too complex to manage? don’t forget your beanie Batman

Again politic and weather or vice et versa

Whichever the chartering/shipping on line news you check, all are talking about « Trump/ Miss May/BREXIT » or « ice and flood ».

Regarding weather, seems like everybody being surprised northern hemisphere being under winter and, yes in winter, sometime it can get cold. This is time to shine for owners handling Ice classed vessels and time to get well covered (with more than a beanie) for charterers willing to trade areas being under very cold temperature.

For us brokers it’s also always bit difficult and tricky to drop a freight estimation in these areas and relying on « no ice for time being » is surely not enough.

Before going into chartering market info, don’t forget to spend bit of your time to follow Davos Summit (or whatever they call it, World Economic Forum is the right word). One article rang my bell, and shall maybe interest few of us in the shipping sector

« A move from Too big to fail… to too complex to manage ». Which you can read here

Of course, we are all thinking about Hanjin shipping or Lehman brothers which both have hitted the overall shipping market lately but going back in our day to day shipping activity.

but please for once, think small and little (like I do everyday (ok I do it naturally but no need to tell my mates)).

Think about our Charter parties. Which is what we are concluding (or trying to) on a day to day basis right ?

We have, here at Pelagos, in our paper files few voyage cp’s which were concluded back in the sixties. Takine one as an example, a Baltimore cp with 6 clauses, standing on 1 page on which we add another page for 13 Riders clauses. 2 pages, 20 clauses and everything was covered. That’s it. Nowadays it’s more often 20 pages, 30 clauses on the main terms, and another 30 clauses in the riders. This is what we call inflation right ?

In the 60’s

  • Were the shipping players less aware ?
  • Were they less paying attention to details ?
  • Were they going more often into arbitration ?

To the last question, I don’t know, I was not there to check  but with 25 pages charter parties with clauses covering every single aspect of the voyage are we all covered in a better way ? isn’t it to the contrary the more clauses we have the more opportunities we give for « different interpretation on the wordings » ? The more clauses we insert in our cp’s the more money we are going to give to lawyers ? haven’t we came to CP which are becoming too long and complex to manage ? How many times, do we see in pf cp’s proposed (by others ofc) Clause Y which stating the exact contrary to the clause X ?

Talking about Market ?

Very few grains are coming off the continental side, except a barley stem from Rouen to Aqaba with EVEREDERE with dates being end jan. If you’re looking for grains cargoes you’re better off have a look in ECSA, USG and Blsea. Ex Blsea, the grains to Indian Ocean cargoes are quite popular, from Argentina and around bargains on wheat drawing charterers interests for shipments to Wmed. In today’s bdi, on the handies still, ECSA is fairly active

  • ‘Skala’ 2012 33628 dwt dely ECSouth America prompt trip redel WCSAmerica $14,000 daily
  • ‘Maestro Lion’ 1999 31857 dwt dely Recalada prompt trip redel Skaw-Passero $10,250 daily – Cargill
  • ‘Papua’ 2003 31817 dwt dely Rio De Janeiro prompt trip redel USGulf $7,500 daily – Weco Bulk (correct daily hire seems to be bit above the $7,500 reported)

The maestro lion fixture can be compared up to some extent to the HS3 route being today @ usd 9’828 Also worth to notice, according to our positions Maestro Lion and Papua were open locally when the SKALA has been in ballast from Wafr since 12th jan

When the bigger sisters are going to Spore – Japan

  • ‘Zheng Rong’ 2013 81793 dwt dely ECSA 10 Feb trip redel Spore-Japan $9,400 daily + $440,000 bb
  • ‘Tuo Fu 6 ‘ 2013 81588 dwt dely ECSA 09/10 Feb trip redel Spore-Japan $9,300 daily + $430,000 bb – Refined Success
  • ‘Kiran Eurasia’ 2011 79158 dwt dely ECSA 01/05 Feb trip redel Spore-Japan $9,100 daily + $410,000 bb -Cargill
  • ‘Alpha Melody’ 2002 74475 dwt dely ECSA 10 /20 Feb trip redel Spore-Japan $9,000 daily + $400,000 bb -cnr

On this size, to put a bit of perspective BPI today’s showing P1A_03 Skaw-Gibraltar trans atlantic round voyage usd 10083 When P4_03 Japan-South Korea trip to Skaw Passero is at $2615

And to do the exercice, where these ships were coming from (bss our database)?

  • Zheng rong… from Spore
  • tuo fu 6… from Rizhao
  • kiran Eurasia… from Spore
  • Alpha Melody… from Ennore (India)

You bet owners fighting for some big Ballast Bonus to cover in a way or the others ballasting costs. And when you notice a ship like KIRAN EURASIA is burning in BALLAST: ABT 14K ON ABT 34.00 MTS IFO 380 CST  or ECO: BALLAST ABT 12.5K ON ABT 29.00 MTS IFO 380. I let you do your maths to realize how many tons of gas has been burnt by these 4 ladies to find a suitable next cargo.

Then we can think again about the Davos brains who are wondering how to avoid a climate change ? shortcut to climate change

I’m doing here a bit of a shortcut, but you’re getting used to it right ?

Have a nice fixing day. And don’t worry, if you need to think big, Pelagos can also do that ;

Rgds

Jerome

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