Tuesday, December 23, 2008
DryShips 'likely' to cancel $1.2bn Economou capesizes
Nigel Lowry, Athens - Monday 22 December 2008
SHIPOWNER George Economou has confirmed that his Nasdaq-listed dry bulk giant DryShips is likely to cancel a controversial purchase of nine capesize bulkers from his private fleet.
“I am not saying it depends only on one person,” Mr Economou told Lloyd’s List today. “But in general under these conditions, it is good for any company to restrict capital expenditure and new debt. It is not the time to spend.”
He admitted that the matter was being discussed by the public company’s audit committee, comprising the three independent directors on DryShips’ board.
When unveiled just two-and-a-half months ago, the $1.2bn capesize acquisition drew criticism from some quarters for the near-$130m price per unit agreed against the beginnings of a fall in bulker values, despite the fact that Mr Economou’s remuneration was entirely in stock.
In addition to issuing 19.4m new shares to its chairman and chief executive, however, the company faced shouldering $216m in bank debt on the ships and $262m in remaining installments for the five newbuildings among the nine.
The fleet at stake comprises one older capesize, three 2006-built vessels and five newbuildings for delivery in 2009 and 2010.
Possible cancellation was hinted at in a December 10 announcement, which said the company would “seek to amend, wherever possible, the contracts regarding dry bulk acquisition and newbuilding commitments, potentially resulting in significant capital expenditure savings”.
However, the comment was largely overlooked as a policy statement as it was taken mainly to apply to the cancellation of four panamax newbuildings, two of which are still under construction, confirmed in the same statement.
Although analysts generally welcomed the move to ditch the acquisitions, some questioned whether the terms were punitive to the public company.
If the capesize cancellation, too, is confirmed, DryShips will almost certainly face a considerable charge for dumping the ships back in its boss’ lap.
Mr Economou said “the private side lost out by $100m” from the collapse of the panamax deal.
Asked how he could square his private interests with those of leading the public company when it came to unraveling such deals, Mr Economou said he expected to take a hit from the cancellation.
“If it’s good for one, then it is probably not so good for the other side. It is a question of compromise but I can take more losses on the private side,” Mr Economou said.
“The private side at this time did not want to have the ships. The private side is not happy – obviously – despite what people think.”
None of the newbuildings still to be delivered — two from the panamax deal and five from the capesize transaction — could be cancelled with the builders, he said.
With more than 30% of DryShips’ stock, before the capesize deal, Mr Economou is the listed company’s largest stockholder.
“I stand to be more affected than anyone as far as DryShips is concerned,” he added.
China stimulus good for ship owners, if they survive
Tuesday, 23 December 2008
The 4 trillion yuan ($586 billion) Chinese stimulus package is likely to be a boost for the world's battered bulk shippers, but only if they survive long enough for the country's planned infrastructure projects to get rolling. "The Chinese stimulus package is all well and good, and it's the right idea," said Natasha Boyden, an analyst at Cantor Fitzgerald. "But it won't happen overnight."
The abrupt end to the recent boom for bulk shippers left many laden with debt for ships they bought at the top of the market. They now owe more than their ships are worth, meaning Chinese stimulus spending will come too late for many.
"A number of bulk shippers are going to struggle to survive through 2009," Boyden added.
"For heavily leveraged shippers in particular," said Omar Nokta, an analyst at Dahlman Rose, "the next couple of quarters look pretty difficult."
Dry bulk shippers haul vast quantities of bulk commodities such as iron ore, coal, steel and grain. More than 90 percent of the world's traded goods by volume is carried by sea.
These shippers have seen their world turn upside down. Just seven months ago, the Baltic Exchange's chief sea freight index hit an all-time high of 11,793, and their ship charter rates soared on demand for raw materials from China and India.
But the blood bath on Wall Street and falling commodity prices hit charter rates, which nose-dived after the collapse of Lehman Brothers in September.
"FELL OFF THE TABLE"
"The dry bulk market simply fell off the table," said Nikolas Tavlarios, president of marine fueling company Aegean Marine Petroleum Network.
Much of that fall came as China cut back on iron imports and steel production as prices and global demand for steel dropped.
China is the world's biggest importer of iron ore, accounting for 45 percent of all imports in 2007. It is also the world's largest steel producer, so Chinese cutbacks dealt a devastating blow to bulk shippers.
"China is not just a major player -- China is the market for iron ore," said Gregory Lewis, an analyst at Credit Suisse.
The sea freight index hit a low of 663 on Dec. 5 -- more than 94 percent below its May 20 peak. Daily charter rates for capesize ships, the largest bulk-carrier class, fell more than 98 percent to $3,000 in November from $230,000 in May.
The credit crunch made matters worse, as banks avoided issuing letters of credit -- bank guarantees on behalf of buyers that are given to exporters -- leaving cargoes stranded.
In the past few weeks, the mood has improved a bit.
The chief sea freight index has climbed 25 percent, to 829, obtaining letters of credit has become easier and credit conditions for shippers have eased.
"Since early December we've seen an improvement in letters of credit," said Douglas Mavrinac, an analyst at Jefferies. "The system is not necessarily fully functioning, but it's better than it was."
HOPE ON THE HORIZON
Chinese iron ore imports and steel production have stabilized, giving some hope the worst is over. The thawing of the credit market and the prospect of the Chinese stimulus, announced in early November, have also boosted bulk shipper stocks.
The stimulus package -- including large infrastructure projects to build railroads, roads and bridges, which all require steel -- has raised some questions as to whether the $586 billion figure includes all new projects, or some that had already been announced. Nonetheless, it remains sizable.
"The stimulus package could be enormous," Mavrinac said. "The only question is when it will happen."
For some shippers, the market meltdown means it is already too late for them to benefit from any upcoming boom.
Australian investment firm Allco Finance Group collapsed in November and the liquidation of the firm's assets includes the sale of seven bulk carriers.
Last week, Danish dry bulk operator Atlas Shipping -- with a fleet of 41 ships -- filed for bankruptcy, saying long-term freight rates negotiated before the crisis would result in a loss of $3 million a week.
