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Thursday, January 18, 2018

Rates Continue News

Dry Cargo Rates Continue Rise In Quiet Market

Dry cargo rates continued to rise on Tuesday, but the market was quiet following Monday's Labor Day holiday in the U.S., brokers said. Cargill chartered the Ken Pan built in 1984 to ship 31,000 tons of maize from Durban to Japan 10/20 September at $22.75. The Baltic Dry Index (BDI) rose five points to 1,671, the Baltic Panamax Index four points to 1,616, the Baltic Handy Index six points to 1,169 and the Baltic Capesize Index by seven points to 2,239.

Asian Shipping Stocks Poised for Gains

According to a Jan. 6 report from MarketWatch, as freight rates continue to recover and with demand for shipping expected to climb, shares of Asian shippers and shipbuilders are starting the year out trading broadly higher. Investors appeared to agree, lifting shares of major shipping stocks in the region. (Source: www.marketwatch.com)

A Tale of Two Trades

Graph: Drewry

Downsizing of capacity on the Asia-ECSA trade has paid dividends to carriers with much improved freight rates; why isn’t the scalpel also being used on other routes? In container shipping it is said that freight rates fall much further and quickly than they rise in the opposite direction. Most often a sudden rate decrease will take carriers months, or longer, to painfully recover losses. However, one trade is currently bucking the trend with an unparalleled spike in prices triggered by significant capacity reductions.

Increased Rates in U.S. Gulf Drive Panamax Freight

Panamax freight rates continued to rise, driven by increased rates in the U.S. Gulf and the stability of the South American market, brokers said on Thursday. Fresh cargo orders in the Pacific also filtered in to the panamax market, they added. The 2001-built 74,269 dwt Tian Tong Feng has been chartered for delivery in early to mid-July in the U.S. Gulf followed by a trip to Taiwan at a rate of $11,500 daily with a $230,000 ballast bonus, brokers said. The 1999-built 73,880 dwt Carl Mesem was also fixed at a firm daily rate of $10,200 for a three- to five-month charter, while the 1995-built 73,350 dwt Doric Herald was charted at $11,300 daily. The vessel is due for prompt Haldia delivery followed by a trip via the east coast of India and with redelivery set for China, brokers said.

Oversupply, Limited Cargoes Contribute To Weakening Panamax Rates

Panamax rates continued to weaken due to oversupply and limited cargoes on Monday, but owners were hopeful that the market was finding a floor, brokers said. The physical market remained in decline, but the forward freight agreement market was holding steady. Buying interest on the Biffex futures market on Friday had suggested a potential bounce this week, brokers said. Panamaxes struggled to find employment and charterers were still using their advantage to push rates lower. However, in some cases owners were having to think hard about whether it was worth taking up the returns being offered, or stay unemployed. Clarkson Research Studies reported average panamax earnings down 14 percent to $5,630 daily last week, compared with an average to date for 2001 of $9,560 daily.

Weaker Rates Weigh on Baltic Index

© AVD / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday as rates continued to slip across vessel segments. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell for the twelfth straight session and was down 30 points, or 2.9 percent, to close at 1,004 points. The capesize index lost 84 points, or 5.45 percent, at 1,458 point, its lowest in nearly a month. Average daily earnings for capesizes…

Capesize Index Jumps As Rates Rise

The Baltic Capesize Index jumped 39 points to 1,508 last week as caper rates continued to rise worldwide, brokers said. Ilva was reported to have fixed 130,000 tons iron ore Tubarao/Taranto for prompt loading at $8.65 basis pier 2, and also took Belmay to load 130,000 tons coal at Gladstone and Newcastle for Taranto pier 2 for end October at $12.70. The Baltic Freight Index (BFI) rose four points to 1,271 but the Baltic Panamax Index slipped three points to 1,229 and the Baltic Handy Index was unchanged at 940. Panamax rates were less steady than the capers, brokers said. Paxicon fixed Pasquale Della Gatta 75,400 dwt del U.S. Gulf mid Oct trip Kosichang at a weaker $10…

Falling Vessel Rates Keep Baltic Freight Index Down

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Thursday for a 13th straight session as vessel rates continued to soften. The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, dropped 32 points, or 3.02 percent, to 1,029. The Baltic's capesize index fell 81 points, or 4.16 percent, to 1,865 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $825 at $11,763. The panamax index fell 7 points, or 0.88 percent, to 787 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes between 60,000 and 70,000 tonnes, were down $56 at $6,346.

Falling Vessel Rates Pull Down Baltic Sea Freight Index

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell for a tenth straight session on Monday as vessel rates continued to fall. The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 19 points, or 1.58 percent, to 1,186. The Baltic's capesize index fell 13 points, or 0.56 percent, to 2,293 points. Average daily earnings for capesizes, which typically transport 150,000 tonne cargoes such as iron ore and coal, were down $241 to $16,210. The panamax index fell 10 points, or 1.22 percent, to 812 points. Average daily earnings for panamaxes, which usually carry coal or grains cargoes between 60,000 and 70,000 tonnes, were down $83 to $6,548.

