comments below done bss 2nd august 2016
Another quiet day, handy continent/baltic is fairly slow, scrap metal to turkey seems to be close to zero fresh activity, french grains are not in the air yet and on the other side it’s bit tight on tonnage anyway. Owners open West med scratching their head whether the ballast to BLSEA is making more sense or wondering if going up to Continent is the winning bet. Heading to Black sea, surely cargoes will be here and so tonnages meaning then competition and maybe freight down as a consequence, or heading to Continent Baltic where as mentionned there is limited open tonnage around and therefore it will be the traditional arm wrestling with charterers if anything coming up. Figures seen on Fixtures (handy still) from BLSEA area are showing, if not a decline, at least a stop of climbing process. Referring to BMTI, 30000mt of wheat ex Taman to Egypt med bss 7’000/5’000 terms, charterers are proposing usd 9.00pmt when owners are resisting and try to obtain if not 11usdpmt at least above 10usdpmt. Converted into TCE, 1usdpmt equal about 1’000usd on the daily equivalent. From BLSEA still to continental Spain, we got rumor that touch below 15usdpmt was obtained. Giving daily equivalent touch above 5’000usdpdpr bss dely Canakkale.
If true, and trust shall have no great reason to lie, the usd 7’500 from USD to continent on a 32kdwt is not great news, today’s hs4 is heading below this mark, losing 65points and according to fixtures reported owners of similar size vsls able to get 11’500usd daily ex USG only if ok to end up in WCCA.
Generally speaking, container market is also facing over capacity. 300 ships has been taken off the market lately but actors are wondering how effective this will be on the rates which are not reacting positively yet. On the brybulk sector, according to this article scrapping/new buildings it’s about the same situation of over capacity:
“22.74 Million dwt has been scrapped on the 1st half of 2016 (talking only on bulker), newbuilding orders are either delayed or converted to other ship types. […] fleet growth have resulted in a 0.84%”…
If I may say, what a waste!!
And if I may add: hopefully for containers players, new orders of drybulk vsl’s being converted in other ship types, “other” being different than “containership”.