Others are expected to follow. Many bulk shippers bought ships at high prices with large loans. For instance, capesize ships that sold for as much as $150 million in the summer now sell for around $50 million -- leaving many shippers under water.
"If you're heavily leveraged and paid top dollar, you're in trouble," Credit Suisse's Lewis said. "More than a few companies will default on their credit facilities."
Fire sales of ships from bankrupt companies like Atlas could push asset prices even lower, exacerbating the problem.
Some publicly-traded bulk shippers with strong balance sheets and relatively low debt -- Cantor Fitzgerald's Boyden singled out Paragon Shipping Inc, Diana Shipping Inc, Navios Maritime Holdings Inc and Genco Shipping & Trading Ltd, and Dahlman's Nokta singled out DryShips Inc -- have a greater chance of survival.
"By 2010 we could see the Chinese stimulus benefiting bulk shippers, but they have to make it through 2009 first," Nokta said. "For now we are still very cautious and would like more clarity on the market before we advise buying these stocks."
As adapted from Reuters
COASTAL BULK CEASES TRADING
Monday, 22 December 2008
VESSELS belonging to the fleet of UK coaster company Coastal Bulk Shipping are laying up in the Medway and Thames Estuary, according to UK ship enthusiasts' website Shipspotting,com. Lloyd's List reports that the company announced it had ceased trading after the economic downturn forced a sharp decline in revenues. Until 2006 Coastal Bulk Shipping known as Lapthorn Shipping and prior to November 2003, when the Lapthorn family relinquished control, as R Lapthorn and Co. The company has been operating a fleet of 13 vessels between 1,200 dwt-2,250 dwt although it had previously also operated smaller vessels.
The Kent-based company blamed problems with non-performance of contracted customers, the weakness of sterling, reduced imports and more expensive fuel. “Prospects for recovery in the short term are poor,” the company said in a statement. said.
Associated company River Bulk Shipping has also ceased trading. Like Coastal Bulk Shipping it is owned by Fourwind Holdings whose directors are John Yeoman and Tim Lowry who are, respectively, the chairman and managing director of Coastal Bulk.
Monday, December 22, 2008
A Russian Solution To The Somali Pirates
Monday, 22 December 2008
Russia is planning to send more warships to the Somali coast, along with some commandos and a particularly Russian style of counter-piracy operations. In other words, the Russians plan to go old school on the Somali pirates, and use force to rescue ships currently held, and act ruthlessly against real or suspected pirates it encounters at sea. This could cause diplomatic problems with the other nations providing warships for counter-piracy operations off the Somali coast. That's because the current ships have, so far, followed a policy of not attempting rescue operations (lest captive sailors get hurt) and not firing on pirates unless fired on first. Russia believes this approach only encourages the pirates.
Russia is planning on bringing along commandoes from Spetsgruppa Vympel. These are hostage rescue experts, formed two decades ago as a spinoff from the original Russian army Spetsnaz commandos. This came about when various organizations in the Soviet government decided that they could use a few Spetsnaz type troops for their own special needs. Thus in the 1970s and 80s there appeared Spetsnaz clones called Spetsgruppa. The most use of these was Spetsgruppa Alfa (Special Group A), which was established in 1974 to do the same peacetime work as the U.S. Delta Force or British SAS. In other words; anti-terrorist assignments or special raids. It was Spetsgruppa Alfa that was sent to Kabul, Afghanistan, in 1980 to make sure the troublesome Afghan president Amin and his family were eliminated from the scene (killed.) Survivors (members of the presidential palace staff) of the Spetsgruppa Alfa assault reported that the Spetsnaz troopers systematically hunted down and killed their targets with a minimum of fuss. Very professional. The surviving Afghans were suitably impressed. Spetsgruppa Alfa now belongs to the FSB (successor to the KGB) and number about 300 men (and a few women.) At the same time Spetsgruppa Alfa was established, another section of the KGB organized Spetsgruppa Vympel. This group was trained to perform wartime assassination and kidnapping jobs for the KGB. The FSB also inherited Spetsgruppa Vympel, which is a little smaller than Spetsgruppa Alpha and is used mainly for hostage rescue.
Meanwhile, piracy has been a growing problem off the Somali coast for over a decade. The problem now is that there are hundreds of experienced pirates. And these guys have worked out a system that is very lucrative, and not very risky. For most of the past decade, the pirates preyed on foreign fishing boats and the small, often sail powered, cargo boats the move close (within a hundred kilometers) of the shore. During that time, the pirates developed contacts with businessmen in the Persian Gulf who could be used to negotiate (for a percentage) the ransoms with insurance companies and shipping firms. The pirates also mastered the skills needed to put a grappling hook on the railing, 30-40 feet above the water, of a large ship. Doing this at night, and then scrambling aboard, is more dangerous if the ship has lookouts, who can alert sailors trained to deploy high pressure fire hoses against the borders.
Few big ships carry any weapons, and most have small crews (12-30 sailors). Attacking at night finds most of the crew asleep. Rarely do these ships have any armed security. Ships can post additional lookouts when in areas believed to have pirates. Once pirates (speedboats full of armed men) are spotted, ships can increase speed (a large ship running at full speed, about 40+ kilometers an hour, can outrun most of the current speed boats the pirates have), and have fire hoses ready to be used to repel boarders. The pirates will fire their AK-47 assault rifles and RPG grenade launchers, but the sailors handling the fire hoses will stand back so the gunmen cannot get a direct shot.
Since the pirates take good care of their captives, the anti-piracy efforts cannot risk a high body count, lest they be accused of crimes against humanity, war crimes or simply bad behavior. The pirates have access to hundreds of sea going fishing boats, which can pretend to fish by day, and sneak up on merchant ships at night. The pirates often operate in teams, with one or more fishing boats acting as lookouts, and alerting another boat that a large, apparently unguarded, ship is headed their way. The pirate captain can do a simple calculation to arrange meeting the oncoming merchant vessel in the middle of the night. These fishing boats can carry inflatable boats with large outboard engines. Each of these can carry four or five pirates, their weapons and the grappling hook projectors needed to get the pirates onto the deck of a large ship. These big ships are very automated, and at night the only people on duty will be on the bridge. This is where the pirates go, to seize control of the ship. The rest of the crew is then rounded up. The pirates force the captain to take the ship to an anchorage near some Somali fishing village. There, more gunmen will board, and stand guard over crew and ship until the ransom is paid. Sometimes, part of the crew will be sent ashore, and kept captive there. The captive sailors are basically human shields for the pirates, to afford some protection from commando attacks.
