WEEKLY SHIPPING MARKET REPORT

Transcription

1 WEEKLY SHIPPING MARKET REPORT WEEK 27-2 nd July to 9 th July Legal Disclamer The information contained herein has been obtained by various sources. Although every effort has been made to ensure that this information is accurate, complete and up to date, Shiptrade Services S.A. does not accept any responsibility whatsoever for any loss or damage occasioned or claimed, upon reliance on the information, opinions and analysis contained in this report. Researched and compiled by: Shiptrade Services SA, Market Research on behalf of the Sale & Purchase, Dry Cargo Chartering and Tanker Chartering Departments. For any questions please contact: market-research@shiptrade.gr Shiptrade Services SA Tel snp@shiptrade.gr 1st Floor, 110/112 Notara Street Fax chartering@shiptrade.gr Piraeus, Greece tankerchartering@shiptrade.gr

2 Shipping, Commodities & Financial News EUROPE THERMAL COAL: Market slips, CIF ARA Sept trades $88.75/mt Prompt thermal coal delivered into northwest Europe traded back below $90/mt early Tuesday, as oversupply continues to dominate the CIF ARA market. A 50,000 mt September DES Amsterdam-Rotterdam generic cargo with exchange of futures for physical terms attached was given at $88.75/mt on the globalcoal trading platform, 75 cents below overnight levels. The last reported spot CIF ARA transaction, also for September, was done Friday at $90.25/mt. A northern European utility source said he believed European prices had bottomed out at just under $85/mt last month, and attributed the recent firming to over $90/mt to a run of short-covering. "The market has been yo-yoing back and forth between $84.50 and $90," he said, adding that he expected more rangebound trading to come. Stock levels at the OBA coal discharge terminal in Amsterdam are around 2.3 million mt, slightly down from 2.4 million mt a week earlier, according to a source close to the terminal. Traders said that despite healthy coal consumption in Europe, strong supply from the US and Colombia has dampened spot prices. The utility source said that although the falling prices may be cutting supplies from the US East Coast, the reduction in exports would be gradual and unlikely to cause any spike in prices. (Platts) Coal prices tumble as supplies pile up The price of 5,500-kilocalorie thermal coal in the Bohai Economic Rim - the manufacturing and industrial zone between Tianjin and Beijing - has fallen for the ninth straight week to a record low of 676 yuan ($106) per ton as of June 4. Due to sluggish demand and growing stockpiles, the price of 5,500-kilocalorie thermal coal will probably drop further to 600 yuan per ton, said Zhang Zhibin, a coal analyst. Demand for coal will remain weak due to overcapacity in downstream industries, such as the steel sector, explained Zhang. On July 1, coal stocks in Qinhuangdao, one of China's major coal ports, reached 8.57 million tons, above the normal level of 5 million tons. (China Mining) Shipping line to boost East Africa trade Evergreen Shipping Line the fourth largest shipping company worldwide plans to acquire new vessels to boost its operations In East Africa. According to the chairman of Gulf Badr group of companies an agent of the Evergreen Shipping Line Bahaa Badr, the company has ordered 30 new vessels to serve at the East African ports. He that out of the 30 vessels, 15 will directly serve East Africa from Mediterranean while the other 15 will serve the region indirectly Our business has been growing and we intend to increase and boost our business by acquiring new fleets that will be serving East Africa directly and indirectly which will also involve the port of Mombasa said Bahaa. Speaking during their visit in Mombasa together with the president of the Company s Singapore line, the chairman said he is optimistic that the company will greatly contribute towards the shipping business in the region particularly Kenya. The chairman noted that there is a great progress in the country s shipping sector applauding the government s efforts in ensuring that foreign investors carry out their business in a peaceful environment. (The Star) Total takes operatorship of Xerelete block in Brazil Total announces that it has become operator of the offshore Xerelete concession located in a promising area of Brazil s Campos basin. The transfer of operatorship from Petrobras to Total follows a unanimous decision by the Xerelete partners and approval by the Brazilian authorities. Total and Petrobras each hold a 41.2% interest in the concession, while BP holds the remaining 17.6 %. Total is looking forward to bringing its worldwide expertise in ultradeep offshore operations to Brazil, said Ladislas Paszkiewicz, Senior Vice President for Exploration & Production Americas. Our decision to assume operatorship of Xerelete is part of the Group s strategy to strengthen its exploration and production activities in Brazil. It demonstrates our willingness to expand our presence in the country. The Xerelete field, located around 250 kilometers off the coast of Rio de Janeiro, was discovered in 2001 in water depths of 2,400 meters and contains relatively heavy oil (17 to 20 API). A pre-salt prospect has also been identified below the Xerelete structure, which lies around 40 kilometers west of the recently announced Pão de Açucar discovery. Total plans to start drilling activities in In addition to its participation in Xerelete, Total holds a 20 % interest in Block BM-S- 54, where the Gato do Mato discovery is being appraised. (Total) Crude Oil to gain but still remain range bound Crude Oil prices have shown positive trends in early trade this week after falling last week on weak PMI data and US jobs report. However, concerns about global economic recovery continue to impact Oil prices negatively, analysts said. The failure of labor unions and companies in Norway to reach an agreement poses threat to supplies and hence supportive of prices. The easing of interest rates in China and by European Central Bank (ECB) is supportive of market growth and hence raise Oil demand. From the intra-day perspective, we expect crude oil prices to trade with a sideways bias on the back of negative global market sentiments coupled with stronger DX. While on the other hand negotiations have failed between the platform workers and management in the Norway and workers will continue their strike along with supply concerns from Iran, according to Angel Commodities. In early trade on Monday, WTI Crude Oil has gained $0.45 to $84.9 per barrel. HY Markets pointed out that stochastics and Relative Strength Index (RSI) remain bullish signaling sideways to higher prices are possible near term. Support levels for WTI Crude Oil are $83.30, $82.14, $80.26 a barrel while resistance is seen at $86.34, $88.22 and $ (Commodity Online) 1

