Jefferies News

30 Jun 2020

Baltic Index Sees Best Month on Record

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The Baltic Exchange's main sea freight index edged higher on Tuesday, helped by gains in supramax and panamax vessel rates, and marked its best month on record.The Baltic dry index, which tracks rates for ships ferrying dry bulk commodities and reflects rates for capesize, panamax and supramax vessels, rose 5 points, or 0.3%, to 1,799.The index surged about 257% in June, driven by a pick-up in iron ore demand from China, following the easing of coronavirus-led lockdowns in many countries.The Baltic capesize index, which had fallen to -48 in mid-May, eased 5 points, to 4,320.Average daily earni

19 Jun 2020

Chinese Demand Lifts Baltic Index to Record Weekly Gain

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The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry commodities around the world, posted its biggest weekly gain ever, underpinned by a rebound in global commodities trading as iron ore demand from China picked up.The 35-year old index, which reflects rates for capesize, panamax and supramax ships, has now surged nearly 300% since tumbling to a low of 393 points in May following a freeze in global trade due to coronavirus-led lockdowns."Most…

05 Mar 2020

Baltic Index Logs Best Day in 8 Months

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The Baltic Exchange's main sea freight index posted its biggest percentage jump in eight months on Thursday boosted by stronger rates across vessel segments.The Baltic index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, jumped 37 points, or 6.6%, to 599, its biggest daily percentage gain since July 04, 2019."The market has started to improve as the supply/demand balance is tightening," said Randy Giveans, senior vice president…

27 Jan 2020

Baltic Index Falls To Over Three-Year Low

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The Baltic Exchange's main sea freight index fell to its lowest level since April 2016, dragged down by lower vessels rates across categories. The Baltic index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, dropped 11 points, or 2.0%, to 546 — its lowest in over 3 years.The capesize index fell 30 points, or 18.2%, to 135.The index registered its 32nd consecutive session of losses, touching its lowest level since April 3 last year.

27 Jan 2020

Capesize Index Marks Biggest Weekly Loss in 21 Years

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The Baltic Exchange's main sea freight index fell to an over three year low on Friday, with the capesize segment marking its biggest weekly loss since March 1999.The Baltic index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, fell 19 points, or 3.3%, to 557 — lowest since April 2016.The index has lost more than 26% this week, registering its biggest weekly percentage loss in nearly a year.The capesize index fell 42 points, or 20.3%…

08 Nov 2019

Baltic Index Down for 9th Session in a Row

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The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, fell for a ninth straight session on Friday, on weaker demand for capesize and panamax vessel segments.The Baltic index, which reflects rates for capesize, panamax and supramax vessels, fell 50 points, or 3.5%, to 1,378. The index was down 18.8% for the week, its biggest weekly decline since February.The capesize index was down by 73 points, or 2.9%, to 2,444, its lowest since June 26. The index was down 17.2% for the week, marking its fourth weekly decline.

03 Oct 2019

Baltic Index Hits Two-month Trough

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The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, slid to a near two-month low on Thursday, as weak demand for iron ore and lower industrial activity continued to weigh on the index.* The Baltic index, which reflects rates for capesize, panamax and supramax vessels, declined 46 points, or 2.55%, to 1,757, recording its seventh consecutive decline.* The overall index was at its lowest level since Aug. 9.* The capesize index fell 218 points…

09 Aug 2019

Baltic Index in Third Weekly Fall, Despite Small Rebound

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The Baltic Exchange's main sea freight index rose on Friday, buoyed by an uptick in demand across all vessel segments, but still posted its third straight week of losses.The Baltic index, which tracks rates for ships ferrying dry bulk commodities, rose 28 points, or 1.6%, to 1,748 points. The index on Thursday broke a 12-session losing streak, but posted a 2.2% weekly decline on Friday.The capesize index gained 41 points, or 1.3%, to 3,222 points. The index posted its third straight week of decline, down about 7.7%.