There has always been the option of a military operation to capture the seaside towns and villages the pirates operate from. But this would include sinking hundreds of fishing boats and speedboats. Hundreds of civilians would be killed or injured. Unless the coastal areas were occupied (or until local Somalis could maintain law and order), the pirates would soon be back in business. Pacifying Somalia is an unpopular prospect. Given the opprobrium heaped on the U.S. for doing something about Iraq, no one wants to be on the receiving end of that criticism for pacifying Somalia. The world also knows, from over a century of experience, that the Somalis are violent, persistent and unreliable. That's a combination that has made it impossible for the Somalis to even govern themselves. In the past, what is now Somalia has been ruled, by local and foreign rulers, through the use of violent methods that are no longer politically acceptable. But now the world is caught between accepting a "piracy tax" imposed by the Somalis, or going in and pacifying the unruly country and its multitude of bandits, warlords and pirates.
The piracy "tax" is basically a security surcharge on maritime freight movements. It pays for higher insurance premiums (which in turn pay for the pirate ransoms), danger bonuses for crews and the additional expense of all those warships off the Somali coast. Most consumers would hardly notice this surcharge, as it would increase sea freight charges by less than a percent. Already, many ships are going round the southern tip of Africa, and avoiding Somalia and the Suez canal altogether. Ships would still be taken. Indeed, about a third of the ships seized this year had taken precautions, but the pirates still got them. Warships could attempt an embargo of Somalia, not allowing seagoing ships in or our without a warship escort. Suspicious seagoing ships, and even speedboats, could be sunk in port. That would still produce some videos (real or staged, it doesn't matter) of dead civilians, but probably not so many that the anti-piracy force would be indicted as war criminals.
This sort of bad publicity does not bother the Russians as much as it does other European nations and the United States. Russia got lots of bad press for its brutal, but effective, counter-terror operations in Chechnya. Same with last Augusts invasion of Georgia, which was basically a punitive operation, mainly intended to intimidate the Georgian government. That worked too, despite lots of hostile rhetoric from the U.S. and European nations. If the Russians go old school on the Somali pirates, it will probably work. The Somalis are vicious and clever, but not stupid. Somalis and Russians speak the same language of violence, and the Russians carry a bigger stick. The world will complain, then enjoy the benefits of a piracy free Somali coast.
As adapted from Strategy Page
India: Meltdown may hit 2019-20 coal target
Monday, 22 December 2008
The projected target of producing over 200 million tonnes of steel in the country during 2019-2020 must be revised due to the current slump in the global steel scenario, opined members of the Society of Geo-scientists and Allied technologists (SGAT) at a seminar on "Iron Ores - Genesis and Exploration Techniques" held here recently. The seminar was inaugurated by the state minister for steel and mines Mr Pradeep Kumar Amat who informed the gathering that the state government has decided to step up exploration efforts for proving of reserves of iron and called upon the private sectors to intensify the development of mining areas.
During the seminar the participants made several suggestions including that the government should draw up and implement a time bound exploration programme to ensure supply of Hematite, geo-scientific investigations should be continued unrestricted to decipher accepted models of iron ore genesis, deeper drilling and improved drilling techniques should be used and computer software should be applied in evaluation of iron ore.
It was also decided at the seminar that SGAT will bring out a brochure on the facilities available for earth science education in the state.
As many as 160 delegates from different organisations and institutions including RIO Tinto, CSI, IBM, MECL, NMDC, IMMT, Tata Steel, OMC, Department of Steel and Mines, Orissa; Department of Mining and Geology, Jharkhand, Utkal University, lIT, Bombay, Sesa Goa, CSIRO from Australia, MSPL, Sarda Mines, MGM Minerals, Serajuddin and Co, VISA Steel, Facor, IMFA and Geomin Consultants participated in the seminar.
As adapted from The Statesman
Rio says to close 11 iron ore mines for two weeks
Monday, 22 December 2008
World No. 2 iron ore miner Rio Tinto Ltd/Plc is in the process of shutting down all its iron ore mines in Australia's Pilbara region for two weeks to cut production by 10 percent by year-end in the face of declining demand from steel mills. Each of Rio's 11 mines as well as its rail network spanning hundreds of kilometres across the the world's richest iron ore deposit will be placed on care and maintenance for two weeks starting Dec. 22, company spokesman Gervase Greene told Reuters.
"This will bring us close to our target of reducing this year's production from the Pilbara to between 170 and 175 million tonnes," Greene said.
The scale-back is necessary to meet lower demand for ore from steel mills in China and elsewhere as global industrial activity and manufacturing slows due to the financial crisis, Rio said earlier this year.
Most of the 6,500 staff working in Rio's Australian iron ore division are being furloughed during the shutdown, which is timed to coincide with the Christmas season, Greene said.
Rio is permanently cutting 14,000 jobs worldwide and putting assets up for sale as its attempts to cut costs and pay off debt because of depressed minerals markets.
Sliding metals prices and slowing demand have made those assets worth less, and the global financial crisis has made it tougher for potential buyers to get credit.
Another Pilbara miner, BHP Billiton Ltd/Plc has vowed to maintain production, saying sales for now were holding up during the downturn.
Merrill Lynch, Goldman Sachs JBWere and other brokerages are predicting next year's iron prices will be down by as much as 50 percent given the downsizing in steelmaking.
As adapted from Reuters
Coal outlook dim as export prices tumble
Matt Chambers | December 22, 2008
Article from: The Australian
THE outlook for Australia's coal exporters has continued to weaken, with reports of further falls in contract thermal coal prices.
Japanese newsletter The Tex Report said first coal contracts for Japan's next financial year had been signed, with utilities getting coal at the export port at between $US70 and $US80 a tonne -- up to a 45 per cent discount from this year's price.
