Baltic Index Jumps to 2-Week High
The Baltic Exchange's main sea freight index rose to a two-week high on Tuesday, as higher rates for panamax and supramax vessels more than offset the capesize segment lingering in the negative zone.The Baltic index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, rose 16 points, or 3.7%, to 450, registering its biggest one-day percentage gain since late November.The capesize index gained for a second straight session, up 30 points at -257."Capesize is gradually gaining because there are other geographies besides China…
Capesize Index Turns Negative for the First Time Ever
Capesize index plummets to -133, the first time ever in negative territory – is it all up from here?The Baltic Exchange Capesize Index (BCI) dropped to -133 index points on February 4, 2020, turning negative for the first time ever on January 31, 2020. The composite BDI index (BDI), which has excluded the more stable handysize segment since March 2018, also dropped on February 4, 2020 to settle at 453 index points.The BCI has been on a freefall through the entirety of December, but the descent started to pick up more steam during the past couple of weeks.
Capesize Slumps, Coronovirus Pull Down Rates
The capesize component of the Baltic sea freight index plunged to an all-time low on Thursday, hurt by high fuel costs owed to new shipping regulations and a seasonal slowdown worsened by a coronavirus outbreak.The Baltic index, which tracks rates for capesize, panamax and supramax vessels to ferry dry bulk commodities, fell 27 points, or 5.1%, to 498 — its lowest level in over 3 years.The capesize index dropped 92 points, or 98.9%, to a record low of 1 point, extending its losing streak to a 35th straight session.Average daily earnings for capesizes…
Low-sulphur Fuel Sales Surge
The final quarter of 2019 marked a massive decline of high-sulphur fuel oil (HSFO) sales, as the industry transitioned into compliance of the International Maritime Organization's (IMO) 2020 Sulphur Cap (IMO 2020). In Singapore, the world’s largest bunkering hub, the bunker sale landscape saw significant change as the sale of high-sulphur fuel oil dropped tremendously in a matter of months. In contrast, the sale of low-sulphur fuels skyrocketed in the final quarter.The first wave…
Baltic Index Reverses Course, Gains
The Baltic Exchange's main sea freight index reversed course to inch up on Friday after 21 straight session of declines, helped by higher earnings for capesize vessels.The Baltic index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, increased 2 points, or 0.3%, to 774 points.The Baltic index started falling on Dec. 4, and continued its slide for 20 more consecutive sessions. On Friday, the index was still at its lowest since April 17.There has been a dramatic decline in the Baltic index because of a fall in all segments on seasonality…
Baltic Index Marks Worst Day in 6 Years
The Baltic Exchange's main sea freight index on Thursday posted its biggest one-day percentage decline in six years, pressured by depressing demand for dry bulk vessel segments.* On its first day of trading in the new year, the Baltic index , which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, fell 114 points to 976 points, its lowest level since May 2019.* The overall index declined about 10.5%, posting its biggest one-day percentage drop since January 2014.* "Some of it represents the fact that it is the first quoting for almost a week now.
Baltic Index Snaps Losing Streak
The Baltic Exchange's main sea freight index on Friday rose for the first time in seven sessions, helped by an uptick in capesize rates.* The Baltic index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, rose 29 points, or 2.3%, to 1,284 points.* For the week, however, the index recorded its sixth straight fall, declining by 5.4%.* The capesize index rose 92 points, or 3.8%, to 2,493, but still shed 5.4% in the week, its fifth fall…
IMO2020: Market Uncertainty Brings More Fuel Oil Price Volatility
The oil market has recently been shaken up by geopolitical events, but volatility in the price difference between low and high sulphur fuel cannot be explained by that alone – the uncertainty is the chaos factor.The uncertainty of the upcoming IMO 2020 Sulphur cap regulation (IMO2020) is having a big impact on the bunker market. Whereas, the price for Marine Gas Oil Low Sulphur (MGO LS) has largely remained stable, the price for High Sulphur Fuel oil (HSFO) has been become increasingly more volatile in recent months.
