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Banchero News

03 May 2019

Ever Larger LNG Tankers Head for Panama Canal

Ever large merchant vessels, including this large containership, are now transiting the Panama Canal on a regular basis. Image: CH2M

A 'Q-Flex' LNG tanker, the world's second-largest class of liquefied natural gas carriers, is set to pass through the Panama Canal for the first time, the canal's CEO said, expanding the Americas to Asia trade route for the fast-growing commodity.The 'Al Safliyah', which can carry about 210,000 cubic metres of LNG, is on its way to Panama from the North Pacific after discharging a cargo from Qatar into Korea Gas Corp's (KOGAS) Tongyeong terminal on April 21, shipping data in Refinitiv Eikon showed."This is the first Q-Flex to transit the Panama Canal…

04 Jun 2018

Oil Tanker Scrapping to Hit Multi-year High

© Evren Kalinbacak / Adobe Stock

The shipping industry will this year scrap the largest number of oil tankers in over half-a-decade, driven by weak earnings, firm prices for scrap steel and the need to prepare fleets for strict new environmental regulations.The surge in scrapping underscores how the sector is grappling with one of its worst-ever crises, hit hard after rates for transporting oil plunged to multi-year lows in the wake of excess tanker supply and tepid demand as OPEC production cuts bite."The tanker markets are definitely in a trough at the moment…

20 Dec 2017

China, Australia Ports Clogged as Coal, Ore Demand Soars

Around 300 ships caught in jam that would stretch 40 miles; freight rates for biggest coal, ore carrier hit 3-yr high. More than 300 large dry cargo ships are having to wait outside Chinese and Australian ports in a maritime traffic jam that spotlights bottlenecks in China's huge and global commodity supply chain as demand peaks this winter. With some vessels waiting to load coal and iron ore outside Australian ports for over a month, key charter rates have jumped to their highest in more than three years. Placed end-to-end, the total delayed fleet would stretch more than 40 miles, enough to span the English Channel from Dover to Calais and back.

30 Nov 2017

BIMCO, WFP Issue Modernized Charter Party

BIMCO has together with the UN World Food Programme (WFP), updated and modernised the WORLDFOOD voyage charter party used by the UN organisation to transport food to emergency areas around the world. The aim was to create a contract that made WFP’s work easier and faster. "The WORLDFOOD charter is an essential tool for the WFP as the majority of food that we deliver is transported by chartered ships at sea. It is crucial that we have a charter party that gives us the flexibility required when operating in volatile areas of the world. BIMCO’s input and support during this drafting process has been invaluable," said Loutphi Madani, Senior Legal Officer of the WFP.

30 Aug 2017

Traders Look to Asia Products for U.S. Options

Traders adding U.S. port options to cargoes for flexibility. Traders are scrambling to find oil products in Asia to ship to the United States and Latin America after Hurricane Harvey shut almost a quarter of U.S. refining capacity, several trading and shipping sources told Reuters on Wednesday. Many are also asking for ships to have a U.S. option added to their original destination to allow for flexibility in sending the cargoes across the Pacific, shipbrokers said. At least one oil products tanker, BW Kallang, is being diverted to Houston instead of New York after loading gasoline blending component alkylate from India, a source familiar with the matter said.

25 Aug 2017

Asia VLCC Rates Fall to Four-year Low

© Jose Gill / Adobe Stock

Freight rates for very large crude carriers (VLCCs) on Asian routes show little sign of reviving although Hurricane Harvey, which threatens to ravage the U.S. Gulf coast oil refining industry over the weekend, could provide a fillip, brokers said. That came as average weighted VLCC freight rates on all routes sank to their lowest in four years this week to around $9,000 per day. Rates are even lower on some routes after CPC fixed a VLCC late Thursday for a trip from the Middle East to Taiwan at 36.75 on the Worldscale measure and S-Oil fixed a VLCC to South Korea at W36.

