WEEKLY SHIPPING MARKET REPORT

Transcription

1 WEEKLY SHIPPING MARKET REPORT WEEK 8-20 th February to 24 th February 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 RBCT coal terminal expansion to 100 million tonne likely Major South African coal producers that own shares in the Richards Bay Coal Terminal may invest to expand the terminal to handle up to 100 million tonnes of coal a year. Mr Mxolisi Mgojo head of Exxaro's coal unit said that coal miners had been surprised by the improved rate at which logistics group Transnet transported their coal via rail to the port in the second half of last year. While Transnet's volumes are still below the terminal's annual capacity of 91 million tonnes, the transport group has been quickly catching up. Mr Mgojo said that "The pressure is back on us as RBCT shareholders to say, beyond 91 million tonnes what can we do? We need to get to at least 100 million tonnes. He said the expansion would depend on the timing of Transnet's upgrades on the coal export line. For years miners had blamed Transnet for failing to improve much-needed infrastructure, but the group has put money into new wagons and locomotives and plans to build a line via Swaziland, which would ease congestion on the main coal export line and raise capacity to close to 100 million tonnes. Exxaro, South Africa's second-largest coal producer and a big supplier to power utility Eskom, exported 4.9 million tonnes of coal last year and expects to ship 5 million in Mr Mgojo said there was more focus than ever on developing the Waterberg coal fields, seen as the next major coal hub as reserves in the Witbank area near depletion. This is after the government highlighted the project as one of its economic priorities along with the need to secure coal supplies for South African power plants, now supplying 85% of the electricity powering Africa's biggest economy. Exxaro also said it planned to more than double its capital expansion this year to ZAR billion (USD 1.4 billion) as it seeks to diversify into other commodities such as iron ore. (Reuters) Chinese copper concentrate imports in 2012 seen up by10pct China's imports of copper concentrate are expected to rise by about 10% in 2012 on strong smelter demand, curbing end users' appetite for overseas purchases of the refined metal. Mr Yang Changhua senior analyst at state backed research firm Antaike said that concentrate imports would rise to an average of about 580,000 tonnes per month this year compared to 531,000 tonnes per month in (Reuters) Oil-Tanker Returns Slide for Third Day as Ship Surplus Persists Returns for the largest oil tankers hauling Middle East crude to Asia fell for a third session as a surplus of ships persisted and fuel prices rose. Daily income for very large crude carriers on the benchmark Saudi Arabia-to-Japan route slid 1.6 percent to $13,929, according to figures from the London-based Baltic Exchange today. That pared the gain from the start of the year to 13 percent. Each VLCC can hold 2 million barrels of oil. The number of ships available to load cargoes in the Persian Gulf over the next four weeks was unchanged, according to Kevin Sy, a Singapore-based freight-derivatives broker at Marex Spectron Group. Fuel (BUNKI380) prices, vessel owners main expense, are at the highest level since at least October 2008, figures collected by Bloomberg from 25 ports worldwide show. Despite more action at the end of the week, there were also more ships added to the 4-week list, hence the unchanged count, Sy said in a report. There are 22 tankers available until March 10 and 37 more until March 20, it showed. The exchange s assessments of shipowners earnings don t reflect speed cuts aimed at reducing fuel costs. Owners can curb those expenses, boosting returns, by slowing ships on return journeys after unloading cargoes. Fuel prices rose for an eighth session in a row today to $ a metric ton. Hire costs for VLCCs on the benchmark voyage gained 0.5 percent to industry-standard Worldscale points, according to the exchange. That was the biggest advance since Feb. 16, the data showed. Worldscale points are a percentage of a nominal rate, or flat rate, for more than 320,000 specific routes. Flat rates for every voyage, quoted in U.S. dollars a ton, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates. The Baltic Dirty Tanker Index, a broader measure of oilshipping costs that includes vessels smaller than VLCCs, declined 0.3 percent to 796, the lowest level since Feb. 14. (Bloomberg) 1

