ships pilling up… everywhere?

Are you with me, when reading in the report « ECSA remains under the treat of a delcining[…]almost 200 ships (handies to Panamaxes) able to do June cancelling », this does not mean much right? unless SEASIA/FEAST being compltely dead, as ballasting from Spore to ECSA equals about 30 days at sea. Spot prompt ships around there are not really technically pilling up in ECSA market. Said in an other way, I’m not sure this is a drastic change versus situation which occured few weeks ago. For sure, seeing an ultramax being fixed today at $10,000 daily dely recalada for a tctrip to Morocco does not leave lots of hopes for handies and supras to be able to grasp a 5 digit number for a similar trade.

The main issue does not seem to be spotted in a particular region but ships are here and wherever you look, you have spot candidates able to still do May dates and owners are even ready to wait for beginning of june to get something. I won’t list whole origins but we are clearly back on a worrying market for Owners. Until now, the correction which started mid April was seen as something which had to happen after a nice revival end Feb and March. But sure, the correction can start to be spelt p.u.n.i.s.h.e.m.e.n.t.

As if it would not be enough, big guys, like NOBLE are facing difficult time. When you know that Noble « fixed 352 spot and period charters between 2015 and the end of last year, ranking it as the seventh largest charterer based on fixture volume » (according to data compiled by Clarksons). This is not a great news for the market. Of course, this can also be seen as an opportunity for Noble’s competitors to eat some of their market share. But, to my point of view, owners do not need a chartering market to become even more centralized to few players. Owners don’t need neither their counter parts to face difficult times. A full article can be found here https://www.bloomberg.com/news/articles/2017-05-22/noble-at-risk-of-debt-default-as-distress-spreads-s-p-says

Tomorrow will be another day, wishing you a nice evening, afternoon.

 

Rgds

Jerome

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