WEEKLY SHIPPING MARKET REPORT

Transcription

1 WEEKLY SHIPPING MARKET REPORT WEEK ST October - to 4 TH November 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 Iron ore market delves in ambiguity with rudderless steel market in China Regardless of relative quietude in iron ore market in the last week uncertainty prevailed. After the pause in declining finished prices there was consequent respite in the raw material market as well. On one hand it prompted supplier to immediately take adamant postures being inflexible on offers. However the market remained reticent sudden change in the absence of perceptible improvement in finished prices and mills buying. Traders showed proclivity toward booking stockpiles at cheaper levels as import seemed unattainable. With offers from Indian sources going around USD 130 per tonne, CNF for Fe63/63.5% there barely any scope for correction with supplier having hit the cost. However big 3 were more forthcoming with levels around USD 120 per tonne. Stock piles at Chinese ports still at nearly 100 million tonnes and the mills reluctant to commence buying dipped in uncertainty not many transactions are expected regardless of the prices. Moreover with winters on the anvil demand peter out diminishing any near chances of revival, albeit minor flicker is not ruled out for pre vacation buying To know exact levels, likely scenario, domestic iron ore spot prices at Bellary and Barbil and FOB East Coast spot prices subscribe to Iron Ore Services of by registering or sending a mail to admin@steelpricesindia.com along with your full contact details. The accuracy and the speed of reporting changes is well appreciated by not only Indian miners, but by global iron ore majors as well as Chinese mills as many of them have subscribed to this service to maintain another but solid listening post as far as Indian spot market is concerned. (steelprices-india.com) Repsol Advances Most in 13 Months After Argentine Unit Makes Biggest Find Repsol YPF SA (REP), Spain s largest oil company, rose the most in more than a year after its Argentine YPF SA (YPF) unit made its biggest ever discovery at a shale oil field in Patagonia. YPF, in which Madrid-based Repsol owns a 57 percent stake, said yesterday well tests showed the Loma La Lata field holds about 927 million barrels. In May, it had said the find was about 150 million barrels. Repsol rose as much as 1.43 euros, or 6.9 percent, to euros a share in Madrid, the biggest gain in 18 months. The shares closed at euros at 5:37 p.m. local time. YPF, which trades on the Buenos Aires exchange, rose as much as 9.7 percent to pesos, the steepest gain since December YPF s American Despositary Receipts rose as much as 12.9 percent to $35.80 in New York. YPF, which produces more than 50 percent of Argentina s crude, is boosting exploration to arrest a decline in output and last year had a 100 percent annual oil reservereplacement ratio for the first time in 13 years. The Buenos Aires-based company, led by Chief Executive Officer Sebastian Eskenazi, made its largest oil find in Argentina after drilling a dry hole off the disputed Falkland Islands earlier this year. Double Reserves The field will roughly double YPF reserves and helps cement Argentina s ranking as having the world s third-largest probable reserves of shale oil, behind the U.S. and China, based on U.S. Energy Information Administration data. So-called unconventional shale formations are more costly to develop than traditional wells, requiring the extraction of oil or gas trapped in shale rocks. The very positive news for Repsol will need to be accompanied by increases in the prices Argentina sets for selling crude and refined products in its home markets, Fernando Lafuente, an analyst at N+1 in Madrid, said today in a note to investors. Lafuente has a strong buy rating. Repsol will continue to spend more on exploration, and it s too early to estimate how much it may invest in production of the new fields, spokesman Kristian Rix said today. Repsol s target price was increased on the news by Credit Suisse AG and Bankia Bolsa. Credit Suisse increased its price to 27.8 euros per share, from 26.5 euros, while Bankia increased the price to 29.9 euros per share, from 27 euros. Loma La Lata The new probable reserves in Patagonia are contained in an area of 428 square kilometers in Loma La Lata, more than 1,200 kilometers (746 miles) southwest of Buenos Aires. The discovery announced in May boosted Argentina s total reserves by about 6 percent, PresidentCristina Fernandez de Kirchner had said. At present, YPF has total oil reserves of about 531 million barrels. The find announced yesterday is located at the Vaca Muerta formation at Loma La Lata. YPF controls about 12,000 square kilometers of the Vaca Muerta formation, which has a total surface of 30,000. Other companies that are seeking to produce shale oil and gas in Neuquen province include Apache Corp., Exxon Mobil Corp., Americas Petrogas Inc., Total SA and Madalena Ventures Inc. YPF in December 2010 announced the discovery of 4.5 trillion cubic feet of shale gas in Neuquen province. 1

