Friday, 25 July 2014 08:57

Market Report - July 25, 2014

Movement in the market over the past week has been barely detectable as the feared summer lull rumbles along. The Baltic Dry index closed down for the week on Thursday on 732 points compared to 738 points last week and 836 points the week previously. 

       
    Cape Size      Panamax            Supramax 
Index       1201       596       666
Last week      1248      603       660
Spot time charter      $  9,400/day      $ 4,800/day  $ 7,000/day 
One week ago $  9,400/day   $ 4,800/day $ 6,900/day

LNG: Freight rates have reached the highest levels in the very large gas carrier (VLGC) spot market since the Baltic Exchange began reporting these rates in 2002. The spot rate on the benchmark route from the Middle East to Asia is hovering in the $140-145 per ton range, which equates to earnings for VLGCs of more than $140-145,000 per day. Heavy ordering of new vessels is causing concern for future rates but for the time being at least one sector of shipping is making good money.LNG imports to China were up 7.4% in June to 1.34 million tons seemingly as a consequence of 25-30% lower prices for spot cargoes at around $12$ per million Btu.

Friday, 18 July 2014 09:28

Market Report - July 18, 2014

If owners are not trading ships for free, they are getting pretty close to it. The Baltic Dry index closed down for the week on Thursday on 738 points compared to 836 points last week and 890 points the week previously. 

       
    Cape Size      Panamax            Supramax 
Index       1248       603       660 
Last week      1523      708       681
Spot time charter      $  9,400/day      $ 4,800/day  $ 6,900/day 
One week ago $11,700/day   $ 5,600/day $ 7,100/day


Containers: 
Members of the Transpacific Stabilization Agreement (TSA) have been encouraged this week to implement a further General Rate Increase (GRI) and raise Asia-U.S. freight rates by at least $600 per FEU with effect from Aug. 1.

Friday, 11 July 2014 20:54

Market Report - July 11, 2014

The Baltic Dry Index is about as popular with ship owners as the Brazilian coach is right now with that country’s passionate soccer supporters. The index closed down for the week on Thursday on 836 points compared to 890 points last week and 824 points the week previously. 

       
    Cape Size      Panamax            Supramax 
Index       1523       708       681 
Last week      1935      557       680
Spot time charter      $11,700/day      $ 5,600/day  $ 7,100/day 
One week ago $14,600/day   $ 4,500/day $ 7,100/day


Containers: 
Following the July 1 successful introduction of a $400 per FEU general rate increase (GRI), ocean carriers in the Transpacific Stabilization Agreement eastbound trades have announced that they will implement a further peak season  GRI on August 1. Also indicating strong peak season activity is the fact that the inactive container fleet has fallen to only 1.2% of the total fleet. Further help is provided by the fact that around 300,000 tons of capacity has been sent for razor blades this year.

Following the rejection by China of the proposed P3 Alliance, it has been announced that Maersk and MSC are to collaborate on several major trade routes through a vessel sharing agreement to be known as 2M. The arrangement will employ 185 vessels with an estimated capacity of 2.1m TEU on 21 strings with an early 2015 start up date subject to regulatory approvals. The trades to be impacted are Asia/North Europe, Asia/Mediterranean, Asia/US West Coast, Asia/US East Coast, North Europe/US, and Mediterranean/USA. Maersk will contribute 110 ships with MSC putting in 75.

When it comes to the additional cost of doing business in Emission Control Areas in 2015, Maersk has advised that it may have to charge customers an additional $50-$150 per 40 ft container to and from ports in those areas on the back of a projected $250m per year increase in fuel costs.

Friday, 04 July 2014 08:40

Market Report - July 4, 2014

Greece is out so Greek owners don’t even have the World Cup to distract themselves from the continuing suicidal market rates for Panamaxes, however the Baltic Dry Index did manage to close up a smidgen on Thursday this week on 890 points compared to 824 points last week and 905 points the week previously. 

       
    Cape Size      Panamax            Supramax 
Index       1935       557       680 
Last week      1748      423       679
Spot time charter      $14,600/day      $ 4,500/day  $ 7,100/day 
One week ago $13,000/day   $ 3,400/day $ 7,100/day



Friday, 27 June 2014 05:55

Market Report - June 27, 2014

Time to reserve deck chairs with your beach towels. After a week to forget, the Baltic Dry Index closed on Thursday this week on 824 points compared to 9905 points last week and 939 points the week previously.Demand for Panamaxes has fallen off a cliff but is of course generating huge interest from opportunistic charterers.

       
    Cape Size      Panamax            Supramax 
Index       1748       423       679 
Last week      1919      474       708
Spot time charter      $13,000/day      $ 3,400/day  $ 7,100/day 
One week ago $14,900/day   $ 3,800/day $ 7,400/day

Containers: Transpacific Stabilization Agreement member lines have announced they will delay the effective date of a planned peak season surcharge by two weeks to July 1. The carriers will charge an extra $400 per FEU for shipments to the Pacific Northwest and US east coast ports and $200 per FEU to Pacific Southwest ports, plus a further $200 per FEU on the latter trade by July 15.

Friday, 20 June 2014 02:47

Market Report - June 20, 2014

The summer solstice and the feast of soccer in Brazil are not providing any lift to the markets. The Baltic Dry Index closed on Thursday this week on 905 points compared to 939 points last week and 977 points the week previously.

       
    Cape Size      Panamax            Supramax 
Index       1919       474       708 
Last week      1792      635       760
Spot time charter      $14,900/day      $ 3,800/day  $ 7,400/day 
One week ago $14,100/day   $ 5,100/day $ 8,000/day

Tankers:  Despite oil market uncertainty on account of events in Iraq, rates for Aframax, Suezmax and VLCCs are forecast to languish in the $10,000-$20,000 per day range over the summer months while product tankers on benchmark routes from the Middle East Gulf to Japan are expected to sit in the  $7,500-$14,000 per day range.