24 Aug 2017

Clean Tanker Rates Soar on Strong Fuel Consumption

Mideast demand especially strong due to refinery outages. Rates for tankers carrying refined fuels like gasoline and diesel have soared this month as trade activity picked up and caused a supply crunch in ships, several shipbrokers and traders said. The high rates indicate strong consumer fuel demand due to the persistently low crude oil prices that have resulted from years of oversupply, refiners said. "Our order books are pretty good. Whether it's gasoline for cars or diesel for industry, we're receiving calls to ship more fuel," said one shipper based in Singapore. Rates for medium-range (MR) tankers carrying about 30,000 tonnes of oil products like gasoline…

03 Aug 2017

Flurry of Vessels Booked After Dutch Refinery Outage

At least 10 tankers booked from Mideast to Europe; freight rate for clean tankers up 11 percent from Monday. Oil traders are rushing to secure vessels to ship refined fuel from the Middle East to Europe after a Dutch refinery outage made the route profitable, pushing freight rates to multi-month highs, traders and shipbrokers said on Thursday. At least 10 long-range tankers able to carry 55,000 to 75,000 tonnes of jet fuel and diesel have been provisionally booked to head to Europe, with at least four of them taken by Royal Dutch Shell, two shipbrokers said. In contrast, there was not much activity on this route early in July, when traders were exploring shipping middle distillate cargoes on a reverse arbitrage from Europe to Asia.

23 Mar 2017

Daewoo Shipbuilding to Get Fresh $2.6 Bln Bailout

File photo: Daewoo Shipbuilding & Marine Engineering Co Ltd

South Korean state banks are preparing a fresh $2.6 billion bailout for floundering Daewoo Shipbuilding & Marine Engineering Co Ltd, which has built up huge losses from offshore projects and risks missing debt repayments. Daewoo, Hyundai Heavy Industries and Samsung Heavy Industries are South Korea's top shipbuilders - a massive economic force and a source of national pride. But they slipped into the red in 2015 amid a commodities downturn and bleak trade volumes, prompting cost cuts and asset sales. Of the three, Daewoo's situation is the most difficult.

10 Mar 2017

Asia Dry Bulk-Capesize Rates to Climb Again

Number of spot capesize cargoes double from January levels; Pacific capesize earnings now around $14,000 per day. Freight rates for large capesize dry cargo vessels on key Asian routes, which hit multi-month highs this week, are set to jump further next week on tight tonnage supply and buoyant cargo volumes, brokers said. Rates on the capesize route from Brazil to China soared to the highest level in nearly 18 months on Thursday, fuelled by chartering activity by Brazilian iron ore major Vale and ship operators including Louis Dreyfus, according to ship brokers and chartering data on the Reuters Eikon terminal. "I think we'll see rates continue to go up. The supply of tonnage for April loading is very tight. Tonnage is tight generally," a Singapore-based capesize broker said.

10 Mar 2017

Asia Tankers-VLCC Rates Falling as Tonnage Outweighs Demand

Freight rates for very large crude carriers (VLCCs), which fell to five-month lows this week, are set to drop further as excess tonnage and an absence of port congestion weigh on the market, brokers said. Supertanker charter rates, which are already below the breakeven levels for ship owners, could fall further due to new vessel deliveries, reactivation of older vessels from offshore crude storage, crude oil output cuts and refinery maintenance, brokers said. That will add to the volume of available tonnage as demand for cargo declines. Average VLCC earnings, which are down to about $18,400 per day, could fall towards $17,000 per day despite resistance from owners to at least maintain current rate levels. This compared with breakeven costs of about $22,500 per day, brokers said.