3 Dry Bulk - Chartering In Brief: Market continued its downward trend with Capes suffering the most. All in all, BDI lost 181 points, BCI lost 344 points, BPI lost 95 points, BSI lost 106 point, and BHSI lost 51 points. Capes: Week began same as last week ended, with lack of cargoes in the Pacific, forcing Owners to lower their levels or start ballasting towards the Atlantic, which affected the rates in that region too. Atlantic basin was active, with cargoes mostly ex Brazil. Rates for Transatlantic rounds concluded at USD per day, while on the Fronthaul trade, rates for trips to F.East, levels concluded at USD per day. On the Tubarao/Qingdao trade rates were under pressure as an effect of the ballasters from the Pacific, and at week s closing rates concluded at USD pmt. In the Pacific basin, the iron ore majors came into the market again, but the cargo volume was not enough to cover all the available tonnage, even though there were some coal cargoes ex S.Africa or W. Canada, and soon Owners began competing in order to find business. At weeks end, rates for the Australia/China trade concluded at USD 9.75pmt, while on TCT basis, rates for Pacific round concluded at USD per day basis N.China delivery. Panamax: Rates slightly dropped as the available tonnage started building up and could not see many new cargoes. In the Atlantic basin, the USG market remained the driving force, but seems like it started loosing steam. Rates for trips ex USG to F.East concluded at USD GBB basis APS USG, while for trips to East Mediterranean fixtures reported at USG per day GBB. Rates for Transatlantic round concluded at USD , and rates for Fronthaul trips concluded at USD per day. In the Pacific basin activity remained low without many coal cargoes ex Indonesia, and those Charterers who had firm requirements were waiting for rates to drop further. At week s closing, rates for S.China/S.E.Asia positions interested for Indonesia round, concluded at USD per day. Positions at N.China/Japan range interested for trips ex NOPAC fixed at rates of USD per day. Supramax: Market followed the same trend, with less cargoes and rates dropping. In the Atlantic basin, we could notice a decrease in the number of cargoes, but some areas were more attractive. In the USG region rates for trip to Continent/East Mediterranean remained steady close to USD high 20 s per day, while for trips to F.East rates concluded at USD low 30 s per day. On the Mediterranean/Bl.Sea market we could see grains/fertilizers/steels going to USG or Continent, and Charterers wanting to pay around USD per day. Cargoes ex Continent to USG or ECSA were willing to pay around USD per day, while rates for trips to East Mediterranean were around USD per day. Pacific basin experienced a poor week with rates dropping for all directions, and still many Charterers preferred not to move. Some fixtures concluded to direction India but levels were fluctuating between USD per day. On the other hand, for the N.China positions, a few cargoes ex NOPAC concluded at rates of USD per day. Handysize: Rates kept sliding. In the Atlantic region we could see the usual cargoes from East Mediterranean/Bl.Sea to F.East at rates around USD low 20 s per day, while for trips to USG or ECSA rates were at USD per day. Ex ECSA there were not many cargoes available, or not many cargoes firm and Owners thinking to ballast to other directions. In the Pacific basin, market remained quiet and tonnage building up with many vessels spot in N.China. There were some parcels of steels or cement/clinker at levels around USD per day.. 2

