plastic straw shipping & Posidonia Event

On 1st of june I was writting this

« Bmti’s mentionning $12,500 daily (trust APS) for a 39kdwt fixed for a Rouen to algeria trade, adding « which equates to $18/mt on the bss of 33,000mt intake ». I can take all the figures on a nice super eco super intake ship put them in the shaker, and whichever the recipe of the smoothie, I never end up close to $18pmt on the voyage equivalent with 12,000x.2,500x. The only way to make it close to $18 is to work basis 3,500sshex (local equivalent) at dischport. From 22 theorical days for discharge to 15. »

Today, June 5th, Bmti is back on this Rouen to Algeria biz stating

« Handysize tonnage of 35,000dwt by the end of last week was concluded from Rouen to algeria at US$11,500 daily, which again equates to US$18/mt ».

So, in nutshell, if we compare voyage rate from the 1st june @ $18/mt and today’s which is again at $18/mt :

  • can we tell the market is stable ?
  • Or while checking the TCE, booked 1st of june @US$ 12,500 and end last week at US$ 11,500 market is dropping ?
  • Or Am I comparing apple with pears ? as 1st of june it was a 39kdwt while today it’s a 35kdwt involved ?

From info we have, some charterers involved on this Rouen to Algeria bulk wheat trade, they fixed (and fix) on voyage below US$17,50pmt in the last days.

That does not sound to be too much up if your asking me. (and if you’re not asking me, then don’t read the above).

In the atlantic, it’s looking like to be the right strategy for charterers to keep calm and fix at the last minute. We have been fairly surprised by number of ships keen to work on few cargoes we were proposing on prompt basis with Owners asking « can your charterers consider earlier laydays ? ».

I would not tell this is a standard on all sizes in all areas but this is what we experienced yesterday and today on the handies segment. I’m not neither encouraging charterers to play this game if they have a requirement being bit different than the usual trades. Just add few restrictions here and there, few technical points and then you have the perfect combo to get caught by surprise with one ship around able to perform at Owners’ price.

Finally today’s international Environment Day, and not quite clear if this topic has been discussed in a way or the other during Posidonia event

Silly me, taking good care of our Environment and planet, is our daily focus in the shipping Industry, so no need to make something special on this d-day.

 

Have a good day and Posidonia’s party animals, don’t use plastic straws to enjoy your cocktails. It’s too much 2016 style and you’re building up the future.

plastic straw

Rgds

Jerome Sorrel

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2 thoughts on “plastic straw shipping & Posidonia Event

  1. Rouen/Algeira very often serves as a guidline for the market, although not being owns first choice.

    Reverse TC into voyage is always laden with uncertainties because without knowing a vessel’s details one can only base it on a vessel’s basic description and thus one can never be precise. It is meant as a guideline and is not a matter of 50 cents per ton anyway. If you know of fixtures done last week at usd 17.50 per ton then we are very close. FYG I calculate abt 17/19 days for discharging in Algeria, whilst I know of recent much shorter port stays. Every day the own saves improves the vessel’s daily average. Had I calculated 5 days less then the rate per ton would drop to around usd 16,50 in my calculation. And considering the present quick turnaround in Algeria TC basis is the much better choice for the chrs at this moment.

    Liked by 2 people

    1. Good day, sure agree with you. Vsl’s specs are making huge difference, especially nowadays view the bunkers’ prices. And yes agree this rouen to algeria is somehow used as benchmark on the market as it’s an ongoing buisness from jan 1st till 31st dec (on a normal year)

      Liked by 1 person

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