last market report before holidays.

 

Norden has published their results for H16 and according to these results, the board shall be one of many others welcoming the upward summer turn on the market. norden results, If you’re too lazy, busy, to read full article, please find below main interesting figures/facts for this Company taken out of this article:

  • “Group net loss amounted to USD19.4 million in 1H16 compared to a profit of USD81.9 million in the same period last year, while revenues decreased to USD608 million from USD879.5 million.”
  • “The dry bulk business area generated revenues of USD235.5 million, down from USD302.4 million and it swung to a loss of USD31.3 million from a profit of USD13.0 million.”
  • “In product tank, revenues decreased to USD76.3 million from USD121.2 million and the business generated a profit of USD7.3 million, sharply lower than the USD30.3 million in 1H15.”
  • “The Norden board narrowed its full year result forecast to a loss between USD60 million and USD20 million from an earlier forecast of a loss of USD60 million to USD30 million.”
  • “Shipping analysts at Pareto in Oslo said that the company continues to outperform benchmarks on earnings in both divisions –although this is not much to celebrate as the depressed markets weighs heavily on earnings.”

All is said above and it tends to prove again nowadays the tough time on which owners put themselves, on their own, like kids, while ordering ships and ships… and as we are on the order book, let’s go for more and bigger ships.

No matter if the market is oversupplied with tonnage, the spot prompt picture is in Owners’ favour in the Atlantic whichever the size. Yesterday we were mentionning this Poland to algeria 30’000 10pct bulk wheat stem with charterers who may have to face 17+ on a pmt bss. Bmti is now whispering 19/20usdpmt. Are these figures realistically achievable for Owners? it’s rather difficult to say. For sure, running some TCE equivalent here, on a ship able to load 31’000mt the 17+usdpmt is equal to USD 7’250/day dely Skaw, at 20usdpmt, same terms, it’s going up to 9’600 usd daily.

In these reports I’m often showing/reporting a bad picture for Owners, to be fair, it’s important also to point out the difficult time which are ahead of the Continental grains charterers/traders ahead of them. They were all doing their plans on a basis of a nice, lovely, good grain crop from usual big European exporting countries (namely France for example) and despite the whole intelligence which has been put in the growing grain process, Mother Nature has decided to go on another way and grain traders have to find out new suppliers, from new origins. They are facing the triple penalty. It will be interesting to see how they’ll rebalance their strategy for the next Northern African countries tenders. Sure they won’t be caught a secont time. Back on the Chartering market, on the grains, you will start to be used to it, Black Sea remains the winning area. We got information that a 25000 5pct barley stem from Taman to algeria has been covered in the mid 10’s but this remains to be confirmed.  On the USG, it’s quite different whether you’re a supramax player, then charterers would better go to their banks to get some cash out, or if you’re a handy owners, open their, then same, owners might need to go to their banks, to explain, the cash-in will arrive soon…but not right now.

ECSA, handies still, this fixture reported today in the BDI, which you’ll see in BMTI tomorrow is self explanatory “‘Lazeez’ 2000 32367 dwt dely Recalada prompt trip redel Libya $6,000 daily – Cargill” 6kusd to go to Libya?! according to our records, the ship was said spot in the region since the 4th of August. I don’t know if anything was wrong on this ship (trust nothing unless Cargill is ok to give up Rightship vetting to go to Libya) but at such level to end up in Libya, this is not a great deal!!

A quick word on the Supras, I would be tempted, at 666 today, they’re doing damned well overall. The USG to Skaw passero is gaining 550pts today heading at 8744 to be compared with the fixture reported done last week on a 58kdwt dely Corpus Christi redel Turkey at $8250 daily.

Finally, I generally speaking, avoid to talk about personal things in this report, but thanks in advance for your good wishes for my holidays starting this evening and I’ll be back on the deck 1st september. In between enjoy your time off these reports.

 

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