Containers: The benchmark spot rate from Hong Kong to Los Angeles dropped this week to $1,650  - its lowest since December 2013 despite the Transpacific Stabilization Agreement members proposing a peak season surcharge of $400 per FEU, which was due to kick in this week. 

 

Friday, 13 June 2014 01:03

Market Report - June 13, 2014

Having hauled itself into four figures earlier this week, the index could not hold onto the gains as the appetite for Capesizes cooled off. The index closed on Thursday this week on 939 points compared to 977 points last week and 940 points the week previously.

       
    Cape Size      Panamax            Supramax 
Index       1792       635       760 
Last week      1689      758       811
Spot time charter      $14,100/day      $ 5,100/day  $ 8,000/day 
One week ago $13,700/day   $ 6,100/day $ 8,500/day
Friday, 06 June 2014 10:14

Market Report - June 6, 2014

Much voiced optimism for improved trading conditions has yet to materialize within the Baltic Dry Index which is stubbornly staying below 1000 points. The index closed on Thursday this week on 977 points compared to 940 points last week and 966 points the week previously.

       
    Cape Size      Panamax            Supramax 
Index       1689       758       811 
Last week      1379      904       839
Spot time charter      $13,700/day      $ 6,100/day  $ 8,500/day 
One week ago $10,900/day   $ 9,900/day $ 7,200/day

Containers:  The peak season cannot come fast enough for ocean carriers in the Trans-Pacific trade as notwithstanding successive GRIs, rates remain under intense pressure. The benchmark rate HKG to Los Angeles was this week down to around $1,750 per FEU, the lowest since mid December 2013 having lost $250 per FEU in the past two weeks alone.

314 Drewry

Friday, 30 May 2014 09:44

Market Report - May 30, 2014

The Baltic Dry Index remains pretty depressed, closing on Thursday on 940 points compared to 966 points last week and 1021 points the week previously.

       
    Cape Size      Panamax            Supramax 
Index       1379       904       839 
Last week      1302    1028       872
Spot time charter      $10,900/day      $ 9,900/day  $ 7,200/day 
One week ago $10,600/day   $ 8,200/day $ 9,100/day

 

 

Thursday, 22 May 2014 23:00

Market Report - May 23, 2014

Iron ore futures in Singapore were trading this week below $100 a metric thereby fuelling concern for the health of shipping markets this summer. The Baltic Dry Index still remains fairly directionless closing on Thursday on 966 points compared to 1021 points last week and 1008 points the week previously.

  Capesize     Panamax   Supramax 
Index  1302 1028 872
Last week 1546 1016 901
Spot time charter  $10,600/day $ 8,200/day $  9,100/day
One week ago $12,200/day     $ 8,100/day  $  9,400/day  

 

Containers: The P3 Alliance (Maersk, MSC and CMA CGM) start up has been delayed until at least the fall as regulatory approval from the EU and China is pending. Also of note, the number of inactive containerships has fallen to below 2% of the overall fleet for the first time since last September signalling optimism for a leap in rates during the upcoming peak season.

Tankers: The number of orders for new build VLCCs continues to cause concern. In 2013 there were 26 VLCCs ordered, however in the first quarter of 2014 alone a further with 15 were ordered. Of some interest is the news that the fleet of 15 VLCCs sold by Maersk Tankers to Euronav earlier this year for $980m is now worth $1.2 billion (up 24%). Unfortunately this is not reflected in short term rates where VLCCs trading the spot market were this week being fixed at around $11,000 per day, which is well below the $23,000 premium to take such a vessel for a full year time charter. Part of the problem is that U.S. crude imports have dropped to the lowest level since 1997 and are down to 6.5 million barrels/day. U.S. production on the other hand has risen to around 8.5 million barrels/day. The Teekay May 2014 tanker market report with Christian Waldegrave is available at  https://www.youtube.com/watch?v=Vx9CzMxFjCE&noredirect=1


Friday, 16 May 2014 09:43

Market Report - May 16, 2014

The Baltic Dry Index was largely static this week other than a little more interest in Panamaxes. The index closed on Thursday on 1021 points compared to 1008 points last week and 993 points the week previously.

  Capesize     Panamax   Supramax 
Index  1546 1016 901
Last week 1613 879 918
Spot time charter  $12,200/day $ 8,100/day $  9,400/day
One week ago $12,300/day     $ 7,100/day  $  9,600/day  

Containers: Following a GRI from Shanghai to Europe of $500 per TEU on May 1, rates have only modestly improved and currently sit at around $1,400 per TEU. A further GRI of $300 per TEU is therefore being contemplated for June 1. On the Transpacific trade lane, freight rates remain under a lot of pressure with Shanghai to the U.S. west coast down to $1,900 per FEU and to the US east coast to $3,316 per FEU.

 

On a more positive note, the number of laid up container ships has declined to its lowest level since October 2013. The number of inactive container ships has fallen to 2.1% of the total fleet at 264 vessels of a combined 367,000 TEU capacity.

 

Friday, 09 May 2014 09:50

Market Report - May 9, 2014

The Baltic Dry Index closed slightly stronger for the week on Thursday on 993 points compared to 962 points last week and 930 points the week previously.

  Capesize     Panamax   Supramax 
Index  1613 879 918
Last week 1600 871 919
Spot time charter  $12,300/day $ 7,100/day $  9,600/day
One week ago $ 9,000/day     $ 7,000/day  $  9,600/day  

 

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