Tuesday, October 21, 2008
Everyone knows the expression 'short-term pain for long-term gain', but those in
the Panamax sector, feeling the pinch of today's market may be wondering where
short-term leaves off and long-term begins. From the Atlantic, the Coaltrans
Conference under way in Prague means even fewer cargoes entering the market than
have been seen recently. A UK-Med trip via the Baltic took modern tonnage at
$9,500 daily. The Baltic Exchange reported somewhat more grain activity in the
US Gulf, but the situation remained precarious as there is still plenty of
tonnage around. Pacific business saw rates drop again today and there appears
to be no bottom in sight. Sources said they would not be surprised to see the
BPI drop below 1000 this week. A NoPac round was reported done at $6,700 daily,
while short period business of 4-6 months trading earned $14,000 daily. Taipower
was very active today, taking at least six vessels. The two coal cargoes for
Australia to Taiwan paid $10.68 and $10.40 respectively. Some interest
continues to surface for period tonnage, but charterers ideas are still below
owner's for the most part. The Baltic Panamax index fell 26 to 1024 today.
Out of the Atlantic, Farenco was linked with the 1994-built 70,198 dwt Full
Beauty with October 24-26 delivery Tilbury for a trip via the US Gulf and
redelivery in the Far East at $13,000 daily.
GMI was said to have fixed on subjects the 1999-built 75,462 dwt Seaguardian
with end-October delivery Brazil for a trip with redelivery in the East at
Armada took full advantage of the today's low rates. The charterer fixed a
number of vessels, among which was the 2004-built 76,267 dwt Atlantic Breeze,
with November 01-05 delivery Rotterdam for a trip via the Baltic and redelivery
Taranto at $9,500 daily.
There was talk that the 2003-built 76,602 dwt Belisland also went to Armada with
October 24-25 delivery Ghent for a trans-Atlantic round with redelivery
Skaw-Cape Passero, at the same rate.
Armada did take the 1997-built 73,317 dwt Barbara with October 30-November 05
delivery Aughinish for a trip via the St Lawrence and redelivery on the
Continent at $9,000 daily.
The 2008-built 76,500 dwt RBD Capri has also fixed to Armada with October 25-27
delivery Rotterdam for a trans-Atlantic round with redelivery Skaw-Cape Passero
at $9,000 daily.
The 1996-built 70,250 dwt YM Equality reportedly fixed and failed with AWB with
November 05 delivery in the US Gulf for a trip with redelivery Indonesia at
$13,750 daily plus a ballast bonus of $350,000 daily.
Pacific business heard that the 2000-built 75,681 dwt Cyclades has gone to OBS
on subjects for November 01-10 delivery Pagbiliao for a trip via Indonesia and
redelivery Taiwan at $7,000 daily.
At the same rate, the 2008-built 83,000 dwt Star of Emirates fixed on subjects
to Sunwoo with October 27-November 05 delivery Singapore for a trip via
Newcastle and redelivery Taiwan.
Billion Trader 1 2007 82050 dwt delivery Nagoya 19/21 Oct trip via NoPac
redelivery China $6700 daily - Glory Wealth
In voyage business, Taipower fixed a U-Ming Singapore TBN with November
20-December 03 loading 70,000 tons 10% coal from Port Kembla to Taiwan at $10.68.
The charterer also took another U-Ming Singapore TBN with December 07-20 loading
70,000 tons 10% coal from Newcastle to Taiwan at $10.40.
Taipower has also taken 4 x Transbest TBN to load 70,000 tons 10% coal. The
first trip loading December 15-24 from Balikpapan to Taiwan at $5.05; the second
loading December 11-20 from Muara Panati to Taiwan at $4.75; the third with
December 05-14 loading from Samarinda to Taiwan at $4.35; and finally with
December 15-24 loading from Samarinda to Taiwan at $4.35.
In period business, GMI has taken the 2005-built 75,419 dwt Spitha with October
21-28 delivery Shibushi for 4-6 months trading and redelivery worldwide at
Capesize shipping activity is still slowing and rates slid again today.
Concluded business heard an ore cargo fixed PDM/China at $12.00, but there were
rumours of business done lower although details have yet to surface. While
there was very little reported done for the sector, talk abounded about where
all this is leading. Yesterday came news that some owners had decided to remove
tonnage from the market until rates improve. Today came more discussion of the
impact of the credit crunch on the shipping industry. According to a report
from the Business Spectator, the suspension of issuing lines of credit by
international banks is hitting the capesize sector particularly hard as shippers
have been unable to "arrange short term funding" for their ships. The London
Daily News today reported that after peaking at a high of about $233,000 daily
in May, current rates for 150,000-165,000 ton vessels are about $12,000 daily
and lower. No word yet from Brazil regarding resumption of ore shipments to
China. According to the Guardian (UK), the decision by Brazilian mining company
Vale to stop shipments to some Chinese buyers as a price negotiation tactic has
removed one of the pillars of the dry voyage market. The build-up of tonnage in
the market combined with the absence of cargoes and credit have combined to
drive rates to the lowest levels seen since the late-1990's. The Baltic
Capesize index shed another 69 today to 1605.
In the Atlantic, Vale agreed $12.00 for a Baotrans TBN with spot loading 160,000
tons 10% ore from Ponta Da Madeira to Qingdao.
A MOSK TBN went to Rogesa with November 16-30 loading 160,000 tons 10% ore from
Tubarao to Rotterdam at $7.90.
North China Shipping was linked with the 1995-built Coppersmith for end-October
loading 150,000 tons 10% ore from Esperance to Qingdao at a low $6.90.
The only good thing to say about the Handy market this week is that when
compared to the devastation being wreaked on the Panamax and Capesize sectors,
owners of Handy vessels are experiencing a slower rate of decline in rates.
There is still not a lot of fresh inquiry for the Atlantic market and there
remains too much tonnage, but there is at least the likelihood of some cover.
Still a very tough market in the Pacific, with the Indian Ocean proving an
"unqualified disaster" according to some. Oldendorff has fixed a 12-year old
45,000 tonner from here to the US Gulf at a painful $1,000 daily. NoPac rounds
were down, but still decent comparatively speaking, with an LME fixed at $8,000
daily. The Baltic Supramax index dropped 65 to 1079, while the Handysize index
fell 51 to 625.
For Atlantic Handy business, an undisclosed charterer took the 1994-built 45,208
dwt Haoning Glory with October 24-30 delivery Gijon for a balance of period
through end-Feb/end-March 2009 and redelivery worldwide at $9,000 daily. The
Baltic Exchange reported today that the ship's current period charter is at
From Turkey, MUR took the 1997-built 46,609 dwt Nesrin Aksoy with prompt
delivery Nemrut Bay for a trip with redelivery in the US Gulf at $8,000 daily.
The charterer has also taken the 1983-built 47,442 dwt PFS Narayana with spot
delivery aps Saldhana Bay for a trip with redelivery west Africa at $7,000 daily.
In the Pacific, the 2007-built 53,825 dwt Port Menier has fixed to Pacbasin with
end-October/early-November delivery Kakogawa for a trip via NoPac and redelivery
Singapore-Japan range at $8,000 daily.
The 1996-built 45,178 dwt Nan Hai went to Oldendorff with end-October delivery
west coast India for a trip with redelivery in the US Gulf at a very low $1,000