where are the fireworks today? France or Black sea? #shipping #drybulk

Bdi keeps his movement up, heading to 738pts (today’s bdi), same level last seen was on Oct 26th 2015 and when looking at the curves (see below) on the bdi it is allowed to think the bottom of the wave is behind us, the recovery still seems to be a slow and long path but it’s always more exciting to work in an environment heading up.

bdi picture.jpg

…Unless, still according to the above the SMX and Handy markets are both cyclal in terms of years (as we can read everywhere) and seasonal as the chart tend to confirm.

We have to admit, today’s bit quiet in our french office (and so in our overseas ones) as charterers surely preparing themselves for the tonight firworks. But back to what I was mentionning yesterday, with BLSEA being “RED HOT” (as said by BMTI today), it’s very likely that owners will pay much more attention to this area and if open Gib/Wmed likely to take advantage of the peaking market on their East hand.

As an example, a ship open continental spain, offering equivalent to USD 5’300 daily for a 40 days trip via baltic redely WMED but without getting reaction from charterers, same lady is proposed 6kusd daily dely Passero redel Tunisia via Blsea. Owners aiming to be part of the festivities will most probably not wait for the fireworks to be over and take the decision to go to Blsea. Still from the Eastern Europe to Span Med, a  37kdwat was on firm discussion in the mid USD6kish but understood the discussion has been dropped due to charterers looking for larger vsl. The ‘St Gregory lady’ proudly reported on 11th july by owners being done at $4.500 daily, (St Gregory 2010 built 32,688-dwt concluded at $4,500 aps Canakkale for a trip via the Black Sea redelivery western Mediterranean)  is now to be compared to today’s Bdi fixture reports

mv’ TS Alpha’ 2015 38’872 dwt dely Ilichevsk ppt trip via BlSea redel US Gulf-Caribs $6,000 mv’Ikan Landuk’ 2013 37’115 dwt dely Derince ppt trip via BlSea redel US Gulf $4,500

(Owners of St Gregory can either claim to be The trend setter or just blame the timing for not allowing him to claim a 6kusd daily fixture).

We don’t have details on the fixtures explaining the $1’500 difference daily on these two ladies,  (Ts Alpha might have to end up in Cuba?)  but again, not that long ago, on the 5th july precisely similar ship for similar trip was not getting anything above $2’900 daily, as a quick reminder it was reported Bright ocean III 37kdwt blt 2013 dely Canakkale redel USG done at usd 2,900 for 1st 50 days, balance at USD6’500 daily. Owners of this mv ‘Bright Ocean’ has to keep his nerves down, as if the market shift keep up the same way, his ship will be open again in the wrong area, ie in USG, where we can see on the index the momentum being lost, and we can also witness, a lack of spot prompt requirements from USG. Index on the HS4 is now heading below the $8000. (losing 157usd in 1 day). However it is very very very unlikely USG will get as low as the Blsea was until few days ago.

To conclude on the Blsea market, the coasters are still struggling to bite their share of the pie. Without getting too much into details, the small grains parcel seen are not enough to counter balance number of ships open there.

On the s&p part of our business, Greeks are still (and remain) main buyers for 2nd hand bulk carriers. Out of 15 ships reported being sold, 6 are ending in Greek expert’s hands. On one hand nothing surprising about the revival of the 2nd hand market, which is obviously linked to the chartering side being quite better now than 3 months ago on the other side, we can be surprised about the revival on the Panamaxes… Are they still worth it with the new locks in the panama canal?

Appart from that? We were reading an interesting judgement made out of a dispute between owners and charterers, which were in disagreement about the word “trip” in the charterer party which were linking them. see here what’s a trip?

Also this scary movement seen on the chartering market where principals are setting up system enabling them to work on the principle of a dutch auction, without the needs of getting brokers involved. This is obviously scary for brokers adding no value only!

“Much like owners, there are too many brokers chasing too few cargoes. From the brokers, we need a clear demonstration of where they add value,” Michael Gardiner* said” should you wish to read the full article: chartering without brokers, this is disruptive!
Today more than ever then, I hope this report is found useful and you end up to the conclusion that Pelagos is able to bring some added value to your past/current/next fixtures.

(* Michael Gardiner is NOT the famous Australian rules playerbut yes the miner Ferrexpo’s global freight manager it’s kind of obvious but better to be precise)

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