Let’s start today with ECSA
We mentionned this quickly earlier this week, logistic in Brazil for the sugar is quite a challenge, see in this prospect Tereos CEO interview, with last “[…] Monday vessels were waiting to load 1.85 Million Metric tons of sugar”, should it be Supras only, this is representing about 40 ships waiting their turn to load. Handies, 74 ships. read complete article here. Saying this congestion is leading to a shortage of available tonnage around is a bit of a shortcut, however according to BMTI, handies ex ECSA are going up to the “high 5’000$ for a trip to UKC-MED”, when last week it was worth “low 5’000$.” For sure, this upward, if any, is not reflected -yet- in the indexes, with HS3 still losing 41pts and being worth 5’653 today. On the larger size, Supras, charterers are indeed in needs to anticipate their requirements and try to fix in advance ballasters from WAFR. Deal are still done on Aps bss and for sugar stem to WMED are worth 7500$ aps (while index being on the S9 (WAFR via ECSA to SKAW PASS) being at 4’438). I did not run the maths but trust these figures shall match! Being open in ECSA remain a target for some owners, according to info we got on ferts done from emed to north brazil in the 2’500/3’000 $ per day depending on the vsl’s performance.
Talking about CONTINENT and BALTIC
Grains requirements are back in the air, unfortunatly for owners not enough to hoover off number of ships open around which is giving confidence for charterers for the usual continent to Algeria grains stem to find takers under the 12usdpmt level. Please note also, 35kdwt tonnage are discussed at us$ 3’500 from Skaw via Baltic to USG with probably fertilizers; when cement on 38kdwat is said being booked at 5.500$ daily from Baltic to USG.
Talking about market comments
One of my loyal readers (yes I have some or at least one!) was mentionning me earlier this week I shall try to be more positive in the market comments I’m providing. It’s a kind of a task to be positive nowadays, either I shall write comments on 2005/First Half 2008 market or I shall stop reading market info feeding these reports. As a start (to be positive), I did not read that Scorpio Bulkers is said to have lost $650Mio since its started (date of inception for Scorpio bulkers (also being known as SALT on the stock market) is 20th march 2013)… So take it’s a 3 year old Company, and do the maths on the losses yearly average. Without being neither sarcastic nor trying to give lessons, I was reading the introduction notes off Scorpio Bulker on their first financial report, which you can find here on page 2. we have faith in the future (2013) of course, at that time Scorpio’s CEO were (and had to be) confident about future with this kind of words “We believe that for the last six years, the market has been in the process of “bottoming” as freight rates have generally hovered around breakeven rates” or “ If history has taught us anything, it has shown us the power of well-timed, well-executed investments in cyclical industries. We believe that dry bulk shipping in 2014 and beyond will be no exception.”…
The point here is obviously not to blame them, they’re surely right to try, invest and get the entreprenarial spirit but hopefully time will at some stage be back on their side. Being positive, still, I did not read that George Economou is also facing difficulties to pay the bills.
Have a nice day as being positive I believe we will manage to fix something great together today. Being positive again, I tend to agree with what’s written above and it’s quite a good start.