Good day good afternoon,
Fairly busy beginning of the week here which dragged me of my daily reports and market comments. For sure, I shall not forget, unless any changes, I get my bread out of the fixtures I manage to make, market reports being somehow the extra mile. You’ll have surely noticed, without my input, market keeping going up, BDI yesterday reached his highest level since 11th nov 2014. The Handies, still have to make some gains to reach his highest since nov 2014 mark, as for your records, 605 was reached on 19th dec 2016. Last time BHSI was above 605, need to run back to 3 years ago, ie April 2014. Today’s standing at 538. Looking at fixtures done and reported, all areas of loading seems to be somehow fairly strong for this size of the ships. USG is the only one showing some decline, which is translated finally in the index (losing today 100pts) and heading below the $10,000 daily mark. On this basis, the fixture of this small handy « Symphony » 23,500dwt passing skaw via baltic redel USEC at $7,900 is still looking like a decent number for charterers. And unlike usual statement, USG shall not be in the short run the right repositioning for owners looking after money. Same being in force, until, owners not willing to go there anymore and therefore creating an unbalanced market with tonnage demand above tonnage supply.
ECSA grain season is not over, quite few wheat handies stem gone and understood quite few others remains to be covered with April dates. The upward trend in this area seems to be cooling down, eventhough ships getting fixed rather quickly.
Continent the mention of $9,000 daily equivalent (trust aps) seems either very low compare to activity seen there but still not impossible, if owners after a very quick biz.
All in all, whatever the market, whatever the index, if I were a believer I would be tempted to sing « alleluia », or « Hallelujah » for a tribute to Leonard Cohen Baltic Exchange Index hibernation is over and soon we shall have new market tools to follow the activity and money level. With something likely to be bit more in line with current ships at sea :
- New routes
- Amended sizes
- Panamaxes from 74,000dwt to 82,500dwt
- Supras from 52,000dwt to 58,328dwt
- Handies from 28,000dwt to 38,000dwt
Some will regretfully still wonder where is the ultramax segment, or some others will say on the handies, why going to 38,000dwt when the market is flooded with lovely modern handy handies being around 32/34,000dwt ? but surely this process of updating the indexes is a must.
All the details are here and surely more to come.
Have a nice afternoon, day and as Jay O’Neill, « hold on to your hats it could be an interesting and bumpy ride ».