Dry Bulk Trade News

Canadian mining company Teck Resources announced it has signed a deal with German shipping company Oldendorff Carriers to use wind propulsion to further reduce CO2 emissions in Teck’s supply chain. The joint investment will see the vessel Dietrich Oldendorff, which carries shipments of Teck steelmaking coal from the Port of Vancouver, outfitted with a Norsepower Flettner Rotor system by mid-2024.The Flettner Rotors generate lift from the wind, which is translated into additional thrust, thereby reducing fuel consumption on voyages across the Pacific.

According to Maritime Strategies International, the unwinding of supply chain inefficiencies and rising vessel orders are expected to dampen positive deadweight demand in the dry bulk market.COVID-related supply chain inefficiencies and associated port congestion have almost fully unwound, and while the MSI outlook on the prospects for trade volumes this year is considered positive, growth in actual dwt demand is limited to only 0.25% year on year.MSI’s Q3 Dry Bulk market report notes that while this quarter’s demand forecasts for 2023 are higher by 1m dwt…

The unwinding of supply chain inefficiencies and rising vessel orders are set to dampen positive deadweight demand in the dry bulk market, according to Maritime Strategies International (MSI).COVID-related supply chain inefficiencies and associated port congestion have almost fully unwound and while the MSI outlook on the prospects for trade volumes this year is considered positive, growth in actual dwt demand is limited to only 0.25% year on year.MSI’s Q3 Dry Bulk market report notes that while this quarter’s demand forecasts for 2023 is higher by one million dwt…

In the early hours of 22 April 2021, Vale - the Brazilian mining giant, was ordered to temporary suspend shipping activities at the country’s Guaiba Island terminal, a dedicated iron ore export terminal. Later that day, the hurdle was cleared, and activities could resume. Should the market worry when Brazil’s iron ore exports are disrupted? Now, that all depends on the terminal.Ilha Guaiba, accounts for 7% of seaborne Brazilian iron ore exports. During February and March, 11 and eight Capesize ships departed the terminal, carrying an average of 220,000 tonnes of iron ore.

The turbulence of the past year has in many ways clouded the underlying fundamentals in the dry bulk shipping market, but with 2020 now behind us, we are in a better position to establish an overview of expectations for 2021. Overall, total tonnes transported by the dry bulk shipping industry fell by 1.3% to 5.49 billion tonnes, from 5.56b in 2019, which is however still higher than the 5.46b tonnes shipped in 2018. China has further cemented its position as the dominant player…

ABB enters new market segment with order to install Azipod electric propulsion on board two dry bulk carriers from Germany’s largest bulk carrier company Oldendorff Carriers.Two self-unloading dry cargo transshipment units will be the first bulk carriers in the industry to feature ABB’s Azipod electric propulsion. Both vessels, due for delivery to Oldendorff Carriers in 2021 from the Chengxi Shipyard in China, will be equipped with a complete power and propulsion solution from ABB.Each 21,500 DWT vessel will feature two 1.9MW Azipod units.

Drewry maintains a positive outlook on the dry bulk market and expects charter rates to improve from current levels, driven by moderate increases in vessel demand and low growth in vessel supply as a result of restrained new ordering and a thin orderbook, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry.The uncertainty surrounding the dry bulk market, driven by trade wars could, nonetheless, slow down the increase in charter rates. A game of tariffs and counter- tariffs is underway with US at the centre of most of the tussles and it seems unlikely that trade wrangles will end soon.But trade wars might not have a direct negative impact on dry bulk trade.

The current global economic growth (GDP) looks like it may be as good as it gets, with indicators across the globe signaling healthy expansion, but at a slower pace compared to the levels seen in the last half of 2017.Global economic growth seems on track to reach its highest level since 2011, as the International Monetary Fund (IMF) maintain its projection for the world GDP at 3.9 percent and expects the global economic growth to be supported by a strong momentum, favorable market sentiment and accommodative financial conditions in 2018 and 2019.