The report comes days after Xstrata Coal locked in $US80 a tonne prices for Australian coal for the 2009 calendar year, a nearly 50 per cent drop on recent contracts it signed at $US155 a tonne for the year starting October 2008.
Analysts said the outlook for thermal coal, which is used in electricity production, looked weak and Xstrata, the world's biggest thermal coal exporter, had moved to lock in prices to restrict further risk. NSW miner Gloucester Coal has also started to sign thermal coal contracts at well below this year's price. On Friday, Gloucester said it had locked in about 500,000 tonnes of sales for 2009-10 at an average above $US80 a tonne.
While better than the reported deals, it is well below last year's benchmark of $US125 a tonne.
Thermal coal prices are weakening as global energy prices slump and could drop further if oil prices continue to hold under $US40 a barrel. Credit Suisse analysts last week said oil at $US50 should correlate to a coal price of about $US80 a tonne.
A sudden drop in demand for coking coal, a better quality product used to make steel, is expected to have a flow-on effect as producers sell into thermal markets. "As a countermeasure to any softening in coking coal demand, the company will deliver into additional thermal coal contracts," Gloucester said.
Imarex Brief 22th December 2008
Tankers
Crude
VLCC Ag/East: ws 70 ($55 k/day) down 10 points
Suezmax Wafr/Usac: ws 130 ($50/day) rates have stabilized
Turkish Straits delays: 2n / 2s steady
Exxon dropped the hammer on the V market, and are reported to have done a twofer at ws 70 on
Friday. We knew momentum had slowed – and we knew that at some point the OPEC cuts
would hurt demand…but we did not expect a 10 point move on short notice. What we do know,
and have always known, is that anything is possible in this market. Anything.
As we enter the holiday week, FFA volumes are light. TD3 Jan trades down 1 point to 45. If the
physical market continues to dig deeper, we would expect Jan to keep moving the same way.
Clean
37k Cont/Usac: ws 190 ($18k/day) same
38k Caribs/Usac: ws 165 ($15k/day) same
55kt Ag/East: ws 145-150 ($22.5k/day) the slide has stopped
>From Trygve Skaar at Southport Maritime: “We have seen a few more ships taken out for
Cont/States runs and the rates being fixed are at about WS 190 level. We have seen a couple of
ships being fixed for early January loading as well around these numbers, but with 2008 flat rates
to apply. But, as we are in the Christmas week, and we only a couple of trading days left for the
year, it is probable that things will start to quiet down. The Caribbean market is non eventful and
the market is steady at WS 165 level for the regular 38,000 MT cargo liftings. True, we have
seen a few fixtures in excess of WS 170, but that is not the market, in our humble opinion. USG
export cargoes are still being fixed, and there is still a big gap between the high and low rates,
but we are pegging the market at about WS 120 as we have seen ships being fixed below this
number as well and we have a few owners willing to do this level, which still makes sense.”
Clean FFAs are exceptionally quiet today. With most of Dec already priced in – there is little
incentive for trading. TC2 Jan: 147, TC4 Jan: 130, TC5 Jan 119.
Dry Bulk
BDI 801 down 17
BCI 1373 down 50
BPI 583 up 8
BSI 442 down 12
BHSI 288 down 4
>From Commodore Landsberg’s Weekly Physical Update: Indian iron ore exports have finally
come back down to normal levels. 8 Indian iron ore fixtures were reported last week, 14 less than
the week before. China has started to take more iron ore from Brazil and Australia - a possible
sign of iron ore contract negotiations concluding much earlier than originally expected. Vale has
already been able to sign long-term agreements with two small Chinese steels mills, Jingcheng
Fushang Company and Zenith steel mill.
Dry Bulk FFAs
Contract Close Current Diff
======================================
BDI Dec 745 745 -flat
BDI Q1 1225 1225 -flat
BDI Q2 1500 1500 -flat
CS4 Q1 $12,844 $12,750 -$94
CS4 Cal 09 $17,664 $17,600 -$64
PM4 Q1 $8,773 $9,000 -$227
PM4 Cal 09 $11,820 $11,750 -$70
SM6 Q1 $7,906 $8,125 +$219
SM6 Cal09 $9,773 $9,750 -$23
More from the Commodore: 10 dry bulk vessels were reportedly sold for scrap last week. The
ships’ ages ranged from 24 to 31 years old and included 8 Handysize and 2 Panamax vessels.
Scrap prices are holding steady at $230 to $285/ldt, on par with last week’s levels.
Equities
In ratings news…
- Omar Nokta maintains a HOLD on EGLE, and remains cautious on both Eagle and the dry bulk
group in general on concerns of reduced worldwide industrial production.
- Scott Burk maintains a PERFORM rating on EGLE. He has reduced 2009/2010 estimates,
though believes cutting the dividend will enhance liquidity.
- Justin Yagerman maintains a MARKET PERFORM on EGLE ($6-7). He lowers 2009
estimates and feels the sector as a whole faces too much headline risk.
- Justin Yagerman maintains a MARKET PERFORM on TNK ($8-10). He lowers 2008 and
2009 estimates though believes their increased charter coverage should help support dividends.
TNT Dry Freight Review - December 22, 2008
PANAMAX
=======
The runup to the Christmas holiday has led to very little new business, and very
little to report. Some brokers were unavailable for comment as they had
extended the Christmas holiday to include the first few days of this week as
well. Rates are believed to have remained in the depressed state that they have
been in recetly.
STX Pan Ocean took the Jupiter Applause, 69,000dwt, 1997, for $3,200 daily, on a
trip via Newcastle
Cargil took the Ikan Bilis, 76,000dwt, built 2004, on a round trip from Asia to
Hawaii, for $4700 daily.
Louis Dreyfus fixed the Iron Vassilis, 70,000dwt, 2006, for a coal cargo for
$9.50.
And the Premnitz, 60,000dwt, 1994-built, was taken by Qinfa for an iron ore
cargo for $7.40.
CAPESIZE
========
Rates here were also depressed, with little business reported.
The Erradale, 160,000dwt, 1994, was taken for an ore cargo by Noble Chartering
for $7.50.
HANDY/SUPRAMAX
==============
The upcoming holidays brought little activity to a stable but poor market.
