Baltic Index Falls to 8-Month Low
The Baltic Exchange's main sea freight index fell to its lowest level since April on Monday, weighed down by weaker vessel demand across all segments.* The Baltic index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, declined 63 points, or 6.9%, to 844 points, its lowest level since April 23.* The capesize index fell 119 points, or 7.9% to 1,388 - its lowest since May 10.* Average daily earnings for capesizes, which typically transport 170…
BIMCO: Chinese Steel Production Declines
Chinese steel production dropped by one million (1m) tons, a decline of 1.2%, compared to October last year. China produced 81m tonnes of crude steel in October 2019. This is the first decline in steel production year-on-year (y-o-y) since December 2017.The story unfolds quite differently when looking at the accumulated volumes of crude steel production. In total, China has produced 829m tonnes of crude steel through the first 10 months of 2019, an increase of 6% when compared to the same period last year.In fact…
Baltic Index Down On Lower Capesize Rates
The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, extended losses to a fourth straight session on Tuesday on tepid demand for capesize vessels.* The Baltic index, which reflects rates for capesize, panamax and supramax vessels, fell 34 points, or 2.5%, to 1,304, its lowest since June 25.* The capesize index dropped 60 points, or 2.3%, to 2,543 points.* Average daily earnings for capesizes, which typically transport 170,000-180…
Baltic Index at One-week Trough as Demand Sags
The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, fell to a one-week low on Wednesday, on weaker demand for all vessel segments.The Baltic index, which reflects rates for capesize, panamax and supramax vessels, was down 1 point at 1,897, extending losses to a fourth session.The capesize index fell 10 points, or 0.3%, to 3,194. The average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal…
Baltic Index Falls on Sluggish Capesize Demand
The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, dropped on Friday and recorded its steepest percentage fall in two months, as Chinese steel mill restrictions continued to drag down capesize rates.* The Baltic index, which reflects rates for capesize, panamax and supramax vessels, declined 106 points, or 5.4%, to 1,857 points. For the week, the index dropped 13.3%, its worst week in nearly eight months.* The capesize index fell 263 points, or 7.3%, to 3,338 points.
Baltic Index Up for Again on Firmer Capesize Demand
The Baltic Exchange's main sea freight index rose for a ninth-straight session on Tuesday, holding on to a near nine-year peak touched last week, helped by stronger capesize demand.The Baltic index, which tracks rates for ships ferrying dry bulk commodities, gained 59 points, or 2.4%, to 2,501, a level last seen in November 2010. The capesize index rose 203 points, or 4.4%, to 4,862 points, its highest since June 2010.Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose $1,418 to $37,519.
St. Louis Regional Freightway: Prepare now for Lock Closures
Lock Closures Starting on the Illinois Waterway This Summer May Result in More Freight Flowing Through St. Louis Region.Businesses that move or handle commodities on the Illinois Waterway system are being encouraged to start making alternative plans due the scheduled closure of locks on that inland waterway system. With a two-week closure planned by the U.S. Army Corps of Engineers beginning as early as August 2019 and closures of 90 to 120 days expected in the summers of 2020 and 2023…
Dalian iron ore rises, supply crunch concerns persist
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…
Iron Ore Spikes on Shipment Concerns
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…
Finland Opens Largest Nordic LNG Terminal After Delay
Finland's 110 million-euro ($124.5 million) Manga liquefied natural gas import terminal has fully opened after a year-long delay to the project, engineering firm Wartsila and part-owner Gasum said on Tuesday.Manga, the largest LNG terminal in the Nordic region with storage capacity of 50,000 cubic metres, began receiving some shipments in November 2017, but is only now ready for full commercial operations after an additional year of tests.A Wartsila executive told Reuters the testing period had been prolonged due to some adjustments that the facility needed…
Dry Bulk Fleet Utilization Falls 3.7% in Q1
Global dry bulk fleet utilization (calculated as total demand in tonne miles transported divided by total available fleet capacity) dropped by 3.7% in the first quarter of 2019, reflecting the trend observed in the rate environment, said Golden Ocean Group (GOGL), Bermuda registered, Norway based dry bulk shipping company.According to Maritime Analytics, global fleet utilization was 82.1% in the first quarter of 2019, down from 85.8% in the fourth quarter of 2018 and 85.1% in the first quarter of 2018.According to the same source…
LNG Import: China is World's No. 2 buyer in 2018
China's imports of liquefied natural gas (LNG) in December soared 25 percent from the same period a year earlier to a monthly record of 6.29 million tonnes, customs data showed on Wednesday.The previous record of 5.99 million tonnes was set in November.For the whole of 2018, imports grew 41 percent from 2017 to a record 53.78 million tonnes, according to the data from the General Administration of Customs. That saw China retain its position as the world's second-buyer buyer of the super-chilled fuel after Japan…
China June Seaborne Iron Ore could Set Record
June seaborne iron ore imports to reach 98.22 mln Tons; local mills to ramp up output to reap large margins. China's June seaborne iron ore imports are on track to rise to a record high, data on Thomson Reuters Eikon showed, stoking concerns of oversupply as hundreds millions of iron ore are being stockpiled at Chinese ports. Iron ore arrivals for June are set to be 98.22 million tonnes according to vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts. That would be the highest ever for the Supply Chain data going back to February 2016.
