Dry Cargo Broker Viewpoint (16 Mar 2018)

There are still signs of positivity pushing through in the Capesize derivatives trade, we are told, with early trading on Thursday hinting at a revival by the weekend. No such luck, however, on the spot mar­ket, despite a notable increase in Atlantic fixing and short period trading. Cargo volumes have remained stubbornly limited on the Capesize market, so rates have continued to slide in response. With no reason for a trans-Atlantic market to stay aloft, TARV rates plummet at week’s end by more than US$ 1,500 to settle in the low US$ 6,000s daily and below opex.

bulk carrier

A consensus is building among Panamax observers and traders that the mid-range bulkers are poised for a quite positive 6-8 weeks ahead as a combination of oncoming South American grain cargoes—driven by strong eastbound demand—and slimming tonnage availabilities generate a bullish upward spiral in spot freights in the Atlantic. Even as current spot markets stagnate around last-done rates and activity takes a breather, a strong upside remains in place for the near term with front hauls likely to shoot back into the US$ 20,000s by the end of the month, if not already next week. TARV rates are hovering in the low-middle teens of around US$ 13-14,000 daily.

Handy bulk has had a good run through the week, emerging as the only bulker sector to boast contin­ued growth and consistently bullish gains in rates both East and West. The USG, as is often the case, seems to be the primary catalyst here as front hauls to S’pore-Japan move into the middle US$ 20,000s of US$ 25,500 daily plus and as high as US$ 26,000 daily on Ultramax tonnage of 58-62,000 dwt. Niche mineral demand also appears to have returned to Southeast Asia with multiple orders for nickel ore via the Philippines pushing Supramax spot rates on Chinese redelivery into the range of US$ 13-14,000 daily. Buoyancy should persist into next week.

…read more in today’s BMTI Daily Report.

BMTI Study: Shipping Technology Monitor 2018

BMTI’s Shipping Technology Monitor – 2018 *

In the study “Shipping Technology Monitor” BMTI presents a wide selection of its own coverage of today’s leading trends in ship design and propulsion, including many contributions from technology experts in their own sectors of the shipping economy who have shared their knowledge and opinions on the subject.

  • Green Shipping (essays about the future of shipping in a world of changing emissions standards)
  • Expected broking & economic trends from every sector
  • Ship Design (opinions and detailed accounts from industry thought leaders and ship designers)
  • Digitalisation (emerging technologies including Big Data, cryptocurrencies and online shipbroking)
  • Cybercrime (electronic threats to maritime security and new ways to guard against them)
  • Automation (robotics, drones, 3D printing and the promise of autonomous shipping)

E-Ship crosses the Panama Canal – (28-Feb-2018)

First ever transit of the “E-Ship”, managed by Auerbach [Hamburg] through the Panama Canal.
Auerbach is managing the E-Ship on behalf of the green energy wind-turbine manufacturer & windpark company, ENERCON in Germany!
The E-Ship 1 is a Flettner ship:
four large rotorsails that rise from its deck are rotated via a mechanical linkage to the ship’s propellers. The sails, or Flettner rotors, aid the ship’s propulsion by means of the Magnus effect – the perpendicular force that is exerted on a spinning body moving through a fluid stream.
Achievable propulsion savings by applying Flettner rotorsails are ranged between 35 .. 45 %.



.. looking at the Panmax market (22-Feb-2018)

The Panamax freight rates since  last week are on the start to continue on their southbound trail but with low demand of grains from Chinese buyers.
The trans-Atlantic market Indicates as well further slowing activity. ECSA sees a growing amount of ballasters coming in aiming to pick up grain trades for end February/begin of March. The Pacific round voyages are hovering between US$ 8,000-9,000 daily. Little amount of fixtures is seen during the first half of the week and this reflected in further slowing freight rates in both basins. Coal voyages from East Australia to China are talked in a range of US$ 11.30-11.40/mt. Trans-Atlantic rounds are hovering around US$ 9,500 daily