3 Dry Bulk - Chartering In Brief: Market had some positive signs on certain routes but in general the sentiment was not positive with the BDI increasing only one point to 718. Capes: A better week for the capes with rates slightly rising The market moved upwards due to more cargo volume with the average of the four T/C Routes closing at USD 5,996, a USD 413 increase. The T/A round remained at below USD 5,000 levels as there are still plenty of vessels available at the region while only the fronthaul trips showed some movement with rates rising up a bit. In the Pacific, Australian majors are still able to fix tonnage at USD on t/c equivalent as owners have already been spot for many days waiting for some better rates and resisting fixing so low. If owners persist on holding this attitude the cheap tonnage will disappear pushing charterers to fix at higher levels reaching the USD 8.00 mark. On the period side rates remained at same levels around USD 12,500. Panamax: The market had another week with declining rates Over supply of tonnage (there are approximately 2,5 Pmx vessels per cargo) has resulted in another slow week with ballasters making the situation even worse. The Transatlantic has been trading at USD 5,000 levels, declining about USD 2,000 than last week. Most spot vessels appeared at the Continent where the lack of cargoes pushed the rates downwards. The front haul was fixed at around USD 15,000, a USD 2,500 fall from last week. On the Pacific, the market showed some more positive sentiment with NOPAC rounds being fixed at better levels than last week around low USD 8,000 while Indonesian rounds were at stable levels of USD 7,500. Market saw some movement on short period with the average rates to conclude at USD Supramax: Another week with low rates but with some more fixtures Atlantic was relatively stable with physical market keeping same levels than last week and indices slightly dropping. The Transatlantic round was being fixed at around USD 10,000 levels with ex USG trips holding up while Continent and Med were short of cargoes, even fertilizers and scrap, and very low on rates. The fronthaul trips ex USG were paying upper teens while ex ECSA low teens and bb. In the Pacific we saw another positive week mainly due to the increased volume of Indonesian nickel ore. Owners avoided the back haul trips since Atlantic is not in good mood and preferred to take short duration trips to SEASIA/CHINA range for low/mid teens while NOPAC round was fixed at USD 8,500. The most problematic area was West Coast of India with iron ore running low and few trips to china being done at USD 10,000. Owners were reluctant to fix their vessels on period for less than 5 digits levels which could not be met by charterers. Handysize: Once more the week followed a stable but low rate pattern In the Atlantic, over supply of tonnage remained and low cargo volume, as the ECSA season is not there yet, continued to generate low levels for the vessels competing. The negative sentiment kept on with the TA round ending up slightly better than last week at USD 5,000. Trips ex MED to USG remained at extremely low levels, even without hire on some occasions, while the front haul trips were paying around USD 12,500. In spite that fact most owners insisted to keep their vessels trading in Atlantic as the back haul trips remained at zero up to USD paying levels. In the pacific we saw some movement mainly on the nickel ore side and the sulphur ex Iran to Far East. The round trip was at USD 4,000 and the sentiment is negative for the upcoming week as well. Vessels open at PG and India continued to suffer with most movement and somehow better rates to be seen for trips with sulphur ex Iran to China. At East Coast of India there was massacre with very few orders, many open vessels resulting to exceptionally low numbers. Period levels were around USD 9,000 with owners refraining from fixing. 2

4 Dry Bulk - Chartering Baltic Indices Dry Market (*Friday s closing values) Index Week 8 Week 7 Change (%) BDI ,14 BCI ,94 BPI ,91 BSI ,28 BHSI ,22 T/C Rates (1 yr - $/day) Type Size Week 8 Week 7 Change (%) Capesize 160 / 175, ,41 Panamax 72 / 76, ,22 Supramax 52 / 57, ,20 Handysize 30 / 35, ,00 Average Spot Rates Type Size Route Week 8 Week 7 Change % Capesize 160 / 175,000 Panamax 72 / 76,000 Supramax 52 / 57,000 Handysize 30 / 35,000 Far East ATL Cont/Med Far East ,67 Far East RV ,15 TransAtlantic RV ,17 Far East ATL ATL / Far East ,33 Pacific RV ,58 TransAtlantic RV ,16 Far East ATL ,00 ATL / Far East ,54 Pacific RV ,00 TransAtlantic RV ,67 Far East ATL ,70 ATL / Far East ,80 Pacific RV ,00 TransAtlantic RV ,25 3

5 Dry Bulk - Chartering ANNUAL DECEMBER 2011 FEBRUARY

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: The Eastern market monopolized interest in the MEG as all 13 fresh cargoes headed there. 11 were bound for Far East whilt 2 were for India. There was a slight increase in rates w/w ending at WS 53,79. On the other hand, rates in the AG-USG route eased to WS 33. The Atlantic market had 10 new fixtures all of which eastbound as well. Rates on the latter increased to WS 57,5. Trans-Atlantic business was not so active mainly to the preference of Suezmaxes over VLCC. Suezmax: On the Suezmax front, the WAFR - USAC activity remained the same as last week with rates being in the region of WS 80 same as last week. Suezmaxes were preferred over VLCC for USG bound cargoes whilst in the BSEA MED route rates declined to WS 80. Aframax: The Caribbean Aframax experienced a negative week with rates falling to WS 125. Activity was declined further while weather delays did not prove enough to keep higher rates. Higher bunker prices are likely to push rates upward by putting more pressure on owners. Products: In the panamax sector on the CBS USAC benchmark route rates had an upward trend closing the week at WS 145. As MR tonnages are concerned, activity in the CBS- USAC route is limited in contrast to ex-usg cargoes which provide better returns, the latter rising at WS 90. Owners are pushing for better rates mainly due to higher bunker prices. On the other hand, the European market grew by 15 point to WS Baltic Indices Wet Market (*Friday s closing values) Index Week 8 Week 7 Change (%) BCTI ,12 BDTI ,21 T/C Rates (1 yr - $/day) Type Size Week 8 Week 7 Change (%) VLCC ,00 Suezmax ,00 Aframax ,00 Panamax ,00 MR ,00 7

