Side effects of a losy shipping market

This picture above was taken yesterday just outside of a broker main event, and this is summarizing, in a way the joy of the brokers’ life… being positive, at least, apparently all will manage to have their share of the “cake”…

Owners are impatients to get this month of May 2017 left behind and hoping the change of month will bring more activity and market up again. Talking with charterers, it seems it’s also fairly quiet on the various chartering desk and chartering managers would love to be kept bit more busy from their traders. Of course Brokers are in the same mood and any single fresh cargo seen on the market is ending in a battle to get commitment from owners to have a chance to do something concrete by the end of the day. Then, the lucky broker who’s having the right ship for the cargo is entering into a tough time with Charterers playing it rough when Owners being seduced by the unlucky brokers pretending being able to bring better money, better terms, better something, to get the ship fixed with less hurting terms for the Owners.

This is one of the result of the shrinking broking chanel, when 10 years the standard was to have one brokers looking after Owners’ interest and one broker looking after charterers’ interest, today the standard is one single brokers looking after charterers and owners interest (some bad mouths will wish to add « brokers are looking at owners/charterers’ interest AFTER having looked at their own brokers’ interests first » but thankfully none of the people reading this report will even dare to think like this, knowing how priceless is the broker’s added value, right ?). To come back to my point, the brokers’ now need to keep on the thin line when Owners’ are convinced brokers are doing their best to drag down the market, for the joy of getting a fixture and a commission when charterers’ keep complaining about brokers doing their best to keep market going up, to enjoy a better commission.

As mentionned by BMTI today and as maybe some of you have seen in some market news, a new comer « Shipamax » is trying to get into the industry thanks to few millions injected in this NEW and DISRUPTIVE (of course it has to be Disruptive) brokering approach. BMTI author’s pointing out « another plateform to be created by incompetent but cash rich companies » namely Yahoo and PayPal. Beside the fact that big web companies are about to replace role which used to be devoted by banks in the last Century. I’m obviously not here to wish Yahoo and Paypal good luck in their new venture, but hopefully « Shipamax » will do their outmost not to be as weak as Yahoo in the way they are protecting datas they can get from their brand new System and will use firewalls being bit more effective than the Yahoo’s one, reminding to the ones being tempted to give to « shipamax » their cargoes, ships, fixing terms, books, Yahoo managed to get more than 5 billion emails adresses hacked back in 2016. For the P&C terms, please come back or knock next door.

Have a nice evening, afternoon and trust you don’t need this daily report to make any comments on the BDI’s keeping sliding down (to the joy of charterers), bunkers keeping sliding down (to the joy of owners) and what about brokers? waiting patiently for instructions to fix, as always, in the best of your interest, whichever of the side of the board you are sitting.

Rgds

Jerome

 

 

 

 

 

 

 

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