Connecting (commodities to) people

A slow start of the week to end up with this month. Never mind, we all know and we are all convinced we are working in a big industry, enabling most of the world population to eat, to be warm (or cold), to build up houses and a bit like NOKIA would have said back in the 90’s with their statement “Nokia: connecting people” we could say “shipping connecting commodities to people“. If you’re note convinced about this, then please read this report below, With few interesting data’s such like:

2016: daily average earning being at $9’733/day, aggregating this to the 22’000vessels at sea equal to $77bn // same but back in 2007: daily average earning being at $33’060/day, across over 15’600ships at sea this was equal to $189bn.

Unfortunately this is another similar statement with NOKIA. From sky is the limit market to let’s find ways to survive.

On the chartering side, which is probably more about your daily concern we can wonder if the congestion on the Coal loading in the port of Newcastle, in Australia being up to 21 ships will in a way or the other dry up the availility of big ladies on the market, hence drive the market up on this area. See more info here: More or less in the same vein, China shortage of coal is driving up the local panamax activity. However, reading this platts comments we can notice it was published on 23rd july, talking about fixtures done on the week before. quote ” According to ship broker Banchero Costa, during the week ending 17 July, a 74,000-dwt Panamax bulker was fixed to ship coal from Indonesia to south China for USD6,250/day, while a 76,000-dwt Panamax bulker was fixed at USD6,500/day to ship coal from the east coast of Australia for delivery in the China-Japan-South Korea range.” when today’s BPI is in decline, quite sharply, -166pts on the P3A_03. Another good example of the volatility of the markets on which we are.

On the ECSA, we could read last Friday in Baltic report a “39,000 tonner was on subjects for Recalada to Tunisia with grains in the region $8,250 daily”,this  converted into a kind of standard cargo asf 30’000 10pct bulk agri prods 1sp upr 7000satnoonshex/ 1sp Tunisia 32′ fri5pm-mond8am ex -considering the ship can load about 31’000mts, this is giving an equivalent on voyage bss at about 26/27usdpmt, same daily hire to end up in algeria 32′ with 2’500x is giving touch below 24usdpmt. Finally to Casablanca 32′ with 5000x, my estimation leading to a freight very close to 20usdpmt. Obviously definitive loading port and vsl’s specs can have quite an impact on the freight and knowing the index on this specific route, bss a 28kdwat, is today at $6’597. For sure, should you need to have an updated freight estimate for these specific trade, it would be worth to go bit deeper in details and check again where the market is.

To conclude today’s report and to take back the comparison with Nokia, technology and shipping, an interesting article was found here,

Cyber security is surely an issue which has to be faced by insurers, to protect owners and obviously at some stage charterers goods loaded in ships holds. Article coming with this rather poor conclusion “Marine insurance policies and contracts were not designed in the modern communication age.” We can be sure insurances companies will find ways to evaluate the risks… and the opportunities for additional insurance premia.


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