Freight uptrend remains for bulkers (16 Aug 2017)

Momentum remains in Capesize recovery
Capesizes have yet to run out of steam on the long haul assessments with US$ 300-400 added to trans-Atlantic rounds and Continental front hauls, pushing them toward US$ 17,250 daily and US$ 31,750 daily, respectively, on 180,000 dwt vessels. (p. 1)

Competition for tonnage in Red vs. Black Sea
Charterers searching for Supra tonnage from the Red Sea almost certainly compete with the Black Sea market, where front haul rates are still hovering at about US$ 16,000 daily. (p. 1)

Black Sea urea prices moving upward
Fresh interest in urea purchasing from Black Sea sources has boosted spot market prices significantly in the past week with sellers in Bulgaria and Romania getting upwards of US$ 210-215/mt FOB for prilled bulk urea, about 7% over the week before. (p. 2)

…continue reading in today’s BMTI Daily Report.

BMTI Investment Review – Cautious Buoyancy on Wall Street for Listed Bulker Firms (03.Aug.2017)

It was a mildly positive week for listed bulk carrier firms on Wall Street with the emergence of im­proved rates among the bigger bulker sizes helping boost stocks prices ever so slightly. DryShips Inc. [DRYS] ended the week back near US$ 1 per share after spiking by 50% at midweek. DRYS has been flirting with investor volatility all year with a series of reverse stock splits that have kept investors ready to pounce on the next opportunity for a quick turn­around. The rest of the more traditional listed stocks steadily rose through midweek with Navios Mari­time Holdings briefly rising 15% before ending the week at a 5% premium above US$ 1. Stronger stocks included Scorpio Bulkers Inc [SALT] which held steady all week near US$7.35 and Star Bulk Carriers Corp [SBLK], which climbed 3.5% over the week to close at just under US$ 10 per share. Safe Bulkers, Inc. [SB] increased by a respectable 8% through the week to end at US$ 2.6 per share on the NYSE.

One of the largest bulker companies in the world, Pacific Basin, has reached an agreement to acquire five bulk carriers for a combined US$ 104.6m. Own­ers welcomed the move as it would keep total bulker capacity from expanding while consolidating ton­nage simultaneously. The five vessels include one 2014-built Handysize, two 2014-built Supramaxes, one 2016-built Supramax and one resale Supramax.

A new joint venture, Ivy Shipping LLC, has been launched by Paris Kassidokostas-Latsis with the in­tent of acquiring Supramax and Panamax bulk carri­ers. The new JV has already acquired four Japanese-built Supramaxes of build year 2011 to be delivered next month and to be managed by Marla Ship­management Ltd. Mr. Kassidokostas-Latsis, who had previously invested in LPG and tanker ships, says his new direction into bulker was based on considering current market conditions, seeing potential in the market and collaborating with strategic investors.

…continue reading in today’s BMTI Daily Report.

Bulker rally continues, leaving Capes behind (17-July-2017)

Western Handies continue rate rally Capesize vessel
Atlantic Handy bulkers show no signs of slowing on front hauls with low teens having climbed to mid teens in the course of the past week and US$ 15,000 daily set at the new benchmark on Supramaxes ex-Black Sea to the Far East. (p. 1)

Eastern scrap trade in flux
Scrap charterers were rating 30,000 dwt tonnage at US$ 3,000 daily for a trip ex-Japan to USWC versus owners’ idea of low US$ 4,000. (p. 2)

PG remains lucrative delivery for owners
Trips ex-PG to ECI are paying handsome rates in the US$ 12-13,000 range as owners up the ante. (p. 2)

…continue reading in today’s BMTI Daily Report.

Corrective forces return to bulker markets (03-July-2017)

South American energy fizzles for PanamaxesPanamax vessel
Lower interest in the Atlantic took a toll on sentiment as Kamsarmaxes ex-Continent via NCSA get middle US$ 9,000s DOP back to the UKC-Med. (p. 1)

Coasters: New transhipment regs focus in Azov
The wreck of the “Geroi Arsenala” in April triggered a new round of disputes about transhipment. (p. 1)

Far East Handysizes see surprising stability
Results have been mixed for the Far East Han- dysizes, but certain routes have gained more momentum in the past week including the Aussie rounds from SE Asia to NoPac, which climbed more than US$ 200 week-on-week to enter the low-middle US$ 6,000s daily for tonnage of 28-32,000 dwt. (p. 2)

…continue reading in today’s BMTI Daily Report.

BMTI’s Handy Bulk Market Viewpoint (15-June-2017)

HandysizeThe chartering market is devoid of enthusiasm. The brief respite of increased demand earlier this week seems to have been misread as a trend reversal. On the other hand the gathering of shipping people in Greece and in Bergen certainly contributes to the slower conditions. From the Baltic, timber charterers are likely to put in own tonnage of 33-35,000 dwt for a trip to east med rather than taking in market tonnage. Grain charterers would like to cover 25,000 mt wheat from GNS to South Africa at US$ 22-23/mt, which given an earlier fixture of 45,000mt from the Baltic to South Africa at US$ 26/mt looks a bit silly. A 34,000 dwt was fixed to the USG at US$ 6,500 daily. Scrap charterers are trading Supra ton­nage at around US$ 10,000 daily to the eastern Med.

