enjoy the weather before it gets stormy again

Few fixtures done last week came to our ears, which please find below.

Supras / umax :

  • a 55kdwt is said being fixed dop continental Spain via Continent (trust Arag range) to be redelivered to West Africa at something along the $12,500 daily.
  • A 57kdwt has been fixed dely north Brazil for a time charter trip to Nigeria at touch below $11,000 daily
  • Modern 63kdwt fixed dop Charleston to continent tick above $16’000 daily

Handies/ handymax :

  • Modern 40kdwt fixed dop algeria redel Iceland via north Brazil at $8,000 daily
  • 32kdwt fixed spot at tce $7,500 via Rouen to Tunisia
  • 34kdwt open Wafr dely Brazil redel Blsea in the $9,500 region
  • 33kdwat open Wafr dely recalada redel Med done somewhere close to $11,000 daily
  • 33kdwat dop Rio Grande redel Med above $ 12,000 daily

As you can see, few figures showing somehow we are back to a relatively healthy chartering market for owners. On the index, the raise is still here, as mentionned last week, going up North at a slower pace than what we have seen in the last 10 days. Today’s BDI is rated at 1,099 when BHSI is worth 499 and Panamaxes are the only segment on the market in the decline. Route P4_03 (Japan Korea to Skaw Passero) still below 4,000.

Maybe these 720,000/735,000 (depending on the sources) mt of bulk wheat bought by the saoudians, for shipment from Prompt to beginning of June will bring back some excitment on the Panamaxes, knowing the 12 stems are in the 60/65,000mt range. In the meantime, it’s still only 12 requirements to be done in the next 3 months, surely not enough on his own to keep busy the whole tonnages available around. Any cargoes are anyway welcomed.

For sure, according to BIMCO, we are still not yet off the woods, bimco published a report on 9th March 2017, mentionning the « dry bulk fleet grew by 2.6% year on year and the dry bulk fleet exceed now 800mill Dwt and the demolition being only Half of what was in Jan 2016 while total dry bulk deliveries reached its highest since jan 2013 ». and Bimco adding « we expect 19Mil dwt to be scrapped in 2017, which is lower than the previous two years of demolition activity – around 30 Mil Dwt annually. And taking a closer look on the per size/segment the below statements :

  • Capesize new dely are exceeding the scrapping, as a result + 2.2Mill dwt at sea
  • Capes represent 40% of the total drybulk fleed (measured in dwt)
  • Panamax size are somehow flat. YoY -0.3% oct 2016 / +1.7% feb 2017
  • Supras fleet decreased by 7.2% in Jan 2016 to 4.9% in Oct 2016… and remain the highest fleet growth in the dry bulk segment
  • Handies fleet decreased from 1.7% to 1.5% during 2016

To put a bit of perspective, the challenge ahead of chartering market with numbers of ships at sea is obviously leading shipyards to take up some decisions. According to Clarkson’s report «  In 2016, 117 yards delivered the final unit on their orderbook […] The shipbuilding industry will be hoping to see a return to a more active newbuilding market sooner rather than later. ». A hand from their respective government  with new orders prices dropping would easily kill efforts made by the industry to stay away of new ships at sea.

For the ships being at sea already, should you need a hand to fix them, do not hesitate to contact Pelagos, we’ll do our best to fulfill your requirements.

Rgds

Jerome

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