share your plate. (if you want)

We have talked quite a bit in the last weeks about the Owners and the arsh figures they’re getting on their plate. Some may believe such situation would be a nice opportunity for Operators to jump in and take benefit from low market to secure cheap ships and then trade them on the market, either bookin the cargo and in the same time book in the ship and make sure there is some space for money in between. Then, while doing such, Operators have to be even more difficult than charterers on the money.

Or as mentionned by BMTI today, « operators’ are facing a tough environnment » with a proposed analysis of what’s ahead of the operating guys, which I let you read, for those having access to BMTI, in there « From the desk of a continental Shipbroker ». My analysis would be slightly different, as the heart of Operators business is to take some risks, place some bets, at least on the long terms contracts. Then their job is also to get some hedging on what can be. Bunkers, FFA, booking on period. Operators playing on the spot, booking in a spot prompt cargo and in the same time booking in the spot/prompt ship, is I would say, by far less risky business. (Beside the nature of shipping which can hardly be free of risks). Meantime as said above, these operators, to be kept busy, need to play hard with owners to book ships are lower level than what charterers would be ready to pay, or these operators are sitting on niche business, on which Owners don’t have access to. Operators are also, to my point of view the market reply to Owners we have now, more and more on the market. The ones being assests players and not service providers. The ones seeing shipping as a financial industry rather than an industry moving cargoes from port A to port B.

Here you have what could be an allegory of the relationship between traditional owners and operators… One is often ending eating the plate of the other. The other one, do not seem to be that annoyed about the situation.

 

At the end, looking like everybody’s happy and having fun. All is fine then

Today’s Fist trading week for June has started on a frenetic pace. Frenetic might not be the exact word. Fresh enquiries on handies ex Black sea are seeing quite few owners (or operators ? ) aiming to get their chance to fix the cargo. Any rational which would be related to the repositionning of this biz and the situation of the local market where the tct is ending is simply not worth to have. The ones having the ships, just want to have an employment (at least this is what it’s looking like from here). Today’s index are bit positive, which is at least something.

Finally, while wondering about future of drybulk market, the usual « supply & demand » approach is proposed by Bimco here.

In nutshell, looking like drybulk industry is « still on track on the road to recovery ». Would makes Industry feeling better to have more ships going to scrap. Would also makes Industry feeling better to have some cooling down in the international trading relationships.

Have a nice evening

 

rgds

Jerome

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One thought on “share your plate. (if you want)

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