Still on life-support, the Baltic Dry Index closed on Thursday on 963 points compared to 974 points last week and 1041 points the week previously.
|Spot time charter||$ 10,300/day||$ 6,900/day||$ 10,100/day|
|One week ago||$ 10,500/day||$ 6,900/day||$ 10,300/day|
Bunkers: Oil prices are at their lowest in about 22 months due in part to large U.S. stockpiles. Oil futures have largely collapsed as shale supplies boost U.S. output to the highest level in almost 30 years at a time of weakening global demand. OPEC’s response has been to cut prices in an effort to preserve market share but the group is not scheduled to meet to discuss a coordinated strategy until November 27 in Vienna.
Containers: The world’s container fleet continues to grow in both capacity and number of ships. In November there were an additional 12 ships in the fleet, equating to an additional 82,000 TEU of capacity. This took the world’s container fleet to 5,035 vessels comprising a total of 17.8m TEU.
The Baltic Dry Index has again dipped below its benchmark 1000 points, closing on Thursday on 974 points compared to 1041 points last week and 1038 points the week previously. Last week’s holiday in China for National Day celebrations seems to have done shipping markets no favors at all.
|Spot time charter||$ 10,500/day||$ 6,900/day||$ 10,300/day|
|One week ago||$ 12,200/day||$ 7,000/day||$ 10,800/day|
Containers: The US Federal Maritime Commission (FMC) this week announced approval of the 2M Alliance between Maersk Line and Mediterranean Shipping Co. The US was the only jurisdiction in which the new alliance was required to gain formal regulatory approval, however in order to pacify shippers, the FMC is to impose reporting requirements on the two carriers in order to monitor the implementation of the agreement.
The Baltic Dry Index remains completely directionless closing on Thursday on 1041 points compared to 1038 points last week and 1089 points the week previously.
|Spot time charter||$ 12,200/day||$ 7,000/day||$ 10,800/day|
|One week ago||$ 12,600/day||$ 6,400/day||$ 10,900/day|
Market sentiment remains weak as despite record levels of global trade, there are just too many ships chasing it. The Baltic Dry Index closed on Thursday on 1038 points compared to 1089 points last week and 1186 points the week previously.
|Spot time charter||$ 12,600/day||$ 6,400/day||$ 10,900/day|
|One week ago||$ 14,900/day||$ 6,600/day||$ 10,800/day|
Sentiment remains weak for Capes and Panamaxes. The Baltic Dry Index closed on Thursday on 1089 points compared to 1186 points last week and 1147 points the week previously.
|Spot time charter||$ 14,900/day||$ 6,600/day||$ 10,800/day|
|One week ago||$ 18,300/day||$ 7,200/day||$ 10,500/day|
Things are still pretty much steady as she goes with, the Baltic Dry Index closing on Thursday on 1186 points compared to 1147 points last week.
|Spot time charter||$ 18,300/day||$ 7,200/day||$ 10,500/day|
|One week ago||$ 18,000/day||$ 6,900/day||$ 10,000/day|
Following a few weeks of mild improvement, the Baltic Dry Index closed on Thursday on 1147 points.
|Spot time charter||$ 18,000/day||$ 6,900/day||$ 10,000/day|
|One week ago||$ 17,980/day||$ 6,941/day||$ 10,140/day|
Containers: In the latest market report from Drewry, the world’s container ports are forecast to handle more than 840 million TEU a year by 2018. This represents quite a jump from the 642 million TEU handled in 2013 and the 674m TEU forecast for this year. The report forecasts that Africa and China are the regions that will see the most rapid growth. Overall , growth rates are expected to average an annual 5.6% in the five years to 2018, compared with 3.4% in 2013. This would translate to an increase of terminal utilization from 67% today to 75% in 2018.
Tankers: Clearly banking on a tough winter ahead, VLCC charter contracts are trading at $30,000 per day in the forward market for the 4th quarter 2014 and 1st quarter 2015 loading dates, This provides hope to lift the sector out of continuing misery with the benchmark Middle East Gulf to Asia trade today standing at around $13,500 per day.
As summer vacations come to a close, the prospects for the fall look promising as the indices continue to trend upwards.
|Spot time charter||$ 17,980/day||$ 6,941/day||$ 10,140/day|
|One week ago||$ 17,066/day||$ 6,467/day||$ 9,797/day|
|Spot time charter||$ 17,066/day||$ 6,467/day||$ 9,797/day|
|One week ago||$ 13,677/day||$ 5,883/day||$ 9,004/day|
Over the last week the capesize sector has made some great gains but many are being cautiously optimistic. However, tightening of available capacity and anticipated increase in iron ore shipments should see these rates persist or improve over the next few months.
|Spot time charter||$ 13,677/day||$ 5,883/day||$ 9,004/day|
|One week ago||$ 9,300/day||$ 5,000/day||$ 8,200/day|
Tankers: Delays by the shipyards in delivering newbuilds will provide tankers markets with some relief. 65% of the expected tanker newbuilds are late coming out of the yards. This week VLCC earnings on the Middle East Gulf to Asia trade reached a respectable $26,000 per day.
LNG: With LNG ship capacity exceeding LNG production by 40m tonnes, the last 12 months have seen rates fall from a high of $110,000 per day to $60,000 per day with delivery of new vessels continuing to outpace start-up of continually delayed LNG production capacity
Containers: Transpacific eastbount rates are up 8.7% over last year and the utilization chart below is good indication of what is supporting the increases in addition to the rush to get US imports to destination with the uncertainty of the US West Coast longshore negotiations.
With most of the developed countries in the northern hemisphere on annual vacation, the market is in a period of “watching paint dry” The Baltic Dry index closed marginally up for the week on Thursday on 765 points compared to 755 points last week and 732 points the week previously.
|Spot time charter||$ 9,300/day||$ 5,000/day||$ 8,200/day|
|One week ago||$ 9,600/day||$ 4,900/day||$ 7,500/day|
The markets remain unusually quiet, even by mid-summer standards. The Baltic Dry index closed marginally up for the week on Thursday on 755 points compared to 732 points last week and 738 points the week previously.
|Spot time charter||$ 9,600/day||$ 4,900/day||$ 7,500/day|
|One week ago||$ 9,400/day||$ 4,800/day||$ 7,000/day|
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.
|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.
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.
|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.
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.
|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.
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.
|Spot time charter||$14,600/day||$ 4,500/day||$ 7,100/day|
|One week ago||$13,000/day||$ 3,400/day||$ 7,100/day|
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.
|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.