 a ton down on last week at $150 in Fujairah - meant owners returns improved though, brokers said. Eyes were now turned towards the outcome of OPEC's meeting in Vienna on relaxing oil output restraints. Brokers forecast that increased exports would cause VLCC rates to climb in April. One broker's analyst saw W82.5 ($9.00 per ton) to Japan before rates eased off again toward the summer to around W60-65 ($6.50-7.00). However, another forecast the opposite - saying that demand for restocking would not come through until oil prices dropped


Panamax Rates Hold Steady

Freight rates in the Atlantic Panamax sector held steady on Wednesday amid signs that recent rises may be stalling, brokers said. "The Atlantic is holding up well, but the question is not whether the Panamax market will rally further, but when the Atlantic will come off," one said. Until then, Atlantic and Pacific Panamax rates were expected to remain steady. Signs that the market was reaching its pinnacle were heralded by the Baltic Panamax Index (BPI) on Monday


Panamax Freights Rise, Pacific Rates Hold

Panamax freight orders picked up for Atlantic tonnage on Tuesday while Pacific rates continued to hold strong, shipbrokers said. In the short-period market, the 75,000 dwt newbuilding APJ Jit was chartered for June 20-25 South Korea delivery, booked for 3-5 months trading at a rate of $9,750 daily, they said. Brokers reported the chartering of North Friendship, a 1999-built 74,732 dwt panamax, was chartered for end-June U.S. Gulf delivery


Seaport Real Estate Continues to Outperform Overall Industrial Market

Jones Lang LaSalle’s Port Index reveals stellar year for port property Jones Lang LaSalle’s third annual Port, Airport and Global Infrastructure (PAGI) report published today, reveals that even amid economic volatility, real estate in the markets surrounding the country’s seaports is leading the U.S. industrial real estate recovery. Overall vacancy rates for seaports have dropped from last year by 1.4 percent to 8.5 percent, outperforming the 9


Analyst Cuts Oil Tankers

According to an analyst speaking with the Associated Press for a Feb. 9 report, a flood of new crude oil tankers being delivered this year will bring down vessel rates in the spot market and he has cut his ratings on two companies. Jefferies & Co. analyst Douglas Mavrinac downgraded Overseas Shipholding Group to "Underperform" from "Hold" and lowered Teekay Corp. to "Hold" from "Buy


Asia Tankers-VLCC Rates Expected to Soften

File image (Suez Canal Authority)

MidEast rates slip from two-week high on June 28; raft of new ships and repaired vessels weigh on rates. Freight rates for very large crude carriers (VLCCs) will continue to soften next week as ample tonnage supply weighs on the market, although a raft of Middle East fixtures are expected to put a floor under charter rates, ship brokers said on Friday. That came as VLCC rates from the Middle East rose to a two-week high on June 28 before slipping slightly


Baltic Index Flat, Rates for Bigger Vessels Rise

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, remained unchanged on Thursday, even as rates for capesize and panamax vessels rose. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was flat at 579 points. The capesize index rose 11 points to 724 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal


BW Group's 1H Performance Better than Expected

Moody's Investors Service says that operating results of BW Group (Ba2 negative) in 1H 2012 were better than expected, largely because of the higher charter rates achieved by the company for its vessels. "We had expected BW Group's performance to weaken, as many of its vessels were coming off profitable time-charters in 1H and it was increasingly exposed to deteriorating spot-market rates. However, spot rates, especially in the gas carrier segments, either held up or improved


Hapag-Lloyd In 2011 First Quarter

Hapag-Lloyd.gif

In the traditionally weak first quarter Hapag-Lloyd managed to boost revenues by comparison with the same period of the previous year by 16.5 percent to 1.483 million euros. The main reason for this achievement was a ten percent rise to 1,563 USD/TEU in the average freight rate. Transport volume was two percent up on the 2010 first quarter at 1.2 million TEU. Active yield management enabled Hapag-Lloyd to concentrate successfully on profitable cargo


VLCCs Wait For Iraqi Oil, Suezmaxes Poised For Flurry

The expected return of Iraqi oil dominated the 250,000 ton tanker market in the Middle East toward the end of the week, shipping brokers said on Dec. 10. But rates were unlikely to move drastically as there were plenty of VLCCs waiting in the Middle East to find cargoes, they said. However, Mediterranean million barrel Suezmax tankers were likely to be in strong demand once it was known when Iraqi exports could restart from the Turkish port of Ceyhan.