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Surge in Moroccan fertilizer exports (07-Jun-2017)

Handy bulk rumoured rising in South Atlanticmorocco fertilizers
The South Atlantic Handy bulk trades are rumoured to be seeing more interest for mid-month positions as ECSA trips to the Continent are said to be in talks for up to US$ 6,000 daily on Supramax tonnage. (p. 1)

Coasters: Trips to the north see steady rates
Northbound shipments from the Turkish Med to Ireland are getting steady freights of mid EUR 20s/mt with EUR 25.5/mt observed on a 5,000mt parcel. (p. 1)

Business booming for Moroccan fertilizers
Granular phosphate exports from Morocco surged 34% year-on-year over the first four months of the year, according to the Foreign Trade Bureau. (p. 2)

…continue reading in today’s BMTI Daily Report.

Positive Handy bulk signals limited to the East (30-May-2017)

India becomes main driver in global coal demandSupramax
Analysts note that India’s imports of Australian coking coal have grown enough to be comparable with those to China and Japan. India already accounts for up to 25% of Australia’s monthly coking coal exports. (p. 1)

Encouraging Handy trends limited to the East
The only highlight seems to be the Handysize market in the East. A 30,000 dwt vessel was taken for an Aussie RV in the low US$ 7,000s daily. (p. 2)

Sulphur regs loom while bunkers stay old school
…now some 84% of bunkers is still heavy fuel oil (HFO). Long-term investment decisions will have to be taken by ship owners, operators, financiers and refiners to reduce local pollutant emissions. (p. 3)

…continue reading in today’s BMTI Daily Report.

Capesizes starting to bounce back (10-May-2017)

capesize vessel capesizesTrends are ascendant for the Capesizes for the first time in nearly two weeks with average rates up by 4-5% at midweek. There is said to be more action be­low the surface with a likelihood of more fixtures by the afternoon. For now, Pacific ore voyages are the main deals with Dampier/Qingdao steady at US$ 6.2/mt on tonnage of 170,000mt. The Pacific round for Capesizes jumped US$ 700 to US$ 13,000 via Japan. TARVs grain US$ 250 to reach US$ 11,500 daily via Conti­nent where general sentiment is lightly buoyant.

Panamax activity has grown modestly on the Conti­nental front haul into the middle US$ 13,000s, but the market itself remains broadly flat. Trans-Atlantic rounds have stabilized at about US$ 7,250 daily but are under pressure with a downside. South America, some brokers say, is returning to the market as grain purchasing resumes, thus boosting front haul trades. The ECSA Kamsarmaxes to NoPac are securing APS rates near US$ 12,000 daily plus US$ 500,000 BB.

Modest indications of recovery in the Atlantic at the start of the week start to build some momentum in Handy bulk markets by midweek on signs that USG front hauls are on the way back up as upwards of US$ 20,000 daily is secured to CJK on 58,000 dwt ships. Also from the USG, trans-Atlantic trips to the Continent have also been showing signs of improve­ment with middle teens of up to US$ 15,000 daily obtainable on Ultramaxes on UKC-Med redelivery, sources report. The South American exports are still sporadic with some brokers describing the market as “catch as catch can” given the lack of consistent trend from the ECSA agri-prod spot markets. At any rate, Handysizes of 32,000 dwt have been securing lower teens of US$ 12,500 daily from ECSA into the Far East, we are told, which is a significant upgrade from last week. Then again, we also hear that pressure is growing on this run with one Supra recently unable to secure anything higher than US$ 12,000 DOP.

…continue reading in today’s BMTI Daily Report.

Global growth to support dry cargo recovery (2-May-2017)

Glimmers of hope in Q1 suggest improved Q2 Shanghai global growth
Dry bulk markets emerged in early 2017 as more robust than many had expected with global growth leading experts to hastily upgrade their forecasts for the coming year. An early year revival in iron ore and coal imports to the Far East, driven by a firming in global steel prices, in addition to a recovery in niche mineral markets—notably the lifting of Indonesia’s mineral export ban—have seen a Pacific-led rebound following the Chinese New Year in early February. China’s ban on North Korean coal imports in February was also seen as an encouraging sign that Chinese coal imports would have to extend seaborne trade in order to compensate. North Korea is China’s fourth biggest source of coal, after Mongolia, with 22.5 Mt shipped in 2016 (up from 19.6 Mt the year before), thus a not-inconsiderable contributor to China’s energy mix. (p. 1)

Emerging markets return after six-year slump
Sustained growth in India’s GDP, steady near 7% in the final quarter of 2016, is also seen as an encouraging signal for eastern-based dry cargo transport growth. China and India, most notably, have moved to shift their coal sourcing away from domestic supplies and increasingly toward import shipments. The Atlantic market, while buoyed by new enthusiasm in the East, has been steady thanks to seasonal demand from South America. It remains to be seen, brokers say, whether the Atlantic will mount a similar rally as the Pacific that would con­ceivably push freight earnings to new highs where they would stay through the year, boosted by global growth. The ideal scenario for owners would be a push in Atlantic grain arriving with such strength in Q2 that it supplements the steadier Pacific market, leading to a virtuous cycle of continual earnings improvements. (p. 2)

…continue reading in today’s BMTI Daily Report.

Secondhand containership sales rising (25-Apr-2017)

Corrective days ahead for Panamaxes?containership
Technical analysis of futures markets last week were already suggesting Panamaxes were poised to enter a corrective phase and the start of this week seems to give that theory more credence with little fresh business emerging to prop up freights. (p. 1)

Attraction remains for Supras into the US Gulf
The USG stays tempting for Supras and Ultras whilst the Handysizes still trail their larger brethren. (p. 1)

Notable rise in containership sales YTD
Activity in the secondhand containership market has been considerably stronger in 2017 than in 2016 with the first quarter of the year seeing around 59 containerships sold (261,911 TEU) compared to just 28 containerships (79,126 TEU) sold second¬hand in the same quarter last year. (p. 2)

…continue reading in today’s BMTI Daily Report.