3 Dry Bulk - Chartering In Brief: Better week for Capes Capes: Finally a notable increase in rates this week. The upward trend was reflected on the BCI which closed at 1493 points improving notably by 338 points as well as on the average of the 4 TC routes which surged by over USD 3,500 closing at USD 7,904. The Atlantic basin saw a significant improvement in rates with new coal requirements ex USEC leading the market. In this respect, the fronthaul trade closed at USD 26,750 reporting a raise of USD 7,250 whereas transantlantic round trips ended up at USD 7,250 improving by USD 2,750. The same positive sentiment in the Pacific trade with the round trips closing at USD 8,000, noted a rise of USD 3,250. Australian iron ore trade kept playing a determinant role and being the main reason of this upward trend. Period activity fixed at over USD 10,000 levels for one year. Panamax: Upward steady movement continues. Considering the existence of more spot fresh cargo orders in the Atlantic region, the rates tend to be a bit higher than last week giving a hint of optimism in the market. Transatlantic rounds closed at about USD 10,000 levels and front hauls at USD 18,000. There were some ECSA/CONT fixtures at USD 11,000 + about 300K BB, whilst USG trips to Continent were mostly seen closing at USD 9,000 levels + 300K BB. In the Pacific region the scene was also quite positive. NOPAC and AUSSIE rounds this week closed at USD 8,000 respectfully increased than last week. Additionally, we saw some ECSA rounds closing at USD 10,000 basis delivery Singapore. In the short period market, the fixture levels were also increased closing to USD 8,000 for 3/6 months Supramax: A rather quite week in for both regions. Having the US National Holiday this week, the market was steady slow. Trips from USG to Med/Continent were fixed at USD mid/high 20 s whilst fronthauls were fixed at USD 30,000. Trips from West Africa to Continent/Med were done at USD mid teens basis delivery West Africa and there were also some fixtures from Continent/Med to ECSA and USG at the area of USD 8,000. Fronthauls from Continent were seen closing at about USD 24,000. The scene in the Pacific Basin relatively slow with most Indonesian and NOPAC rounds closing at USD 8,000 basis delivery China, and some closing at USD 9,000 basis delivery Japan. Indonesian coal trips to India were fixed at USD 8,000 whilst those from ECI to China were closed at USD 5,000 levels. As far as short period market is concerned fixtures were seen at the area of USD 10,500. Handysize: Stability for 2nd week For one more weeks rates remained at the same, low, levels and the index kept falling marginally throughout the week. The transatlantic round was fixed at around USD 11,500 levels, with charterers not putting too many fresh orders out. Black Sea/East Med orders to USG were still paying USD 6/6,500 basis aps Canakkale. West and South Africa produced some orders to Med and Far East giving a, low paying indeed, alternative to ballasters. Pacific continued suffering from lack of cargoes and over supply of vessels, especially in the North China range, with the round trip paying around USD 7,500 levels. Owners gateway to Atlantic, the bagged rice to West Africa did not firm up during the week leaving them with few options. ECI produced some orders, on low rates though, mainly for owners to reposition their vessels. Periods remained at a discouraging average of USD 7,500 2

