Support your local owners, drink more beer

This is a fairly well followed motto in the shipping industry. As you can see on the picture above, taken at last Shipbroker dinner overseas, we have done our part of the job to support our local owners…

Did you know it’s estimated that brewers worldwide need something like 25millions tons of brewing barley to cover the world production of beer*? this represents something like 20% of the world barley production. Knowing most of the brewing barley is produced in Europe and breweries are set all around the world, drybulk ladies are found to be a convenient logistic solution for the bar tenders.

As you might have seen (or not) AB Inbev (1st brewer in the world) is about to swallow SAB Miller (the 2nd one), this new entity will be weighting something like 27% of worldwide beer market share. More than 1 beer out of 4 we’re going to drink at these shipping events will be then brewed by this mega Group. And the more beer you drink outside Europe, the biggest probability one of the ship you’re seeing daily on the market were involved at some stage in the logistic process for the production of your pint. It’s refreshing info, isn’t it ?

To move the barley, we’ll need to fuel in the ships, and much to everybody’s surprise, OPEC people in Algiers are saying they found a kind of a deal to slow down oil production. If this becomes concrete, this would be the first time since 2008 that oil production would be slowed down by OPEC’s Member. Oil prices went up a bit in the last hours, by couple of usd (equivalent to a cheap pint of beer in thailand), as mentionned yesterday, OPEC’s member can agree to decrease the daily production, which on the other side is opening « un boulevard » as we say here (or open a great window as they say there), to countries non OPEC’s member, being strong in shale gaz production. As mentionned in this article « If shale gas producers boost production than the whole game will fail ». It’s funny game isn’t it ?

 BMTI is today proposing an interesting (at least according to me) on the « future of the 18,000dwt bulkers », see the handy bulk viewpoint and one of their conclusion is to say « (these) Owners admit […] they would rather focus on sizes over 28’000dwt ». It’s interesting but I tend to disagree with their analysis.

Few time in these reports I have been wondering why Baltic Exchange is not working out on updating their Indexes. Their market segmentation is not relevant anymore in 2016. Why following CAPER/PANAMAX/SUPRAMAX/HANDY when today ULTRAMAX for instance can make more sense than a Panamax or a Supramax. Then in the index type ships, to focus on Handies, why a index type ship remains a 28’000dwt ? Which is in today’s market (and surely for the years to come) a non sense when a 34’000dwt is proposing much better return ?

On BTMI demonstration, they take the example of a well known ship here in Europe, mv ‘Draco’ but with all due respect to owners of this lovely ship, she’s ,22 years old, and whichever the size of the ship, today a 20+ year old ship is having almost no future. I must be wrong as owners of this ship decided to ballast from Madagascar to South Africa then seems keen to go further to East Coast South America. So they decided to be ready to ballast for 20 days, when a single trip to Bangladesh for scrapping would have been half way. Never mind, I take the opportunity, talking about this ship, what do you have for her ? We are direct with owners and shall be able to get an indication if owners not committed via others already… Don’t be shy, the ship must be very well maintained, her records on Equasis seems acceptable. It’s interesting finally, isn’it ?

On the chartering side, this fixture reported today in BDI is tending to confirm the BLSEA is alive for handies. « ‘IVS Phinda’ 2014 37720 dwt dely Istanbul prompt trip via Black Sea redel Adriatic intention pig iron $10,000 daily – TKB ». We got confirmation that two 25’000mt 10pct stem from cheap russian ports to Morocco with bulk wheat has been covered in the 15/15.50usdpmt range, tce equivalent was mentionned yesterday.

Quite few Handies stems ex Blsea are seen and proposed here (putting aside the one we can proposed directly), in the last couple of days we have seen

  • Nikolaev or Odessa / Algeria 20000 mts 10% moloo wheat, sf abt 46′ Spot 7000/4000
  • Berdyansk (7.5 m)/ 1sp Egypt Med 10.000 10% oo wheat in bulk 2500bends prompt
  • Mariupol (8 m)/ 1sp Egypt Med 15.000 10% oo wheat in bulk 5000/2500 7-12/10
  • min/ max 25,000/33,500oo coalbulk Niko / Mersin 8000c/ 3500x spot prmpt
  • 16,000/10 sfs Constanza / Span Med Oct 10 / 14 8,000/ 5,000 sshex bends
  • Ilyichevsk / Mumbai abt 20.000 mts of agriprods  8000 / 3500 sshex 27-31 Oct
  • 30.000 mts coalbulk 1st ld port: Dnepro Bugskiy, Ukraine (14kt (+/- 500t), first grade)
    2nd ld port: Yuzhny, Ukraine ( 16kt (+/- 500t), second grade)  Discharge, Dordrecht, 4/8 oct
  • 30-35k dwt,del bsea, for 2-3 llegs, try s.period redel full atl, or  pg- japan, 9-11 OCT
  • 37 / 45,000 dwt dely bsea 4/9 oct tct with steels redely red sea
  • COA 3×30,000 TS BLK WHEAT NIKOLAEV / EGYPT MED 1-10 OCT 6000/4000
  • Constanza / 1 Spain Med 25000 tns agriprods stw abt 46 14/18 Oct 5000bends
  • Ashdod/ Rio G, Brazil 28,000mt BHF 7,000x / 5,000c 01-04 Oct.
  • Ashdod/ Paranagua, Brazil 34,000mt BHF 7,000 shex / 8,000 Shinc 09-12 Oct
  • Eilat Spore-Japan range or India Abt 30,000mt  BHF 8-12 Oct
  • 28-38,000 dwt grd sdbc dely cannakale 4th oct onw tct egypt med
  • M/M 25,000 MTS BLK BARLEY NIKO/LIBYA 5/10 OCT 6,000/2,000X
  • 22k steel slabs/plates(20k slabs/2k plates) Mariupol/Sunderland 4000bendsx 4/8 – 10
  • 25.000 mts of barley, sf abt 55cft nikolaev – safi prompt 6000/4000

Busy I was telling you, no time for a beer, today.

*there is no official data available to know how much on average a shipping mate is drinking more than a non-shipping buddy. Let AB Inbev find out where are his key customers…

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