borrowing money will be more and more difficult for owners

 

Starting with ECSA, Bmti mentioning to the Mediterranean « charterers rating 38,000dwt tonnage at $12,000 daily and 34,000dwt tonnage at $10,000 daily ». unfortunately, the dates of these two ships are not mentionned, neither if charterers are in a rush or having time in front of them. I would guess, basis these numbers either charterers are bit squeezed on their dates or, which is also an possibility, charterers willing to anticipate a potential/ announced surged from this area of the world. In reality, it remains to be seen whether handies from ECSA to skaw/passero range will go above $10,000 daily. The BHSI (on 28kdwt) on this route remains today tick above 8,500 daily.

Obviously to understand and try to anticipate Handy market, we need also to have a close look at the Supras movement. On the comparable route (S5 dely Wafr to Skaw-Passero via ECSA) the evolution is also heading to the north, with since 20 february, a 15% gain on this specific route. $6,454 daily today remains however probably not really enough to enable owners to put much money on the side pocket. On the Supramaxes, the USG to Skaw passero is clearly the winning/tricky route with daily hire above $16,500 daily. When back on the handies, the similar route is showing today a 7pts decline ($9,518 daily but still the outperforming route also). HS2 route skaw passero to Boston Galveston is only worth $4,858 daily but according to BMTI a « good 34,000 dwt » ex Black Sea to the USG is said to be worth « $6,500 daily ». Quite a decent number for a good repositioning. Roughly same daily money seems to be achievable for a BLSEA to Continent cargo (said done on 30,000mt of grains at $13.50/14.00/mt). Roughly as I could not find exact terms on this specific cargo.

On the commodity side :

  • Might be wise not to count on Spanish Coal consumption/imports to fill in our ships, as according to BMTI Spanish thermal coal consumption felt by 23% last year. (importation of coal down by 26%).
  • Lucky us, Scrap demand and movements to Turkey is improving by 9% (2017 vs 2016)
  • Very lucky us, iron ore movements are up up up

good to keep busy the Giants ladies.

On the ships side

All in all, market sentiment is bullish, and view difficulties Owners might face in the next months to pay the new bills see below, Owners better off do their outmost to cash in now if willing to still be able to trade their ships when new regulations coming into force and banks lenders gone away playing golf.

Have a nice afternoon, day and we remain at your disposal.

Regards

Jerome

 

 

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