chartering drybulk market to start with week 20

Half of May is behind us and so far, the drybulk market softening is in and shall keep going on, as a comparison :

  • 18th April 2017 (day after Easter Monday) BDI @1,294 / BCI @2,220 / BPI @1,621 / BSI @898 / BHSI @563
  • 2nd May 2017 (day after international work day) BDI @1,073 / BCI @1,668 / BPI @1,140 / BSI @849 / BHSI @550
  • 15th may 2017 BDI @994 / BCI @1,1661 / BPI @978 / BSI @782 / BHSI @508

In this period Capers are the big losers with close more than 550points decline, in less than one month, this is enough to put pressure on all other market segements.

On the fixing side, new handy index type, the 38/39kdwat are managing to get $6,250 daily dely Gib redel ECSA, while for a local run from continent to Algeria, similar size would not even be worth above $5,000 for a dely gib redel Wmed run.

On the handies still, quite few coastal trades have been seen, for instance 28kdwat open Maceio, ballasted for 2,000nautic miles (ie abt 7 days at sea) to be able to grasp « only » $8,500 daily, dely Recalada, for a redely in Brazil. While spot in the Parana River, 39kdwt getting $9,600 for a trip and redely in North Brazil. Finally 28kdwat open WAFR, going through the atlantic on owners’ accnt, to  be delivered aps ECSA, is getting something close to $8,500 for a trip ending in EcMex. Supras, ex ECSA getting $10,000 daily for a redely in Med. Ultramax for similar biz are able to obtain something along $12,500 daily.

While Owners struggling to make money, Charterers fighting on every cents to get the deals done, not sure the principals will welcome the info on Ceo of major shipbroker signing his revenue for last year for more than £3.5Million. Ok, it’s in £, so it’s difficult to anticipate what it will be worth in few months, it remains quite a high number. Let’s believe he deserved it with lot of nice fixtures, Coa, good bargains for his principals, nice treatment for his team.  If willing to invest in real estate in London, probably he can afford this palace

On the future side of our business, autonomous ships, if one day they’ll come, could be the savings for getting ridd of the crew being off set by the costs of making the remotely control system reliable and protected against hackers. As you all have seen this week-end, massive hacking of Private IT system around the world is already in place and as stated in this article, getting remote control of the ships hacked is not anymore a probability that this may happen one day. Question behind this autonomous ships are therefore :

  • Which charterers will be ready to put his million dollars cargo in Captain free ships
  • Which insurers will cover the Captainfree ship ?

Article is here : http://splash247.com/hacked-ships/

For sure, at Pelagos, we are not yet in position to pay ourselves anything close to this $3.5m a year, we are working on it but we sware, as the case may be, you’ll be invited first to a giant unnecessary party to thank you for your support.

Regards

Jerome

 

 

 

 

 

 

 

 

 

 

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