spot market – and forward one

BLSEA : 9’500 dely Bandirma via blsea redel East Med with Coal on a 29,200dwt may probably be perceived as a good rate for owners. But loading coal then ending in EastMed is somehow not that great compare to some low $8,000 obtainable delivery Canakkale via BlackSea to Spain with grains, shall at the end give a better return on money for owners. General feeling in Black sea is a softening market for the handies.

Ex continent/wmed : a real gap between handies and Supras is seen. Clinker cargoes from Wmed to West Africa is said being concluded in the region of $14,000 daily, DOP Morocco. When same destination with grains on handies, owners proposing $10,000/10,500 Dop with 3-4 days ballast included in the calculations. Wheat to Algeria on handies still it’s a bit of curate’s egg. With owners indicating at 20usdpmt or more when the last similar done was fixed last week in the $18pmt region. Converted into Time charter equivalent, it was somewhere close to $10,000 daily aps, when at 20usdpmt it’s leading to $11,500 daily aps (again). I can’t see any good rational explaining a market raise by $1,500/1,700 daily since last Friday. But I might have missed something.

ECSA : seems to be softening (on handies), and it was confirmed by the index dtd yesterday, first time since long ago HS3 back in declining mood, (-16points yesterday) immediately corrected today with + 5). Flirting around the 13,000 daily mark but still not achieved. Last week, 33kdwat on this route was reported done at $15,500, when we have good reasons to believe, below $13,000 was concluded yesterday on similar run for beg May shipment. Was the $15,500 done to convince an April loader to bite the stem ?

on the Shipping overall market, you can get BIMCO analysis/view on how Drybulk and Containers are doing and how they are likely to perform… and what needs to be done to keep owners in position to keep making money throughout the whole year.

For the dry, follow this link / For the containers, follow this one

Spending bit more time on the Dry, few key figures raised my attention, according to BIMCO:

  • owners break even point is when BDI is above 1,280 throughout the full year.
  • Last time this was the case, was in 2011.
  • Average BDI level for Q1 2017 is at 945.
  • Today it’s at 1,154.
  • tonnage demand for grains shipments is likely to remain mainly driven by Soya from Brazil and Argentina.
  • On the second-hand market, big ladies prices has gone up by close to 40% since 1st jan 2017…
  • Which means existing ships are no longer priced significantly below newbuild ones

Finally, BIMCO expecting the demand in the freight market to remain strong until june but shall not last through the summer… this is also confirmed on the future (except on the Capers).

finally, should you have any comments please to hear

Jerome

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