23 Feb 2017

Asia Dry Bulk-Capesize Rates Up on Increased Traffic

Record iron ore prices fuelling capesize chartering boom; freight rates rise by around $1 per tonne in a week. Freight rates for large capesize dry cargo vessels on key Asian routes, which hit multi-week highs on Wednesday, are set to continue to climb next week on buoyant iron ore cargo volumes, brokers said. More than 30 capesize fixtures were reported in the week to Feb. 22, almost double the number in the last two months, according to data on the Reuters Eikon terminal. "The capesize market should continue to push higher for now - it's all looking good," a Singapore-based capesize broker said on Thursday. The surge in charters for capesize vessels…

10 Feb 2017

Asia, Mideast Product Tankers Idled on Oversupply

Lower product shipments from India, Mideast; diesel comes off floating storage, frees up ships. Dozens of tankers used to carry refined oil products are sitting idle in Asia and the Middle East as slow trade and an oversupply of ships have cut daily earnings to as little as a fifth of last year's level, shipbrokers and traders said. Shipping data in Thomson Reuters Eikon shows around 50 product tankers currently floating idle off Singapore and Fujairah, United Arab Emirates. Besides a drop in shipping activity due to the Lunar New Year holiday in late January - observed across much of Asia - a string of unplanned refinery outages in Asia and the Middle East slowed product trading and curbed fuel exports.

20 Jan 2017

Asia Tankers-VLCC Rates Likely to Slide

Chartering activity could slow down in March due to refinery work; growth in tanker fleet could climb 6.5 pct, pressuring rates. Freight rates for very large crude carriers (VLCCs) are likely to fall next week as charter activity from China slows ahead of the Chinese New Year holiday, ship brokers said. Rates on the West Africa-to-Asia route have already started to slide probably because of the Chinese New Year impact, said Ashok Sharma, managing director, BRS Baxi Far East, Singapore. "I feel the Middle East has plateaued. If next week the market is slow and quiet then the market will take a bit of a correction," he told Reuters. Around 30 VLCC cargoes have been fixed for loading from the Middle East in the first 10 days of February, brokers said.

12 Jan 2017

Asia Dry Bulk-Capesize Rates to Slip; Low Demand, Overcapacity Weigh

Despite lower rates, rental prices doubled from last year; capesize vessels totalling 15 million DWT to be delivered this year - broker. Freight rates for large capesize dry cargo ships on key Asian routes are likely to drift lower as tonnage volumes outpace cargo demand even as owners resist charterers' attempts to push rates lower, ship brokers said. Despite the subdued market, capesize charter rates are still around twice the level as compared with previous year. "The market is holding up relatively nicely. Last year, we didn't fix ships at current rates until June," a Singapore-based capesize broker said on Thursday. "Owners are doing what they can to resist charterers' lower offers, but there is no shortage of ships, especially in the Pacific," the broker said.

22 Dec 2016

Asia Dry Bulk-Capesize Rates to Firm on Tight Tonnage, Ample Cargo

Just handful of ships for Brazil loading in early January; coal, South African iron ore cargoes support rates. Freight rates for large capesize dry cargo ships on key Asian routes could diverge with rates from Brazil to China nudging higher on a shortage of tonnage and those from Australia to China holding firm around current levels on ample cargo, ship brokers said. "Tonnage is very tight given the number of ships available for January loading dates from Brazil. Rates should keep pushing higher," a Singapore-based capesize broker said on Thursday. "There are only a couple of ships available to load for the first half of January," the broker added. "Vale is offering rates around the index level, but ship-owners are making offers about $1 per tonne above that," the broker added.

15 Dec 2016

Asia Dry Bulk-Capesize Rates to Slip Further

Chartering activity falls as holidays loom; Rio Tinto offering rates 5.5 pct lower than index level. Freight rates for large capesize dry cargo ships on key Asian routes will slide further next week in a lacklustre chartering market ahead of Christmas, ship brokers said. "The market is pretty dead," a Shanghai-based capesize broker said on Thursday, adding that: "It is hard to find the ship owner's person in-charge of chartering. Australian miner Rio Tinto was seen putting pressure on charter rates on Thursday, offering $4.80 per tonne for four capesize cargoes - nearly 30 cents per tonne, or 5.5 percent, lower than the benchmark rate at Wednesday's close, a Singapore-based capesize broker said. "Vale is sniffing around with cargoes for January-loading," the broker said.