New Container Equipment Prices to Fall to Record Lows

Photo: Hapag-Lloyd AG

 Cheaper production and material costs as well as weaker demand has driven the price of new container equipment down to record lows and is forecast to fall  further during 2016, according to the latest edition of the Container Census report published by global shipping consultancy Drewry


Grand Bahama Shipyard Adds Four Executives

Ian Edward Ross (Photo: GBSL)

Grand Bahama Shipyard Limited (GBSL), a Caribbean shipyard providing retrofit, refurbishment and revitalization to cruise and commercial vessels, has added four new positions to its executive team in 2016.   Taking up the new executive positions are Ian Edward Ross, Don Keirce


Wanner Debuts Q155 Series Quintuplex Pumps

Image: Wanner Engineering

Wanner Engineering, Inc. has introduced its new Q155 Series Quintuplex seal-less pumps (low pressure models) designed for a variety of applications including reverse osmosis in water and wastewater treatment, mine dewatering, salt water disposal, salt water injection, bulk transfer


Eastern Delivers Escort Tug to Suderman & Young

(Photo: Eastern Shipbuilding Group)

On July 29, 2016, Eastern Shipbuilding Group, Inc. delivered Oceanus (Hull# 240), the third in series of four identical Robert Allan, LTD. (RAL) designed Z-Tech 2400 Class Terminal & Escort Tugs built for Suderman & Young Towing Company at Eastern’s Nelson Street facility.  


Pressure Mounting on VLGCs Rates - Drewry

Source Drewry’s LPG Forecaster report (www.drewry.co.ukpublications)

A wave of cargo cancellations from the US is putting additional pressure on VLGC rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.   Two major factors have lowered VLGC rates in recent times: excessive fleet growth and weak


Tanker Market: ‘New Normal’ Drives Downbeat Summer Sentiment

Antigone (Photo: Euronav)

The tanker market is forecast to see challenging conditions with technical and structural factors impacting earnings, according to independent research and consultancy firm Maritime Strategies International (MSI).   In its latest Tanker Freight Forecaster


DP World Rating Upgraded by Fitch

Photo DP World Port

Fitch Ratings recently upgraded DP World Limited’s  Long-Term Issuer Default Rating (IDR) to BBB from BBB- and its Short-Term IDR to F2 from F3. The rating outlook is stable.   The upgrade follows on the Fitch announcement in November 2015 that DP World’s outlook had been


ROV Dredger Goes to Work in Singapore

The Mud Cat Model SRD-6EHV ROV System during factory pre-shipment testing (Photo: EDT)

 Ellicott Dredge Technologies (EDT) announced the successful start up and installation of a state-of-the-art Mud Cat brand remotely operated vehicle (ROV) at the Gardens by the Bay nature park in central Singapore.   ML Trading International purchased a Mud Cat Model SRD-6EHV ROV


Q4 Bounce Forecast for Dry Bulk Market

File photo: Eagle Bulk Shipping

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


Tanker Outlook Dented by Middle East Refineries

Refinery throughput growth by region (000 bpd) (Source: Drewry’s Tanker Forecaster report)

A steep rise in refinery capacity in the Middle East, the world’s crude oil production hub, will diminish oil trade growth and with it prospects for tanker shipping, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry. 


Wave goodbye to $50 bln - Drewry

Figure 1 Estimated industry revenue, 2008-16F (USD billion) Note Preliminary forecast based on smaller 1H16 sample

Container industry revenues are contracting faster than carriers can cut costs. First-half results so far suggest sales are down by around 18%, increasing the pressure to reduce costs. The container shipping industry is currently enduring a severe revenue contraction that is placing carriers


Low Freight Rates Hit Maersk Line

Photo: Maersk Line

 Record low freight rates have driven the World’s largest container carrier Maersk Line to report a second-quarter loss of US$151 million.   The second quarter result and revenue both fall year-on-year as average freight rates hit record low levels


Asia N.Europe Box Rates PLunge 10.5 pct

A containership alongside engaged in cargo operations in the port of Hamburg, Germany (port of Hamburg)

Container spot freight rates from Asia to Northern Europe fell 10.5 percent to $771 per twenty-foot equivalent units (TEU) last week, data from the Shanghai Shipping Exchange showed. Specifics of the Intermodal news include:   Freight rates from Asia to ports in the Mediterranean


WFW advises GPH on Venice Cruise Port Acquisition

Logo.jpg

International law firm Watson Farley & Williams advised Global Ports Holding on the acquisition of two significant stakes in Venezia Terminal Passeggeri S.p.A made via Venezia Investimenti S.r.l., which is jointly owned in equal shares by GPH and fellow industry leaders Costa Crociere


Has the Link between OPEC Production and VLCC Rates broken?

Graph: Poten and Partners

 For the tanker market, in particular for VLCCs, increasing Middle East OPEC production is typically a good sign.    Poten and Partners in its Shipbrokers Reports says that does not appear to be the case at this particular moment






 
rss feeds | archive | privacy | history | articles | contributors | top news | contact us | about us | copyright