shipping chartering market report and bit more and that’s scary

Checking at BDI in the last 7 days, Panamaxes are the big loosers this week. Last Friday BPI was very close to 1,500 mark (1,494 precisely) when today BPI is only showing 1,187points. Other sizes managed somehow to limit the damage. Key change is also the Handies index which until now managed to keep going up, and now facing a reversal trend. Owners were hoping at some stage to go on the other side of the 600pts mark, but so far, did not manage. For your records, BHSI managed to get at 600 and above during the unexpected December 2016 surge, reached up to 605 on 18th december. Last time it was above this level, we need to get back to April 2014.

On the handies still, another key change is the softening of the HS3 route, which on April 21st was gaining +183 and reaching 12,944 when today same route is losing 345pts and finishing the week at 12,133. As mentionned yesterday, the time charters equivalent done are even quite below these $12,000 on 33/34kdwat ships.

This « air pocket » is likely to be temporary only and more an anticipation of the long week-end ahead with owners unwilling to remain open for the coming three days. This is however still the proof market remain unbalanced and still in charterers favor. In 2007, the week before a long week-end we were seeing a quick market raise as charterers were the ones being worried remaining open and uncovered before a long week-end. Having said this, 3 days week-end will not prevent vsl’s at sea to keep on going there way and this might also lead to some tonnage pilling up. Next week might still bring headache to owners. With charterers sticking to « below last done » claiming they have bit of time ahead.

For further market comments as usual on Friday, should you need a week summary, you can find it here .

And before letting you go enjoying the long week-end ahead, I invite you to read these two articles found here and there. Whatever the future, it’s scary.

First one, proposed by knect365 maritime is promoting heavily the digitalization of our business, the so call « industry disruption » and proposing you a nice picture of an ideal world with everything being automated, cheaper and quicker. They even warn you (us) : « Those who don’t embrace the digital revolution risk to find themselves out of business very soon. » Better to be aware right ? Full article here

On the other side, tons of people (who surely have no clue about this lovely future and disruption) are warning about the risk of this massive digitalization. Lloyd’s for instance (a well known and unanimousely recognized ignorant players in maritime business), is for instance sharing some scary information also about the paperless work, autonomous ships and all the changes going with the near future « Lloyd’s of London has estimated that cyber attacks are costing companies about $400 billion each year worldwide. In 2015, $2.5 billion worth of premiums were collected by insurance companies globally in return for policies to protect companies from losses resulting from hacking. »

You can find here another interesting and scary article about all the risks linked to the cyber attacks.

when in 2017, to proceed for a freight payment, brokers need to call Owners to confirm and spell sign by signthe IBAN of the bank accnt and then call back charterers to confirm over the phone, sign by sign the IBAN is the correct one. I’m tempted to say don’t throw to the bin yet your fax machine it might be useful still. Time when IT providers will be one step ahead hackers is not yet here.

Have a nice week-end and if you can’t reach us by email on Monday May the 1st, please note we still have our fax machine (send me a private message to get the number) and give a try. Alternatively, send us your drone.

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Regards

Jerome

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