09 Dec 2016

Tanker Operators Brace for OPEC Cuts

© Jose Gil / Adobe Stock

Tanker owners are bracing for a volatile year ahead after enjoying some of the highest charter rates since 2008, with OPEC plans to curb crude output potentially cutting rates by more than 40 percent. Fewer Middle East cargoes will mean lower freight rates for operators of very large crude carriers (VLCC), the biggest tankers in operation, which can carry 2 million barrels of oil and are used mostly by Middle East producers sending supplies to Asia. With average VLCC rates around $45…

09 Dec 2016

Asia Tankers-VLCC rates to Slip from Eight-Month Highs

Rates gain 10 Worldscale points in a week; but rates in 2017 may be lower than this year -Bancosta. Freight rates for very large crude carriers (VLCCs) may slip next week as the pre-Christmas cargo flurry, which propelled hire rates to an eight-month high on Thursday, peters out, ship brokers said. "I would say it's the last hurrah. I don't see rates going much beyond current levels," said Ashok Sharma, managing director of ship broker BRS Baxi Far East in Singapore. Rates gained up to 10 points on the Worldscale measure this week, pushing rates from the Middle East and West Africa to Asia to the highest since April 4. Around 130 cargoes have been fixed for December loading from the Middle East with around 33 from West Africa, a European ship broker said.

20 Oct 2016

Excess Tonnage Weighs on Asia Dry Bulk-Capesize Rates

Capesize market "absolutely dead" on Thursday - broker. Vale says no new cargoes but owners sail empty vessels to Brazil. Freight rates for large capesize dry cargo ships on key Asian routes will continue to fall next week as too many ships chase available cargoes, brokers said on Thursday. "The market is absolutely dead today - it's all very doom and gloom," said a Singapore-based capesize broker on Thursday. While BHP Billiton and Rio Tinto have been active charterers this week, Fortescue Metals Group has stayed out of the market, the broker added. "Vale has said it had nothing now for October- and November-loading dates, so there will be no volume from Brazil," the broker added.

12 Oct 2016

South Korean Yards Eyed for $3.8 Bln LNG Shipbuilding Deal

A little-known investment company said it intends to order up to 20 liquefied natural gas (LNG) carriers, probably from South Korean shipbuilders. The contracts would be worth as much as $3.8 billion, two people with direct knowledge of the matter told Reuters. CBI Energy and Chemical, which is controlled by Australian and Canadian investors and has offices in Hong Kong, also said in a statement to Reuters that it would be seeking to buy floating LNG production and import facilities as part of an ambitious plan for Africa and Asia. The orders would be a major shot in the arm for South Korea's ailing shipbuilding industry, which has been hit by a collapse in new orders as global trade growth slows and after the slump in commodities prices in recent years.

07 Oct 2016

Japan's NYK Line Warns of $1.9 bln hit to Earnings

NYK Line may book losses as shipping slump slashes asset values. Nippon Yusen, Japan's biggest shipper by sales, warned it would book a $1.9 billion hit to first-half income, after the industry's deepening slump forced it to write down the value of container ships and other assets. The shock writedown is the latest symptom of the dramatic slowdown in the container shipping sector. Weaker global trade, and in particular softer demand from China, has battered freight rates and left hundreds of ships idle. Chronic oversupply in the industry has already claimed one high profile victim this year: South Korea's Hanjin Shipping Co Ltd, the world's seventh largest container carrier before it went into receivership.

11 Aug 2016

Brokers Optimistic on Asia Dry Bulk-Capesize Rates

More activity from Australian miners buoy capesize rates; dry cargo market remains over-tonnaged as fleet growth outpaces demand. Freight rates for large capesize dry cargo ships on key Asian routes should stay largely unchanged next week on static cargo volumes though shipowners remain confident about prospects in the fourth quarter, ship brokers said. "I feel it's another boring week. People still have confidence in quarter four," a Shanghai-based capesize broker said on Thursday. That came as Rio Tinto fixed the 178,623 deadweight tonne (dwt) capesize ship Mount Austin on Thursday to haul iron ore from Western Australia to China at a rate of $4.40 per tonne, brokers said. The rate was about 10 cents higher than the Baltic dry bulk index rate for the route on Wednesday.