shipping today Right policy insurance matters

Dear owners, dear charterers,

in case you’ll notice some raise on your yearly insurance policy fees for getting the right coverage on your cargoes / ships don’t be surprise especially If you chose to get your coverage through Lloyd’s, the raise might be bit higher than the others. Insurance guys will officially tell you :

  • « world is getting more and more risky »,
  • « we have improved your coverage »,
  • …and all the usual sales tricks used by insurers.

The truth might be somewhere else, you surely all have noticed next Star Wars episods, Princess Leila will miss the starring as her character passed away during Christmas break. What you may have not noticed is that Disney (the mickey mouse guys) took out a £41 million ($50 million) contract protection insurance policy on Carrie Fisher. Lloyds bet, they lost. Gladly (if I may say so, Carrie, RIP), Lloyds bright people realized Dark Vador is still alive. Imagine one second if Dark Vador character passed away, what would have been the bill on Lloyd’s desk… so Who’s the mickey ?

Market wise, on handies in Atlantic basin, the downward correction is still in the air. According to BMTI attached, Owners of a 35’000dwt started at $18’000 for a coastal biz to end up $13’000 the day after. In other words, from Greek style he moved to pragmatic style (and don’t make me wrong, Greek often goes together with pragmatic).

BLSEA, still according to BMTI, « cofco seeing $17usd/mt for  25’000mt grains from Nikolayev to Venice » but BMTI adding « from owners unwilling to trade ice »… in the real world, and basis what’s reported we can say that unless Cofco able to make the ice melting in Nikolayev (Guaranteed), Cofco does not have $17 in hands and Owners not here to trade.

For sake of running some estimates on your side, the cargo is quoted asf on the market « 25,000MT 5% CORN NIKOLAEV / 1SP VENICE-POZZALLO RANGE, FREE DA AT DISCHARGE 7000 SSHEX BENDS 15-20 JAN ». My side, at 17usdpmt the tce is at $8’500/8’750 on an index type handy with some extra for trading ice and basis dely Canakkale redelivery Passero. I would be tempted to say market shall be for a Ice class lady something along $10’000 dely for this one. But charterers have bit of time ahead of them and the EMED/BLSEA area is not short of tonnage. So they might get the $17 at the end. What would make Cofco not able to book at $17 ? Wheather is one thing, russian grains production and huge export is another one.

On the S&P section, once again, one owners going for bankruptcy does not mean the whole fleet is sent to sink to create diving spots for the fishes and tourists. Flinter fleet moved to Thorco. The story does not tell if ING is financing the Thorco fresh acquisition. Still in S&P section, we are surely missing an information when we can read the 2006 supra Mv ‘Nord Discovery’ being sold at $7.0Mio compared to handy index type 2010 built mv ‘clipper Lotus’ is being sold at $ 7.50Mio. Either Handies will remain more resilient in this market, or construction and vsl’s specs are much more in favor of the Clipper Lotus (Japanese built vs Philippino this might be an explanation).

Finally, we are renewing our brokers policy insurance for 2017, we are bit like Disney, we believe it’s worth to anticipate and as always we remain at your disposal for fixing something, anything but not with everybody as we value our business partners which you are.

Luke

 

 

 

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