Marine Link
Monday, January 22, 2018

Bounce Back News

Capesize Rates Bounce Back

Freight rates for Capesize bulk carriers are bouncing back from a 15-week dive, as Japanese steel producers rush for ships to carry coal and iron ore cargoes bought at last year's prices. "Japanese buyers would have taken contracts for 2000 with options for additional cargoes of iron ore and coking coal," said one London broker. "The sudden rush for ships to carry those cargoes has put upwards pressure on freight rates," he added. He said producers of iron ore and buyers were miles apart in negotiations over 2001 contracts. London shipbroker SSY's Capesize Index showed a sudden reversal in the direction of rates, with the Atlantic Index gaining 75 points in the week ending Monday to reach 4,498.

Global Drilling Expected To Bounce Back In 2000

World drilling activity for oil and gas fell 24 percent in 1999 from 1998, but levels should bounce back in 2000, IHS Energy Group said. "In 2000, I expect levels to reach at least those of 1998," said Ian Cross, Asia director for IHS, who produced an IHS report on world drilling activity in 1999. "Some areas in 2000 will be slow to catch up. I think the Far East will be one of them. There is less money going into this region," he said. IHS said it estimated 7,433 exploration and delineation wells were completed in 1999, compared with around 9,800 in 1998. Exact figures for Russia, onshore China and India were not available, IHS said.

Satellites Reveal Worldwide Ship Traffic Up 300%

Global shipping routes crisscross the world’s oceans. Credit: Grolltech

Maritime traffic on the world’s oceans has increased four-fold over the past 20 years, according to a new study quantifying global ship traffic. The research used satellite data to estimate the number of vessels on the ocean every year between 1992 and 2012. The number of ships traversing the oceans grew by 60% between 1992 and 2002. Shipping traffic grew even faster during the second decade of the study, peaking at a rate of increase of 10 percent per year in 2011. Traffic increased in every ocean during the 20 years of the study…

Atlantic Panamax Rates Weaken

The buoyancy detected in the Atlantic Panamax market over the past two weeks has waned, brokers said. Fresh orders from the U.S. Gulf were described as light and the limited opportunities in the area could prompt Panamax owners to accept softer levels, they said. Restricted barge movement along the Mississippi was also said to be contributing to the situation, while a number of Far East participants had yet to return to business after the Lunar New Year holiday. Despite the slowdown, brokers did report a number of fresh enquiries. Grain cargoes seeking Panamax transport included some heading to the Far East from the U.S. Gulf and others heading towards Egypt.

Atlantic Panamax Business Slows

The buoyancy detected in the Atlantic Panamax market over the past fortnight has waned, brokers said on Tuesday. Fresh orders from the U.S. Gulf were described as light and the limited opportunities in the area could prompt Panamax owners to accept softer levels, they said. Restricted barge movement along the Mississippi was also said to be contributing to the situation, while a number of Far East participants had yet to return to business after the Lunar New Year holiday. Despite the slowdown, brokers did report a number of fresh enquiries. Grain cargoes seeking Panamax transport included some heading to the Far East from the U.S. Gulf and others heading towards Egypt.

S. Korean Shipbuilders Top the Table in July

Shipyard scene: File photo

South Korean shipbuilders have shown signs of picking up after overtaking their Chinese rivals to regain the top spot last month, according to Yonhap News Agency. However, the sum of new orders in the January-July period lags well behind China rivals. The number of new orders for local shipyards jumped 3.6 times on-month to 33 ships totaling 1.4 million compensated gross tons (CGTs) in July, reclaiming their No. 1 position after five months, according to Yonhap, citing data by global market researcher Clarkson Research Services.

Minoan Shares Bounce Back

Minoan Lines shares were recovering on Wednesday after a five-day slide following the sinking of one of its ferries trimmed more than 25 percent from its stock value. A week after the Express Samina, a ferry operated by Minoan subsidiary Minoan Flying Dolphins, sank with the loss of at least 79 lives; Minoan shares were up 3.32 percent at 2,490 drachmas ($6.41). They closed at 3,300 drachmas ($8.50) before the Express Samina went down. Brokers said the recent slide of most ferry operator shares now offered investors attractive valuations following the sinking, which together with a government ban on various ferries for safety reasons affected the broader sector. In five days trading after the accident more than $160 million were wiped off Minoan's market capitalization.