4 Dry Bulk - Chartering Baltic Indices Dry Market (*Friday s closing values) Index Week 27 Week 26 Change (%) BDI ,24 BCI ,46 BPI ,74 BSI ,10 BHSI ,83 T/C Rates (1 yr - $/day) Type Size Week 27 Week 26 Change (%) Capesize 160 / 175, ,56 Panamax 72 / 76, ,56 Supramax 52 / 57, ,83 Handysize 30 / 35, ,23 Average Spot Rates Type Size Route Week 27 Week 26 Change % Capesize 160 / 175,000 Panamax 72 / 76,000 Supramax 52 / 57,000 Handysize 30 / 35,000 Far East ATL Cont/Med Far East ,18 Far East RV ,42 TransAtlantic RV ,11 Far East ATL ATL / Far East ,46 Pacific RV ,52 TransAtlantic RV ,18 Far East ATL ,67 ATL / Far East ,08 Pacific RV ,12 TransAtlantic RV ,52 Far East ATL ,88 ATL / Far East ,37 Pacific RV ,45 TransAtlantic RV ,13 3

5 Dry Bulk - Chartering ANNUAL MAY 2012 JULY

6 Dry Bulk - Chartering Capesize Routes Atlantic 2011 / 12 $40.000,00 $35.000,00 $30.000,00 $25.000,00 $20.000,00 $15.000,00 $10.000,00 $5.000,00 $0, C2 TUB / ROT C4 RBAY / ROT C7 BOL / ROT C8 T/A RV AVG ALL TC Capesize Routes Pacific 2011 / 12 $60.000,00 $50.000,00 $40.000,00 $30.000,00 $20.000,00 $10.000,00 C3 TUB / PRC C5 W AUST / PRC C9 CONT / FE C10 FE R/V $0, Panamax Routes Atlantic 2011 / P1A T/A RV P2A CONT/FE

7 Dry Bulk - Chartering Panamax Routes Pacific 2011 /12 $20.000,00 $15.000,00 P3A FE R/V $10.000,00 P4 FE/CON $5.000,00 AVG ALL TC $0, $5.000,00 Supramax Routes Atlantic 2011 / S1A CON / FE S1B BSEA / FE S4A USG / CONT S4B CONT / USG S5 WAFR / FE Supramax Routes Pacific 2011 / 12 $20.000,00 $18.000,00 $16.000,00 $14.000,00 $12.000,00 $10.000,00 $8.000,00 $6.000,00 $4.000,00 $2.000,00 $0, S2 FE R/V S3 FE / CON S6 FE / INDI S7 ECI / CHI AVG ALL TC 6

