Good day, good morning,
Quite a limited access to market information today, as in our constant willingness to improve our service our IT system is being redefined and upgraded. Maybe nicer and quicker computers will help me fixing while I’m at the beach. Bit like the Automous ship, by 2035 fixtures will get done electronically only… With all the pros and the cons which are linked to this. (The pros being me at the beach).
Anyway discussing over the phone with various counter parties it seems it is quiet in most of European desks. Owners, charterers and consequently brokers. It’s looking like, on the grains sector, stems are in the pipe but still not ready to be developped on the market. Reading BMTI attached, annoncing “500’000mt of grains being bought by the algerians” (depending on the source, a figure of 700’000mt is also whispered) could lead all owners able to play on this specific trade to ballast to the likely area
of loading. Based on the previous years, it’s an open secret, continent shall be the next hot spot! BUT view the new wheat crop being very different from the previous ones, quite difficult to predict whether the origin will be from Blsea and continent (as mentionned by BMTI) or if traders will be able to source the commodity (and build up a competitive price) from Baltic or USG or ECSA… Australia? quite unlikely we have to
admit. Anyway, this kind of info dropped by BMTI “Algeria has bought 500’000mt which is said to have been supplied from the blsea and the Continent” is somehow a wrong statement as it’s not been supplied YET and could lead all owners to believe worth to move to Blsea and Continent to go out for the bread. As it is often happening in this tough time, sheepowners all going into the same direction and finally the supply of
ships is again exceeding the demand. Look what happened in USG in the last couple of months. It was said to be “the place to be”. As a result, in USG: on 14th sept on 14th july
HS4 USGulf to Skaw-Passero 28000 6035 (-1) 7957 (-157)
S4A USGulf to Skaw-Passero 52454 9522 (-300) 10934 (-347)
P1A_03 Skaw-Gib atl round 74000 4475 (-66) 7659 (+236)
In addition, as mentionned by BMTI, and we can confirm, “many prompt
supras and handies vessels are in the area“.
On a larger Shipping scope, I was writing yesterday “”whilst the managers
keep going, more ships keep disappearing”. […] Ships are not disappearing from the sea. They just change hands but theses ships will keep trading at sea.“… Look at what Hanjin’s trying to do today (source Reuters), they try to sell ships on second hand market, 2 (at least) being on the market Mv ‘Hanjin Mar’ and mv ‘Hanjin Marine’ for (Hanjin’s hope) $40m, Reuters adding “The Company will still need hundreds of Millions of
dollars more if it is to survive”. The point here is again to say, Companies might go bust, but ships remain afloat… and let’s be thankful cargoes will still need to be moved from port A to port B. With the changing and challenging period in which we are it might go from port C to port D, it’s time to be creative!
Should you wish to try to have some sort of backing on your creativity, please do not hesitate to ask us our point of view and how -according to our knowledge and expertise in chartering and shipping- your bright ideas shall become concretes.