09 Aug 2019

Baltic Index Nudges Up

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The Baltic Exchange's main sea freight index rose on Friday, buoyed by an uptick in demand across all vessel segments, but still posted its third straight week of losses.* The Baltic index, which tracks rates for ships ferrying dry bulk commodities, rose 28 points, or 1.6%, to 1,748 points.* The index on Thursday broke a 12-session losing streak, but posted a 2.2% weekly decline on Friday.* The capesize index gained 41 points, or 1.3%, to 3,222 points. The index posted its third straight week of decline…

27 Jun 2019

Shipping Companies: Is Bigger Better?

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“If consolidation was the solution to all that ails shipping, then container liner companies would be super profitable. They are not. In ‘commoditized’ sectors of the shipping industry, which by now includes pretty much everything apart from very small niche markets, there is hardly any economies of scale at the company level. As long as bigger is not in fact much better, then meaningful consolidation will not happen.”Dr. Roar Adland, visiting scholar at MIT Center for Transportation and Logistics and Professor at the Norwegian School of Economics (NHH).Like any other business…

24 Jun 2019

Dalian iron ore rises, supply crunch concerns persist

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China's iron ore futures extended gains on Friday after touching a record high in the previous session, as concerns persisted over tight supply amid declining shipment from Rio Tinto and expectations of strong demand.Mining giant Rio Tinto on Wednesday night lowered its guidance on volumes of iron ore it expects to ship from the key Pilbara producing region in Australia for the third time since April.It now puts the upper limit as much as 5.7% under its original forecast, giving…

21 Jun 2019

Iron Ore Spikes on Shipment Concerns

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China's iron ore futures extended gains on Friday after touching a record high in the previous session, as concerns persisted over tight supply amid declining shipment from Rio Tinto and expectations of strong demand.Mining giant Rio Tinto on Wednesday lowered its guidance on volumes of iron ore it expects to ship from the key Pilbara producing region in Australia for the third time since April.It now puts the upper limit as much as 5.7% under its original forecast, giving a window…

28 May 2019

Kirby’s Secret Sauce

Image Credit: Kirby Corporation

Another year; another major fleet takeover by Kirby Corporation. But the leader of the inland tank-barge sector is not growing for growth’s sake: a deeper look at the numbers shows a disciplined strategy at work.“Kirby is definitely the big gorilla in the inland barge market,” affirmed Jefferies analyst Randy Giveans. Indeed, Houston-headquartered Kirby Corp has been extremely active buying fleets over the past few years, most recently acquiring the 63 tank barges of Cenac Marine in March for $244 million.

17 Jan 2019

EU Takes Aim at Turkish Steel Sector Buckling Under Trump Tariffs

The European Commission's move to extend its steel import restrictions threatens to force Turkish mills, already buckling under the weight of U.S. tariffs, to cut production further or in some cases close down, sources said.The Commission said on Wednesday it will extend and beef up its existing "safeguard" steel import caps until July 2021 to counter concerns that European Union markets are being flooded with steel no longer being exported to the United States.For Turkey's vast steel sector, the fourth largest contributor to the country's economy, the caps could prove particularly painful as the EU has given it additional "country-specific" quotas.Under the safeguards…

08 Nov 2018

Baltic Index Losing Streak Continues as Capesize Rates Drag

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The Baltic Exchange's main sea freight index, tracking rates for ships transporting dry bulk commodities, fell for the eighth consecutive session on Thursday, pressured by weakness in the capesize segment.The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 73 points, or 5.6 percent, to 1,231 points, its lowest since June 4.The capesize index declined for the seventh straight session, tumbling 221 points, or 11.2 percent, to 1,747 points - also its lowest since June 4.

