Baltic Exchange to Develop LNG Freight Index
The Baltic Exchange is looking into launching a freight index for liquefied natural gas (LNG) and is working with leading ship brokers to explore potential shipping routes that might be used as the LNG market grows, the company said on Thursday. Founded in 1744 as a forum for chartering vessels, the Baltic Exchange now produces benchmark indexes for global shipping rates, including ones used by the multi-billion dollar freight derivatives market. Singapore Exchange acquired the exchange in 2016 and since then the Baltic has been looking for new markets to develop.
ITIC Highlights The Perils Of E-Mail
Electronic communication is not totally secure despite a seemingly bug-free transition into 2000, warns The International Transport Intermediaries Club (ITIC). E-mail systems may help in reducing communication costs but they can still lead to substantial losses at the touch of a button. The latest issue of ITIC's Claims Review reports the case of a charterer who had invited tenders for a long-term charter. A shipbroker sent his principal's bid via an industry message system to the charterers' mailbox in the U.S. using an address code for the charterer. Unfortunately, the American system interpreted the code as a mailing list and the bid was circulated to a number of other owners. The principal did not secure the bid, claiming it was undercut as a result of its inadvertent publication.
Turkey Will Host Ship Brokers’ Association
The first annual Turkish Ship Brokers’ Association Dinner (Bosporus 2012) will be held at the Haliç Congress Center, located in the historical district of Sütlüce in İstanbul on June 29, 2012. The Turkish Ship Brokers’ Association is expecting an attendance of about 1.400 ship brokers, ship owners, charterers, ship agents and representatives of all areas of the global shipping industry. With the support of the Turkish Transportation, Maritime and Communication Ministry and IMEAK DTO/Turkish Chamber of Shipping, Bosporus 2012 is being sponsored by Statu Shipping, Ulgenbulk, Densa Tanker, Hkalkavan Shipping, Burtrans, Bulk Atlantic, Efe Chartering, Catoni Shipping, United Shipping Agency Romania, Forsa Shipping and Green Black Marine Logistics.
ICAP Shipping in Merger Talks
Shipping market prospects picking up after record downturn; shipbroker M&A deals have gathered pace this year. ICAP's shipping business is in merger talks with rival shipbroker Howe Robinson, the latest potential tie-up among sector players looking for scale after years of freight market turmoil. The shipping industry has suffered one of its worst ever downturns in the past five years. Owners ordered large numbers of vessels between 2007 and 2009, just as the global economy started to slow. Prospects have brightened recently as world trade picks up and the glut of ships is absorbed, but recovery remains fragile. In the meantime, many shipbrokers view larger operations with global teams as the best way to position for a full market revival.
Braemar to Buy Shipbroker peer ACM; M&A Activity Heats Up
Braemar Shipping Services will buy fellow British shipbroker ACM Shipping Group in the latest industry shake-up as players look to grow after years of freight market turmoil. In the biggest deal to date, Braemar, whose businesses include ship broking, said on Tuesday it had agreed to acquire the entire share capital of ACM. "What this transaction is about is growing our shipbroking presence collectively," said Braemar chief executive James Kidwell. Ship owners ordered large numbers of vessels between 2007 and 2009 just as the global economy sank into crisis…
Asia Dry Bulk-Capesize Rates Likely to Stay High
Flurry of cargo fixtures push Australia, Brazil rates to highest since December. Freight rates for large capesize dry cargo ships on key Asian routes are likely to hold steady next week near four-month highs if owners continue to reactivate idle tonnage on upbeat cargo demand, ship brokers said on Thursday. "If more idled ships are put back into the market there may not be the support from cargo demand to push rates up any further," said a Shanghai-based capesize ship broker. "Rates from Western Australia to China are still below $4 per tonne.
Is Your Email Putting You at Risk?
International Transport Intermediaries Club (ITIC) says that shipbrokers run the risk of exposure to substantial liabilities as a result of inadequate monitoring of their email communications. In the latest issue of its Claims Review, ITIC cites the case of a shipbroker acting for a shipowner which had a demurrage claim against charterers. The charter party included a 60-day notification period and a 90-day time-bar for documented claims. The owner passed the full documented claim to the shipbroker, which sent it to the charterer via email on the same day, to the email address specified by the charterer. The shipbroker did not receive any email failure notice or rejection and, on this basis, believed that it had been sent successfully.