A.P. Moeller Shares Bounce Back

Danish A.P. Moeller shares rebounded on Friday after news of its purchase of Dutch tug and salvage company Wijsmuller Group Holding on Thursday, brokers said. The two A P Moeller stocks, D/S 1912 and D/S Svendborg, traded at 69,500 crowns ($7,898) and 91,500 crowns respectively, 2.2 percent and 1.7 percent up from Thursday's close. The Copenhagen bourse's top 20 index KFX was down 0.4 percent at 316.15. Moeller shares have underperformed the KFX index by more than three percent the past 10 days, dented by news that Morgan Stanley within a year would cut the conglomerate's weight in its Denmark index. "The shares are rebounding on the Dutch news and it seems foreign sale pressure in the shares has faded," a trader said.

Worldwide Ship Traffic Up 300% Since 1992

Global shipping routes crisscross the world’s oceans in this map of shipping lanes derived from a 2008 study of the human impact on marine ecosystems. (Credit: Grolltech)

Maritime traffic on the world’s oceans has increased fourfold over the past 20 years, according to a strudy recently published by the American Geophysical Union which examined international ship traffic. The research, which used satellite data to estimate the number of vessels on the ocean every year between 1992 and 2012, found that the number of ships traversing the oceans grew by 60 percent over the time span, while shipping traffic grew even faster during the second decade of the study, peaking at rate of increase of 10 percent per year in 2011.

Oil Steadies as Equities Rally

Recovering stock markets boost oil prices; U.S. crude on track for first weekly gain in nine weeks. Oil prices steadied on Friday after bouncing back from six-and-a-half-year lows on recovering equities markets, strong U.S. economic growth and news of low crude supplies from Nigeria. Oil saw its biggest one-day bounce since 2009 on Thursday, with North Sea Brent and U.S. light crude rising more than 10 percent. U.S. crude is on track for its first weekly gain in nine weeks, ending its longest losing streak since 1986. Brent was down 25 cents at $47.31 a barrel by 1200 GMT. It settled $4.42 higher at $47.56 on Thursday. U.S. crude was down 10 cents at $42.46 a barrel, after ending up $3.96.

Oil Soars in Biggest One-day Rally in Years

File photo

Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies set off a short-covering surge by bearish traders. Snapping back from a deep two-month slump that reached 6-1/2 year lows this week, oil climbed as world stock markets rose on hopes Chinese government measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased. The rally…

US West Coast Port Volumes Rebound

File photo: Port of Los Angeles

Import volumes have rebounded at U.S. West Coast ports so far this year, according to Datamyne, a provider of web-based international market intelligence. Datamyne found that imports through the port of Los Angeles have increased 36 percent from January through February of 2016 and 30 percent through the port of Long Beach, compared with the same time period in 2015. “West Coast ports have indeed made a comeback from the labor disputes and slowdowns that negatively impacted volumes in early 2015,” said Datamyne CEO, Brendan McCahill.

Millennium Fever Should Drive Panamax Market Up

Fixing to cover the millennium holiday period is expected to kick-start the Panamax market in the fourth quarter, shipping broker Simpson Spence & Young (SSY) said. "The belief is that the fourth quarter will see a major improvement as people look to fix for the holiday period," SSY said in its latest monthly report. Capesize supply/demand fundamentals were also looking strong for the period, the broker said. However, recent rate gains in the Capesize sector caused by Bocimar's fixing of more than 30 vessels in August could mean some flattening out before rates firmed by the winter. Panamax spot rates had so far been disappointing but period business was beginning to look firmer, SSY said. Spot rates had climbed to over $20 for 52,000 ton Panamaxes from the U.S.

Brent Holds Above $98 Despite Weak Demand

HFO: File image

Brent crude held above $98 a barrel on Friday, heading for its worst week in six as concerns over weak demand outweighed geopolitical worries in the Middle East and Ukraine. Weaker oil demand in China and Europe had caused growth in global oil demand to soften at a remarkable pace, the International Energy Agency said in its monthly report released on Thursday. The West's energy watchdog cut its demand growth projections by 150,000 barrels per day (bpd) to 900,000 bpd for 2014 and by 100,000 bpd to 1.2 million bpd in 2015.

VLCC Rates Steady Ahead of Possible Rebound

© rob3rt82 / Adobe Stock

Five/six charterers are making storage inquiries; near-term pressure on tanker rates to continue - Frontline CEO. Freight rates for very large crude carriers (VLCCs) are set to hold around the current levels ahead of a possible bounce later this month on renewed crude buying from China, and more interest from charterers taking ships on short-term charter for floating storage, brokers said on Friday. That came as VLCC rates from the Middle East recovered slightly on Thursday from a near two-month low hit on Wednesday.

VLCC Rates Bounce Back With A Vengeance

Rates for eastbound VLCC cargoes of crude oil made a sudden comeback on Tuesday, with the Tankers International alliance booking out three of its ships at more than 30 percent over Monday's market rate, brokers said. "VLCCs have managed to claw back some of what they've lost," said a London broker. "The big game is for the early ships, for the first few days of September. For dates around the 12th we're looking at low to mid fifties," he added. Tankers International fixed out two VLCCs for eastbound loadings on September 1, one to Texaco and one to Thai Oil at a rate of W60. Another went to Singapore Petroleum Company for September 2 loading at the same rate, equating to $0.52 per barrel.