Panamax Rates Continue Steady Climb

Panamax freight rates continued to climb steadily higher as fresh cargoes supported the sector. The Panamax market started the week relatively quietly, due in part to the Presidents Day holiday in the U.S. on Monday, but market sentiment remained buoyant. With the Baltic Panamax Index providing daily reassurance that all Panamax routes are on the rise, an average increase of the four Panamax timecharter routes by around $150 daily added to the positive tone. Shipbrokers said fixtures were starting to cover a number of March loading cargoes, but added that late February dates still peppered reports. The charter of the 1982-built 63,881-dwt Sea Charm at $20.90 per ton for a 55,000 ton heavy grain cargo scheduled to sail from the US Gulf to China was one of the later February fixtures.

As VLCC Rates Continue Upward Sprint, Modern Vessels Become Scarce

This week's sprint upwards by Mideast crude tanker rates is set to turn into a marathon as modern vessels become harder to find, brokers said, adding that experts are expecting W100 on shorthaul eastern routes. Rates have surged ahead for modern VLCCs in the last three days, with W95 reported Friday for Singapore ($6.00 per ton) and Japan ($10.25) at end April/early May dates. Less prompt Japanese fixtures were commanding W85 ($9.25 per ton) compared with under W80 ($8.50) at the beginning of the week. A total 31 fixtures this week will leave just 38 vessels arriving in the Middle East over the next month - of which only 12 are modern - broker E.A. Gibson said in a report.

VLCC Rates Ease Slightly, But Busier Time Could Be Ahead

Large tanker rates slid back slightly off recent highs this week as Middle East September stems drifted to their conclusion, brokers said. VLCC rates for Japan, which peaked at W52.5 at the end of last week, slid back to around W50 while western rates fell back to about W47.5 from a peak of W50. Late week VLCC fixtures included two Bayoil charters for Bergesen vessels to the U.S. Gulf from Al Bakr at a soft W47-47.5 for well ahead October 10 and 20 sailings. Some brokers said expected October stems next week would mean a busier time with rates picking up, but Galbraiths noted that the Bayoil and two Chevron October charters at the same rates and similar October dates showed market weakness.

Orient Overseas Mulls Route Expansion

According to a report on Bloomberg.com, Hong Kong containershipping goliath Orient Overseas (International) Ltd., may add services on routes within Asia as the region's economy, and freight rates, continue to recover. According to the report on bloomberg.com, volumes on Asian and Australasian routes jumped 21% in the 3Q, outpacing growth for the U.S. and Europe and prompting Orient Overseas to consider adding more vessels. A.P. Moeller-Maersk A/S, the world’s largest container line, is also set to increase investments in China and India in anticipation of emerging market traffic growth outpacing demand on U.S. and European routes. Container volumes in emerging markets will grow 7 percent annually until 2015…

Euroseas Latest Financial Report Reflects Depressed Market

Euroseas Ltd. -Net loss of $0.8 million or $0.02 net loss per share basic and diluted on total net revenues of $13.4 million. Adjusted net loss1 for the period was $0.6 million or $0.01 loss per share basic and diluted. -Adjusted EBITDA1 was $4.0 million. -An average of 15.00 vessels were owned and operated during the third quarter of 2012 earning an average time charter equivalent rate of $10,246 per day. -Declared a quarterly dividend of $0.015 per share for the third quarter of 2012 payable on or about December 11, 2012 to shareholders of record on December 4, 2012. This is the twenty-ninth consecutive quarterly dividend declared.

Low Rates, High Costs Put Squeeze On Tankers

Oil tankers are being squeezed by low freight rates and high fuel costs and some older ships may be heading for the scrapyard, according to a report by shipbrokers Simpson, Spence and Young (SS&Y). An OPEC cut in oil production combined with reduced demand and high bunker fuel prices makes it difficult for even older tankers with little financial commitment to break even, said SS&Y’s Monthly Shipping Review. Many newer tankers, burdened with paying interest on construction costs, will be operating at a loss. Rates this summer for Very Large Crude Carriers (VLCCs) heading to Japan from the key Middle East loading theater have been attracting rates as low as Worldscale 36 ($4 a ton) and have been paying bunker fuel prices of over $100 a ton.