4 Dry Bulk - Chartering Baltic Indices Dry Market (*Friday s closing values) Index Week 44 Week 43 Change (%) BDI ,60 BCI ,84 BPI ,31 BSI ,77 BHSI ,38 T/C Rates (1 yr - $/day) Type Size Week 44 Week 43 Change (%) Capesize 160 / 175, ,11 Panamax 72 / 76, ,89 Supramax 52 / 57, ,85 Handysize 30 / 35, ,17 Average Spot Rates Type Size Route Week 44 Week 43 Change % Capesize 160 / 175,000 Panamax 72 / 76,000 Supramax 52 / 57,000 Handysize 30 / 35,000 Far East ATL ,67 Cont/Med Far East ,33 Pacific RV ,00 TransAtlantic RV ,76 Far East ATL ,00 ATL / Far East ,92 Pacific RV ,71 TransAtlantic RV ,86 Far East ATL ,22 ATL / Far East ,00 Pacific RV ,00 TransAtlantic RV ,32 Far East ATL ,33 ATL / Far East ,53 Pacific RV ,89 TransAtlantic RV ,54 3

5 Dry Bulk - Chartering ANNUAL SEPTEMBER 2011 NOVEMBER

6 Dry Bulk - Chartering Capesize Routes Atlantic 2010 / 11 $50.000,00 $45.000,00 $40.000,00 $35.000,00 $30.000,00 $25.000,00 $20.000,00 $15.000,00 $10.000,00 $5.000,00 $0,00 C2 TUB / ROT C4 RBAY / ROT C7 BOL / ROT C8 T/A RV AVG ALL TC Capesize Routes Pacific 2010 / 11 $70.000,00 $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 $0,00 Panamax Routes Atlantic 2010 / 11 $30.000,00 $25.000,00 $20.000,00 $15.000,00 $10.000,00 P1A T/A RV P2A CONT/FE $5.000,00 $0,00 5

7 Dry Bulk - Chartering Panamax Routes Pacific 2010 /11 $25.000,00 $20.000,00 P3A FE R/V $15.000,00 P4 FE/CON $10.000,00 AVG ALL TC $5.000,00 $0,00 Supramax Routes Atlantic 2010 /11 $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, S1A CON / FE S1B BSEA / FE S4A USG / CONT S4B CONT / USG S5 WAFR / FE Supramax Routes Pacific 2010 / 11 $25.000,00 $20.000,00 $15.000,00 $10.000,00 $5.000,00 $0,00 S2 FE R/V S3 FE / CON S6 FE / INDI S7 ECI / CHI AVG ALL TC 6

8 Tanker - Chartering In Brief: Markets remained restless as European leaders have not yet managed to find a solution for the growing sovereign debt crisis. Even though Greece reached an agreement on Sunday to form a coalition government meant to avert the collapse of the latest bailout plan for the euro zone, there is an increased uncertainty regarding how Europe would pay for a rescue package in order to stop the Greek financial contagion from spreading to Italy or Spain. VLCC: Even though activity picked up in the Middle East Gulf, the tonnage list is still too long to allow for any significant gains. As a result, rates to the West only inched upward whereas on eastbound routes they even lost one worldscale point. Similarly, in West Africa rates lost a couple of worldscale points. Suezmax: In the Atlantic basin Suezmaxes gained slightly as Charterers moved to fix on more forward dates while in the Black Sea rates continued to correct lower. Aframax: It was yet another tough week for Aframaxes. In the Mediterranean demand was not enough to trump oversupply, while in the North Sea rates stopped their freefall, limiting last week s losses. In both the Middle East Gulf and Caribbean markets activity was slow. Products: LR2s trading AG/Japan suffered from weak demand, pushing rates down further. On the other hand, things seemed to improve for LR1s, particularly towards the end of the week. However, higher rates didn t materialize, though many people bet that this week Owners will finally have some good news. A quiet week for MRs as well since demand was well covered early in the week in both the Caribbean and European markets. Though not much changed for European Panamaxes, in the Caribbean market a rush of fresh enquiries helped rates surge by 25 worldscale points. Baltic Indices Wet Market (*Friday s closing values) Index Week 44 Week 43 Change (%) BCTI ,74 BDTI ,92 T/C Rates (1 yr - $/day) Type Size Week 44 Week 43 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 44 WS Week 43 WS Change % 280,000 AG USG ,52 VLCC 260,000 W.AFR USG ,35 260,000 AG East / Japan ,00 Suezmax 135,000 B.Sea Med ,00 130,000 WAF USAC ,97 80,000 Med Med ,79 Aframax 80,000 N. Sea UKC ,60 80,000 AG East ,33 70,000 Caribs USG ,65 Product Tanker Average Spot Rates Type Size (Dwt) Route Week 44 WS Week 43 WS Change % 75,000 AG Japan ,64 Clean 55,000 AG Japan ,90 38,000 Caribs USAC ,85 37,000 Cont TA ,86 Dirty 55,000 Cont TA ,00 50,000 Caribs USAC ,00 8