23 Oct 2018

LNG Shipping Rates Double Since End-August

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Headline rates for shipping liquefied natural gas (LNG) in Pacific and Atlantic basins stand at around $140,000 to $150,000 a day for a 160,000 cubic meter LNG tri-fuel diesel electric (TFDE) vessel, brokers say.That is a 6-year high and compares to Atlantic basin rates of $75,000 at the end of August and around $95,000 at the end of September.Rates have jumped due to supply from new plants, longer distances traveled and anticipation of higher prices prompting shippers to lock in longer-duration contracts."Charterers continue to lock in multi-month contracts ahead of the winter and we continue

02 Oct 2018

Baltic Index Rises as Capesize Marks 8th Session of Gains

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The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Tuesday as capesize vessel rates gained for the eighth straight session.* The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was up 15 points, or about one percent, at 1,570 points.* "US-China trade tensions may have a net-positive impact on dry bulk ton-mile demand," Randy Giveans, vice president, equity research at Jefferies, said in a note.* In the latest development in the ongoing trade tussle between the world's two biggest economies, Ch

24 Sep 2018

LNG Shipping Rates Spike with No Respite Seen Through 2019

(Photo: Höegh LNG)

The price of shipping liquefied natural gas (LNG) has spiked in September and is likely to remain high next year, buoyed by rising production from new plants and concerns that demand for LNG vessels will outpace supply.The rate for vessels shipping LNG from the Atlantic Basin to Asia has jumped to $90,000 to $95,000 a day this week from $75,000 a day at the end of August, brokers and traders said.Rates, which broadly hovered around $30,000 to $40,000 a day from 2015 to 2017, have risen due to longer distances covered to transport LNG from new terminals in the United States and Arctic Russia…

24 Sep 2018

Cerberus to Acquire Subsea Communications Business from TE Connectivity

Image: TE Connectivity

Cerberus Capital Management announced that one of its affiliates has entered into an agreement with TE Connectivity under which Cerberus will acquire TE's Subsea Communications business (SubCom).Headquartered in Eatontown, New Jersey, SubCom is a leading global supplier of subsea communications systems with approximately $700 million in revenue, based on fiscal year 2018 expectations. The business designs, manufactures, deploys, and maintains the subsea fiber optic cable systems that are vital for global communications.To date…

05 Sep 2018

Baltic Index Falls on Subdued Demand for Larger Vessels

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Baltic Exchange's main sea freight index, which tracks rates for ships shuttling dry bulk commodities, fell for a 10th consecutive session on Wednesday due to weaker demand for capesize and panamax vessels.* The overall index, which factors in rates for capesize, panamax and supramax vessels, shed 36 points, or 2.4 percent, to 1,477 points.* The capesize index dropped 125 points, or 4.9 percent, to 2,410 points, touching its lowest in nine weeks.* Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, fell $851 to $18,493.* "We

07 Aug 2018

Shipping Executive Focus: Art Regan, Executive Chairman, Genco Shipping & Trading

Art Regan, Executive Chairman, Genco Shipping & Trading. (Photo: Genco)

Art Regan, who has been the Executive Chairman at Genco Shipping and Trading (NYSE: GNK) since October 2016, personifies the new type of shipping executive, savvy on all things maritime (he is a graduate of SUNY Maritime College at Fort Schuyler) coupled with a keen understanding of market dynamics. Regan commenced his maritime industry career at sea, rising through the shipboard officer ranks completing as a Master Mariner during a more than ten-year period sailing on oil tankers and dry bulk vessels.

16 Jul 2018

Baltic Index Rises on Strong Capesize Rates

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The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Monday, driven by strong rates for capesize vessels.* The overall index - which factors in rates for capesize, panamax and supramax shipping vessels - rose 29 points, or 1.7 percent, to 1,695 points, levels last seen in December.* The capesize index was up 82 points, or 2.6 percent, at 3,238 points, highest since December.* Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose by $700 to a seven-month high of $

02 Jul 2018

Thyssenkrupp Hails 'Fair' Tata Steel JV

Germany's Thyssenkrupp called a landmark joint venture thrashed out with India's Tata Steel "fair" on Monday, although the updated terms disappointed some shareholders.After two years of at times fraught talks, the two steel firms finally signed a deal on Saturday to create Europe's No.2 steelmaker with 17 billion euros ($20 billion) in sales, marking the sector's biggest tie-up in more than a decade.Thyssenkrupp boss Heinrich Hiesinger had come under pressure from activist shareholders Cevian and Elliott to seek a better deal, who argued that a recent weakness in Tata Steel's European business meant terms needed to be changed in Thyssen's favour.That resulting value gap…

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