Container Ocean Freight Rates Hold Steady on Main Routes
Freight rates hold on to a healthy level on the main routes according to the latest BIMCO Market Analysis Report. Freight rates hold on to a healthy level on the main routes, while new large vessels are put to work smoothly without adding extra downside pressure to the current balance, says the report. The positive stories continue to show themselves in the container shipping segment, with freight rates holding up well and demolition activity staying strong. In the light of the slowly developing demand side, it’s very positive that the industry deals with the supply side issues to improve the fundamentals. Growth rates in container volumes on the main trading lanes pose a continuous challenge as they struggle to improve.
Random Drug Testing Rate Holds at 50 Percent
The USCG announced the minimum random drug testing rate for marine employers will remain at 50 percent of covered crew members for calendar year 2000. The USCG's decision to continue to present drug testing rate was based on analysis of the 1998 Management Information System (MIS) data collection forms submitted by marine employers, which showed random drug testing of vessel crew members resulted in positive test results 1.68 percent of the time. Federal regulations allow the USCG to reduce the random drug testing rate if MIS reports for the previous year show an industry-wide positive rate of less than one percent. Information on 1999 test results is due March 15, 2000.
Crude Tanker Rates Hold Firm Ahead Of Holiday
Crude oil tanker rates maintained recent strength as markets continued active ahead of the Christmas break, shipping brokers said on Dec. 23. "Aframax and Suezmax markets are still bouyant; only VLCCs are still struggling along," one broker said. Tankers were fixed ahead of the holidays next week which would leave just Wednesday and Thursday for London brokers to trade. Not much activity was expected then. Continued shortage of tonnage for prompt dates were holding UK-Continent Aframax rates in the region of W150-160 ($5.50-5.85 per ton), slipping from a high of W165 achieved early this week. Cross Mediterranean voyages for the 80,000 ton vessels could achieve up to W122.5 ($4.20 per ton) while rates from the Mideast to Far East were about W130 ($13.75). Caribbean - upcoast U.S.
Strong demand for VLCC tankers in the Middle East failed to create a massive breakout in rates, but owners were happy as bunker fuel prices continued to fall, brokers said early last week. Expectations that a lack of modern tonnage would hike rates for mid-April oil major-approved vessels failed to come true. An Exxon cargo for Singapore lifting from three Mideast ports finally got done at the going rate of W77.5 (about $5.00 per ton) after early week offers of W100 had excited dreams W87.5 ($5.50) could be achieved. Other eastern rates held ground or crept up with the average for Japan W77.5 ($8.50 per ton) and W75 ($7.00) for South Korea. Western prices also inched up to around W65 ($11.25 per ton) for the U.S. Gulf while Red Sea fixtures achieved W72.5-75.
Panamax Rates Hold Steady
Freight rates in the Atlantic Panamax sector held steady on Wednesday amid signs that recent rises may be stalling, brokers said. "The Atlantic is holding up well, but the question is not whether the Panamax market will rally further, but when the Atlantic will come off," one said. Until then, Atlantic and Pacific Panamax rates were expected to remain steady. Signs that the market was reaching its pinnacle were heralded by the Baltic Panamax Index (BPI) on Monday, when rises in both the Atlantic and Pacific were noticeably smaller. The trend persisted on Tuesday, and by Wednesday the BPI rose just two points to 1,436. Freight rates remained high enough, however, to encourage charterers to continue with timecharter deals.
Panamax Rates Hold Firm
Asia's Panamax rates for dry bulk cargo are expected to remain firm this week on strong vessel demand for grain and mineral exports and support from a rebound in Capesize, traders said. "Panamax freight rates are holding firm this week," said a shipping trader in Seoul. Active grain and oilseed exports from South America were providing support to the Panamax market, along with steady exports of coking coal from China, Indonesia and Australia, he said. The Panamax rates were also supported by a rebound in Capesize rates since late last week, he added. Spot freight rates for U.S. Gulf/Japan for Panamax cargoes were unchanged at about $23.25-$23.50 per ton from last week, a shipping broker said.
Clean Tanker Markets Quiet
Caribbean business proved the high spot in a quiet but slightly improved clean tanker market, brokers said on Friday, September 17. Renewed activity in the Caribbean markets pushed 30,000 ton cargo rates to the U.S. Atlantic Coast up by around 10 points to W185-190 by the end of the week, brokers said. One U.S. broker pointed to rates pushing over W200 early next week. The two hurricanes hitting the U.S. East coast were partially responsible for the rise, brokers said. Transatlantic rates also moved up to W165-170 for 33,000 tons, E.A. Gibsons said in its weekly report. They had risen from about W160. Long range 75,000 ton Middle East to Japan rates also inched ahead as predicted on thinner availability of tonnage. Rates rose to W125 from W120.