The Gourniati, 29,000dwt, built 1995, was taken by an unknown charterer for a
trip Antwerp - SPJ for $5000 daily.
<<>>
Baltic Exchange Daily Fixture/Index List 22/12/2008
BDI 801 (DOWN 17) BCI 1373 (DOWN 50) BPI 583 (UP 8)
BSI 442 (DOWN 12) BHSI 288 (DOWN 4)
Last published BDTI 1252 (DOWN 13) BCTI 838 (UP 2)
TIMECHARTER
'Alam Permai' 2005 87000 dwt dely Amsterdam 26/28 Dec trip via St.Lawrence redel Continent $7750 daily - Cobelfret
'Berlin' newbuilding 76524 dwt dely ex yard Imabari 7/10 Jan 11/13 months trading redel worldwide $12500 daily - grain house
'Pepito' 2001 75928 dwt dely Fangcheng 25/27 Dec trip via Indonesia redel Philippines $3000 daily - Norden
'Ikan Bilis' 2004 75750 dwt dely Taichung 27/31 Dec 2 laden legs 1st leg Indonesia/Hawaii redel Singapore-Japan rge $4750 daily - Cargill
'Coral Garnet' 2007 75500 dwt dely Japan 28 Dec/2 Jan trip via NoPac redel Singapore-Japan rge $3200 daily - Louis Dreyfus
'Jupiter Applause' 1997 69123 dwt dely Fukuyama 22/24 Dec trip via Newcastle redel China $3200 daily - STX Pan Ocean
'Gourniati' 1996 28387 dwt dely Antwerp spot trip redel Singapore-Japan $5000 daily - cnr
ORE
'Erradale' 1994 160000/10 Dampier/Xingang 10/20 Jan $4.75 fio scale/30000sc - Noble Chartering - <fixed last week>
'Premnitz' 1994 60000/10 Krishnapatnam/N.China 28 Dec/8 Jan $7.50 fio 20000sc/15000sc - Qinfa
COAL
'Iron Vassilis' 2006 70000/10 Norfolk & Mobile/Ternuezen & Ghent 5/10 Jan $9.50 fio 5 days shinc - Louis Dreyfus
Baltic Exchange Daily Summary of Baltic Exchange Dry Indices - 22 December 2008
Baltic Exchange Dry Index 801 (DOWN 17)
Baltic Exchange Capesize Index 1373 (DOWN 50)
Baltic Exchange Panamax Index 583 (UP 8)
Baltic Exchange Supramax Index 442 (DOWN 12)
Baltic Exchange Handysize Index 288 (DOWN 4)
Daily Summary of the Baltic Exchange Time Charter Routes
Rate($/Day) Change
BCI
Average of the T/C routes $9198 (DOWN 488)
BPI
Average of the T/C routes $4674 (UP 65)
BSI
Average of the T/C routes $4626 (DOWN 119)
BHSI
Average of the T/C routes $4228 (DOWN 56)
<<>>
Baltic Exchange Capesize Index TM - 22 December 2008
Baltic Exchange Capesize Index 1373 (DOWN 50)
Rte
Num Description Weight Avg. Move
====== =============================================== ====== ====== ======
C2 160000lt Tubarao -Rotterdam 10 5.241 -0.164
C3 150000mt Tubarao - Beilun/Baoshan 15 9.146 -0.404
C4 150000mt Richards Bay - Rotterdam 5 6.286 -0.119
C5 150000mt W Australia - Beilun/Baoshan 15 5.568 -0.155
C7 150000mt Bolivar - Rotterdam 5 5.691 -0.127
C8_03 172000mt Gibraltar/Hamburg trans Atlantic RV 10 7091 -309
C9_03 172000mt Continent/Mediterranean trip Far East 5 11969 -743
C10_03 172000mt Pacific RV 20 11388 -681
C11_03 172000mt China/Japan trip Mediterranean/Cont 5 6342 -221
C12 150000mt Gladstone - Rotterdam 10 10.610 -0.120
Average of the T/C Routes 9198 -488
<<>>
Baltic Exchange Panamax Index TM - 22 December 2008
Baltic Exchange Panamax Index 583 (UP 8)
Rte
Num Description Weight Avg. Move
====== ============================== ====== ==== ====
P1A_03 74000mt Transatlantic RV 25 4584 136
P2A_03 74000mt SKAW-GIB/FAR EAST 25 8270 56
P3A_03 74000mt Japan-SK/Pacific/RV 25 3164 16
P4_03 74000mt FAR EAST/NOPAC/SK-PASS 25 2676 48
Average of the T/C Routes 4674 65
<<>>
Baltic Exchange Supramax Index TM - 22 December 2008
Baltic Exchange Supramax Index 442 (DOWN 12)
Rte
Num Description Weight Avg. Move
=== ================================== ====== ===== ====
S1A Antwerp - Skaw Trip Far East 12.5 5825 -100
S1B Canakkale Trip Far East 12.5 6006 -154
S2 Japan - SK / NOPAC or Australia rv 25 4027 -9
S3 Japan - SK Trip Gib - Skaw range 25 4031 5
S4A US Gulf - Skaw-Passero 12.5 6675 -644
S4B Skaw-Passero - US Gulf 12.5 2384 -47
Average of the T/C Routes 4626 -119
The route(s) below do not form part of the index calculation
S5 W.Africa via ECSA to FarEast 0 5788 55
S6 Jpn-SK trip via Aus/India 0 4078 -10
S7 EC India - China 0 10211 -27
<<>>
Baltic Exchange Handysize Index TM - 22 December 2008
Baltic Exchange Handysize Index 288 (DOWN 4)
Rte
Num Description Weight Avg. Move
=== ================================================== ====== ==== ====
HS1 Skaw - Passero trip Recalada - Rio de Janeiro 12.5 3271 -43
