Thursday, 18 September 2014 18:02

Market Report - September 19, 2014

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.

       
    Cape Size        Panamax            Supramax 
Index       2192        819     1030
Last week      2570        895     1000
Spot time charter      $  14,900/day       $ 6,600/day  $ 10,800/day 
One week ago $  18,300/day  $ 7,200/day  $ 10,500/day

 

 

Friday, 12 September 2014 09:47

Market Report - September 12, 2014

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.

       
    Cape Size        Panamax            Supramax 
Index       2570        895     1000
Last week      2464        927       993
Spot time charter      $  18,300/day       $ 7,200/day  $ 10,500/day 
One week ago $  18,000/day  $ 6,900/day  $ 10,000/day

 

 

Friday, 05 September 2014 09:38

Market Report - September 5, 2014

Following a few weeks of mild improvement, the Baltic Dry Index closed on Thursday on 1147 points.

       
    Cape Size      Panamax            Supramax 
Index       2464      927       993
Last week      2627      871       970
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.

Friday, 29 August 2014 10:30

Market Report - August 29, 2014

As summer vacations come to a close, the prospects for the fall look promising as the indices continue to trend upwards.

       
    Cape Size      Panamax            Supramax 
Index       2627      871       970
Last week      2535      812       937
Spot time charter      $  17,980/day      $ 6,941/day  $ 10,140/day 
One week ago $  17,066/day $ 6,467/day  $ 9,797/day

 

 326 BDI

Friday, 22 August 2014 09:56

Market Report - August 22, 2014

 

       
    Cape Size      Panamax            Supramax 
Index       2535      812       937
Last week      1882      739       861
Spot time charter      $  17,066/day      $ 6,467/day  $ 9,797/day 
One week ago $  13,677/day $ 5,883/day  $ 9,004/day

 

Friday, 15 August 2014 08:45

Market Report - August 15, 2014

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.

       
    Cape Size      Panamax            Supramax 
Index       1882      739       861
Last week      1150      616       785
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.

324 containers

 

Friday, 08 August 2014 09:57

Market Report - August 8, 2014

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. 

       
    Cape Size      Panamax            Supramax 
Index       1150      616       785
Last week      1195      619       716
Spot time charter      $  9,300/day      $ 5,000/day  $ 8,200/day 
One week ago $  9,600/day   $ 4,900/day $ 7,500/day
Friday, 01 August 2014 09:20

Market Report - August 1, 2014

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. 

       
    Cape Size      Panamax            Supramax 
Index       1195       619       716
Last week      1201      596       666
Spot time charter      $  9,600/day      $ 4,900/day  $ 7,500/day 
One week ago $  9,400/day   $ 4,800/day $ 7,000/day

 

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



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