9 Tanker - Chartering Crude Tanker Average Spot Rates Type Size (Dwt) Route Week 8 WS Week 7 WS Change % 280,000 AG USG ,03 VLCC 260,000 W.AFR USG 57,5 60-4,17 260,000 AG East / Japan ,24 Suezmax 135,000 B.Sea Med ,50 130,000 WAF USAC 80 77,5 3,23 80,000 Med Med ,25 Aframax 80,000 N. Sea UKC 87,5 87,5 0,00 80,000 AG East ,00 70,000 Caribs USG ,69 Product Tanker Average Spot Rates Type Size (Dwt) Route Week 8 WS Week 7 WS Change % 75,000 AG Japan ,00 Clean 55,000 AG Japan ,00 38,000 Caribs USAC ,09 37,000 Cont TA ,67 Dirty 55,000 Cont TA ,00 50,000 Caribs USAC ,00 8

10 Tanker - Chartering VLCC Trading Routes 2011 / AG - USG WAFR - USG AG EAST JAPAN Suezmax Trading Routes 2011 / B. SEA - MED WAF - USAC Aframax Trading Routes 2011 / MED - MED N.SEA - UKC AG - EAST CARIBS USG

11 Clean Trading Routes 2011 / AG - JAPAN (75,000) AG - JAPAN (55,000) CARIBS - USAC (38,000) 50 CONT - TA (37,000) Dirty Trading Routes 2011 / CONT - TA (55,000) 100 CARIBS - USAC (50,000)

12 Sale & Purchase Buying interest increases Increased activity this week for the SNP market especially in the dry sector were a handful of handies changed hands. Prices continue to be fragile, reaching new lows and wondering where the bottom may be. A number of owners considering selling their tonnages are now starting to hold their horses instead of facing current values. In Shiptrade s enquiry index Handymaxes and Panamaxes were the main focus in the dry sector. In the tanker activity was very low with MR monopolizing buying interest. Japanese owners M/V Mineral Star (76,286 DWT built in 2005 in Tsuneishi, JPN) is reported sold to Greek buyers for USD 21,6 Mill. M/V Ken Ann Maru (32,115 DWT built in 1997 in Onomichi, JPN) was reported sold for USD 9,6 Mill to Greek buyers. The price is a new low for the sector, which so far was less fluctuative. Greek buyers are also reported to be behind the acquisition of M/V Diamond Glory (28,515 DWT built in 1997 in Tsuneishi, JPN) for USD 9, 1 Mill. The vessel was reported sold in the beginning of the year for USD 10,5 Mil.. In the tanker sector the most significant fixation was that of stainless steel chemical tanker M/T Oak Galaxy (19,997 DWT built in 2005 in Shin Kurushima, JPN) which was reported sold for USD 19 Mill to Singaporean buyers. NEWBUILDNGS In the newbuilding market, we have seen 6 vessels reported to have been contracted. 6 Bulk Carriers (Kamsarmax & Capesize) DEMOLITION The market in Bangladesh continues to be weak with only a few buyers having the ability to acquire LC s. In India buyers are being picky with the oversupply of tonnage for demolition not leaving any space for improvement in prices. Pakistan has availability and ability to purchase tonnage, especially tankers with some VLCC s being committed by the end of the week. The Chinese market had absorbed a fair share of tonnage, although many Chinese owners negotiated directly with the yards. 11

13 Sale & Purchase Indicative Market Values ( 5 yrs old / Mill $ ) Bulk Carriers Week 8 Week 7 Change % Capesize Panamax ,92 Supramax ,00 Handysize ,50 Tankers VLCC Suezmax Aframax Panamax MR Weekly Purchase Enquiries /12-3/ /1-10/1/ /1-17/1/ /1-24/1/ /1/ /2/ /2/ /2/ /2/ /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/ /7/2011 SHIPTRADE P/E WEEKLY INDEX 26/7-1/8/ /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/ /1/2012 Korea China Spore KCS Greece Other Sum 24-30/1/ /1-6/2/ /2/ /02/ /02/