8 Tanker - Chartering VLCC: This week continued with limited inquiries in the Middle East market resulting in further decreasing rates. Singapore and Japan routes lost about 6 points concluding at WS 36.5 with the AG USG route correcting even further to WS 25. Some Owners resulted ballasting towards the Atlantic in order to reduce idle time. Suezmax: Rates in the WAFR USAC route remained the same this week, with nothing implying any change for the weeks opening. Aframax: Caribbean Aframax rates remained the same with all interested parties fighting to increase their earnings. The CBS USG route rates remained the same as last week at WS 95. Panamax: The market lost a further 5 points due to overcapacity on CBS-USAC route. Products: Caribbean market remained the same at WS 110, while increased demand in the USG increased slightly to WS In Europe the market declined further with the CONT-TA route losing further 7,5 points and owners considering to reposition their vessels to the USG in view of increasing demand. Baltic Indices Wet Market (*Friday s closing values) Index Week 27 Week 26 Change (%) BCTI ,79 BDTI ,11 T/C Rates (1 yr - $/day) Type Size Week 27 Week 26 Change (%) VLCC ,000 23,500-2,13 Suezmax ,750 16,500 1,52 Aframax ,500 13,500 0,00 Panamax ,750 13,500-5,56 MR ,750 14,000-1,79 7

9 Tanker - Chartering Crude Tanker Average Spot Rates Type Size (Dwt) Route Week 27 WS Week 26 WS Change % 280,000 AG USG ,67 VLCC 260,000 W.AFR USG 42,5 43-1,16 260,000 AG East / Japan 36, ,10 Suezmax 135,000 B.Sea Med ,14 130,000 WAF USAC 65 65,5-0,76 80,000 Med Med 107, ,16 Aframax 80,000 N. Sea UKC ,00 80,000 AG East ,59 70,000 Caribs USG 95 95,5-0,52 Product Tanker Average Spot Rates Type Size (Dwt) Route Week 27 WS Week 26 WS Change % 75,000 AG Japan ,59 Clean 55,000 AG Japan ,42 38,000 Caribs USAC ,35 37,000 Cont TA 92, ,91 Dirty 55,000 Cont TA ,5-10,20 50,000 Caribs USAC ,00 8

10 Tanker - Chartering VLCC Trading Routes 2011 / 12 Suezmax Trading Routes 2011 / 12 Aframax Trading Routes 2011 / 12 9

11 Tanker - Chartering Clean Trading Routes 2011 / 12 Dirty Trading Routes 2011 / 12 10

12 Sale & Purchase Positive trend? In view of the present market which is enjoying a positive trend mostly because of July cargoes, which always increase activity, we have seen quite a few vessels reported sold and some others to fail in the dry sector. We have witnessed a lot of buyers inspecting Handymaxes and Panamaxes both modern and nineties built with Greeks dominating the market. We are waiting to see what price levels will be reached in the next days; while there has been increased activity for Capes lately. Also noteworthy is the purchase of two modern supramaxes by clients of Navios maritime. In the tanker sector the activity was reduced with a single notable sale of an Aframax tanker. Shiptrades enquiry Index continues to show increased interest for nineties built Handymaxes and Panamaxes, followed by Handysize built from late nineties upto modern, and we also noticed some interest for late nineties capes, as in this size interest for modern and resale tonnages is always increased. Regarding tankers interest for MR s continues, however nineties built Aframaxes and VLCC s have seen slightly increased interest, especially from Far Eastern buyers. Aframax Champion Power ( dwt built Samsung, Korea 1999) has been committed by clients of Bakri Navigation for USD 12 million. While we are expecting to hear of the offering levels for M/V Maritime Cuate ( dwt blt japan 02) for which offers where invited by today. The similar last done was M/V Violet ( dwt built Kawasaki Japan 01) which was committed less than a month ago to Greek buyers at USD mid 15 million. Market information suggests that the sale of handymax bulker Amber K dwt built Oshima Japan 2000) was not concluded. NEWBUILDINGS In the newbuilding market, we have seen 40 vessels reported to have been contracted. 8 Tankers (MR) 18 Bulk carriers (Handysize, Kamsarmax, Capesize) 8 Container (1.100 TEU) 6 Gas tankers (LNG, LPG) DEMOLITION Bangladesh buyers continue offering for various vessels at present levels trying to ease their previous exposion at higher levels. Indian market is facing new difficulties after their supreme court decision to ban importing vessels with hazardous materials, as they will need to be cleaned prior entering any Indian scrapyard. Pakistan did not show any movement in the previous week. Chinese market remained stable. 11

