are brokers more usefull than a loyal german Shepherd?

Handies Market wise :


Index, today’s BHSI HS4 (USG to Skaw pass) losing bit more than 100pts, with daily value at $11’118 when the mv ‘LAVAUX’ (34,350dwt blt 2010) is reported fixted by MUR at $12,500 dely USG to Morocco. Converted into voyage bss 30’000 10pct wheat Miss River 7000x to Morocco 5000x with 5pct ttl com, this is giving a voyage equivalent at something along 26usdpmt (bss 31500mt loaded). Same biz on an index type at today’s index value and bss 26500mt loaded is giving something like 26.20/26.25 usdpmt.



As mentionned earlier, this area’s looking like not the right place to be for the time being for owners, MUR again reported fixed a 32kdwat dely Canakkale to egypt Med via blsea at 5,250 daily is not really encouraging. This is the kind of level which were done in August 2016, for your records beg december this similar biz was worth close to $9,000 daily.



We shall remind to the traders some ports are in this area and some of these countries shall be able to produce some good commodities ready to be exported.



HS3, is losing today more than 200$ and heading near the 900$ daily mark.Not really encouraging to realize despite the numerous cargoes being done from there, Owners not finding the tools to resist more bravely to charterers ideas.


SEASIA/FEAST : don’t bother too much china is about to close for one week.


Finally, shall I report this info today or shall I try to keep it as secretive as possible ? this is my shakspearean today’s question… The info about BHP Billiton who opened the pandora box and in the meantime trying to close the brokers’ mouth mailbox. The info about BHP Billiton opening up their dutch auction online plateform where owners can enter into the tenders and offer directly their service. The kind of Ebay thing but the other way,which we may call Yabe : the lowest offer making it. You can find details on this news here splash probably overmaking it a bit, trying to be as sensational as the Sun in UK. « Shipbrokers around the world waking up to the shock news […] ». In case you’re interested, I woke up this morning very nicely and quietly, had a breakfast with the kids, walked with the little one to her school and then went to the office. The 3 kids were allowed to put butter AND jam on their french baguette (I know it’s probably bit unreasonable nowadays to put butter AND jam on the same toast but between us, the baguette was the yesterday’s one, so no bread wastage which is a start about savings).

So my morning was ok and very openely this BHP Billiton thing is obviously not the greatest news about our whole industry. But shall we do a drama about it? as

  1. we kind of knew this was going to happen at some stage,
  2. same methods are already in place on the commodities (see for instance Gasc or Oaic -to name few- tenders)
  3. Even when brokers are involved, all charterers asking for BOFFER.



think about it twice, BOFFER standing for BEST OFFER. What’s the point to add this word in the cargo quotation ? It’s fairly obvious charterers looking for the Best Offer. And never ever, even in 2008 we saw charterers quoting a stem on the market, inviting for « an average proposal » or the « worst proposal will win the jackpot ». On a case by case basis, the best offer can be based on so many differents criterias (Laydays, owners counter party, vsl’s intake, freight, vsl’s specs and fitting into restrictions etc.). This BOFFER will be found thanks to people exchanging information.

So we can question:

  • how will BHP Billiton handle their on-line brokerfree plateform when they need something bit different ?
  • Do they really believe owners will forget the way they were treated when (one day) the market will get back into their favor. Again see how many offers GASC got from the traders when the Egyptians went with their 0 tolerance in regards to ergot (for those who did not follow, they got 0 offer… neither a BOFFER nor a WOFFER (Worst Offer)).

All in all this brokerfree system might be the future for the big guys. Then it mainly concern the big brokers houses. Trading houses (not industrials) will surely still need the work of brokers to fit into their needs and Owners will still need brokers to have a visibility on what’s going on the market. These traders will still need niche brokers with some specific expertises. These niche brokers, bringing back market news, without barking but with a waiving tail. As a loyal companion these niche brokers will remain gently waiting for the orders from their principals.

So far Pelagos have managed to remain a niche broker and you bet we invite all of the readers of this report to do their outmost to remain niche players, if not, then to keep doing from time to time niche businesses in this case we’ll remain your loyal German shepherd.

Have a nice day

Rin Tin Tin


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