HS2 Skaw - Passero trip Boston / Galveston 12.5 3350 -43
HS3 Recalada / Rio de Janeiro trip Skaw / Passero. 12.5 6347 -78
HS4 US Gulf trip via US Gulf or NCSA to Skaw / Passero 12.5 5640 -190
HS5 SE Asia trip via Australia to S'pore / Japan 25 3814 -49
HS6 S Korea / Japan via NOPAC to S'pore-Japan 25 3792 -1
Average of the T/C Routes 4228 -56
<<>>
The Daily Fixtures Report - 22/12/2008
BDI 801 DOWN 17
BCI 1373 DOWN 50
BPI 583 UP 8
BSI 442 DOWN 12
BHSI 88 DOWN 4
TIMECHARTER
'Alam Permai' 2005 87000 dwt dely Amsterdam 26/28 Dec trip via St.Lawrence
redel Continent $7750 daily - Cobelfret
'Berlin' newbuilding 76524 dwt dely ex yard Imabari 7/10 Jan 11/13 months
trading redel worldwide $12500 daily - grain house
'Pepito' 2001 75928 dwt dely Fangcheng 25/27 Dec trip via Indonesia redel
Philippines $3000 daily - Norden
'Ikan Bilis' 2004 75750 dwt dely Taichung 27/31 Dec 2 laden legs 1st leg
Indonesia/Hawaii redel Singapore-Japan rge $4750 daily - Cargill
'Coral Garnet' 2007 75500 dwt dely Japan 28 Dec/2 Jan trip via NoPac redel
Singapore-Japan rge $3200 daily - Louis Dreyfus
'Jupiter Applause' 1997 69123 dwt dely Fukuyama 22/24 Dec trip via Newcastle
redel China $3200 daily - STX Pan Ocean
'Gourniati' 1996 28387 dwt dely Antwerp spot trip redel Singapore-Japan $5000
daily - cnr
ORE
'Erradale' 1994 160000/10 Dampier/Xingang 10/20 Jan $4.75 fio scale/30000sc -
Noble Chartering -
'Premnitz' 1994 60000/10 Krishnapatnam/N.China 28 Dec/8 Jan $7.50 fio
20000sc/15000sc - Qinfa
COAL
'Iron Vassilis' 2006 70000/10 Norfolk & Mobile/Ternuezen & Ghent 5/10 Jan $9.50
fio 5 days shinc - Louis Dreyfus
Friday, December 19, 2008
Baltic Exchange Daily Summary of Baltic Exchange Dry Indices - 19 December 2008
Baltic Exchange Dry Index 818 (DOWN 11)
Baltic Exchange Capesize Index 1423 (DOWN 53)
Baltic Exchange Panamax Index 575 (UP 32)
Baltic Exchange Supramax Index 454 (DOWN 10)
Baltic Exchange Handysize Index 292 (DOWN 5)
Daily Summary of the Baltic Exchange Time Charter Routes
Rate($/Day) Change
BCI
Average of the T/C routes $9686 (DOWN 511)
BPI
Average of the T/C routes $4609 (UP 254)
BSI
Average of the T/C routes $4745 (DOWN 112)
BHSI
Average of the T/C routes $4284 (DOWN 56)
Baltic Exchange Capesize Index TM - 19 December 2008
Baltic Exchange Capesize Index 1423 (DOWN 53)
Rte
Num Description Weight Avg.
Move
====== =============================================== ====== ======
======
C2 160000lt Tubarao -Rotterdam 10 5.405
-0.177
C3 150000mt Tubarao - Beilun/Baoshan 15 9.550
-0.417
C4 150000mt Richards Bay - Rotterdam 5 6.405
-0.150
C5 150000mt W Australia - Beilun/Baoshan 15 5.723
-0.141
C7 150000mt Bolivar - Rotterdam 5 5.818
-0.146
C8_03 172000mt Gibraltar/Hamburg trans Atlantic RV 10 7400
-323
C9_03 172000mt Continent/Mediterranean trip Far East 5 12712
-626
C10_03 172000mt Pacific RV 20 12069
-758
C11_03 172000mt China/Japan trip Mediterranean/Cont 5 6563
-337
C12 150000mt Gladstone - Rotterdam 10 10.730
-0.190
Average of the T/C Routes 9686
-511
Baltic Exchange Panamax Index TM - 19 December 2008
Baltic Exchange Panamax Index 575 (UP 32)
Rte
Num Description Weight Avg. Move
====== ============================== ====== ==== ====
P1A_03 74000mt Transatlantic RV 25 4448 360
P2A_03 74000mt SKAW-GIB/FAR EAST 25 8214 446
P3A_03 74000mt Japan-SK/Pacific/RV 25 3148 123
P4_03 74000mt FAR EAST/NOPAC/SK-PASS 25 2628 90
Average of the T/C Routes 4609 254
Baltic Exchange Supramax Index TM - 19 December 2008
Baltic Exchange Supramax Index 454 (DOWN 10)
Rte
Num Description Weight Avg. Move
=== ================================== ====== ===== ====
S1A Antwerp - Skaw Trip Far East 12.5 5925 -119
S1B Canakkale Trip Far East 12.5 6160 -125
S2 Japan - SK / NOPAC or Australia rv 25 4036 -21
S3 Japan - SK Trip Gib - Skaw range 25 4026 -27
S4A US Gulf - Skaw-Passero 12.5 7319 -509
S4B Skaw-Passero - US Gulf 12.5 2431 -47
Average of the T/C Routes 4745 -112
The route(s) below do not form part of the index calculation
S5 W.Africa via ECSA to FarEast 0 5733 61
S6 Jpn-SK trip via Aus/India 0 4088 -42
S7 EC India - China 0 10238 -117
Baltic Exchange Handysize Index TM - 19 December 2008
Baltic Exchange Handysize Index 292 (DOWN 5)
Rte
Num Description Weight Avg.
