speed is the limit

Sure you had a great day yesterday and you managed to cope with the international theme of the 21st dec, which is obviously also the first winter day.

Chartering market is starting to be looking at 2017, on the bunkers it’s looking like the average for the crude price will be in the 50/60usd range.(something like twice what we have seen in Feb/march this year)

Charterers are pretty graceful, shipowners are not able to set up their own «OPEC» organisation to unilaterally decide to cut « tonnage available at sea » and make overall freight market going up.

Shipowners, open in Atlantic seems fairly happy to realize ships are moving slower than the trading decisions.

When out of a sudden all grains players are deciding to load in country X, thanks to a good bargain on the commodity price, the swapping of origin decision is by far made on quicker pace than « 14knots/hour » and average nice ship is able to make. This difference of speed might be the main driver for making freight up or down nowadays. Data and information can go across the world in less than 1 minute when a ship still need 17/20 days to move from Gibraltar to Argentina for example. One day, maybe, ships will be able to move from Gib to Argentina in less than 2 days… then vsl’s speed will need to be at 120knots/hour. That’s quick, slower than my ferrari (see picture) but still faster than allowed speed in US motorways. I’m fairly sure if some engine builders might be working on this target shipowners will make their best not to make this becoming a reality soon.

Overall sentiment is as you would have guessed pretty slow but still few charterers looking for December candidates, counting on the Magic Christmas spirit to find out a good bargain. On the other side, Owners who are remaining open now, have probably made up their mind and would rather let their crew enjoying a quiet christmas at anchorage rather than jumping on every opportunities.

Have a nice day evening and we remain at your disposal. Tomorrow and the day after and so on.

Rgds

Jerome

 

 

 

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