As mentionned last week, seems owners open with their Supra bulk carrier in east Med are chosing to ballast their ships towards Gibraltar/continent hoping for better market conditions. Likewise on the handies, owners seems happy to leave the black Sea region to west Africa for time charter equivalent below $7,000 daily (dely Canakkale). Handies from Black Sea to Span Med with agri prods is hardly giving to owners more than $5,500 daily bss dely passing Canakkale.
For time being, the continent on the handymax supramaxes market is remaining relatively balanced with ok numbers obtained for non agri businesses. Scrap on 54kdwt can be fixed on dop uk bss with redel Turkey above $11,200 daily. Quite similar cargo but being covered passing gibraltar is worth $8,500. As mentionned, with Cement 52kdwt got fixed from Continent to Wafr at $8,000 daily, which is not great compared to grains to same destination which shall bring numbers on handymax quite close to $10,000 daily on dop basis. Owners, as often, trying not to show too much enthousiasm for Wafr destination, claiming it’s not easy area. Meantime, they quickly realize, ECSA market is showing some signs of strengh right now and hoping for the trend to last. Is it going to last ? if so up to when ? We understood 38kdwat got fixed and failed ex Argentina to Dakar at the impressive number of $14,000 daily to North West Africa (relatively impressive as the fixture did not materialized) and this to be compare with 32,000 dwt being done for something similar touch above $10,000 daily.
Is USG looking promising ? Sure, the local players still need to pay quite a premium for handies to end up in WCCA, as we heard a 33kdwt grasped $15,000 daily and as a proof of confidence being on Owners’ side (or lucky owners with lack of competitors and good timing), ultramax obtained more the $20,000 daily to got delivered in SW Pass (after ballasting on his accnt from Gibraltar) and to end up in FEAST.
For the Bmti’s followers, the 39 industry players are at 60% confident bulkers rates will show some signs of recovery in 2017. We can obviously put a question mark about the relevancy of the panel which is only 39 people, not quite sure if this is enough to be a scientific poll. Also these 23 people (being bullish) might have read this interesting Newbuildings report proposed by BIMCO stating in summary « The orderbook for the dry bulk shipping industry has declined from 185 million DWT in July 2014 to 61.3 million DWT in June 2017. This is the lowest orderbook level since April 2004 and indicates that a higher level of deliveries is being made every month, than newbuild contracts agreed. »
Should you wish to read the full document, you can find it here
Finally, when the kick off for the grains harvesting season is already passed in the Northern Hemisphere, you can go through this publication from Danone’s CEO, starting with this strong catch phrase « Food is a human right, not a commodity ». The subject is too serious to allow to be fully cynical meantime, Danone is a company being a food maker, transforming Commodity (Grains/dairy products/cocoa etc…) into food. And of course a Company like Danone need to buy cheap (and quality) commodity to process this into food providing best margin for the share olders. This is from the supply chain. On the consumers side, Danone need to show to their consumers how concern they are about their social/environmental responsibilities. Not sure the ABCD’s would be ready to swap their companies motto from « commodities trading » into « human rights trading » and as mentionned by mister Faber in his publication : « Economy without social progress is barbarity. Social progress without economy is utopia. »
Tomorrow we can do the same thinking process with Owners and seafarers, as you surely knew it was on Sunday 25th june « Seafarer’s day ». Did you know in 2017, only 6% of the seafarers have access to on-line video to talk to their families while at sea? unless tomorrow you want to talk about digitalization of our industry… trust there is a starting point here !