Western Panamaxes remain embattled [12-Feb-2018]

Atlantic Panamaxes stay in bearish mode
Panamax freights remain under pressure in the Atlantic with trans-Atlantic round voyages having fallen into the four-digit range of high US$ 9,000s daily on Continental delivery. (p. 1)

Improved revenues reported by Scorpio Bulkers
Scorpio Bulkers (listed on the NYSE under SALT) said its losses for the last quarter of 2017 were “lower than expected”, paying a dividend to investors, despite still having failed to turn a profit in the quarter. (p. 1)

Relative stability among Far East Handysizes
Handysize freights, while also under pressure, saw less pronounced declines in the past week with only about US$ 100-200 reduced on average freights, leaving the Aussie rounds to NoPac in the high US$ 6,000s on tonnage of 28,000 dwt. (p. 2)

BMTI’s Shipping Technology Monitor – 2018 *

In the Study »Shipping Technology Monitor« BMTI presents a wide selection of it’s own coverage of today’s leading trends in ship design and propulsion, including many contributions from technology experts in their own sectors of the shipping economy who have shared their knowledge and opinions on the subject.

  • Green Shipping (essays about the future of shipping in a world of changing emissions standards)
  • Expected broking & economic trends from every sector
  • Ship Design (opinions and detailed accounts from industry thought leaders and ship designers)
  • Digitalisation (emerging technologies including Big Data, cryptocurrencies and online shipbroking)
  • Cybercrime (electronic threats to maritime security and new ways to guard against them)
  • Automation (robotics, drones, 3D printing and the promise of autonomous shipping)

Biggest bulkers enjoy market revival (9 Feb 2018)

Strengthening surge in Capesize spot freightsCapesize vessel
A Capesize recovery is well underway—even if the smaller bulkers can’t say the same—with strong and uniform gains of US$ 1,000 day-on-day taking long hauls some US$ 3,000 higher over the week. (p. 1)

Fertilizer trips in play on UKC-Med delivery
Off of the Continent, fertilizer charterers are linked with a deal for 30,000mt to three ports USG-Mexico range in along the lines of around US$ 26-27/mt. (p. 1)

Global barley prices turning bullish
Tight supply of barley on world markets is expected to keep prices at high levels, analysts say, with malting and feed barley prices benefiting from a growing upside thanks to a combination of bullish forces. (p. 2)

…read more in today’s BMTI Daily Report.

Bulker market under correction (2 Feb 2018)

wavesThere are still convincing macroeconomic reasons to expect the eastern Capesizes to rebound in 2018, indeed to strengthen after Q2, including urgent coal demand to China (as domestic production continues to fall) and a general increase in mineral demand throughout the Far East. For the moment, however, the Capesize spot market is anything but bullish as charterers seem to have no problem withdrawing their business for the time being, even with the shift into February having little perceptible impact on sentiment. Front hauls are still in free fall with rates for trans-Atlantic round voyages plummeting before the weekend by nearly as much as US$ 2,000 to hit US$ 11,500-12,000 daily on modern 180,000 dwt units. Pacific rounds are quite bearish as well with rates in the low teens of US$ 12-12,500 daily after spending them in the mid-high teens just last week.

It’s hard to imagine Panamax voyages from ECSA to China were getting US$ 33/mt two weeks ago as they have tumbled to half of that—about US$ 14-15/mt—in the current market. Activity hasn’t fallen off completely; indeed, things remain lively enough. But cargo demand is still falling short of available ships, a recipe for correction. In the event, front haul trips have fallen into the low US$ 20,000s of US$ 21-22,000 with some owners already offering US$ 20,500. Period inquiry, nonetheless, remains strong.

It is the same story with Handy bulkers as charterers take advantage of an over-tonnaged market, hoping to push rates downward by keeping their cargoes under wraps. This has only come with mixed suc­cess, however, as Pacific rates have generally held steady or taken just minimal declines. Discounts are more pronounced in the Atlantic with USG delivery still falling (US$ 22,000 now on Supra front haul), but front hauls are holding on Continental delivery.