10 Tanker - Chartering VLCC Trading Routes 2010 / AG - USG WAFR - USG AG EAST JAPAN 0 Suezmax Trading Routes 2010 / B. SEA - MED WAF - USAC 20 0 Aframax Trading Routes 2010 / MED - MED N.SEA - UKC AG - EAST CARIBS USG

11 Clean Trading Routes 2010 / AG - JAPAN (75,000) AG - JAPAN (55,000) CARIBS - USAC (38,000) 50 CONT - TA (37,000) 0 Dirty Trading Routes 2010 / CONT - TA (55,000) 100 CARIBS - USAC (50,000)

12 Sale & Purchase Buyers Remain Patient. During the past week the BDI index once again was not surprising with levels below the base of 2,000 points. In the S&P weekly market, activity was low compared to previous with not many transactions reported. Many vessels built in the mid 80s are placed in the market at scrap related levels which may derive from the rapid fall of scrap prices. In the enquiry Shiptrade index, dry sector s buyers are still heavily looking for Handysize vessels as well modern Supramaxes. It is very important to mention that there is a silent interest for Panamax and Capesize tonnages, while any candidate that may appear in the market is instantly absorbed by buyers. As tankers are concerned the situation did not change, with MRs still being in the spotlight. Despite buyers being interested for modern MRs, we have noticed a trend for 90s built vessels. Empire Navigation is reported to be the buyers of the Chinese owners capsize vessel M/V Houheng Sunrise (176,298 DWT built in Univershal, JPN) for USD 34 Mill. This is the second cape acquisition for the company within the last month. Another Greek buyer is reported to be behind the purchase of M/V Formosabulk Energy (170,089 DWT built in 2002 in IHI, JPN) for USD 31 Mill. VLCC M/T Leander I (308,491 DWT built in 1999 in Hyundai HI, KRS) is reported to have been sold to Monaco based buyers SBM for USD 30 Mill. In the current market many Asian VLCC owners are looking to dispose their vessels whilst the European buyers are among the buyers. The majority of vessels reported to have changed hands in the past weeks are built between 1999 up to Aframax tanker M/T Salli is reportred to have been sold to Dubai based buyers for region USD 13 Mill. NEWBUILDNGS In the newbuilding market, we have seen 33 vessels reported to have been contracted. 6 Bulk Carriers (Handymax - Kamsarmax) 19 Tankers (MR) 8 Containers ( TEU s) DEMOLITION Bangladesh remains closed. Indian market levels are stabilizing in the USD region with End Buyers entering renegotiations for lowering previously agreed prices, after certain facts like the exchange rate decrease of Indian Rupee vs US Dollar and Steel Plate price. Pakistan is still cherry picking with no new transactions to report. The Chinese market offering retains previous weeks offering levels of approximately USD 380 / LT. 11

13 Sale & Purchase Indicative Market Values ( 5 yrs old / Mill $ ) Bulk Carriers Week 44 Week 43 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 0 28/12-3/ /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/ /7-1/8/ /8/ /8/ /8/ /8/ /8-05/9/ /9/ /9/ /9/ /9-3/10/ /10/ /10/ /10/ /10/ /11/