14 Sale & Purchase Reported Second-hand Sales Bulk Carriers Name Dwt DoB Yard SS Engine Gear Price Buyer Mineral Star Tsuneishi, JPN 10/2014 B&W mill Greeks Labro Oshima, JPN 03/2015 Sulzer 4 X 25 T 3.8 mill Undisclosed Aladdin Rainbow Kanda, JPN 03/2014 Mit 4 X 30 T 10.5 mill Undisclosed Ken Ann Maru Onomichi, JPN 07/2012 Mit 4 X 30 T 9.6 mill Greeks Diamond Glory Tsuneishi, JPN 08/2012 B&W 4 X 30 T 9.1 mill Greeks Tankers Name Dwt DoB Yard SS Engine Hull Price Buyer Oak Galaxy Kurushima, JPN 05/2015 Mit DH 19 mill Singapore 13

15 Newbuildings Newbuilding Orders No Type Dwt / Unit Yard Delivery Owner Price 2 BC Universal 2014 Kawasaki Kissen - 2 BC Universal 2014 NYK - 2 BC Oshima 2013 Nisshin Kaiun - 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 Troyburg Containers India 475 as is Spore with 500 T Bunkers Viking Star Reefer India 485 as is Fujairah with sufficient fuel to voyage WC India Zoitsa BC India 500 Hyundai Cosmos BC China 443 as is North China with 450 T Bunkers ROB 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 8 Week 7 Change % Baltic Trading Ltd (BALT) NYSE 4,49 4,48 0,22 Diana Shipping Inc (DSX) NASDAQ 9,22 9,71-5,05 Dryships Inc (DRYS) NASDAQ 3,62 3,71-2,43 Euroseas Ltd (ESEA) NASDAQ 2,95 2,98-1,01 Excel Maritime Carriers (EXM) NYSE 1,97 2,08-5,29 Eagle Bulk Shipping Inc (EGLE) NASDAQ 1,88 2,01-6,47 Freeseas Inc (FREE) NASDAQ 1,22 1,71-28,65 Genco Shipping (GNK) NYSE 7,00 8,78-20,27 Navios Maritime (NM) NYSE 3,88 4,19-7,40 Navios Maritime PTN (NMM) NYSE 16,09 16,31-1,35 Paragon Shipping Inc (PRGN) NASDAQ 0,92 0,92 0,00 Star Bulk Carriers Corp (SBLK) NASDAQ 0,97 0,97 0,00 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 3,95 3,38 16,86 Safe Bulkers Inc (SB) NYSE 7,28 7,65-4,84 Golden Ocean Oslo Bors (NOK) 5,17 5,58-7,35 Tankers Capital Product Partners LP (CPLP) NASDAQ 7,76 7,74 0,26 Omega Navigation Enterprises (ONAV) NASDAQ 0,18 0,18 0,00 TOP Ships Inc (TOPS) NASDAQ 3,03 2,25 34,67 Tsakos Energy Navigation (TNP) NYSE 6,56 6,63-1,06 Other Aegean Maritime Petrol (ANW) NYSE 7,22 6,28 14,97 Danaos Corporation (DAC) NYSE 4,27 4,17 2,40 StealthGas Inc (GASS) NASDAQ 4,77 4,64 2,80 Rio Tinto (RTP) NYSE 58,29 57,90 0,67 Vale (VALE) NYSE 25,69 24,98 2,84 ADM Archer Daniels Midland (ADM) NYSE 31,96 31,35 1,95 BHP Billiton (BHP) NYSE 77,79 76,11 2,21 Commodities Commodity Week 8 Week 7 Change (%) Brent Crude (BZ) ,65 Natural Gas (NG) 2,53 2,64-4,17 Gold (GC) ,02 Copper (LME) 3,82 3,73 2,41 Wheat (W) ,21 16

18 Financial Market Data / Bunker Prices / Port Congestion Currencies Week 8 Week 7 Change (%) EUR / USD 1,33 1,31 1,53 USD / JPY 79,74 78,83 1,15 USD / KRW ,18 USD / NOK 5,61 5,70-1,58 Bunker Prices IFO 380 IFO 180 MGO Piraeus Fujairah Singapore Rotterdam Houston Port Congestion* Port No of Vessels China Rizhao 18 Lianyungang 38 Qingdao 67 Zhanjiang 30 Yantai 25 India Chennai 6 Haldia 25 New Mangalore 10 Kakinada 12 Krishnapatnam 11 Mormugao 11 Kandla 19 Mundra 7 Paradip 13 Vizag 44 South America River Plate 246 Paranagua 44 Praia Mole 6 * 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 8 of year