Oil Tanker Scrapping to Hit Multi-year High
The shipping industry will this year scrap the largest number of oil tankers in over half-a-decade, driven by weak earnings, firm prices for scrap steel and the need to prepare fleets for strict new environmental regulations.The surge in scrapping underscores how the sector is grappling with one of its worst-ever crises, hit hard after rates for transporting oil plunged to multi-year lows in the wake of excess tanker supply and tepid demand as OPEC production cuts bite."The tanker markets are definitely in a trough at the moment…
Dry Bulk Shipping: No Room for Newbuilds
DemandThe improved fundamentals during 2017 are clearly seen in the freight rate levels during the first four months of 2018. Freight rates for Handysize, Supramax and Panamax went up by 25-27 percent as compared to the same period of last year. All three sectors moved from loss-making average earnings in the full year of 2017 to a profitable level in first four months of 2018.Meanwhile, capesize freight rates improved by only 5 percent as compared to the same period last year…
China and Shifting Seaborne Iron Ore Dynamics
The seaborne iron ore market appears to be in something of a sweet spot currently, with largely steady demand and prices that have been flatlining for the past couple of months. Of course, another way of saying that a market is enjoying relatively stable and good times is that it's boring, but in iron ore there is plenty of action bubbling beneath the seemingly calm exterior. It's not so much that iron ore prices or volumes are expected to shift dramatically in the coming months, it's more that structural changes in the world's biggest importer, China, are re-shaping how the industry works.
China to Cut Steel Capacity by 2025
China will shut down more outdated steel plants and bring total capacity to less than 1 billion tonnes by 2025, the president of the country's steel industry association said, adding that national demand for the metal is set to decline gradually. With more than three quarters of firms suffering losses as a result of a price-sapping capacity surplus, China vowed in early 2016 to shut 150-150 million tonnes of annual production in five years in a bid to raise profitability and utilisation rates in the sector. Its capacity then was estimated at 1.2 billion tonnes.
Great Lakes/Seaway Iron Ore Trade Behind 2017
Shipments of iron ore on the Great Lakes and St. Lawrence Seaway totaled 5.5 million tons in April, a decrease of 6.3 percent compared to a year ago but nearly 15 percent ahead of the month’s five-year average, the Lake Carriers’ Association (LCA) reported.Shipments from U.S. Great Lakes ports in April were down 4.5 percent at 5.1 million tons, LCA said. The mine that shipped through Escanaba, Mich. has been permanently idled, meaning all the iron ore shipped to U.S. steel mills in April had to transit the Poe Lock at Sault Ste. Marie, Mich.
China's Thermal Coal Futures Rally on Tight Import Policy
China's most-active thermal coal futures jumped 2.9 percent on Monday, marking the biggest gain since August 2017, as concerns of tightening the import policy dampened outlook for foreign coal supplies ahead of summer.Coal futures prices ended at 570 yuan per tonne after touching a two-week high of 578.8 yuan per tonne earlier in the session.Futures rallied as traders took cues from a wider ban on coal imports after some ports in Fujian province put a temporary halt on them."Our company received instructions that Chuanshan anchorage under Ningbo port has banned docking by any vessel, which car
Duluth-Superior Shipping Season To Open Today
The anticipated departure of six vessels this week signals a strong start to the 2018 commercial shipping season for the Port of Duluth-Superior and the entire region. All will be leaving their winter berths to load iron ore for delivery to steel mills on the Lower Great Lakes—this nation’s industrial heartland. U.S. Coast Guard cutter Alder made several passes through the ice in the shipping channels last week, and, starting today, Heritage Marine tugs will be assisting with breakout operations in the harbor.
Baltic Index Stretches Losing Streak
The Baltic Exchange's main sea freight index extended its slide to a fourth straight session to touch a near six-month low on Thursday, as rates fell for all vessel segments amid a seasonal slowdown in demand. The overall index, which tracks rates for ships carrying dry bulk commodities, dropped by 38 points, or 3.3 percent, to 1,114 points, the lowest since Aug. 10, 2017. The index recorded a 15.66 percent decline in January, its biggest monthly percentage fall since May 2017.
Port Hedland to Reopen as Cyclone Fades
Australia's Port Hedland iron ore terminal will likely reopen on Saturday after Australia's weather bureau cut the forecast strength of a cyclone bearing down on the continent's far northwest, the port's operator said on Friday. Cyclone Joyce, a Category 1 storm, is holding just off the beaches of Pilbara iron ore belt, prompting the overnight closure of the world's biggest iron ore export terminal, 1,700 km (1,050 miles) north of Perth, as a safety precaution. Shipping operations are expected to resume at 6 a.m. Saturday (2200 GMT Friday) should weather conditions improve.
Port Hedland May Clear Ships as Storm Builds off Australia
Giant iron ore port may close as Australian storm builds. Vessels may be cleared from Australia's Port Hedland, the world's biggest iron ore export terminal, as early as Thursday as a safety precaution because of a tropical storm, port manager Pilbara Ports Authority said on Wednesday. The authority said Port Hedland may start clearing vessels on Thursday morning if the tropical low builds overnight into a cyclone off the Western Australia coastline. Port Hedland is used by three of Australia's top four iron ore miners - BHP,, Fortescue Metals Group and Gina Rinehart's Hancock Prospecting.