Baltic Index Inches Lower on Weaker Panamax Demand
The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, inched lower on Wednesday on weaker demand for panamax vessels.The Baltic index, which reflects rates for capesize, panamax and supramax vessels, edged down by 20 points, or 1.1%, to 1,782.The capesize index was unchanged at 3,078 points. Limited activity in both the Atlantic and Pacific basins and the resistance of charterers to current freight rates led to lower market rates, while some fresh inquiries in the Atlantic helped curb losses, Allied Shipbroking said in a note on Tuesday.
Tanker Deliveries Up 37%: BIMCO
Delivered tonnage of crude oil tankers have grown by +37%, whereas total fleet demolitions for 2019 have slumped to the lowest in a decade with a reduction of 52% from the year before, says BIMCO, the largest of the international shipping associations representing shipowners.Newbuilding orders have remained low through the year with contracted tonnage down by 48%, it said.Amidst a market filled with uncertainty and geopolitical unrest, BIMCO maintains its bearings and turns to the market fundamentals to cut through the mist of market speculation and uncertainty-driven hype.
BIMCO’s Sand to Offer Boxship Insight in Athens
BIMCO’s Chief Shipping Analyst, Peter Sand, will be speaking and providing the audience with unique insights on the container market at the European Shipping Seminar on November 27, 2019 in Athens, Greece.The European Shipping Seminar, hosted by S&P Global Platts, will discuss the various topics relating to the commercial shipping markets and take a deep dive into how the shipping industry will navigate its way through the uncertain environment of the IMO 2020 Sulphur Cap.Container shipping outlookBIMCO has persistently stressed that trade wars and protectionism are negative for shipping.
BIMCO Offers Bunker Fuel Price Monitoring
BIMCO has developed a monitoring service for bunker prices, with data provided by MABUX, which is now available to all BIMCO members. The new interactive graphs allow price fluctuations in the major bunkering hubs of Singapore and Rotterdam to be tracked. They will show the bunker prices for 380cST HSFO (high sulphur fuel oil) and MGO LS (marine gas oil low sulfur), both in USD per metric ton, as well as the spread between the two fuel types, with data available since June 2017.
Baltic Index Rises on Uptick in Capesize Demand
The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, jumped on Wednesday, on stronger demand for capesize vessels driven by a seasonal uptick in Brazilian iron ore exports.* The Baltic index, which reflects rates for capesize, panamax and supramax vessels, rose 72 points, or 4%, to 1,873, its biggest daily percentage gain since Aug. 30.* The capesize index jumped 177 points, or 5.8%, to 3,208, recording its steepest percentage rise in over five weeks.* The average daily earnings for capesizes…
BIMCO: Shipping Hurt by Soya Bean Trades
Combined soya bean exports from Brazil and the US are down 7.8% in the first eight months of this year, as the main Brazilian soya bean export season disappointed. The fall in volumes from the two countries has also led to an 8.5% drop from last year in the tonne mile demand generated by the two dominant soya bean exporters.In particular falling exports from Brazil have hurt the shipping industry, with accumulated soya bean exports from Brazil in the first eight months of this year 7.8 million tonnes lower than the first eight months of 2018.
Baltic Index Snaps 10-day Winning Streak
The Baltic Exchange's main sea freight index fell on Thursday, breaking a 10-day winning streak, as rates for capesize vessels eased.The Baltic index, which tracks rates for ships ferrying dry bulk commodities, fell 19 points, or 0.8%, to 2,499 points. On Wednesday, the index hit its highest since November 2010 at 2,518 points. "We certainly expect freight rates to come down from the highest that we've seen just during the spike now, but remain profitable for the remaining part of the year…
Capesize Strength Propels Baltic Index to 9-Year High
The Baltic Exchange's main sea freight index climbed to a near nine-year peak on Friday propelled by robust capesize demand, with rates for all the vessel segments scaling multi-year highs.The Baltic index, which tracks rates for ships ferrying dry bulk commodities, rose 101 points, or 4.4%, to 2,378, a peak since November 2010. The main index also posted a 27.3% monthly increase, extending its winning streak to a sixth month.The capesize index jumped 261 points, or 6.2%, to 4,467, a level last seen more than 9 years ago. The index also posted its third weekly gain, up about 11.9%.
