Friday, 20 November 2015 00:05

Market Report - November 20, 2015

The Baltic Dry Index is at a historically lowest ever level having closed yesterday on 504 points compared to 579 points last week and 640 points the week before. These levels are well below daily operating costs in all sectors of dry bulk, never mind repayment of financing. There are certain to be many company failures if this  continues and right now it’s hard to see where any recovery will come from.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

         619

       468

        479

Last week

         881

       5348

        533

Spot time charter     

 $   5,300/day     

 $ 5,300/day 

$  5,000/day 

One week ago

 $   6,700/day

 $ 4,300/day 

$  5,600/day

Friday, 13 November 2015 00:05

Market Report - November 13, 2015

The Baltic Dry Index is now in market crisis territory having closed yesterday on 579 points compared to 640 points last week and 728 points the week before. This is the lowest point for the BDI since we first initiated the Chamber’s weekly newsletter.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

         881

       534

        533

Last week

       1002

       618

        584

Spot time charter     

 $   6,700/day     

 $ 4,400/day 

$  5,600/day 

One week ago

 $   7,400/day

 $ 4,900/day 

$  6,100/day

Friday, 06 November 2015 00:05

Market Report - November 6, 2015

The Baltic Dry Index plummeted over the past few days and closed yesterday on 640 points compared to 728 points last week and 786 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1002

       618

        584

Last week

       1254

       682

        633

Spot time charter     

 $   7,400/day     

 $ 4,900/day 

$  6,100/day 

One week ago

 $   9,200/day

 $ 5,500/day 

$  6,600/day

Containers: Spot rates from Asia to Northern Europe underwent a major recovery last week and for the first time in a long time were pushing $1,000 per TEU. Even so, rates are still around 25% below where they were this time last year. Spot rates on the Trans-Pacific trades also improved to around $1,400 per TEU, close to a 20% improvement. The recovery coincided with carriers withdrawing surplus capacity and cancelling a number of sailings but it remains to be seen just how sustainable the rates will be – suffice to say that nobody is very optimistic.

Thursday, 29 October 2015 17:54

Market Report - October 30, 2015

The Baltic Dry Index closed well down yesterday on 728 points compared to 786 points last week and 766 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1254

       682

        633

Last week

       1512

       685

        649

Spot time charter     

 $   9,200/day     

 $ 5,500/day 

$  6,600/day 

One week ago

 $  10,900/day

 $ 5,500/day 

$  6,800/day

Containers: With nothing but bad financial news dominating the headlines this week, it was good to see that optimism for a recovery does exist with China Shipping Container entering agreement for up to 11 ultra large containerships (ULCS) of 21,000 TEU capacity under a bare-boat charter via a wholly-owned subsidiary. Also this week, and despite any official announcement, Maersk Line has added to the company’s order placed in July this year for 9 x 14,000 TEU vessels with confirmation of an option for a further 8 vessels of the same size. Again, according to our friends at Alphaliner, 190 container ship new building contracts with a combined capacity of 2 million TEU have already been concluded this year thereby exceededing the full year orders for each of the last seven years. There is some speculation, probably justified, that the introduction in January 2016 of new IMO Tier III regulations is driving the current order book since vessels with keels laid before January 1, 2016 are exempt. Tier III rules stipulate lower NOx emissions in Emissions Control Areas.

All this is taking place against a background of accelerating layups with around 1 million TEU of capacity expected to be inactive as we head into the northern winter months. Alphaliner’s latest data is indicating more than 26 idle containerships, totalling more than 900,000 TEU of capacity which is about 4.7% of the total global fleet. One of the idle vessels is reported to be a Maersk Line Triple- E of 18,000 TEU capacity due to blanked sailings from Asia to Europe. The company issued a profit warning last week on account of an unexpected $600m shortfall in the company’s full year profit forecast. 

Friday, 23 October 2015 08:52

Market Report - October 23, 2015

We wish we could bring good news one of these weeks but perhaps we should just give up on the market and do what UK Prime Minister David Cameron did yesterday with Chinese President Xi Jinping – head to the local pub. The Baltic Dry Index closed yesterday marginally up on 786 points compared to 766 points last week and 817 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1512

       685

        649

Last week

       1368

       742

        661

Spot time charter     

 $ 10,900/day     

 $ 5,500/day 

$  6,800/day 

One week ago

 $   9,500/day

 $ 5,900/day 

$  6,900/day

Containers: In its 2015 Review of Maritime Transport, the United Nations Conference on Trade and Development (UNCTAD) has taken a swing at the shipping industry for being “uncompetitive”. The conclusion of UNCTAD is that the world is being  serviced by too few suppliers thereby impacting competitiveness. Specific reference is made to the fact that the three largest liner shipping companies, Maersk, MSC and CMA CGM control almost 35% of the world total container carrying capacity, the top 10 companies control around 61% and the top 20 companies around 83% of capacity.

Tankers: With charterers holding back cargo stems, daily spot rate earnings for VLCCs from the Arabian Gulf to Asia have fallen by more than $18,000 over the past week and are now sitting at around $85,000/day, a level that the dry bulk sector would still give their right arms for.