Baltic Index Gains Nearly 3 Percent

© Evren Kalinbacak / Adobe Stock

The Baltic Exchange's main sea freight index rose nearly 3 percent on Wednesday to post its biggest percentage rise in three weeks as rates for all vessel segments perked up. The overall index tracking rates for ships carrying dry bulk commodities was up 35 points at 1,250 points. The Baltic index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, rose 2.88 percent to register its biggest one-day percentage rise since Aug. 17. "Sentiment in the dry bulk market remains firm across the segments with rates continuing to edge higher thus far into the week…

GulfMark Offshore Rack Up Q2 2013 Profit

Image courtesy of GulfMark

GulfMark Offshore, Inc. (NYSE:GLF) announce its results of operations for the three- and six-month periods ended June 30, 2013. For the second quarter ended June 30, 2013, revenue was $111.3 million, and net income was $9.9 million, or $0.38 per diluted share. The quarterly results include a non-recurring, non-cash charge of $2.4 million ($1.6 million net of tax, or $0.06 per diluted share) for the acceleration of vesting of outstanding stock grants associated with the retirement of the Company's former CEO, and earnings before this special item was $0.44 per diluted share.

LNG Shipping Under Pressure from Tumbling European Re-exports

LNG re-exports by European countries. Source Drewry Maritime Research

LNG shipping freight rates continue to be under pressure from weak Asian demand and a growing fleet. Shipowners are now pinning hopes on a revival in European demand. However, European LNG demand growth will not be sufficient to raise freight rates, according to the newly launched LNG Forecaster report published by global shipping consultancy Drewry. Until the recent fall in oil prices, Asian LNG prices were at a premium compared to piped gas prices in Europe. European traders therefore preferred to re-export cargoes to more profitable Asian markets (see figure below).

Freight: Very Close to the End of the Road

Pic: Freight Investor Services

In 1812, Russia beat back the advance of Napoleon’s army. On 18 December 2015 there is a similar tone of seasonal retreat, with most hopes pinned on the New Year. Shame there’s no-one around to write a symphony about it. At this stage the status quo in the freight market looks set to continue into Christmas with the capesize index down 23% on the week as it continues to suffer from excess capacity and a China slowdown. On the upside, observers have predicted an end to iron ore’s relentless decline…

Atlantic Market Freight Rates Fall Steadily

Freight rates continue to fall in the Atlantic market as fresh grain enquiry failed to compensate a slowdown in demand, shipbrokers said on Monday. Brokers reported the chartering of the 1996-built Atalanta, of 73,301 dwt, for a Brazil to Iran voyage. The ship will load 60,000 tons of maize between July 18 and 25, with a freight rate of $19.80 per ton. In the timecharter market, the 2001-built, 76,397 dwt, Mega Wisdom had been chartered for July 6 to 12 North Japan delivery for a three to five months trading period at a daily rate of $10,500, brokers said. In June, rates were quoted between $9,900-$9,750 daily for early July delivery. Traders also said the Louis Dreyfus grain trader had chartered the 2001 built 74,766 dwt Angelic Grace for July 15 to 25 Recalada delivery.

Drewry Maritime Research: Reefer Charter Rates Thaw

Reefer market dynamics continue to change. Drewry Maritime Research have just published their latest Reefer Shipping Market Annual Review and Forecast 2011/12, analysing the industries make-up including; leading operators’ profiles and fleets, perishable commodities, specialised reefer and freezer fleet capacity, containerised reefer vessels, ship economics and forecasts for the future. As the burgeoning containerised reefer market continues unabated, the specialist reefer fleet is feeling the strain. With twelve-month charter rates forecasted to continue sliding, scrapping levels gaining pace and for the first time an empty newbuild orderbook , the industry is changing quickly.

Panamax Rates Under Pressure

Freight rates in the Atlantic Panamax market remained under pressure and were expected to move even lower in the near term, brokers said on Monday. While Atlantic rates continued to slide, Pacific business was holding up for the time being but was expected to tail off in due course, brokers said. Fresh cargoes had emerged in the Pacific for Panamaxes, but Japanese and Chinese owners had also started to place their tonnage on the open market. Since the owners in question usually confined their ships to private business, the emergence of their vessels for open charter did not bode well for the Pacific Panamax market. The Baltic Panamax Index (BPI) lost just nine points on Monday to 1,198, but brokers believed Panamax rates had further to fall.

Panamax Freights Rise, Pacific Rates Hold

Panamax freight orders picked up for Atlantic tonnage on Tuesday while Pacific rates continued to hold strong, shipbrokers said. In the short-period market, the 75,000 dwt newbuilding APJ Jit was chartered for June 20-25 South Korea delivery, booked for 3-5 months trading at a rate of $9,750 daily, they said. Brokers reported the chartering of North Friendship, a 1999-built 74,732 dwt panamax, was chartered for end-June U.S. Gulf delivery. The timecharter included a trip to Indonesia at a rate of $11,250 daily plus a $225,000 ballast bonus, they said. Hanjin was said to have chartered the 1989-built 68,779 dwt Achilles for early July U.S. Gulf delivery and the panamax is set for a trip to the Far East at a rate of $11,100 daily plus a $210,000 ballast bonus.

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

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