when you commit Joint-Venture, how the wedding party shall look like?

For sure we can see on the index and on the physical market there is a shift going on on the handies. Today’s BHSI value is at 6’134, +70 and a focus on the Atlantic routes is :

  • showing a revival on the ECSA, which is gaining today again close to 500usd/daily (with yesterday’s it makes close to +1’000 in 2 days).
  • HS3 value now surpassing the HS4, HS4 being also in a positive mood.
  • HS3 has not been above 6’600USD daily since mid July this year.
  • HS4 is back above mid August level

On the other side, which is not reported on the indexes, the Continental origin, on the handies remains fairly quiet with very few grains enquiries seen but Owners can hope to find Fertz ex baltic or West med towards USG or ECSA enabling the market to sustain at -or close to- the levels seen beginning of October. Continental value is anyway not declining, as ships are anyway attracted by the Black Sea area which is a fairly good shape. We heard a Handymax got fixed passing Canakkale at 9kusd daily + a ballast bonus for a stem via black Sea to end up in Continent. With HS3 and HS4 showing now some good signs of recovery, owners open in Gibraltar will now have in their plates the option to consider a round voyage via USG, also cargoes heading to West Africa might be seen in the close future as worth to be considered. Are these movements only to be considered as technical adjustments or as fundamental changes remain an open question.  Time will tell, but none of us shall forget that slowly, but surely we are entering in the Northern Continent in Winter time, meanings ships being able to load only basis their winter marks. We shall not forget neither Owners will, as long as they can, try to insert bit more of weather days in their calculations to make sure they remain on the safe side when it comes to their calculations.

Fundamentally, we keep seeing owners being sent on the sideline. Flinter is one of those. See the link here Flinter can say thanks to the bank. Some others are going in Joint-Venture to go for another start, see Gearbulk and Grieg Star wedding announcement here is JV looking like a wedding?.  With a combine fleet of more than 130 bulk ships, the new entity is getting into short list of the happy few owners handling more than 100 ships, let’s believe they did not chose ING bank to finance anything, if anything has to financed.

Finally, JV seems to be a fashionable process today in Shipping, if you’re wondering why you should (or should not) consider to go for a Joint Venture, pleased read this one here. Once you have the ideas bit clearer then the next question will be, who’s the bride?

We can talk about that privately if you prefer.

regards

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