Drewry expects that dry bulk shipping charter rates will continue to recover with firm demand and controlled fleet growth, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry. Drewry has revised its charter rates forecast in the short term as the date to implement ballast water management systems (BWMS) has been postponed by two years, bringing down the forecast for demolitions that will eventually support fleet growth. Despite the increased fleet supply, charter rates will strengthen because demand will grow faster. The recovery in rates will become more prominent in 2019 and 2020, when the IMO regulations will be implemented.

The outlook for dry bulk shipping remains positive given the shrinking supply-demand gap, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry. With high demolition activity and low deliveries the fleet is expected to grow at a slow annual rate of 1 percent over the next five years, while tonne mile demand will grow at a faster pace of around 3 percent per annum. As supply and demand becomes more balanced over the forecast years, charter rates are expected to improve gradually. Drewry has also researched and flagged the impact of renewables on the dry bulk trade, as this has the potential to reverse charter rates, and has built two scenarios based on current trade developments.

In recent decades, trade between the Australia and China have made an increasingly significant contribution to growth in global seaborne trade, and the signing of the China-Australia Free Trade Agreement in 2015 is driving further co-operation, says a report by Clarkson Research Services. But just how important has the impact of trade between these two countries been? Between 2006 and 2016, Chinese imports from Australia grew by a CAGR of 17% p.a. to reach an estimated 792mt in 2016. The sheer volume of trade flowing between the two countries has meant each now fulfils a vital role for the other. Australia is China’s top trade partner by some distance in terms of tonnes, with more than a third of China’s seaborne imports in tonnes sourced from Australia in 2016, up from a fifth in 2006.

Australia and Indonesia, being the main exporters of coal to China, are growing their market share at the expense of longer haul exporters like the US and South Africa. Therefore, dry bulk shipping demand does not enjoy full tonne-mile demand, when the imported coal volumes increase. The high level of coal into China for Q3 2016 shows the growing importance of Chinese coal imports for the shipping market, since mid-April 2016. The State Administration of Work Safety in China enforced in mid-April a policy of 276 working days per year, upon the coal mines. A decrease in operational days of 16%, to handle the overcapacity in the domestic coal mining industry.

The last three months have been some of the worst the multipurpose and project carrier sector has endured in living memory. The breakbulk and project cargo sector remain weak, with little suggestion that volumes will improve significantly until the end of 2017, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Rates have continued to slide to barely cover operating expenses, as the competing sectors of container ships and bulk carriers have weakened the MPV market ever further in their search for market share. The container lines lost billions of dollars as they filled slots no matter what…

The dry bulk shipping market will remain in recession due to contracting demand for iron ore and coal, and any recovery is not expected until 2017, according to the Dry Bulk Forecaster report published by global shipping consultancy Drewry. Falling demand and oversupply has severely impacted commodity values, with iron ore and coal prices in virtual free fall. The dry bulk shipping sector has been a casualty of these developments with resultant impacts on vessel earnings. However…

The Company reports net income of $10.7 million and earnings per share of $0.35 for the first quarter compared with net income of $3.5 million and earnings per share of $0.12 for the preceding quarter. Net income in the first quarter includes $9.7 million, which was received as partial settlement for a claim for damages and unpaid charter hire. The average daily time charter equivalent ("TCE") earned by the Capesize vessels in the first quarter was $25,200 compared with $28,600 in the preceding quarter.

Dry bulk trade grew by an impressive 7% in 2012 with steam coal proving to be the saviour of the freight market, which otherwise would have seen a complete bloodbath, according to Drewry's latest 'Dry Bulk Forecaster'. Steam coal trade increased by about 18% from 665 million tonnes in 2011 to 784 million tonnes in 2012, supported by high availability and low prices. The report shows that Global GDP grew by 3.2% in 2012, following growth of 5.2% and 4.0% in the post-recession years of 2010 and 2011. This slowdown blighted dry bulk cargo volumes and in turn tonnage demand. Global steel production, reflecting industrial and growth activity around the world, grew by only 1.3% in 2012, with a subsequent impact on iron ore and coking coal trade.