Houlder Sells Holdings In Tanker Broker Panel
Shipbroker Howard Houlder (Chartering) Ltd. has sold its shareholdings in the London Tanker Broker Panel back to the other five members of the rate-setting group, panel managing director Robert Porter said. "Howard Houlder is no longer a panel member," Porter said. Porter said he did not know why Houlder had decided to leave the panel - an independent body providing tanker rate/route assessments, for which fees are charged. Houlder had been in negotiations for some time with Capital Shipbrokers Ltd. to sell its shares for approximately $1.1 million, according to other brokers and press reports. A spokesman at Capital said the company could give no comment on the breakdown of negotiations. No one was immediately available at Houlder for comment.
Asia Dry Bulk-Capesize Rates to Firm on Tight Tonnage, Ample Cargo
Just handful of ships for Brazil loading in early January; coal, South African iron ore cargoes support rates. Freight rates for large capesize dry cargo ships on key Asian routes could diverge with rates from Brazil to China nudging higher on a shortage of tonnage and those from Australia to China holding firm around current levels on ample cargo, ship brokers said. "Tonnage is very tight given the number of ships available for January loading dates from Brazil. Rates should keep pushing higher," a Singapore-based capesize broker said on Thursday.
Asia Tankers-VLCC rates to Slip from Eight-Month Highs
Rates gain 10 Worldscale points in a week; but rates in 2017 may be lower than this year -Bancosta. Freight rates for very large crude carriers (VLCCs) may slip next week as the pre-Christmas cargo flurry, which propelled hire rates to an eight-month high on Thursday, peters out, ship brokers said. "I would say it's the last hurrah. I don't see rates going much beyond current levels," said Ashok Sharma, managing director of ship broker BRS Baxi Far East in Singapore. Rates gained up to 10 points on the Worldscale measure this week, pushing rates from the Middle East and West Africa to Asia to the highest since April 4. Around 130 cargoes have been fixed for December loading from the Middle East with around 33 from West Africa, a European ship broker said.
Spinnaker Reveals Radical Pay Changes
Maritime recruitment specialist, Spinnaker Consulting, has warned that radical pay structure changes for UK shipbrokers are resulting in brokers wanting to move out of competitive broking. for competitive shipbrokers. As salary based pay still predominates among principals' brokers, Spinnaker has experienced a growing number of brokers keen to move out of competitive broking and into the employment of principals. "Our survey shows that as broking companies work hard to improve margins and reduce overheads, high basic salaries are being offered less and less. the bonus structure," says Phil Parry, managing director of Spinnaker Consulting. Broking companies can keep their costs and risks low by shifting compensation to bonus rather than base salary.
StrategicIMX Completes Shipbroking Desktop Integration
Strategic Software has announced that StrategicIMX can now integrate all users of existing Strategic and Dataworks shipbroking software over the internet. A number of companies are already benefiting from IMX. US-based McQuilling Brokerage and Charles R. Weber are among the tanker brokers utilising the fully functional TankerIMX, a version specifically designed to cater for the tanker industry. E-Jan/DryBulkIMX, the IMX software for companies involved in dry bulk ocean transportation, is being used by NYK Line, Japanese shipbroker Yamamizu and other Japanese, European and US shipbrokers and shipowners.
Asia Tankers-VLCC Rates Supported by Floating Storage
Trafigura hires five VLCCs to store oil; short-term storage a profitable play. Freight rates for very large crude carriers (VLCCs) could creep higher as more ships are chartered for floating storage and crude oil shipments increase ahead of the northern winter, brokers said. "There might be a slow creep up towards 60 (on the Worldscale measure)," said Ashok Sharma, managing director of ship broker BRS Baxi in Singapore on Friday. "W60 is at least on the horizon. Rates from West Africa to China are already at W56," he added.
Shipbroker Chases Down Payment Due
Persistence pays off for shipbroker's legitimate claim for outstanding financial commission due from time-charterer. In the latest issue of its Claims Review, International Transport Intermediaries Club (ITIC) recounts the case of a shipbroker owed outstanding commission by time-charterers who were widely thought to be in financial difficulties. The charter party provided that the time-charterers were obliged to deduct the broker’s commission from the hire and pay this directly to the broker. The charterers had deducted commission of EUR 50,514 from the hire, but had only paid Euros 20,000 to the broker. Then payments suddenly ceased without explanation. ITIC wrote to the time charterers on behalf of its shipbroker client on two occasions and was advised that payment was to follow.
