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  

 

Friday, 02 May 2014 06:50

Market Report - May 2, 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  1600 871 919
Last week 1692 852 909
Spot time charter  $ 9,000/day $ 7,000/day $  9,600/day
One week ago $ 9,800/day     $ 6,800/day  $  9,500/day  

 

Friday, 25 April 2014 09:45

Market Report - April 25, 2014

Whilst continued weakness, especially in the Atlantic, is being touted as a short term problem, it is no less painful for the spot market. The Baltic Dry Index closed on Thursday marginally improved for the week on 962 points compared to 930 points last week and 1029 points the week previously.

  Capesize     Panamax   Supramax 
Index  1692 852 909
Last week 1591 812 908
Spot time charter  $ 9,800/day $ 6,800/day $  9,500/day
One week ago $ 8,800/day     $ 6,500/day  $  9,500/day  

 

 

Thursday, 17 April 2014 09:06

Market Report - April 17, 2014

This was an awful week for Capesizes and the lack of interest in this sector in the Atlantic has dragged the overall market back into three digits. The Baltic Dry Index closed on Thursday steeply down for the week on 930 points compared to 1029 points last week and 1235 points the week previously. In the year to date, 36 new Capesizes have entered the market while only eight have been sold for scrapping. There lies a large part of the problem.

  Capesize     Panamax   Supramax 
Index  1591 812 908
Last week 1865 787 936
Spot time charter  $ 8,800/day $ 6,500/day $  9,500/day
One week ago $11,000/day     $ 6,300/day  $  9,700/day  

Tankers: Just as things were starting to improve, owners are busy loading the gun to shoot themselves in the foot with 46 VLCC new builds ordered in the last six months alone. This could easily convert to the next era of tanker market depression kicking in sometime in 2016/17. The VLCC market is currently being supported by Chinese and Indian demand for West African crude oil which is generating welcome additional ton-miles at the decent rate of around $25,000 per day on the spot market.

Containers: Hard pressed carriers serving the world’s biggest trade lane, Asia to Europe, are seeking a General Rate Increase (GRI) of around $550 per TEU effective May 1. An attempt will also be made to apply a much smaller increase on the Europe to Asia return leg. Average 2014 Asia to Europe rates for the year to date at $1,575 per TEU are a modest improvement of the same period last year when the SCFI weekly average stood at $1,244 per TEU.

Thursday, 10 April 2014 23:15

Market Report - April 11, 2014

Market weakness across the board this week – thanks goodness we had the turmoil at the Canucks to distract us. The Baltic Dry Index closed well down for the week on Thursday on 1029 points compared to 1235 points last week and 1412 points the week previously.    

  Capesize     Panamax   Supramax 
Index  1865  787  936
Last week 2343  836 1025
Spot time charter  $11,700/day     $ 6,300/day $  9,700/day
One week ago $17,000/day     $ 6,700/day  $10,700/day  

 

 

Friday, 04 April 2014 09:52

Market Report - April 4, 2014

Capes and Panamaxes both took a battering this week which only serves to emphasize just how fragile any sort of recovery in the bulk markets really is. The Baltic Dry Index closed down for the week on Thursday on 1235 points compared to 1412 points last week and 1621 points the week previously.  

  Capesize     Panamax   Supramax 
Index  2343  836 1025
Last week 2579 1018 1139
Spot time charter  $17,000/day     $ 6,700/day $10,700/day
One week ago $19,850/day $ 8,200/day   $11,900/day  

 

 

Friday, 21 March 2014 08:21

Market Report - March 21, 2014

Another decent week for Capesizes has carried the market in the right direction for ship owners. The Baltic Dry Index closed up for the week on Thursday on 1621 points compared to 1468 points last week and 1480 points the week previously.  

  Capesize     Panamax   Supramax 
Index  3129 1120  1205
Last week 2654 1100  1173
Spot time charter  $25,800/day     $ 9,000/day $12,600/day
One week ago $20,800/day $ 8,900/day   $12,300/day  

 

 

Friday, 14 March 2014 00:00

Market Report - March 14, 2014

A bit of a roller coaster ride for Capesizes this week with some wild swings in the market. The Baltic Dry Index eventually closed on Thursday on 1468 points compared to 1480 points last week and 1250 points the week previously.  

  Capesize     Panamax   Supramax 
Index  2654 1100  1173
Last week 2830 1100  1100
Spot time charter  $20,800/day       $ 8,900/day      $12,300/day 
One week ago $22,300/day $ 8,500/day   $11,700/day  

 

 

Friday, 07 March 2014 00:00

Market Report - March 7, 2014

Capesizes are in the driving seat for the time being and helping the markets to achieve a hint of spring cheer. The Baltic Dry Index closed on Thursday on 1480 points compared to 1250 points last week and 1164 points the week previously.  

  Capesize     Panamax   Supramax 
Index  2830 1100  1100
Last week 2049 1123  1100
Spot time charter  $22,300/day       $ 8,500/day      $11,700/day 
One week ago $13,800/day  $ 9,100/day   $11,500/day 

Containers: The Chief Executive of Maersk Line, Mr. Soren Skou,  said this week that ocean carriers in the container trades need to learn to exist in an environment of excess capacity. Maersk today operates 2.6m TEU of capacity, the same as in the first quarter of 2012. In an effort to lift results, the company has embarked on a highly aggressive and successful cost reduction program over the past two years.

LNG: The recent weak freight market for LNG carriers seems to be picking up. Whether this has anything to do with nervousness over Russian gas supplies following that country’s expedition into Ukraine is unclear but for sure many buyers are looking at where they will source form in the future. Spot rates are currently hovering around $18,000/day whilst it is estimated that given the large capital investment in these vessels, at least $30,000/day is needed to break even. On the other hand, the vast majority of LNG carriers are tied to long term charters which insulate them from the swings of the spot market.

 

Friday, 28 February 2014 06:00

Market Report - February 28, 2014

Nobody is yet calling it a recovery but at least the markets are stable thanks to a bit of lift from Capesizes. The Baltic Dry Index closed on Thursday on 1250 points compared to 1164 points last week and 1097 points the week previously.  

  Capesize     Panamax   Supramax 
Index  2049 1123  1100
Last week 1680 1261  1087
Spot time charter  $13,800/day       $  9,000/day      $11,500/day 
One week ago $ 9,700/day  $10,100/day   $11,400/day 

 

 

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