Thursday, 29 January 2015 20:57

Market Report - January 30, 2015

Since the beginning of the year, ridiculously low rates have prompted a rush to the scrap yard for aging Capesizes with around 12 already gone and several more on the cusp. Even so, just when we thought that rates could not go much lower, they did with the Baltic Dry Index closing yesterday 632 points compared to  751 points last week and 749 points the week previously.

    Cape Size        Panamax            Supramax 
Index         725         550      599
Last week        965         704      659
Spot time charter      $   7,000/day       $ 4,400/day  $  6,300/day 
One week ago $   8,800/day  $ 5,600/day  $  6,900/day

Containers: Rates from Asia to Northern Europe have improved by more than 20% to $1,250 per TEU over the past week and are still heading north. On the capacity front, Evergreen has announced plans to join the premier league Group with plans to charter 11 x 18,000 TEU vessels from Shoei Kisen Kaisha for delivery between 2018 and 2019.

Tankers: More VLCCs has been chartered for storage of cheap crude. As more VLCCs are used for storage, the global fleet competing on the spot market is shrinking thereby putting owners in a better position to play hard ball on rates. In a sign of continued expectation of market strength, more than 20 VLCCs were taken on extended time charters this month.

 

Thursday, 22 January 2015 20:33

Market Report - January 23, 2015

Still no new year lift for the dry bulk trades as things remain pretty miserable. The Baltic Dry Index closed yesterday 751 points compared to 749 points last week and 724 points the week previously.

       
    Cape Size        Panamax            Supramax 
Index         965         704      659
Last week        585         766      735
Spot time charter      $   8,800/day       $ 5,600/day  $  6,900/day 
One week ago $   7,000/day  $ 6,100/day  $  7,700/day

Containers: The aspirations of the Transpacific Stabilization Agreement (TSA) to impose a substantial General Rate Increase in January have largely come to nothing and the pressure is now on to give it another go in February. Therefore, with effect from February 9, the TSA is proposing a $600 per FEU price increase on all container shipments from Asia to the US in anticipation of a rush of pre-Chinese Lunar New Year shipments. The latest Shanghai Containerized Freight Index indicates that freight rates to the US west coast and east coast from Asia are at $2,100 per FEU and $4,700 per FEU respectively.

Tankers: Spot market rates for VLCCs continue to do well in the current environment of low oil prices. Average earnings were steady in the $80-85,000 per day range this week supported by the charter of a rumored 20 or more older vessels for storage. The owners who placed orders for 33 new build VLCCs last year may have read the tea leaves quite well after all it seems.

Thursday, 15 January 2015 18:14

Market Report - January 16, 2015

The Capesize market came somewhat out of intensive care this week thanks to a small spike in demand for vessels to shift coal from Colombia to Europe.  The Baltic Dry Index closed yesterday on 749 points, marginally improved after closing last week on a mere 724 points. 

       
    Cape Size        Panamax            Supramax 
Index         585         766      735
Last week        335         776      820
Spot time charter      $   7,000/day       $ 6,100/day  $  7,700/day 
One week ago $   4,700/day  $ 6,200/day  $  8,600/day

Bunkers:  Despite the efforts of major ocean carriers to hold the line, bunker prices have fallen to a level where slow steaming is in many cases costing more than it is saving in particular on the major container trades. The saving grace may prove to be that many modern container vessels were built for the now common slower speeds in the range of 18-19 knots and when all is said and done, the industry would suffer enormously if additional capacity were to be released into the market. IFO 380 prices in Singapore and Rotterdam were $265 pmt and $234 pmt respectively, MGO $485 pmt and $448 pmt respectively. MGO in Vancouver was still commanding a premium price at $730 pmt.  

Thursday, 08 January 2015 22:58

Market Report - January 9, 2015

If the Baltic Dry Index was in bad shape before the holidays, it is now on life support. After closing on 814 points on December 19, the index closed yesterday on a mere 724 points taking us right back to the low levels of seven years ago following the 2008 market crash.

       
    Cape Size        Panamax            Supramax 
Index         335         776      820
Last week        517         929      925
Spot time charter      $   4,700/day       $ 6,200/day  $  8,600/day 
One week ago $   5,100/day  $ 7,400/day  $  7,700/day

Tankers: The large tanker segment continues to reap the harvest of demand for oil at less than $50 per barrel. Rates for VLCCs are hovering in the $70-75,000/day range which is below the pre-Christmas $90,000/day range but still good news in comparison to the last six years of pain. There is also every prospect that older vessels will find themselves chartered for storage once on-shore capacity in the major consuming countries is full.

Thursday, 18 December 2014 15:52

Market Report - December 19, 2014

After last week’s declines, the Capesize market is suffering a Christmas melt down. The Baltic Dry Index closed on Thursday on 814 points compared to 887 points last week and 1019 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index         517         929      925
Last week        879       1026      953
Spot time charter      $   5,100/day       $ 7,400/day  $   9,700/day 
One week ago $   6,800/day  $ 8,200/day  $ 10,000/day

Tankers: Daily spot market earnings for VLCC’s continue to climb and this week found themselves in the $90-$100,000 per day range for a voyage from the Middle East to Asia – a level last seen in the giddy days of 2008. Not wishing to throw cold water on a good news story but there are 92 VLCCs on order which if not balanced out by scrapping of older tonnage could soon begin to undermine improved earnings.