Move
=== ================================================== ====== ====
====
HS1 Skaw - Passero trip Recalada - Rio de Janeiro 12.5 3314 -57
HS2 Skaw - Passero trip Boston / Galveston 12.5 3393 -57
HS3 Recalada / Rio de Janeiro trip Skaw / Passero. 12.5 6425
-142
HS4 US Gulf trip via US Gulf or NCSA to Skaw / Passero 12.5 5830
-190
HS5 SE Asia trip via Australia to S'pore / Japan 25 3863 7
HS6 S Korea / Japan via NOPAC to S'pore-Japan 25 3793 -7
Average of the T/C Routes 4284 -56
* TIME CHARTER FIXTURES - December 19, 2008
CAPE PIONEER 2005 170012 DWT TC
DEL HUNTERSTON, DEC 31/10 JAN, BAL PERIOD 10-12 MONTHS, REDEL WW
$20000 DAILY COSBULK
----------------------------------------------
AQUAFAITH 1997 KOREA LINE 167110 TCT
RELET DWT
DEL CAOFEIDIAN, DEC 22/25, TRIP VIA W.AUSTRALIA, REDEL CHINA
$11000 DAILY BRADE CARRIERS
FIXED MONDAY
----------------------------------------------
PREM VEENA 2007 DEIULEMAR RELET 82792 DWT
DEL HUNTERSTON, PPT, TRIP VIA ORINOCO, REDEL CHINA
$10000 DAILY BRADE CARRIERS
----------------------------------------------
ELLIVITA 1999 75522 DWT TC
DEL CAPE PASSERO, MID-JAN, 2 YRS OPT 3RD YR, REDEL WW
$13500 DAILY AND $17000 DAILY CNR
----------------------------------------------
CORAL GARNET 2007 75,500 DWT TCT
DEL FAR EAST, DEC 28-JAN 02, TRIP VIA NOPAC, REDEL EAST
$3,200 DAILY LOUIS DREYFUS
----------------------------------------------
RICHMOND 1995 75473 DWT TCT
DEL GIJON, DEC 27/30, TRIP VIA USEC, REDEL PRAIA MOLE-SANTOS
$3750 DAILY UNITED
----------------------------------------------
MARIGO P 2002 73810 DWT TCT
DEL SANTOS, JAN 4/8, TRIP, REDEL SINGAPORE-JAPAN RGE
$7250 DAILY + $220000 BB CARGILL
----------------------------------------------
FENG SHAN HAI 1995 69930 DWT TCT
DEL JAPAN, SPOT, TRIP EC AUSTRALIA, REDEL MALAYSIA
$5750 DAILY NOBLE
----------------------------------------------
NATALIE 1981 64,911 DWT TCT
DEL APS CASABLANCA, DEC 22-26, TRIP, REDEL INDIA
$5,000 DAILY CNR
----------------------------------------------
ANNITA 2005 53806 DWT TCT
DEL MAGDALLA, DEC 20/22, TRIP VIA WC INDIA, REDEL CHINA
$10500 DAILY MEDCHART
----------------------------------------------
AYSE AKSOY 1995 45694 DWT TCT
DEL MAWAN, END-DEC, TRIP VIA VIETNAM, REDEL SINGAPORE
$4000 DAILY SUNRISE
----------------------------------------------
ARISTEA M 1997 45584 DWT TCT
DEL SANTOS, DEC 22-27, TRIP, REDEL MED-BLK SEA OPT SPORE-JPN OPT
ADEN-COLOMBO
$8250 DAILY OPT $9250 DLY OPT $9500 DAILY CARGILL
----------------------------------------------
NAN HAI 1996 45,178 DWT TCT
DEL HOUSTON, DEC 20-25, TRIP, REDEL ECSA
$6,000 DAILY CNR
** DRY VOYAGE FIXTURES - December 19, 2008
========= COAL =======
HMM TBN 125000/10 COAL
NEWCASTLE TO DANGJIN, 9/19 JAN
$6.98 FIO SCALE/25000SC KEPCO
------------------------------------------------------
TBN 125,000 COAL
NEWCASTLE TO DANGJIN, JAN 9/19 FIO;SCLD/25000
6.98 FIO;SCLD/25000 KEPCO
------------------------------------------------------
DAIICHI TBN 70000/10 COAL
IBT TO MAUBAN, 2/9 JAN
$3.00 FIO 37000SC/25000SC CETRAGPA
------------------------------------------------------
TBN 70,000 COAL
INDONESIA TO MAUBAN, JAN 2/9 FIO;37000T/25000T
3.00 FIO;37000T/25000T CETRAGPA
------------------------------------------------------
DAIICHI TBN 54000/10 COAL
NEWCASTLE TO MAILIAO, 26/31 DEC
$8.25 FIO 20000SC/14000SC BCM
------------------------------------------------------
TBN 54,000 COAL
NEWCASTLE TO MAILIAO, DEC 26/31 FIO:20000T/14000T
8.25 FIO:20000T/14000T BCM
========= GRAIN =======
SPAR JADE 1985 25000/10 MAIZE GRAIN
PARANAGUA TO CASABLANCA, 5/15 JAN
$16.00 FIO 8000 SX/3000 SX CARGILL
------------------------------------------------------
IRON VASSILIS 2006 82,295 DWT B
NORFOLK-MOBILE RANGE TO TERNEUZEN-GHENT RANGE, DEC 24-28
70,000 TONS 10% COAL
$9.50 LOUIS DREYFUS
FIXED ON SUBJECTS
========= ORE =======
KASSOS WARRIOR 1986 GIUSEPPE 170000/10 ORE
BOTTIGLIERI RELET
PORT HEDLAND TO QINGDAO, 1/10 JAN
$4.80 FIO SCALE/30000SC NOBLE CHARTERING
RPTD 12/18: CORRECTS CARGOSIZE AND RATE
------------------------------------------------------
LEONIDAS WARRIOR 1987 GIUSEPPE 170000/10 ORE
BOTTIGLIERI RELET
PORT HEDLAND TO QINGDAO, 1/10 JAN
$5.20 FIO SCALE/30000SC RIZHAO STEEL
OceanConnect Daily Bunker Report - Friday, December 19, 2008
Northern Europe
______________________________________________________________
Falmouth - $8pmt min $4000 delivery charge
Port IF-380 IF-180 M.D.O. M.G.O.
Rotterdam (D) 197-200 -3 230-235 -9 410-415 -25 435-460
-25
Rotterdam LS (D) 225-230 -16 260.00
Antwerp (D) 195.00 -15 225.00 -15 430.00 +0 460.00
-15
Antwerp LS (D) 230.00 -10 260.00 -10
Hamburg (D) 208.00 -8 233.00 -8 432.00 -13 497.00
-6
Hamburg LS (D) 263.00 -10 288.00 -10
Gt. Belt (D) 231.00 -4 281.00 473.00 -7 518.00
-7
Gt. Belt LS (D) 281.00 -6 341.00 -6
Falmouth (W)
Falmouth LS (W)
Le Havre (W) 496.00
-9
D: metric ton including delivery costs.