Asia Dry Bulk-Capesize Rates Flat as Rally Fades
Higher fuel prices could help lift freight rates - Shanghai broker. Freight rates for capesize bulk carriers on key Asian routes are likely to hold around the current levels, after a revival in charter rates this week ran out of steam as the fundamentals of too many ships chasing little cargo remained unchanged, ship brokers said. "Next week is going to be flat," said a Shanghai-based capesize broker on Thursday. "But bunker prices might give some support for owners to push the market up. So we might see a little improvement in the rates," the broker said.
Demand, Bunker Pricing Spurs Asia Dry Bulk-Capesize Rates
Owners asking $1 per tonne more on Australia-China rates; Panamax rates climb to two-month high, but remain under pressure. Freight rates for large capesize dry cargo ships on key Asian routes could continue to firm next week on higher cargo volumes and bunker prices, while upbeat shipowner sentiment will also support the market, ship brokers said. "The market is pushing up a little bit. Owners' ideas though are even higher - they are indicating about $1 per tonne more on rates from eastern Australia," a Shanghai-based capesize ship broker said on Thursday.
Clarkson Shares Surge
Shares in Horace Clarkson Plc surged 14.3 percent on Wednesday after the British shipping broker said its year turnover and profit was expected to "very substantially" exceed market expectations – (Reuters)
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.
Market Weighs on Asia Dry Bulk-Capesize Rates
Tonnage list grows in Pacific, Atlantic oceans; lack of coal cargoes weigh on freight rates. Freight rates for capesize bulk carriers are set to slide further next week, after falling to their lowest level in five weeks, due to a mounting supply of tonnage and uncertain cargo demand, ship brokers said on Thursday. "There's too many ships in the Pacific. There's a lot of ballasters (empty ships) sailing to Brazil," a Singapore-based ship broker said. Capesize freight rates from Australia to China could fall to around $5-$5.20 a tonne next week on this overcapacity, with rates from Brazil to China at $12.50 to $12.75 a tonne, a Shanghai-based capesize broker said on Thursday.
Far East Holidays Cripple Shipbrokers' Forecasts
The panamax market is clouded by the prospect of Far Eastern holidays in less than two weeks, shipbrokers said on Wednesday. Brokers are unwilling to give forecasts beyond April 29 - the start of Golden Week. "We made it through Easter unscathed, but Golden Week is a different matter. Every year we're shocked at the slack trade, it's like we forget how important the Far Eastern market is," a broker said. Inquiry for Pacific basin panamaxes remained slow with modern tonnage hoping for $11,000 per day for North Pacific - Australia round voyages. Special positions, such as West Coast India, could get a premium for short trips, brokers said, citing the booking for the 1989 built Nemea. The Piraeus-based Goulandris Bros-controlled ship won $14,500 per day from Japanese charterers.
Asia Dry Bulk-Capesize Rates Impacted by China Holidays
Weak holiday demand to pressure rates lower. Rebound seen after China returns to market on Oct 8. Freight rates for capesize bulk carriers could come under pressure next week as lower cargo volumes due to holidays in China thwart shipowners efforts to push rates higher, ship brokers said. "There was a bit of a rush to fix earlier this week ahead of the holidays ... but it has been very quiet in the last couple of days," a Singapore-based capesize broker said on Thursday. "We are seeing resistance. Owners are holding off fixing their vessels. Ships are stopping in South Africa on owners' expectations freight rates will rise," he added.
Tanker Earnings Hold Steady
Atlantic Panamax earnings were given a brief respite from the steady erosion of freight rates that has dogged the sector for the past three weeks, shipbrokers said. Brokers felt that freight rates had hit rock bottom, giving Atlantic Panamax returns one last chance to surge before the end of the year. The Baltic Exchange reported that charterer GIC paid $20.85 for an unnamed vessel on the key U.S. Gulf to Japan grain route, which was above last done levels that reached $20.50 earlier in the week for the same route, shipbrokers said. A further two fixtures were reported for the same route at higher freight rates of $21 and $21.25 per ton, confirming Panamax brokers' new-found optimism in the sector.
Increased Panamax Rates Boost Market Sentiment
Higher panamax freight rates have boosted sentiment in the market amid hopes for further rates increases during the week, shipbrokers said on Monday. They gave as prime example the latest U.S. Gulf to Japan fixture at a rate of $23.25 per ton of heavy grain for mid-July loading dates, this compared with the present Baltic Panamax Index showing an average $22.86 per ton. Firmer fixtures had been also reported for both the Pacific and the Atlantic, brokers said. An undisclosed panamax had been chartered to load 55,000 tons of heavy grains from the River Plate and deliver it to China at a rate of $25.75 per ton, brokers said. Shipbrokers also mentioned the timecharter of the 1999-built 75…