Let’s start with figures. A surprising one is mentionned in today’s BMTI about the Cam fixture ex Continent (rouen) to Algeria, quoted asf « 30,000mt cargo » commented asf « which shipbrokers feel must have been around $23/24/mt ». First of all, the Cam stem was bulk barley, with a min max 33,250/35,000mt, longer loa than usual (200 against 180), better draft in algeria ((12m vs 32’) but in this sceanrio, the draft in Rouen shall be the limit) and I have very good reasons to believe it was done below these $23pmt mentionned by the shipbrokers ; surely today there is a « shooting » window open for grains players on this Rouen to algeria usual trade, being done below last done. I’m not quite sure below $20pmt will be achievable nowadays due to bunkers prices but touch above $20 has already been done this week. Which according to my time charterers estimates is bringing back the 33/34kdwt value on this trade below the $10,000 daily on aps basis.
Also, according to BMTI, people – brokers to be right- are tired about oldendorff’s claiming they are making huge profits. According to me, brokers and the industry shall be rather happy to realize some owners can still make profits in this market. I’m not 100% familiar with the whole activity of Oldendorff meantime, from my seat, Oldendorff and few other players such like Pacific Basin are one of the few owners who are willing to play the same game with the same rules as big trading houses. When charterers are booking in tonnage on long period to supply in-house logistic solutions for their cargoes. Oldendorff -starting from the other side- is booking in cargoes, to provide employment for their ships. Oldendorff’s main commodity are ships.
At the end, whether you start with the ship or with the cargo, surely the more of both you have in hands, the better control on the market you have. Also obviously the more active you are on the market, the more opportunities you have to edge yourself on various positions. Finally the only good reasons for brokers to be tired about principals « boasting about huge profit » is if they are concluding more deals directly, with no brokers (or less) involved. On this specific point, I can’t tell if Oldendorff is trying to get brokers off the deals but major brokers house in Hamburg won’t be that silly to have baunch of oldendorff people at their party if they were feeling unsafe, unless these words coming from the mouth of this brokers, who asked to remain anonymous.
All in all, have a good afternoon and if we happen to fix a ship/cargo/10 years/10 Million tons or a 10 million ton/year during 10 years contract together, I promise I’ll stay low profile, always and if Oldendorff’s involved, I let them boast about it .