W: metric ton excluding delivery costs.
Mediterranean
______________________________________________________________
Port Notices:
Las Palmas - prices subject inquiry
Istanbul - Tight avails
Augusta - No 180cst available
Port IF-380 IF-180 M.D.O. M.G.O.
FOS (W) 201.00 -9 226.00 -10 451.00
-14
Gibraltar (D) 220.00 -10 245.00 -10 470.00 -10 495.00
-10
Algeciras (D) 222.00 -10 247.00 -10 473.00 -9 498.00
-9
Malta (D) 240.00 -10 265.00 -10 499.00
-19
Augusta (W) 208.00 -10 495.00
-19
Genoa (W) 206.00 -10 230.00 -11 506.00
-19
Piraeus (D) 194-200 -6 215-225 -5 428-435
-12
Istanbul (W) 255.00 -15 280.00 -10 569.00
-21
Las Palmas (D)
D: metric ton including delivery costs.
W: metric ton excluding delivery costs.
Middle East & Africa
______________________________________________________________
Port Notices:
Suez - subject inquiries
Jeddah - Prices effective from 18th.
Dammam - Prices effective from 18th.
Durban - N/Q due to tight avails
Port IF-380 IF-180 M.D.O. M.G.O.
Durban (W)
Cape Town (W) 366.00 -4 545.00
-5
Fujairah (D) 235-237 -9 255-262 -9 670-675
-12
Jeddah (D) 245.00 +0 266.00 +0 800.00 +0
WEF 18/12
Damman (D) 246.00 +0 263.00 +0 697.00 +0
WEF 18/12
Suez (D) 285.00 +0 258.00 -7 995.00
+0
D: metric ton including delivery costs.
W: metric ton excluding delivery costs.
Far East & South Pacific
______________________________________________________________
Port Notices:
Korea - tight avails
Singapore - Earliest 28-29th 180cst very tight
Port IF-380 IF-180 M.D.O. M.G.O.
Singapore (D) 240-243 -12 258-263 -17 460-465
-10
Hong Kong (D) 239-243 -10 248-252 -20 510-520 -42
Japan (D) 280-285 -5 290-295 -5 570-580 +0
Korea (D) 305-310 +5 325-330 +5 535-545 -20
Taiwan (D) 259.00 -5 269.00 -5 535.00 +0 550.00
+0
D: metric ton including delivery costs.
W: metric ton excluding delivery costs.
Americas
______________________________________________________________
Outlook: All nominations made for deliveries at Brazilian Ports in a
period shorter than 72 hours from ETA (GTC minimum) will be subject to
different prices.
The indication for these prices will be available at the Daily Report,
described as "Prices for Prompt Delivery". These informations are only
indications and must be confirmed with the respective trader before
firm
nomination.
The prices stated for deliveries under this condition does not
garantee
availability nor cancel any "subject" status.
Port IF-380 IF-180 M.D.O. M.G.O.
New York (W) 218-222 -4 264-265 -8 549-550 -13 S.E.
Philadelphia (W) 215-222 -6 264-265 -8 549-550 -13 S.E.
Norfolk (W) 230-240 +0 270-275 -10 560-565 -5 S.E.
Houston (W) 230-237 -4 260-265 -9 500-505 -32 S.E.
New Orleans (W) 228-232 -8 250-255 -14 505-510 -12 S.E.
Los Angeles (W) 253-260 +4 275-280 +0 480-490 -10 S.E.
San Francisco(W) 250-255 +0 285-290 +0 540-550 +0 S.E.
Seattle (W) 265-270 +2 285-290 +0 575-585 +0 S.E.
Portland (W) 270-280 +5 300-310 +12 580-590 +0 S.E.
Panama (W) 249-250 -19 310-315 -7 760-800
D: metric ton including delivery costs.
W: metric ton excluding delivery costs.
Please note Americas indications are from the previous day close.
BRENT CRUDE (LIPE):
CLOSED (18/12/08) : USD 44.00(-1.53)
OPENED (19/12/08) : USD 44.44(+0.44)
Slight market fillip before the holidays, reports Baltic
London: The Baltic Exchange reports that Capesizes staged a recovery this week with the Brazilian producer Vale and the two major Australian producers BHP Billiton and Rio Tinto actively taking ships. "In the summer the pace of fixing seen this week would have seen rates soar - now it merely lifted the voyage rate West Australia/China to over $6.00 and around $10.00 from Brazil to China," it adds.
"There were some January cargoes covered, but as the holidays fast approach the pace slowed and rates have already begun to drift. Richards Bay trading was all but non-existent and once again the number of spot ships started to creep up in the east and once again appeared to be nearing 100. The limited period activity evident was still being done at rates significantly above spot with the 170,000-dwt Cape Pioneer 2005-built fixed for about 10 to 12 months trading with delivery Hunterston end December/January at $20,000 daily."
As regards Panamaxes, rates clawed their way up to numbers starting with $3,000 daily in the east, but the Baltic Exchange notes that "rates here too began to drift as owners/operators were keen for cover over the holiday period. The Indian market had been given some support, but the pressure has eased particularly as ships in southeast Asia give it their attention. There was some period fixing for periods of about a year this week but here too rates slipped with levels hovering around $11,000 daily or thereabouts for LMEs. Largely it remained the grain houses looking for this cover. A 75,000-tonner was rumoured booked this week for two years with Cape Passero delivery mid January at $13,500 daily with an option of a third year at $17,000 daily."
For Handy/Supramaxes it was also "another week of very slim pickings for owners with prompt tonnage finding life difficult in all areas." However, there were reports that a 2005 built 53,800 dwt unit had been booked for a trip from West Coast India to China at $10,500 daily, the Exchange notes. In the Pacific there was talk that Supermax tonnage had been booked with Japan delivery for a trip via Nopac back to EC India-Japan range at about $4,750 daily but this could not be confirmed. [19/12/08]