Today’s Bdi (dtd 4th october) is showing -4pts on the BDI, -1 on BCI, -8 on BPI, flat on BSI and -2 on BHSI… this is kind of flat ! and a flat market is probably the worst one for brokers. It’s fairly boring. I never thought I would have written this in my life : « Chinese, we are missing you ». Please don’t make me wrong, I have no special opinion on the chinese as a whole, except when they’re having their Golden week. It’s just making shipping activity being quite slow.
It’s slow and rather difficult to find some rationals behind what we hear on the market. We have heard a supra has been fixed from Upr to Algeria with grains with 8000x bends was done last week at something close to 17usdpmt for week 41/42 loading, when on the other end, a 30’000mt stem of grains from upr to algeria with slower terms is being discussed only with couple of USD more in the plate. In the meantime, running the Tce equivalent here, it seems to be quite in line with the index. The supra is leading to something around 7000usd daily (when the S9 -wafr to skaw passero via ecsa is at 4871 today). The handy/handymax is giving tce at 5’000usdpdpr (touch above/touch less depending if you follow charterers ideas or owners’ ones) when the HS3 is at 5394 today and losing more than 100pts ! Going into details, yes, the index on the BHSI seems to be flat, but as just mentionned losing more than 100pts on this route HS3 is not pushing charterers to drive their freight up.
On the side of our shipping business, you can read this one being related to oil prices losing nearly 1% thanks to Opec’s friends, also after getting some information earlier last week on how Louis Dreyfus Company is performing, now you can have a look at Cargill’s profit T-bone for Cargill
Remaining at your disposal, promise I’ll do my best to avoid being boring