13 Sale & Purchase Indicative Market Values ( 5 yrs old / Mill $ ) Bulk Carriers Week 27 Week 26 Change % Capesize Panamax Supramax Handysize Tankers VLCC Suezmax Aframax Panamax MR Weekly Purchase Enquiries SHIPTRADE P/E WEEKLY INDEX KOREA CHINA SPORE KCS GREECE OTHER SUM Series8 Series9 Series10 Series11 Series12 Series13 Series /3/ /3/ /03/ /03/ /03-4/4/2011 5/4/-11/4/ /4/ /4/ /4-2/5/ /5/ /5/ /5/ /5/ /5-6/6/ /6/ /6/ /6/ /6-4/7/ /7/ /7/ /7/ /7-1/8/ /8/ /8/ /8/ /8/ /8-05/9/ /9/ /9/ /9/ /9-3/10/ /10/ /10/ /10/ /10/ /11/ /11/ /11/ /11/ /11-5/12/ /12/ /12/ /12/ /12/2011-9/1/ /1/ /1/ /1/ /1-6/2/ /2/ /02/ /02/ /2-5/03/ /03/ /03/ /03/ /3-2/4/ /4/ /4/ /4/ /4-1/5/ /5/ /5/ /5/ /5/ /5-5/6/ /6/ /6/ /6/ /6-3/7/2012 4/7-10/7/

14 Sale & Purchase Reported Second-hand Sales Bulk Carriers Name Dwt DoB Yard SS Engine Gear Price Buyer Christina Bulker Hanjinh, KOR 01/2016 B&W - 38 mill Golden Union Shining Star Mitsui, JPN 06/2014 B&W mill Swissmarine Prisco Udokan STX-Jinhae, KOR 09/2014 B&W 4 X 30 T 21 mill Prisco Abakan STX-Jinhae, KOR 09/2014 B&W 4 X 30 T Each En Bloc Ken Ann Maru Onomichi, JPN 07/2012 MIT 4 X 30 T 8.3 mill Undisclosed Tankers Name Dwt DoB Yard SS Engine Hull Price Buyer Champion Power Samsung, KOR 02/2014 B&W DH 12 mill Bakri Navigation Navios 13

15 Newbuildings Newbuilding Orders No Type Dwt / Unit Yard Delivery Owner Price 4 BC Dalian 2014 SwissMarine 44 mill 2 BC Jiangnan 2014 Sincere Navigation 27 mill BC Weihai 2013 Oldendorff BC Guangzhou 2014/2015 Seaboard Marine Tanker Guangzhou 2014 Stenabulk + Concordia 40 mill Container Jiangnan 2014 Shanghai Jingjang 17.3 mill LNG STX 2015 Alpha Tankers & Freighters 200 mill LPG HHI 2013 Negmar Denizcilik 50 mill Newbuilding Prices (Mill $) Japanese/ S. Korean Yards Newbuilding Resale Prices Bulk Carriers Capesize Panamax Supramax Handysize Tankers VLCC Suezmax Aframax Panamax MR Newbuilding Resale Prices Bulk Carriers (2008 Today) Tankers (2008 Today) 14