Thursday, 11 December 2014 23:59

Market Report - December 12, 2014

There is no Christmas cheer whatsoever in the Capesize market which this week experienced a bloodbath. The Baltic Dry Index closed on Thursday on 887 points compared to 1019 points last week and 1187 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index         879       1026      953
Last week      1452       1097      980
Spot time charter      $   6,800/day       $ 8,200/day  $ 10,000/day 
One week ago $  19,700/day  $ 8,800/day  $ 10,300/day

 

Thursday, 04 December 2014 17:03

Market Report - December 5, 2014

The Baltic Dry Index closed on Thursday on 1019 points compared to 1187 points last week and 1332 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       1452       1097      980
Last week      1347       1099      984
Spot time charter      $  19,700/day       $ 8,800/day  $ 10,200/day 
One week ago $  18,900/day  $ 8,800/day  $ 10,300/day

Containers: The 15 member TransPacific Stabilization Agreement has announced a much needed General Rate Increase (GRI) of $1,000 per FEU effective December 15 on all cargo from all origins and destinations - the highest in recent TSA history. In addition, the group will impose any port congestion surcharges that carriers deem necessary.

Tankers: The oil glut continues to encourage buyers to stock up thereby keeping larger tankers busy. VLCCs are slightly off last week’s rates but were still hovering in the $60,000/day range this week – a big improvement on recent months.

Thursday, 27 November 2014 17:36

Market Report - November 28, 2014

Under Chinese pressure on producers to reduce prices, iron ore was this week trading below $70 for the first time in five years. This signals another period of misery for Capsizes which has pulled down the Baltic Dry Index this week to close on Thursday on 1187 points compared to 1332 points last week and 1264 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       2347       1099      984
Last week      3130       1053      926
Spot time charter      $  18,5900/day       $ 8,800/day  $ 10,300/day 
One week ago $  23,500/day  $ 8,500/day  $   9,700/day

Containers: Despite FMC pressure to the contrary, some ocean carriers this week reinstated port congestion surcharges for container imports into the U.S. West Coast. Fees average $800 per TEU and $1,000 per FEU.

Tankers: VLCCs had an encouraging week with a sudden flurry of activity lifting rates from the Middle East to China to more than $50,000/day in some cases. Product tankers also gained a lift in the Atlantic thanks to cold weather ahead of the Thanksgiving long weekend in the U.S.


Friday, 21 November 2014 00:29

Market Report - November 21, 2014

The Baltic Dry Indexwas largely treading water this week to close on Thursday on 1332 points compared to 1264 points last week and 1436 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       3130       1053      926
Last week      2972       1112      873
Spot time charter      $  23,500/day       $ 8,500/day  $   9,700/day 
One week ago $  21,200/day  $ 8,900/day  $   9,100/day

Containers: Given the extent of the issues they are facing, ocean carriers have been announcing surcharges to compensate for delays at USWC ports but this has caught the attention of the Federal Maritime Commission which has reminding the carriers that they cannot impose congestion surcharges without giving customers 30-days notice. The Transpacific Stabilization Agreement had last weekend announced an immediate $1,000 per FEU and $800 per TEU congestion surcharge but this is now on hold.

Tankers: Owners fortunate enough to have Aframax and Suezmax tonnage in the Mediterranean were doing exceptionally well this week. Tankers are reaping the rewards of a regional boom where spot earnings are reaching $80-90,000 per day compared to only $35,000 per day last week. It surely won’t last so enjoy while you can.

Friday, 14 November 2014 09:57

Market Report - November 14, 2014

The shine came off Capesizes this week resulting in the Baltic Dry Index closing on Thursday on 1264 points compared to 1436 points last week and 1424 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       2972       1112      873
Last week      3612       1205      886
Spot time charter      $  21,200/day       $ 8,900/day  $   9,100/day 
One week ago $  26,500/day  $ 9,600/day  $   9,300/day



 

Friday, 07 November 2014 09:33

Market Report - November 7, 2014

The Baltic Dry Index managed to consolidate last week’s gains to close on Thursday on 1436 points compared to 1424 points last week and 1155 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       3612       1205      886
Last week      3543       1222      891
Spot time charter      $  26,500/day       $ 9,600/day  $   9,300/day 
One week ago $  25,600/day  $ 9,800/day  $   9,300/day

Members of the Transpacific Stabilization Agreement are planning to increase low-sulphur charges for westbound trades from January 1 when the new ECA standards kick in by recommending a charge of $47 per FEU and $38 per TEU from the US West Coast, and $95 per FU and $76 per YEU from the East and Gulf Coasts. 

Friday, 31 October 2014 08:48

Market Report - October 31, 2014

Having forced down the prices of iron ore and coal, China is again buying and Capesizes are in lift off mode as there is no stopping the market at the top end. The Baltic Dry Index closed on Thursday on 1424 points compared to 1155 points last week and 963 points the week previously. 

       
    Cape Size        Panamax            Supramax 
Index       3543       1222      891
Last week      2258       1099      906
Spot time charter      $  25,600/day       $ 9,800/day  $   9,300/day 
One week ago $  16,400/day  $ 8,800/day  $   9,500/day

Tankers: On the back of heavy Chinese buying to take advantage of the current low price of oil, VLCCs spot rates to Asia this week climbed by around  $9,000/day to the $45-50,000/day range – a major improvement on the rates at the beginning of October. China’s oil demand in September was 42.3m tons, or an average of 10.3m barrels per day — up 7.4% from the same month a year ago, according to Platts.

335 Tankers

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