Thursday, 15 October 2015 22:15

Market Report - October 16, 2015

Everyone is hoping for a better 4th quarter but so far at least, the market remains lifeless. The Baltic Dry Index closed yesterday on a pretty miserable 766 points compared to 817 points last week and 888 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1368

       742

        661

Last week

       1598

       736

        672

Spot time charter     

 $   9,500/day     

 $ 5,900/day 

$  6,900/day 

One week ago

 $ 11,200/day

 $ 5,900/day 

$  7,000/day

Containers: Despite some slowing of new construction, it appears that the global container ship fleet will achieve record growth in 2015 with around 200 more ships of approximately 1.6 million TEU of capacity being added. Against this background, there has been an increased in idled tonnage of just over 100,000 TEU to around 780, 000 TEUs in the past two weeks and the pace of lay ups is accelerating with around 250 vessels now unemployed – the highest since the 2008/09 recession.

Tankers: Adding further support to six figure VLCC daily spot rates is increased waiting times off Chinese ports which are running out of storage for purchases made to take full advantage of the current weak price of oil. Discharge delays of two weeks or more are becoming common on account of China’s oil purchases being up by about 10% this year over 2014 levels.

Friday, 09 October 2015 00:05

Market Report - October 9, 2015

The bottom fell out of the Capesize market again this week leaving the Baltic Dry Index to close yesterday on 817 points compared to 888 points last week and 992 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1598

       736

        672

Last week

       1911

       704

        695

Spot time charter     

 $ 11,200/day     

 $ 5,900/day 

$  7,000/day 

One week ago

 $ 13,600/day

 $ 5,600/day 

$  7,300/day

Tankers: VLCC spot earnings have taken off over the past couple of weeks and have breached the $100,000 per day level on the main Middle East to Asia. The week’s Chinese ‘Golden Week’ holiday proably had an influence but even so, the lucky owners with vessels in place have had every cause to crack the champagne. The last time spot earnings topped $100,000 per day on the benchmark route was in July 2008.

Friday, 02 October 2015 00:05

Market Report - October 2, 2015

The weak market is directionless at the moment with optimism for a year end lift rapidly fading. The Baltic Dry Index closed yesterday on 888 points compared to 922 points last week and 883 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1911

       704

        695

Last week

       1911

       751

        738

Spot time charter     

 $ 13,600/day     

 $ 5,600/day 

$  7,300/day 

One week ago

 $ 13,700/day

 $ 6,000/day 

$  7,700/day

Containers:  Despite the so called “high season” the number of laid up container ships of over 500 TEU capacity has increased by 90,000 TEU of capacity in the past two weeks to reach 673,000 TEUs or 3.4% of total global capacity, the highest rate since March 2014, according to our well informed friends over at Alphaliner. There are now around 200 vessels unemployed reflecting abysmal freight rates and despite capacity reduction in east-west and north-south trades alike. At the same time around 480,000 TEU of new capacity has been added to the world fleet in the past 3 months alone.

Friday, 25 September 2015 09:37

Market Report - September 25, 2015

Capesize upward momentum carried over into this week enabling the Baltic Dry Index to close yesterday on 922 points compared to 883 points last week and 830 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1911

       751

        738

Last week

       1637

       727

        872

Spot time charter     

 $ 13,700/day     

 $ 6,000/day 

$  7,700/day 

One week ago

 $ 11,900/day

 $ 5,800/day 

$  8,100/day

Containers:  Despite reduced revenues on account of abysmal freight rates, the majority of carriers achieved some level of profitability in the first half of the year thanks to much lower bunker costs according to analysis by those smart folks at Drewry Maritime Research. The combined container revenues of 16 of the 20 largest carriers, controlling around 65% of the world fleet shrank by 5% in the first six months of 2015 to just short of $60 billion according to Drewry.

Friday, 18 September 2015 00:05

Market Report - September 18, 2015

An improved week in the fluctuating demand for Capesizes saw the Baltic Dry Index close a little stronger yesterday on 883 points compared to 830 points last week and 891 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1637

       727

        772

Last week

       1202

       751

        824

Spot time charter     

 $ 11,900/day     

 $ 5,800/day 

$  8,100/day 

One week ago

 $   8,700/day

 $ 6,000/day 

$  8,600/day

Tankers: After several weeks of charterers playing summer hardball, VLCC spot rates took a quantum leap this week with an increase of $9,000/day on Wednesday alone bringing earnings for Middle East to Asia back up to the $60-65,000/dayrange.

Thursday, 10 September 2015 15:41

Market Report - September 11, 2015

With declining market appetite for Panamaxes, the Baltic Dry Index is now well entrenched back into three figures closing weaker again yesterday on 830 points compared to 891 points last week and 905 points the week before.

 

  Cape Size    

   Panamax        

  Supramax 

Index 

       1202

       751

        824

Last week

       1195

       870

        882

Spot time charter     

 $  8,700/day     

 $ 6,000/day 

$  8,600/day 

One week ago

 $  9,100/day

 $ 6,900/day 

$  9,200/day

Tankers: VLCC spot rates on the benchmark Arabian Gulf to Asia route recovered last week by more than $20,000 per day over the past two weeks to bring spot time charter rates back up to around $50,000/day.

Friday, 04 September 2015 10:34

Market Report - September 4, 2015

The Baltic Dry Index closed weaker yesterday on 891 points compared to 905 points last week and 1014 points the week before.

  Cape Size    

   Panamax        

  Supramax 

Index 

       1195

         870

        882

Last week

       1051

       1000

        931

Spot time charter     

 $  9,100/day     

 $ 6,900/day 

$  9,200/day 

One week ago

 $  8,100/day

 $ 8,000/day 

$  9,700/day

 

377 CoW

Page 6 of 11