16 Demolitions Demolition Sales Vessel Type Built Dwt Ldt Buyer Country Price Primula Tanker China 360 Shagang Sunrise BC China 355 Stellar Fortune BC China 355 Demolition Prices ($ / Ldt) Bangladesh China India Pakistan Dry Wet Demolition Prices Bulk Carriers (2008 Today) Tankers (2008 Today) 15

17 Financial Market Data Shipping Stocks Dry Bulk Company Stock Exchange Week 27 Week 26 Change % Baltic Trading Ltd (BALT) NYSE 3,60 3,44 4,65 Diana Shipping Inc (DSX) NASDAQ 7,73 7,78-0,64 Dryships Inc (DRYS) NASDAQ 2,46 2,19 12,33 Euroseas Ltd (ESEA) NASDAQ 1,24 1,18 5,08 Excel Maritime Carriers (EXM) NYSE 0,56 0,56 0,00 Eagle Bulk Shipping Inc (EGLE) NASDAQ 3,34 3,16 5,70 Freeseas Inc (FREESE) NASDAQ 0,66 0,73-9,59 Genco Shipping (GNK) NYSE 3,47 3,05 13,77 Navios Maritime (NM) NYSE 3,42 3,32 3,01 Navios Maritime PTN (NMM) NYSE 13,74 13,59 1,10 Paragon Shipping Inc (PRGN) NASDAQ 0,55 0,54 1,85 Star Bulk Carriers Corp (SBLK) NASDAQ 0,77 0,72 6,94 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 2,17 2,07 4,83 Safe Bulkers Inc (SB) NYSE 6,27 6,17 1,62 Golden Ocean (GOGL) Oslo Bors (NOK) 4,03 3,87 4,13 Tankers Capital Product Partners LP (CPLP) NASDAQ 7,82 7,56 3,44 TOP Ships Inc (TOPS) NASDAQ 1,84 1,68 9,52 Tsakos Energy Navigation (TNP) NYSE 5,65 4,87 16,02 Other Aegean Maritime Petrol (ANW) NYSE 5,54 5,35 3,55 Danaos Corporation (DAC) NYSE 4,03 4,15-2,89 StealthGas Inc (GASS) NASDAQ 5,88 5,81 1,20 Rio Tinto (RIO) NYSE 48,09 47,81 0,59 Vale (VALE) NYSE 19,91 19,85 0,30 ADM Archer Daniels Midland (ADM) NYSE 28,42 29,52-3,73 BHP Billiton (BHP) NYSE 65,00 65,30-0,46 Commodities Commodity Week 27 Week 26 Change (%) Brent Crude (BZ) 98,80 100,65-1,84 Natural Gas (NG) 2,80 2,85-1,75 Gold (GC) ,04 Copper (LME) 3,43 3,47-1,15 Wheat (W) 332,34 306,44 8,45 16

18 Financial Market Data / Bunker Prices / Port Congestion Currencies Week 27 Week 26 Change (%) EUR / USD 1,24 1,26-1,59 USD / JPY 80,01 79,79 0,28 USD / KRW ,44 USD / NOK 6,13 5,95 3,03 Bunker Prices IFO 380 IFO 180 MGO Piraeus Fujairah Singapore Rotterdam Houston Port Congestion* Port No of Vessels China Rizhao 22 Lianyungang 40 Qingdao 74 Zhanjiang 34 Yantai 27 India Chennai 3 Haldia 18 New Mangalore 10 Kakinada 11 Krishnapatnam 15 Mormugao 6 Kandla 51 Mundra 8 Paradip 14 Vizag 85 South America River Plate 351 Paranagua 82 Praia Mole 18 * The information above exhibits the number of vessels, of various types and sizes, that are at berth, awaiting anchorage, at anchorage, working, loading or expected to arrive in various ports of China, India and South America during Week 27 of year