iceberg salad with foc’s

No BDI proposed yesterday as the market was closed in UK and today’s figures are somehow flat with 612 on the bdi (+6), 854 on capers (+24), 574 (-8) on the panamax, (+1) on the supra ie 580 and (+4) on the handies ie 351. From continent, mv ‘Zhong Hai’ 45kdwat, open in Rotterdam where seeing low/mid 3kusd to heads up from dely skaw towards USG with grains and finally decided to go for the immediate (if  I may say saw) money with 8’500usd daily with Scrap to EMED. Such fixture being very comparable with fixture of mv ‘blue sea’ 45kdwat prompt via baltic to emed with scrap, at same number.

from same area (Continent), on the handy, $7’000 usd to SAFR can be compared to about the same money to WAFR on comparable ship sizewise. What’s the key decision driver for owners? .duration? .repositionning? counterparty? commodity? Trust it’s much simpler, find a way to get rid of the open ship on the market. Baltic on the handies seems to be comparable to Continent now as 6kusd is said to be done. On the handies and Supras, owners can wonder what’s the best position to be in the next days/week, as no area seems to have any mercy for their finance. ECSA does not look promising with kind off no cargoes out for these ships. USG is seemingly losing his momentum for 10th june onward.

Talking about finance and related to the Panama paper, the shipping industry seems to discover the world of flags of convenience (FOC’s), today’s BMTI, is reporting couple of  case where FOC is leading to some weared situation. One mv ‘African Alke’, Panama Flag, vsl’s being detained on her Maiden voyage due to lack of safety skills/training from the crew: full report here poor crew training

another one reported is linked to Old traditional European owners running a ship under Liberian flag and apparently some mispayment of the Captain taking after owner’s interest at sea.

Comfortably installed in our office chair we will all agree; these 2 cases, out of so many others which can easily be found here and there, shall not happen and are wrong strategic decisions from owners. We will all agree these practices shall be banned. But again difficult to blame solely owners especially in such loosy market, where charterers are also fairly happy to fix -5% vs last done. Trust these “below last done” are leading to this kind of situation where owners trying to find ways to simply survive and go through the storm. Meantime, one can also argue, in the shipping golden age from 2000 to 2008 money in the market did not lead owners to get out of the FOC (they were surely saving money for hard time).

panama flag = panama paper? (p53/57), out of the ten first most used flags, 6 are FOC’s and these 6 are weighting abt 53% of the share of World total (percentage dwt). Which means in summary, chrtrs who’s aiming to stay away of these, will need to play with less than half of the fleet. As mentionned in a previous report, difficult to track owners as most off the ships are managed through an opac set up of various companies.

Finally yesterday we were talking about Noble Boss resignation, Iceberg Research is claiming to be one of the actors for this salad. wondering how iceberg can be cooked, See here: recipe for Iceberg salad

I agree with all the above comments, and I guess it’s quite a good start.

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