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.
Panamax Rates Hold Strong
Freight rates for Panamaxes trading the Atlantic are holding strong but the Pacific market is now starting to weaken, shipbrokers said. "Prospects for May in the Atlantic are very good as South American business is expected to accelerate," said a shipbroker, adding that the strength in the Atlantic Panamax market was likely to continue into next month. South America's grain export season started later than expected this year and should therefore produce further opportunities for the Panamax sector in late spring, he said. One fixture was reported for this market on Tuesday, the 1981-built Golden Glow, 63,990 dwt, for prompt delivery Piraeus to be followed by an east coast of South America round voyage for at a daily rate of $10,250.
Indices Post Gains, Rates Holding Steady To Firmer
The dry cargo market was quiet last Wednesday because of a holiday in Japan, but the Baltic indices posted gains as rates were perceived to be holding steady to slightly firmer, brokers said. The Baltic Freight Index (BFI) rose six points to 1,211, the Baltic Panamax Index gained five to 1,181, the Handy Index firmed six to 902 and the Capesize Index was up four to 1,398. Activity was expected to remain quiet for the rest of the week due to holidays in Japan, South Korea and Taiwan over the course of the week. Grain chartering remained quiet with no vessels fixed on any key routes. However, the 1978 built Thebro and the 1977 built Velos were both booked to carry 55,000 tons wheat each from the U.S.
Asia Tankers-VLCC Rates to Hold Steady
Unipec charters 20 VLCCs for West Africa, MidEast cargoes; China's oil demand to climb 3.4 pct this year - CNPC. Freight rates for very large crude carriers (VLCCs) are expected to remain stable next week as buoyant chartering activity from the Middle East is offset by the large number of supertankers available for charter, ship brokers said. "We're going to see rates holding at current levels," a European supertanker broker said on Friday. "Saudi Arabian cargoes for February loading should be out on Monday.
Drewry’s: Container Freight Rates Headed Higher
The recent successful implementation of significant rate restoration initiatives by carriers in the core east-west trade lanes means that most are now operating above break-even. Carriers took sufficient capacity out in the winter months to ensure that recently re-activated services have not caused too much damage to the supply/demand balance and load factors on the eastbound transpacific remain strong. However, with the worsening situation in Europe, we do not foresee a strong peak season this year and carriers will experience some rate erosion during the summer months. Evergreen’s decision to launch another weekly loop this month is not a positive and the Asia-Europe trade is most at risk because of the need to fill more 12,000+ teu ships every week.
Seaport Real Estate Continues to Outperform Overall Industrial Market
Jones Lang LaSalle’s third annual Port, Airport and Global Infrastructure (PAGI) report published today, reveals that even amid economic volatility, real estate in the markets surrounding the country’s seaports is leading the U.S. industrial real estate recovery. Overall vacancy rates for seaports have dropped from last year by 1.4 percent to 8.5 percent, outperforming the 9.7 percent vacancy rates held by the general industrial real estate sector. “Even with a myriad of global economic challenges, seaport industrial real estate has continued to retain its premium value over inland industrial locations,” said John Carver, head of Jones Lang LaSalle’s Ports Airports and Global Infrastructure team.
Baltic Index Drops to 5-month Low on Sinking Capesize Rates
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell nearly 5 percent on Wednesday to its lowest in over five months due to tumbling capesize rates. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, slid 57 points, or 4.7 percent, to close at 1,164 points, the lowest since Aug. 14. The capesize index fell 267 points, or 13.28 percent to 1,743 points, its lowest level since Aug. 9 last year.
