failing is the road to success

Chartering market :

  • BDI flirting today with the 1’200 mark, BCI declining below the 2’200 BPI back above 1’500, BSI and BHSI remain on positive trend, repesctively 921 and 543.

For sure, the market is driven by Atlantic activity. Eventhough tonnages are available, Owners remain very confident they’ll bring charterers to their level or at least to the levels done as per last.

Then focusing on the atlantic/USG origin,

  • P1A_03 skaw Gib transatlantic voyage +318pts today heading above 17’000, precisely at Us $17’227
  • P2A_03 skaw gib to taiwan japan at 17’758 (+212) when the back haul is at US $ 4’464
  • S4A USGto skaw pass, à 18’781 (when closest is S1 antwerp Skaw to spore japan at 15’067)
  • BHSI gaining another +107pts today reaching  above US $12’500
  • 25’000 10pct wheat mukran to Algeria said done at 23usdpmt yesterday, bss 8000x/2500x, tce about 12’000 dop with 3 days ballast
  • Glencore 30.000MTS BLK WHEAT POLAND TO SAFR said done around US$ 28.25pmt or around US $ 11’000 daily. It’s fairly difficult to run the exact tce anyway as the cargo was quoted with quite various options, for info asf

30/35.000 MTS 10 PCT MOLOO BLK WHEAT ABT 45′  From 1-2 SB GDYNIA CHOPT or 1-2 SB GDANSK CHOPT or  1 SB SZCZECIN + 1SB GDYNIA OR 1SB GDANSK OR 1SB SWINOUJSCIE to 1-2 SB DURBAN CHOPTor  1-2 SB DURBAN+1-2 SB BEIRA (10.000/10 MTS) LAYCAN PPT/ONWRDS LOADRATE – 7.000 MTS FRIDAY 5PM/MONDAY 8 AM DISCHRATES – 5.000 MTS FRIDAY 5PM/MONDAY 8 AM (DURBAN) 2.500 MTS FRIDAY 5PM/MONDAY 8 AM (BEIRA) 2.5 ADD COMM

Obviously the US $ 28.25pmt mentionned remains bit vague. If this is done bss 2loadports and 2 dischports it sounds fairly cheap…

others…

  • Fertz 32’000dwt dely UK to ECSA via St Petersburg at US $ 7’000 daily
  • 32’000dwt from USG to Continent, with woodpellets, chrtrs proposed US $ 14’750 daily

On the coa /coal side, Norden is declaring having entered into a coal CAO for 10 years, for the transportation of up to 24millions tons of coal from Indonesia to Philippines, see more details here coal coa norden Well done guys !

Subs again.

Remember, if you can, yesterday I brought back the « charterers subs » on the table. We got the immediate reaction from couple of others Owners which I quote/unquote here

  • «I would add to my fellow owners comments that very often subs are not lifted by head charterers as well the traders »  he also added that some commodities and or traders origins are failing more easily on subs than others.
  • « I propose that all brokers get together and impose a $2000 fee for each fixture failed on subjects. This amount will be split 50/50 between owners and brokers, to cover for the loss of time incurred, and caused by the party failing the ship. This would prevent some speculative operators to fix and fail vessels back and forth.. The fee would be waived only for valid reasons, provenly beyond charterers reasonable control, such as force majeure or nominations rejected on grounds that were not possible to foresee at the time of fixing. I will sign your petition »

As brokers it’s a bit of an embarrasing proposal, on one hand as everybody knows brokers are always trying to find new ways to cash in. On the other hand, I hardly see myself quoting the next requirements I’ll have in hands -whether it is exclusive or competitive- as follow:

  • « 30’0000 10 pct moloo lovely commodity
  • 1sp somewhere / 1sp elswhere
  • Quick loading/discharging terms (try quicker)
  • Vsl’s dates
  • 3.75 adc + 1.25 Pelagos
  • US $ 2’000 fine for failing on subs. Watchout !

Knowing my fellow competitive brokers, being bit like OPEC’s member, no doubt they will all agree to apply this new policy officially, and then drop it once back to office.

Finally, a friend broker thanked me for sharing these (almost) daily reports, quote unquote again « […]Fantastic report as usual ! I love it. Your report Is always my small book to read before I go to bed. Thank you very much for sharing this with us[…] ». I’ m sure, once in bed he is reading all Jane Austen’s work, as we all do in shipping right ?

All in all, it’s a pleasure to send you on regular basis these reports, it’s also a pleasure to get reactions back from all of you. Whether it’s positive/negative/challenging/love declaration. I take everything.

Don’t hesitate neither to drop me information on what you see/do/hear on the market. Promised if some figures coming to me, I’ll make sure not to report them quote/unquote but to remain vague enough not to put you in a delicate situation against your PandC clause.

Finally keep in mind, as Confucius said “Fail means first attempt in Learning”

Rgds

Jerome

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