…read more in today’s BMTI Daily Report.

Far East Handymax/size – Week in Review (22 Jan 2018)

Far East Supramax ratesSlowly but surely activity has been creeping up in the eastern basin in recent days with owners seeing more room for securing better rates even as prevailing trends remain flat. Indonesia-based business has also gained momentum with S. China delivery to ECI now getting middle US$ 8,000s via Indonesia instead of the low US$ 8,000s range typical a week earlier. Rates for NoPac rounds have not changed significantly since the year began with owners still settling for just over US$ 8,000 in most cases. Back haul rates to the Continent are set to start increasing. Brokers report that Handysizes have been seeing more enquiry of late, which comes as some encouragement for owners who nonetheless have been settling for last-done rates since the start of the year. SE Asia trips to NoPac via W. Australia have been fixed up to US$ 7,500 daily on 28,000 dwt ships, owners say, with some seeking US$7,750. A 32,000 dwt vessel has done US$ 8,250 ex-CJK to N.China.

…read more in today’s BMTI Daily Report.

BMTI Dry Bulk Market Update (12 Jan 2018)

Supramax freightsConsiderably more Capesize fixtures and news of activity bubble up to the surface as the week ends, but nothing consistent or extensive enough to justi­fy a recovery. Indeed, the spot market is as disparate as it has been all week with only long-term period time charterers of any interest to charterers, seem­ingly, at the moment, with year long durations done anywhere from US$ 18,000 to US$ 20,000 daily on worldwide redelivery. Long haul rates, meanwhile, continue their collapse as Pacific rounds and TARVs each lose nearly US$ 3,000 to settle at around US$ 10,000 daily and US$ 26,000 daily, respectively.

Renewed support in the Panamax derivatives sphere on Q1 (settling near US$ 11,000) suggests the mak­ings of a bounce next week, brokers are telling us, but for the time being spot freights continue to slide in both East and West. The fact that average Panamax rates closed out 2017 more than 60% than where they started would seem to indicate potential for further gains in the mid-term, if not the short-term.

Supramaxes are firing on all cylinders in the Atlan­tic, particularly from the lively USG market, where owners can now ask for upwards of US$ 25,000 daily for a front haul and stand a good chance of getting it. This is compared low US$ 20,000s avail­able just a week ago. Similarly, trans-Atlantic trips USG/UKC-Med are fetching US$ 22-23,000 daily on DOP. Inter-Continental Handysizes have been securing fertilizers on 38-42,000 dwt ships at rates in the high US$ 7,000s amid rumours of US$ 8,000.

…read more in today’s BMTI Daily Report.

Big bulkers rally in first week of 2018 (5 Jan 2018)

Capesize freights are off to the races
A handful of new period deals (with standard tonnage getting US$ 20,000 daily for a year-long duration) and a few Pacific rounds proved to be enough to sent sentiment surging again. (p. 1)

Pac Handysize owners resist downgraded rates
Coal charterers so far have not been able to find tonnage of 35,000 dwt at US$ 7,500 daily for a trip from Indonesia to Bangladesh for which some owners would like as much as US$ 9,000 daily. (p. 2)

Bauxite’s outsized influence among minor bulks
The long haul is said to have accounted for 12% of tonne-mile growth in 2017 even as bauxite still makes up a tiny 2% of the dry bulk trade. (p. 2)

…continue reading in today’s BMTI Daily Report.

Revival in Black Sea Supras (18 Dec 2017)

Supras see recovery in Black Sea front haulssupras
After a slow stretch at the start of the week, the Supras saw a renewed sense of urgency just before the weekend, helping lift Black Sea front hauls back toward US$ 17,000 daily on Supras to CJK. (p. 1)

Atlantic voyages firmer on smaller tonnage
Ore rates from Liberia to GNS for a 50,000mt cargo have reached US$ 16/mt. Fertilizer charterers were seeing tonnage at US$ 19/mt for 25,000mt from Dakar to the US Gulf. (p. 2)

Eastern Handysizes steady amid slowing activity
Southeast Asia trips via Australia to NoPac are giving ships of 28-32,000 dwt freights in the mid US$ 8,000s much as they were at the start of December. (p. 2)

…continue reading in today’s BMTI Daily Report.