We had the privilege to pick the brain of Dr. Shashi Kumar (right) a Master Mariner, Fulbright Senior Specialist Fellow and Professor Emeritus of International Business and Logistics, for his take on a wide range of maritime matters near and far. A market boom starting in 2014? The long-term  effects of  Sequestration? A ‘cap’ on the size of ships? He covers it all. This maritime economy has been bad for a number of years. Put in perspective the downturn now vs. traditional downturns. That’s a very good question.

Goldman Sachs can't see an end to the dry cargo downturn until at least 2020 on a glut of vessels and stalling cargo growth, says a report in Bloomberg. Overcapacity and low fuel prices are bound to keep low dry bulk shipping freight rates for the rest of the decade or even longer. Steep drops in Asian shipping rates have also added to fears about slowing trade, as a fall in export orders from countries across the region depresses demand for ships. With the daily charter rates dwindling, the bank predicts that the average utilization rate of the dry bulk shipping fleet will decline to 70 percent over 2015 to 2019 from the previously reported 90 percent during the previous five years.

The Australian Port of Melbourne (PoMC) showed a strong balance sheet as it advances the Port Capacity Project and other port infrastructure, Minister for Ports David Hodgett announced before the State of Vicoria Parliament. PoMC recorded an overall profit after tax of $65.9 million for 2012-13 against the background of a small decline in overall trade of 1.6 per cent on the previous year. Detailing the full year trade results, Mr Hodgett explained that while total container volumes declined marginally from last year’s record peaks…

Knightsbridge reports net income of $3.0 million and earnings per share of $0.10 for the fourth quarter of 2013. Excluding the results from discontinued operations, the company reports net income of $3.5 million and earnings per share of $0.123 for the fourth quarter. Knightsbridge reports EBITDA from continuing operations of $7.0 million and EBITDA from continuing operations per share of $0.24 for the fourth quarter of 2013. Knightsbridge announces a cash distribution of $0.175 per share for the  fourth quarter of 2013. Knightsbridge reports a net loss of $3.9 million and a loss per share of $0.15 for the year ended December 31, 2013.

The Shipping Corporation of India Ltd. (SCI) accepts bulk carrier 'Vishva Vijay' from STX Shipbuilding, Dalian, China. The vessel is the third in a series of four Panamax bulk carriers ordered by SCI from STX (Dalian) Shipbuilding Co. Ltd., China. These vessels are of higher capacity, over 80,000 dwt each, compared with conventional Panamax vessels which are of about 75,000 dwt. MV Vishva Vijay has a gross tonnage of 44,010 tonnes and deadweight of 80,312 tonnes. The new ship is dually classed with LR and IRS and has been built to comply with the latest and most stringent international regulations. As a National carrier, SCI has been aiming to increase its presence in India’s ever increasing dry bulk trade and strengthening the bulk carrier fleet would help SCI contribute to that growth.

Hinode Maritime Conferences have announced their "2nd Annual Conference on the Outlook for India's Seaborne Dry Bulk Trade". Considered the largest conference in India on Dry Bulk Trade to be held on January 22, 2015 at Hotel Vivanta by Taj-President Mumbai, the event has created a lot of interest and leading players in the field are expected to participate. a) Demand Outlook Projections for the Major Bulks.

The Hinode’s 2nd Conference on “Outlook for India’s Seaborne Dry Bulk Trade” held at the Hotel Vivanta by Taj President saw a significant gathering of shipowners, charterers, agents, ship managers, exporters, importers, bankers, legal experts and those in other allied fields. Though the bulk trade worldwide has been at an ebb the conference was seen as an opportunity to network and gather views that could help place participants in a stronger position once the turnaround takes place. According to T. V. Shanbhag, Ex Chief Commissioner of Chartering, Government of India the trade is likely to see a sea-change soon. He felt there is plenty of scope if one develops non-traditional items besides the government has also been doing its best to give boost to the economy.