Modulation returns as freights level out (27 Sep 2017)

Rate trends peak at three-year high
Dry bulk rates have collapsed on average with the BDI having declined for the first time in nearly two weeks. The index reached a 3.5-year high last week. Average Panamax earnings have stabilized at around US$ 11,750 daily on TC basis. (p. 1)

Eastbound Handies encounter turbulence
Handysize tonnage of 35,000 dwt was fixed to Morocco from Brazil at US$ 15,000 daily, which market is also showing signs of easing. (p. 1)

EUSSIXCoasters: September recovery continues apace
The ascendant trends that were kicked off in the last few weeks have come home to roost in the second half of September with firming movements observed all across the northern markets. (p. 2)

…continue reading in today’s BMTI Daily Report.

Bullish factors throughout market (25 Sep 2017)

Buoyancy returns to Capesize freightsbullish
Capesizes maintain their ability to surprise with a bullish week of recovery coming out of nowhere and proving uncertain if the wave would subside. (p. 1)

Business grows from South Africa for Supramaxes
From South Africa, the owners of a 56,000 dwt ship were seeing APS rates of US$ 12,000 daily plus US$ 325,000 BB for a front haul run, which was a level they deemed as low. (p. 2)

Pacific Handysize rates have best week in ages
Eastern Handysize rates have had big increases, unlike their larger brethren, with US$500 WoW on average added to freights. (p. 2)

…continue reading in today’s BMTI Daily Report.

BMTI launches European Short Sea Index (EUSSIX)

European Short Sea Index (EUSSIX) for Dry Bulk and Break Bulk

BMTI is pleased to announce the first official publication of the European Short Sea Index in the BMTI Short Sea Report of 23 August 2017. To meet the need for a comprehensive indicator of Europe’s short sea mar­ket, BMTI has developed the “European Short Sea Index” or in abbreviated form “EUSSIX”.

The EUSSIX index is generated by weighted inputs from BMTI’s three main regional indices: Northern Europe, Mediterranean Sea and Black Sea-Azov. The EUSSIX, a directional index to be published on a weekly basis, is the result of the aggregated freights for dry bulk cargoes transported in Europe and adja­cent regions with ships between 1,000-20,000 dwt.

In contrast to deep sea and intercontinental mari­time transport, short sea shipping is restricted to relatively short distances along the coast and ships in the size range that fall below the typical Handysize vessel description. As such, the world recognized and referenced Baltic Dry Index cannot serve this sector of commercial shipping as a reliable economic indicator. The European short sea market has long needed such an index for its own vibrant and volatile market. BMTI, with years of experience intensively observing, analysing and collecting data from the sector, has decided to meet this demand with this new index, to be published on a weekly basis. In utilising relationships with Europe’s short sea in­dustry players, BMTI is in the process of expanding our freight inputs to strengthen the reach of the EUSSIX. Any additional short sea market players who would like to participate in contributing to this new short sea index are welcome to contact BMTI.

Index calculation is based on current data for dry bulk and break bulk freight rates in the European short sea market.


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.

Continue reading

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.