Panamaxes regain buoyancy via Indonesia (29 Nov 2017)

Buoyancy returns with growth in Indo roundsbuoyancy
Panamax trends on benchmark rates via Indonesia are firm if not overly ascendant with Indo rounds to South China oscillating within the US$ 9,000-9,500 daily range on 72-76,000 dwt tonnage. (p. 1)

Handy bulk owners content with slow-but-steady gains
Owners seem fine with the current return to positivity on Supramax routes, even as gains have been incremental at best. (p. 1)

Coasters: Robust business via Turkish Med
Imports and exports alike have been rather vibrant via the Turkish Med in recent days with grain imports from the Sea of Azov (5,000mt with stowage of 46′) to Mersin fetching about US$ 62/mt from Yeisk and US$ 64/mt from Azov port. (p. 2)

…continue reading in today’s BMTI Daily Report.

Prospects rise for market-wide resurgence – 21-Nov-2017

Supramaxes see new signs of supportUptrend
Rate trends have begun to look up for the embattled Supramaxes due to a resurgence among the biggest bulkers and a return of demand in SE Asia. (p. 1)

Firm trends remain in Black Sea coaster freights
Owners insist a strong upside remains in place, helping them get modest upgrades over last-done levels, however broadly speaking rates have moved only marginally upward in the past week, suggesting that they may have reached a momentary peak. (p. 1)

Containerships moving into reefer market share
Reefer ships transport 21% of all seaborne perishable cargo; their share of reefer capacity is only 5%. (p. 2)

…continue reading in today’s BMTI Daily Report.

Rumours of recovery heard from ECSA (15 Nov 2017)

Indo rounds drift back into the shadowsrecovery
On South China delivery, ships of 58-62,000 dwt via Indonesia are fixing no higher than US$ 7,500 daily on ECI redel and US$ 6,750 daily back to S. China. (p. 1)

Good news for Handies from South America?
Hefty rates are said to have been paid from ECSA, with Lauritzen rumoured to have taken a 38,000 dwt vessel from North Brazil via Plate to China at a rate significantly higher than US$ 15,000 daily. (p. 1)

Coasters: Bullish November cheers owners
Firm trends are most likely to continue through the remainder of the month with some suggesting that the shift to December may drive another spike as new cargoes enter for year-end requirements amid an even tighter tonnage supply. (p. 2)

…continue reading in today’s BMTI Daily Report.

Sense of stability returns to some areas (6 Nov 2017)

Eastern Cape rates start to stabilize Capesize
Pacific rounds have started to firm at around US$ 19,000 DOP on modern 180,000 dwt tonnage, seeming to suggest that there is more strength in the East than the West at the moment. (p. 1)

Pacific Handysize rates sustain minor corrections
Handysizes have fallen under the same pressures as the larger sizes, though discounts are notably minimal for week-on-week comparisons. (p. 2)

…continue reading in today’s BMTI Daily Report.

Panamax rates fall despite active market (30 Oct 2017)

Atlantic Panamax freights under pressure BPI
USG grain stems to CJK are concluding just over US$ 40/mt on modern tonnage at present, which is some US$ 2-3/mt lower than the business was able to fix in early October. (p. 1)

Coasters: Azov rates emerge ascendant
The longer hauls to North Africa and similar have seen more volatility than the shorter trips with rates to Israel going for as low as US$ 57/mt or as high as US$ 60/mt, depending on terms. (p. 2)

Handysizes retain role as single stable sector
Interestingly, Handysizes have pulled through the past week in the eastern basin with rates unscathed and even, in some cases, slight improvements from the week before. (p. 2)

…continue reading in today’s BMTI Daily Report.

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.

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.