Analyst Cuts Oil Tankers
According to an analyst speaking with the Associated Press for a Feb. 9 report, a flood of new crude oil tankers being delivered this year will bring down vessel rates in the spot market and he has cut his ratings on two companies. Jefferies & Co. analyst Douglas Mavrinac downgraded Overseas Shipholding Group to "Underperform" from "Hold" and lowered Teekay Corp. to "Hold" from "Buy," noting both companies have a large portion of their fleet operating in the spot market, where rates are expected to slip. (Source: Associated Press)
Asia Tankers-VLCC Rates to Hold, Ample Tonnage Weighs
"Pure" chartering market with little disruption. Rates to hold around W45 for Middle East; W48 for West Africa. Freight rates for very large crude carriers (VLCCs) are likely to hold steady around existing levels as new vessel deliveries and a reduction in port delays weigh on a ample cargo market, ship brokers said. "The market will not be majorly different next week. VLCC rates have been limping along," a Singapore-based supertanker broker said on Friday. New tanker deliveries…
Capesize Rates Pull Baltic Index to 4-month Low
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, hit a more than four-month low on Tuesday, as capesize rates dropped to their lowest since August last year. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, lost 43 points, or 3.4 percent, to 1,221 points, the lowest since Sept. The capesize index fell 221 points, or 9.91 percent, to 2,010 points, its lowest level since Aug. 10 last year.
Freight rates for crude tankers loading early April in the Middle East were climbing early last week as shipowners held out for higher prices in expectation of heavy vessel fixing, brokers said. VLCC rates to the U.S. Gulf were expected to rise five or more Worldscale points to W62.5-65 ($10.75 per ton) for the next done fixture, some brokers said. Japan shipment prices were also lifting with the latest bookings at W70 ($7.50 per ton), up from W67.5 in the week before. "We believe this week will be heavy for one reason alone, there will be placement of barrels West to alleviate the shortage that the U.S. market is stressing," broker Marinav Shipping & Trading forecast in its March 13 report.
Rickmers ChristensFour Containerships
Even for Hyundai Heavy Industries (HHI), the world’s largest shipyard group, it was a remarkable occasion. In a quadruple naming ceremony at HHI’s Ulsan shipyard on July 2, Rickmers Group christened four ultra-large container ships (ULCS) of 13,100 TEU each. Each of the four ships, Pearl Rickmers, Ruby Rickmers, Aqua Rickmers and Coconee Rickmers, has a service speed of 24.3 knots. They have been chartered longterm to Maersk Line and will join Maersk’s “E-class” as Maersk Edinburgh, Maersk Emden, Maersk Eindhoven and Maersk Essen.
Gratingless Air Circ System in Reefer Ships Proves Successful
Computer simulations and tests have been carried out by LauritzenCool and York Marine AB to confirm the suitability to distribute air in refrigerated cargo holds without gratings. The investigated grating-less concept was confirmed successful by full-scale transports of bananas in a regular service over a period of half a year from Central America to Europe. The work has given valuable information in developing formulas and algorithms to design safe systems for grating-less holds in refrigerated ships. The project started in 1994 with laboratory work at ABB Ventilation Products to find criteria for the rate of cooling of bananas on single pallets. Soon, tests moved on to trials to determine the rate of cooling and temperature gradients in several pallets of bananas and citrus.
Asia Dry Bulk-Capesize Rates Steady
Holidays in Asia likely to dampen chartering activity; Outlook still "slightly positive" for fourth quarter. Freight rates for large capesize dry cargo ships on key Asian routes could hold steady around current levels next week in a quiet market, ship brokers said on Thursday. That came after charter rates cooled this week after hitting their highest in nearly a year on Monday. Holidays in China and South Korea this week and Japan next will subdue chartering activity, brokers said. "My guess is the market will be very quiet," said a Shanghai-based capesize broker.
Asia VLCC Rates Hold Steady after Near 4-week High
Freight rates in Asian trades for very large crude carriers (VLCCs) are set to hold steady around current levels next week, after hitting a near four-week high on Thursday, as tanker supply matches cargo demand. "I can't see the market crashing, or spiking. There are enough ships - there is no real shortage of tonnage," a Singapore-based supertanker broker said on Friday. Around 32 VLCC cargoes have been fixed for loading in the Middle East in the first 10 days of March with 6 to 12 charters still to be agreed, he said.
Tanker Rates Strengthened Slightly In Middle East, Asia
Freight rates for Korea-bound VLCCs out of the Middle East joined those for Japan in hitting W50 by Sept. 3, brokers said. At least one fixture of W50 was reported for Korea, up from around W47.5 earlier in the week as the Middle East VLCC market strengthened. Some 70 vessels of around 21 million tons were potentially available in the area in the next month, but a shortage of modern tonnage for September liftings suggested rates could strengthen further. "Owners will look to make further improvements," broker Gibson said in its weekly report. Other brokers said owners were holding out for higher rates are after being hurt by recent high bunker prices, and VLCC rates westbound were also strengthening. VLCC fixing to the U.S.