First let me start my today’s report with a huge big up to IMO. They deserve quite a nice one, thanks to the great communication work they have done to promote internationally and heavily the yesterday’s « IMO World Maritime Day », it was held on 29th september 2016, with quite a nice and interesting theme being « Shipping, indispensable to the World ». And much to my regrets it seems that except them, nobody was aware of this day being dedicated to our industry. I can’t find anybody in my contacts being aware of the theme of this 29th sept. Here at Pelagos it’s a specific day because one of the kids of the team was born on 29th sept , 7 years ago, but let’s face it, nothing really related to something special in shipping.
Let me then do a bit of the work, and here you can find document published by IMO to explain why today (yesterday in reality) is (was) a special day for our industry. Nicely written and yes, by reading this we can all be proud to be part of this nice business. But I’m afraid it’s quite not enough.
The shipping industry is facing one of his worst and longest crisis ever, we can read in conclusions from « shipping experts meeting », shipping need to be re-invented, need to be creative, need to be modernized, need to provide a better image… Meantime, if IMO, is not able to promote within the shipping network why 29th sept is a special day in this industry, how then can the mainstream press, the consumers, the citizens, the banks, the traders around the world know more about our jobs and what the ships do and carry at sea, why it’s crucial to support this industry ? There is really something wrong ! Please dear people at IMO, for 29th september 2017 if you do want to do something special for Maritime and shipping make sure you spread the word !
This being said, on the chartering market, to celebrate this lovely « Shipping, indisensable to the World » day, indexes have all decided to go down, or stay flat (for supras and handies). Capers managed to lose 129 and BCI is getting back quite close to the 2000 psychological step, bdi losing 24pts. Capers are having the hangeover of last week party, Panamaxes being to shy to try to convince the bouncer they shall be part of it.We can share few things.
- Handies prospects out of ECSA, route HS3 (to skaw pass), being yesterday at 5572 on handy index type, we can see operators not hesitating to offer on tbn bss on grain cargoes, tct equivalent on larger ladies, ie the modern 33/34kdwat, below this 5500$ aps bss for a shipment to be made 2nd half october.
- sulphur 25/30’000mt ex immingham to USG most likely gone around 20usdpmt
- 20’000mt grains to algeria ex Odessa w/ 4000x out discussed around 17usdpmt
- Supra Wmed to Wafr = 10’500usd daily
- 38kdwt usg to continent proposed by charterers at 5000$ daily
- Supra trade from USG TO CHINA on 50,0000/10 grains, with ppt dates, with usual quick shinc terms is now getting touch below 30usdpmt.
- We got the information a Japanese built 38000dwt is put on period for 10/15 months with dely ECMEX at apparently 7’000$ with a redelivery wordwide. Compared to the yesterday weighted time charter Average in the BHSI being at 6109$ daily, it’s looking like quite a good fixture for owners. Owner’s bank might be happy to learn that owners shall have minimum 2M$ to cash in in total if charterers deciding to redeliver the ship after 10 months.
Talking about banks, more and more concerned are shown on the market with Deutsche Bank being under the threat of Billions $ fine from the us Governments and big funds preferring to put their money to other banks. If you fancy trying to have a better vision, you can read the article here here
Back to specific shipping info, Louis Dreyfus Company have provided some financial information here dreyfus , two sentence specifically raised my attention
The first one is
- « It said shipped volumes rose 1 percent in the first half (2016), supported by grain and oilseed exports from South America and healthy flows at its metals business.»
Unfortunately we don’t have the information on the spread on Liquid and dry cargoes, but according to Clarkson’s research and relayed by BMTI, « in 2016 a dry bulker fleet growth of around 2% is seen, which is expected to drop to 0.8% in 2017 »… If you’re as good in mathematic as I’m, you’ll find out that one of the big players in the industry, is growth in volume shipped is only covering half of the tonnage at sea growth…
The second one is
- « “With a 1 percent increase in volumes they appear to be keeping or slightly increasing market share,” James Dunsterville, analyst with Geneva-based Agflow, said.»
Which means… a 1% volume shipped growth is likely to be the average in the seaborne market, when again fleet growth is double of this.
Still 3 months to go to hit 2017 ! During this 3 months, as usual, if you wish to fix something, do not hesitate to sollicitate us. We’ll do our best as usual and like IMO, we shall be able to keep what we do together private & confidential.