Market will surely remain relatively quiet today, at least on the trading side as some big players (such like Canada, USA, INDIA) are off today. On the grains and fertilizers you shall also note that Argentina and some region of Brazil will also enjoy a day of on 8th Sept.
On the Index, Friday’s BCI was at 1’054 (as mentionned by BMTI, level not seen since beg of May) and today’s BCI keeps moving up and gaining another 25points. Enough to drive up today’s index despite all other sizes are showing a step down. Nothing to be too much worried about but last friday was almost flat, today’s heading down. We can wonder if this week is going to confirm a general bearish trend or if it’s going to recover.
Lot of hopes were put (are put) in the grains segment of the drybulk industry, like the wheat with quite a huge production in countries such like Ukrain, Russia, Germany, USA… but big production is nice for shipowners only if these grains has to be moved from country A to Country B. Unfo, with overall wheat crop being up and same shall outpace demand by 10Mt this year, it leads to wheat price being as low as it was 10years ago and immediate effect is that grain producers are not really keen to sell at current low level. As a result, not as much movements are seen as we could have expected.
As a result, Black Sea seems to be bit slower/lower than expected, even a cancellation of wheat tax export from Russia shall not change much the rules of the game russian wheat export tax article . Also see the Cofco stem reported with ideas revised down on this 25’000mt 5pct wheat Romania to SpanishMed aiming now US$ 11.50 – which according to BMTI is only worth US$ 5’000 daily bss dely Canakkale – It seems to us quite aggressive but whether they achieve this number or not, it’s a signal that charterers trying to take back the lead in this area. (Remember, last friday, BMTI was mentionning a 35kdwat dely canakkale redel Span Med at US$ 6’000).
On our side, as brokers, we can see/feel that charterers are doing their max to temporize and bring owners to quite lower level than the last done. Here, but doing mainly Grains and ferts, it’s fairly slow, with the gap between owners ideas and charterers ones being bit too large to enter into firm negotiations.
On the Containers, I was wondering how CMA-CGM is performing… And I had the answer, loss for US$ 128m for Q2, on which you need to add (or deduct, depending if you’re optimistic or pessimistic) another loss of US$ 100m for Q1 2016.