Asia Dry Bulk-Capesize Rates Likely to Remain Flat

Posted by Joseph Keefe
Thursday, January 28, 2016
File Image: a so-called ValeMax Bulk Carrier

Chinese iron ore and coal imports to fall in 2016 - Clarkson

Freight rates for capesize bulk carriers on key Asian routes are likely to stay flat as vessel volumes outpace cargo demand and the approaching Chinese New Year holiday further dampens chartering activity, ship brokers said on Thursday.

There is little hope of any improvement in rates, which remain at near 16-1/2-year lows, even after the Chinese New Year holiday which starts on Feb. 7, brokers said.

Forward freight rates for March on the Australia-China capesize route are at levels of $3 a tonne currently, a Shanghai-based capesize broker said.

"People don't give much hope there at all. The market is flat and gloomy," the broker said.

Shipowners have idled up to 50 capesize ships in Asian waters rather than sail ships at a loss as average daily freight rates are at levels that are about half that of daily operating costs.

"I think you'll see operators are going to struggle. The market is at rock bottom," a Singapore-based capesize broker said.

That came as ship broker Banchero Costa (Bancosta) said the capesize fleet would grow by 4 percent in tonnage terms this year, while Chinese imports of iron ore and coal, the two staple cargoes for capesize ships, are forecast to fall, Clarkson said.

China's iron ore imports will drop to 919.2 million tonnes in 2016 from 924 million tonnes last year, while coal imports will fall 8 percent to 156.1 million tonnes this year, Clarkson said.

A new record level of capesize scrapping is expected this year, after a record 14-15 million deadweight of capesize tonnage was sold for demolition last year, said Ralph Leszczynski, head of research at Bancosta in Singapore.

"The lack of long-term optimism will probably prompt even less older tonnage to be considered for scrapping," said a senior executive at a Singapore ship management company.

Capesize charter rates for the Western Australia-China route nudged up to $3 per tonne on Wednesday, from $2.90 a tonne a week ago.

Rates for the Brazil-China route were higher at $5.46 a tonne on Wednesday, against $5.35 a tonne on the same day last week.

Panamax rates for a north Pacific round-trip voyage dropped to $2,118 per day on Wednesday, the lowest since January 2009, from $2,587 per day on the same day last week.

"(There is) no where to hide in the Panamax market," Norwegian ship broker Fearnley said in a note on Wednesday.

Freight rates for smaller supramax vessels dropped to around $2,500 per day for a voyage from Indonesia to India.

The Baltic Exchange's main sea freight index dropped to a new all-time low of 337 on Wednesday from 358 the same day last week.


Reporting by Keith Wallis


People & Company News

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Why Maritime Museums Matter

With today’s focus on digital technology, mobile apps, enhanced reality and the overall digital landscape, the maritime industry often gets overshadowed, leaving some to ask,

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

Contracts

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects

J.F. Lehman Acquires Oldenburg's Heavy Equipment Group

J.F. Lehman & Company (JFLCO) informs it has signed a definitive agreement with Oldenburg Group Incorporated to acquire its Heavy Equipment Group, including both its defense and mining business units.

Ports

Shenzhen Port to Adopt China ECA Regulation

China's Shenzhen port is set to to adopt requirements for ships at berth requiring to burn marine fuel with sulfur content not exceeding 0.5 percent starting October this year,

Cochin Port Gets a Little 'Breathing Space'

The Cabinet Committee on Economic Affairs of India, chaired by the Prime Minister Narendra Modi, has given its approval for waiver of penal interest on Government

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

Finance

Cochin Port Gets a Little 'Breathing Space'

The Cabinet Committee on Economic Affairs of India, chaired by the Prime Minister Narendra Modi, has given its approval for waiver of penal interest on Government

Asia’s Biggest Container Shipper Posts Loss

Asia’s largest container shipping company China Cosco Holdings Co  posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn

Hoegh LNG Profits Dip

Norway-based owner and operator of floating LNG import terminals, Höegh LNG  reported a second quarter profit after tax of US$3.5 million, down from $6.3 million in the first quarter 2016.

News

NOAA Engineers a Better Current Sensor for Mariners

Navigating into seaports is now safer and more efficient for mariners thanks to improved NOAA technology that ships rely on to give them information about currents.

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

Iran Vessels Make 'High Speed Intercept' of US Ship

Four of Iran's Islamic Revolutionary Guard Corps (IRGC) vessels "harassed" a U.S. warship on Tuesday near the Strait of Hormuz, a U.S. defense official said, amid

Logistics

MN100: TPG Marine Enterprises, LLC

The Company: TPG Marine Enterprises, LLC is an operations, logistics and consulting company that specializes in all aspects of cargo movement on the Inland Waterways System.

Heavy Lifting: Giant Pipe Racks Shipped for New FPSO

From Brazil to China and then back to Brazil, five pipe racks and three modules weighing a total of 1,871.51 metric tons and measuring 24,075 m³ will be transported

SMM 2016: World Premieres from around the Globe

Some 50,000 trade visitors from the whole of the world are expected in Hamburg for the start of SMM in less than two weeks. And once again, it is fully booked – with a total of more than 2,

 
 
Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1397 sec (7 req/sec)