sound of the deflating shipping market

Listen carefully this sound

The sound of the shipping market which could summarize the week. So chic !

While BMTI is talking about trying to find where is the safety net for the free falling Capesize I would be tempted to say not only the Capes are the ones suffering.

Obviously the safety net is not found as once again, indexes are late. Comparing fixtures done vs. Index route is a simple task.

Talking about what I know (or pretending to but this is another story), while BMTI is mentionning ECSA 34kdwt owners talking $10,000 daily for a trip from Sbrazil to Med seems to me quite right. The BHSI index route HS3_38 was mentionning yesterday $13,822 (after a loss of 511). Do you really believe the market value for a 38kdwt index type and a 34kdwt is $3,822 daily ? I don’t.

For those of you reading and being interested, this $10,000 daily converted into voyage terms from Upr to Algeria with abt 32,000mt loaded bss 7000/2500x is giving a voyage equivalent in the low 30’s usd/pmt. I won’t put a precise figure as, obviously this is subject to vessel’s specs and performance.

Also mv ‘Kite Bay’ a 38kdwt index type is reported fixed dely usg redel continent@ $9,000 daily. Same routeHS4_38 the day before (hence probably when the nego occured) was showing $10,238.

Do you think the quite good redely position, in Continent, is worth a premium off $1,238 compared with a redel bss Passero ? I don’t.

Yesterday we talked about traditionnal good wishes, being part of the season. Talking about tradition, we are also in the traditional time of the year to make « summary of the year » Platts is offering you here below an interesting one about 2018 in shipping which I highly recommand you to read.

At my humble scale, I also wanted to draw a summary of the year 2019 (so far) but I fear it’s not really worth it, yet.

Have a nice week-end.

Regards

Jerôme

 

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