Shall we all run to Posidonia?

Good day, good afternoon,

Slow end off may is followed with a flattish begining June. Lucky us still 29days to go on June for finding excitement. Today’s BDI is pure flat with panamaxes and supramaxes going bit south. However as mentionned already yesterday, ECSA whether you’re trading on the Panamax / Supras or Handies is nothing else but red. From our database, about 20 handies are open in ECSA spot/prompt, 15 supras are here looking for their next employment, and we are not considering the ballasters able to be here in the next 15 days. Much more than physical requirement seen from this area. Admi looking for 45kmt stem from upr to Egypt but have almost full of time ahead of them (10-20 june), same with Glencore after a supramax from plate to wmed 15/20 june.  Uder these circumstances, as mentionned by BTMI, with no surprise, funky destination such like IRAQ, charterers are confident to cover around $7500 on a 32-35000dwat. As a comparison, a 25’000 10pct stem of sugar from South Brazil to Blsea is worth $5’000, max… On the other side of the atlantic, ie up to the north, some canadian Wheat looking for a taker for Gavilon, trust not enough to keep the local owners to be excited.

Taking a step backward, networking is and remains an important part of the shipping people job. Last week, Antwerp Breakbulk was followed by the Copenhagen shipbrokers diner same being followed by the Istanbul festivities, next week, Posidonia self declared ” world’s most prestigious maritime event” will be held from 6-10june, and then for those still having some business cards left for distribution France will be hosting his shipbroker dinner in Paris on 16th june. And I’m talking only about the Occidental events. Those will be very good reasons to find the market being calm & quiet.

For sure Posidonia, with more than 19’000 visitors in 2014, is a main event and whether you’re planning to go or not, reading here the list of conferences which are going to held is giving quite a good overview on all the strategic questions owners and shipping people have to face. posidonia program, anecdotic (or not) if you’re into networking but not much into beer, you can still participate to the running event, wise enough, it’s a 5km run only. running in athens. And don’t ask me where you put the business cards you have been able to collect at that time.

Have a good evening, I go to get some business card printed… For tomorrow, you can have some thoughts on what makes the difference between being direct and being close.

iceberg salad with foc’s

No BDI proposed yesterday as the market was closed in UK and today’s figures are somehow flat with 612 on the bdi (+6), 854 on capers (+24), 574 (-8) on the panamax, (+1) on the supra ie 580 and (+4) on the handies ie 351. From continent, mv ‘Zhong Hai’ 45kdwat, open in Rotterdam where seeing low/mid 3kusd to heads up from dely skaw towards USG with grains and finally decided to go for the immediate (if  I may say saw) money with 8’500usd daily with Scrap to EMED. Such fixture being very comparable with fixture of mv ‘blue sea’ 45kdwat prompt via baltic to emed with scrap, at same number.

from same area (Continent), on the handy, $7’000 usd to SAFR can be compared to about the same money to WAFR on comparable ship sizewise. What’s the key decision driver for owners? .duration? .repositionning? counterparty? commodity? Trust it’s much simpler, find a way to get rid of the open ship on the market. Baltic on the handies seems to be comparable to Continent now as 6kusd is said to be done. On the handies and Supras, owners can wonder what’s the best position to be in the next days/week, as no area seems to have any mercy for their finance. ECSA does not look promising with kind off no cargoes out for these ships. USG is seemingly losing his momentum for 10th june onward.

Talking about finance and related to the Panama paper, the shipping industry seems to discover the world of flags of convenience (FOC’s), today’s BMTI, is reporting couple of  case where FOC is leading to some weared situation. One mv ‘African Alke’, Panama Flag, vsl’s being detained on her Maiden voyage due to lack of safety skills/training from the crew: full report here poor crew training

another one reported is linked to Old traditional European owners running a ship under Liberian flag and apparently some mispayment of the Captain taking after owner’s interest at sea.

Comfortably installed in our office chair we will all agree; these 2 cases, out of so many others which can easily be found here and there, shall not happen and are wrong strategic decisions from owners. We will all agree these practices shall be banned. But again difficult to blame solely owners especially in such loosy market, where charterers are also fairly happy to fix -5% vs last done. Trust these “below last done” are leading to this kind of situation where owners trying to find ways to simply survive and go through the storm. Meantime, one can also argue, in the shipping golden age from 2000 to 2008 money in the market did not lead owners to get out of the FOC (they were surely saving money for hard time).

panama flag = panama paper? (p53/57), out of the ten first most used flags, 6 are FOC’s and these 6 are weighting abt 53% of the share of World total (percentage dwt). Which means in summary, chrtrs who’s aiming to stay away of these, will need to play with less than half of the fleet. As mentionned in a previous report, difficult to track owners as most off the ships are managed through an opac set up of various companies.

Finally yesterday we were talking about Noble Boss resignation, Iceberg Research is claiming to be one of the actors for this salad. wondering how iceberg can be cooked, See here: recipe for Iceberg salad

I agree with all the above comments, and I guess it’s quite a good start.

are brokers influencing the market?

As brokers, we can be fairly happy to read in market daily reports such statement mentionning

“the shipbrokers’ meeting in Copenhagen was blamed for taking market players away from their desks in northern Europe and brokerage centre around the world”. This would mean market still needs the brokers to be able to make him move or at least make fixtures happen. Meantime, being there last week and talking with quite few brokers (which you might find amazing), more than a few, in the discussions where mentionning “well, I’m ok, I just fixed a ship today“, so either most of them are liars (in which case what about the “my word is my bound” motto?), or brokers have embraced the 21st century technology and are able to do the work on their smartphones. The truth is probably a mix of both. When they say “I fixed” probably need to understand “my office fixed but I initiated…” and “the last terms, I agreed them on the phone”. All in all Copenhagen remains an impressive city when it comes to bulk cargoes/ships and most of the locals (whether operators, owners, brokers) are agreeing that market is still tough and shall remain tough for the months (years?) to come.

On the atlantic side, Handies and supras, USG seems to be cooling down for 10th june onward at least on the grains, the shortage of tonnage seems to be covered, for now, with a 1500 gap, the later, the cheaper.

On the Continent, Aps rates are back on the grains to Wafr, after couple of months where DOP where prevailing, with according to our vision off the market, a 1000usd premium on the tce to Wafr vs Wmed destination.
View ECSA being a sleeping area, no surprise that owners are asking for a premium to cover in a way or the other the repositionning.

Willing to read few more and wondering what about scrapping, then plse

scrap!

And if you’re looking for a job, Noble seems to have a fresh vacancy, as their CEO just resigned.

please apply to the job (if willing to apply, please pass here and we will forward your file)

have a nice day