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Friday, October 31, 2008

TNT Dry Freight Review - October 31, 2008

 

PANAMAX

=======

The global credit squeeze and the accelerating decline in secondhand prices have

many people in the shipping industry holding their breaths.  Highly leveraged

companies are expected to find it very difficult to survive the next few weeks

and months as their outstanding loans/debt outpace the value of their assets.

Next week's Eisbein in Hamburg will likely be a more restrained affair than last

year when the market was riding a high of climbing rates and optimism.

Overall there was more activity reported done for the Panamax sector, but as in

both the larger and smaller size markets, rates have continued to drop.  In the

Atlantic, trans-Atlantic business fixed modern tonnage spot at $6,000 daily plus

a small ballast bonus.  There was said to be some inquiry for period business,

but details that emerged related to recent business rather than today.  The

Pacific basin struggled into the weekend with rates for trips back in the $4,000

range. The Baltic Panamax index lost 20 to 677.

In Atlantic Panamax business, the 2007-built 74,456 dwt Garima Prem fixed to

Azure with November 15-20 delivery Sepetiba for a trip with 2 laden legs and

redelivery Skaw-Cape Passero at $9,000 daily plus a ballast bonus of $130,000.

Armada took the 2001-built 75,259 dwt Nordems with spot delivery Paranagua for a

trip with redelivery on the Continent at $6,000 daily plus a ballast bonus of

$60,000.

Bunge agreed $6,000 daily for the 2002-built 75,845 dwt Loch Lomond with

November 03-07 delivery Canakkale for a trip via the Black Sea and redelivery

Spain.

A.C.Toepfer reportedly fixed the 1998-built 72,600 dwt Oriental Sun with

November 05-10 delivery El Ferrol for a trip via the US Gulf and redelivery

China at $10,200 daily.

Louis Dreyfus was the charterer of the 1996-built 70,349 dwt Iguana with prompt

delivery Point Lisas for a trip via Houston and Saudi Arabia, with redelivery

Aden at $11,000 daily plus a ballast bonus of $250,000.

Venus took a Glory Wealth TBN for early-November loading 60,000 tons 5 % hss

from north France to the Egyptian Mediterranean at $10.25.

Raffles has the 1984-built 65,125 dwt GO Faith for spot delivery Cape Passero

for a trip via the US Gulf and redelivery China at $6,000 daily.

In period business, it emerged that earlier this week, the 1997-built 73,981 dwt

Hellenic Wind fixed 3-5 months trading with Swiss Marine for prompt delivery

Richards Bay and redelivery worldwide at $11,500 daily.

In the Pacific, the 2001-built 74,750 dwt Angelic Peace has fixed with Intermare

for November 20-25 delivery aps south China for a trip with redelivery on the

Continent at $4,000 daily.

Oldendorff was said to be the charterer of the 1993-built 73,670 dwt Rodon with

November 05-19 delivery passing Muscat outbound for a trip via Richards Bay and

redelivery Lazaro Cardenas at $4,000 daily.

The 1982-built 66,919 dwt Swift Fame was reported fixed to an unnamed charterer

with November 01-05 delivery aps Goa for a trip with redelivery China at $2,500

daily.

Pacific period business heard that Cargill recently fixed the 1997-built 73,790

dwt Carola with spot delivery Kosichang for 10-14 months trading and redelivery

worldwide at $13,750 daily.

CAPESIZE

========

There were no fixtures reported for the Capesize sector today.  General

commentary on the Capesize market appears to be that it is bad and getting

worse.  The Business Spectator reported today that with the spot daily rental of

Capesize tonnage at about $6,365, owners are filling world ports with empty

ships that they can no longer afford to run.  Additionally, some of these

anchored ships have cargoes they can't unload because the owners of the cargo

have refused permission to unload because they haven't received a letter of

credit from the buyer.  In the same report, Andreas Vergottis of Tufton Oceanic

was reported to have said that one-fifth "of the world's dry bulk companies may

soon have negative net worth" due to the decline in values on secondhand ships,

"and the value of their fleets is below outstanding debt".  The Baltic Capesize

index was doen 42 to 1265 today.

HANDY/SUPRAMAX

==============

In the Atlantic, reports of concluded business were held private, but Lloyds

List indicated today that there has been an increase in activity from the Black

Sea and Mediterranean, with more ships fixed from these areas.  Alas, rates are

still sliding with no bottom in sight yet.  

On anecdotal evidence only, rates for Black Sea-Med/FEast-MEast runs are in the

region of $7,000-$8,000 daily.  Supramax rates on a US Gulf/Japan trip have

reportedly been done at about $9,000 daily.  West Africa/Med-Black Sea business

was reported done at $5,250 daily.  Finally, period business of about 1-year was

said done at $11,000 daily.  

From the Pacific, Fearnley's reported more demand for iron ore cargoes from west

coast India, but the downward slide in rates from the Indian Ocean continues

unabated.  As well, sources said that Handysize cargoes have been fixed on

Supramax vessels as the rates are the same. According to the Baltic Exchange,

there was talk that a modern handysize had done a west Australia round at $2,750

daily, but no details emerged.  

The Baltic Supramax index closed the week down 34 to 583, and the Handysize

index dropped 17 to 329.

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