containerships taking over drybulk biz

On the chartering market, today’s index BDI is back to the 800pts mark, back to 8th september 2016 level. In order to compare :

  • at his peak last year on 21st nov 2016, it was at 1,257pts
  • this is a decline by 36% in 2 months
  • To be positive, about the same increase happened in less than 1 month from 26th oct 2016 to 21st nov 2016

Let’s hope for the maritime industry :

  • 2017 raises will be and remain quicker than the losses.
  • Each bottom will be higher than the previous one.

Having a look at today’s Baltic fixture report, afraid the mv ‘oriana c’ fixture said done

  • ‘Oriana C’ 2012 34,417 dwt dely Recalada prompt trip redel Skaw-Passero intention Tunisia @ $8,000 daily

is not matching with BMTI comment “Grain cargoes of 25-30,000mt from ECSA to North Africa are rated around $30.50/31.50/mt

unless this stem is for a Upr to tunisia with 7000/2000x.

  • Same basis Algeria destination but with 2’500x out would mean today freight at 28.50/28.75usdpmt
  • when 10 days ago it was worth 30usdpmt and tce was in the mid $9’000
  • when for your perusal, around 10th january similar vessel could hope to grasp $10’500 daily for similar cargo and 34usdpmt on the freight.

Today’s HS3 and HS4 (respectively ECSA to Skaw pass and USG to Skaw pass) are both losing more than 550 each and BHSI is getting back to the 400pts, back to mid August 2016 level. Also worth to noticeToday’s baltic fixture list is kind of shrinking with only 8 fixtures reported under timecharter. Surely the side effect of the chinese holidays.

What else ?

We are all of us playing in the drybulk sector of the seaborne business and again let’s try to take a different prospective, thanks to BMTI today’s market report. Let’s go straight to the 2nd page, the BMTI’s container market review. The current overall situation in this sector is not really bright and unlikely to be better in 2017 according to the TEU capacity entering the water in 2017 compared to the ones going to scrap. According also to this interesting point of view also on the goods consumptions in the developped market. On one hand, the youngsters (we can also call them millenials) are more into renting goods rather than buying (therefore need less and less goods as virtually 1 good will be used by 20 (or even more) houseolds) and population which gets eldery is more in needs of services than buying goods (and ships whichever the type are not really good in transporting services). In case of doubt on what I’m telling you above, you can also have a picture here :

So where containership sector may find his way to sustain ? In switching from shipping goods to shipping commodities.

As container ships owners are like all others in the Drybulk sector they try to find new employments for their ladies, which is coming off the traditional Dry sector. BAGGED SUGAR is one of these commodities being fairly well set up for the containerships. This move from drybulk ladies to containership is not new but with containerships being cheaper and cheaper this commodity is likely to become less and less available for the traditional geared bulk carriers. SCRAP is also another commodity being moved via Containerships. I’m not an expert of the key decisions drivers for this commodity but seems reducing the delay between loading and discharging is one of the main driver. Sure these modern Teu ships are designed to be going through the sea at a much quicker pace than a modern drybulk. Apparently, it’s becoming more and more common to see what would be a drybulk Supramax job to be done on a 1,500 TEU ship. You can find here also how to fill in a container with bulk wheat loading bulk wheat in container and unload

And unlike containerships, drybulk ladies can very hardly ship goods and containers.

As if it were not enough, ageing population also means needs for less food… you can read this about our (g)oldies… hungry oldies

looking great right?

 

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