BIMCO: US Crude Exports Soar in June 2019
The highest US crude oil exports to China in 11 months lifted total seaborne US crude oil exports to a record high at 11.9 million (m) tonnes in June 2019. Also contributing to the June record was South Korea, as exports to the other main Far Eastern buyer reached an all-time high volume of 2.3m tonnes.1.2m tonnes were shipped to China between June 1, and June 30, , up from 1m tonnes in May and worlds apart from no exports at all in the months of August through October in 2018…
BIMCO: US Soya Bean Exports - Up or Down?
The trade war has brought increased attention to the soya bean trade between the US and China with 2019 offering conflicting narratives. On one hand, soya bean exports to China in the first six months of 2019 are up 10.9% compared with the first half of 2018, while on the other, exports to China in the 2018/2019 marketing year are down 68.7%.With the 2019/2020 marketing year now just round the corner, this trade is unlikely to return to pre-trade war levels. The combined effects of a worsening relationship between the nations as well as a smaller US soya bean crop…
BIMCO: VLCC Freight Rates from Gulf to China Doubles
VLCC spot freight rates between the Arabian Gulf and China rose 101% in the days between June 13, 2019 and June 20, 2019, in the aftermath of attacks on two tankers in the Strait of Hormuz. Spot freight rates for a VLCC, carrying 2 million barrels of oil, between the Arabian Gulf and China reached USD 25,994 per day on June 20, their highest level since March and significantly above the May average of USD 9,979 per day.Despite this increase, freight rates on this route only narrowly exceeds the daily break-even costs of a VLCC…
BIMCO: "Continued Pressure" for Bulkers
Demolition of dry bulk ships in the first four months of 2019 was 120% higher than in the same period of 2018. Much of this increase comes from demolitions of Capesize ships, up from 1.1m DWT between January and April 2018 to reach 3.4m DWT in the first four months of 2019.Despite the increasing in scrapping, the bulk carrier market, particularly on the large ship side, will remain under pressure for a number of reasons, starting with stagnant demand, from the short term shock and impact of the dam collapse in Brazil and bad weather in Australia…
“It’s the steel production, stupid!”
BIMCO's Peter Sand, in a new report, weighs in on the implications for the Dry Bulk sectors.Chinese imports of iron ore keep falling, while its crude steel production keeps growing. China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Capesize ships are impacted by this, way beyond the temporary iron ore export disruptions in Brazil and Australia.Chinese steel production grew by a massive 12.6 million tonnes (+9.2%) in the first two months on 2019 as estimated by China Iron and Steel Association (CISA).
BIMCO: US Seaborne Crude Oil Exports Hit Record High
US exports of crude oil have, since August 2018, continued to rise every month, with a new record high in January of 9.6 million tonnes. Exports rose in January on the back of increased sales to Europe, which rose from 2.7 million tonnes in December to 4.8 million tonnes in January.A strong end to 2018 meant that volumes for the full year totalled 87.4 million tonnes, 96.7% higher than the 44.4 million tonnes exported in 2017. This is good news for the crude oil tanker sector…
Brazilian Soya Bean Exports Soar
According to a research note from BIMCO, Brazilian soya bean exports are up 85.2% in the first two months of 2019, this following a record high exports in 2018 of 83.6 million tonnes, which was a 22.7% increase from 2017.According to BIMCO, 2019 has seen the highest ever export of soya bean during the month of February. Exports totaled 6.1 million tonnes, a 112.6% increase from the 2.9 million tonnes exported in February 2018. Strong demand, in particular from China, the world’s largest soya bean importer…