North European Containerport Markets to 2025

The North European container port market bounced back strongly from the economic downturn. Total demand reached 57.9m TEU in 2011, representing an increase of 22 per cent since 2009. The eastern Baltic is seeing particularly strong growth. Transshipment demand is increasing. Inland transport costs are increasing rapidly and this – together with increasing environmental pressures – is highlighting the need for intermodal transport solutions. Much larger vessels have entered the Europe-Far East trades, and more are. The container shipping market is in crisis, with severe overcapacity resulting in lines recording huge losses. The position of the lines as customers and as users of North European container terminals is generating considerable uncertainty.

Asian Panamax Rates Move Down Slightly

Asian Panamax freight rates for dry bulk cargo market edged lower this week on slowing demand and brokers said on Friday a recovery was likely to come only in mid-March with the start of the South American export season. For the benchmark U.S. Gulf to Japan route, freight rates were quoted lower at US$21.42 per ton compared to $22.19 one week ago, while spot freight rates for the U.S. Pacific route were quoted at US$16.83 per ton, down from $17.28. Brokers said the freight market appeared to be depressed by an oversupply of ships as well as slow chartering activities since the Chinese New Year holidays in late January. Some brokers had expected the freight market to bounce back this month after the end of the Lunar New Year holiday in parts of Asia…

Carib Tanker Rates Tank In New Year

Caribbean dirty tanker trades have sustained a massive hit, tumbling from W255 at the end of last week to W202.5, New York brokers said. "The holiday doldrums have left a lot of spare tonnage and that has affected rates. With both Christmas and New Year's Day falling on Mondays this year, we've had two short weeks in a row and the market simply couldn't take that," said one dirty tanker broker. He pointed to Exxon's fixture of the 70,000 tonr Lucky Lady from Covenas to the U.S. Gulf as the initial blow to the market. The fall in rates ends a bull-run that began in November last year and peaked in December at just below W400. "From there it just went down in 10 point increments until we got to 202.5," he said.

Kirby Corp. Records Solid Results

Kirby Corp. has apparently had success incorporating Hollywood Marine, a move which effectively created the largest inland barge operator in the country. In February, the company reported earnings per share (EPS) of $0.38, versus $0.31 a year ago. While the company appears strong, poised for further growth, there are some concerns as noted in a research report from Lazard Freres & Co. LLC. Management expects the slowing U.S. economy to negatively impact transportation volumes, particularly for chemicals, as those customers project reduced demand for the year. First quarter results will also undoubtedly be touched by severe weather conditions common in the Midwest in January.

Asian Panamax Rates Rebound

Asian Panamax freight rates for dry bulk cargo bounced back this week and shipping agents said a recovery would become more evident with the start of South American export seasons in March. "Chartering activity is much more active than last week and we saw a substantial number of fixtures this week," said an executive at a shipping firm which operates Panamax-class business. For the benchmark U.S. Gulf to Japan route, freight rates were quoted higher on Friday at $21.775 per ton against $21.164 one week earlier, while freight rates in the Pacific were at $16.986 compared to $16.614. Brokers attributed the pullback in freight rates partly to ship owners raising prices on expectations of brisk cargo demand later in March when South American farmers began to export their crops.

ABB Wins $26m Marine Repeat Order

ABB won a $26m order to supply electrical power and propulsion systems for two next generation ‘Ramform’ vessels, capable of three-dimensional (3D) seismic data acquisition for deep sea resource exploration. The ships will be constructed by Mitsubishi Heavy Industries, and delivered in 2015 to Norway’s Petroleum Geo-Services ASA (PGS), a leading company in marine seismic and reservoir data acquisition, processing and analysis/interpretation services. Oil and gas companies use this data to explore for hydrocarbon accumulations, develop new oil and gas fields, and manage their producing fields.

MHI Contracted for 3D Seismic Survey Vessels

Ramform Seismic Survey Ship: Photo courtesy of MHI

Mitsubishi Heavy Industries, Ltd. (MHI) gets additional order to build 2 seismic vessels for Norway's Petroleum Geo-Services ASA (PGS). The order for the two vessels was placed upon exercise by PGS of the option right that was provided when two same type vessels were ordered to MHI in April 2011. The two newly ordered vessels are scheduled for delivery in the first and second half, respectively, of 2015. With this latest order, MHI will build a total of four vessels to support PGS's deep water energy prospecting services.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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