14 Sale & Purchase Reported Second-hand Sales Bulk Carriers Name Dwt DoB Yard SS Engine Gear Price Buyer Houheng Sunrise Universal, JPN 02/2013 B&W mill Empire Navigation Formosabulk Energy IHI, JPN 03/2012 Sulzer mill (Delivery with Alcyon Shipping SS/DD Pased) Front Rider (OBO) Hyundai, JPN 12/2011 B&W mill Chinese Kamisu Maru Kurushima, JPN 08/2013 B&W mill Undisclosed STX Jinhae S STX Jinhae, KR - B&W - 32 mill Norsul Penglai Jinlu JL Penglai Jinlu, CHN - B&W - 31 mill Undisclosed Orana (Woodchip Carrier) Sanoyas, JPN 04/2016 Sulzer 3 X 14 T 9.7 mill Chinese Seletar Hope Shikoku, JPN 06/2015 B&W 3 X 30 T mill Greek Tankers Name Dwt DoB Yard SS Engine Hull Price Buyer Leander HHI, JPN 10/2014 Sulzer DH 33.5 mill SBM Offshore (for Conversion) Front Hunter Harland, UK 11/2015 B&W DH 13.2 mill VTN Shipping Pacific Opal Halla, JPN 08/2013 B&W DH 7.25 mill Undisclosed 13

15 April-08 August-08 April-09 August-09 April-10 August-10 April-11 April-08 August-08 April-09 August-09 April-10 August-10 December- December- December- December- December- December- April-11 Newbuildings Newbuilding Orders No Type Dwt / Unit Yard Delivery Owner Price 2 BC COSCO Zhoushan 2013 Asian 34 mill 1 BC Zhejiang Yangfan 2013 Guangdong Lanhai 30.5 mill 3 BC Bohai 2013 Tianjin Zhanghai 27.5 mill Tanker HMD 2013 Unisea Tanker SPP 2013 Pemex 34 mill 4 Container Hudong 2013 CSCL - 4 Container Dalian 2013 CSCL - 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) $180,00 $160,00 $140,00 $120,00 $100,00 $80,00 $60,00 $40,00 $20,00 $0,00 CAPESIZE PANAMAX SUPRAMAX HANDYSIZE $250,00 $200,00 $150,00 $100,00 $50,00 $0,00 VLCC SUEZMAX AFRAMAX LR 1 MR 14

16 $ / Ldt $ / Ldt Demolitions Demolition Sales Vessel Type Built Dwt Ldt Buyer Country Price Kota Abadi Container India 470 (as is Singapore) Red Sea Spirit Bulker India 463 Demolition Prices ($ / Ldt) Bangladesh China India Pakistan Dry Wet Demolition Prices Bulk Carriers (2008 Today) Tankers (2008 Today) Bangladesh Bangladesh China India China India Pakistan Pakistan 0 0 April 08 Aug 08 Dec 08 April 09 Aug 09 Dec 09 Apr 10 Aug 10 Dec 10 April 11 April 08 Aug 08 Dec 08 April 09 Aug 09 Dec 09 Apr 10 Aug 10 Dec 10 April 11 15

17 Financial Market Data Shipping Stocks Dry Bulk Company Stock Exchange Week 44 Week 43 Change % Baltic Trading Ltd (BALT) NYSE 5,58 5,97-6,53 Diana Shipping Inc (DSX) NASDAQ 8,30 8,41-1,31 Dryships Inc (DRYS) NASDAQ 2,76 2,90-4,83 Euroseas Ltd (ESEA) NASDAQ 3,13 3,27-4,28 Excel Maritime Carriers (EXM) NYSE 2,46 2,96-16,89 Eagle Bulk Shipping Inc (EGLE) NASDAQ 1,45 1,68-13,69 Freeseas Inc (FREE) NASDAQ 0,75 0,85-11,76 Genco Shipping (GNK) NYSE 8,62 9,18-6,10 Navios Maritime (NM) NYSE 3,73 3,95-5,57 Navios Maritime PTN (NMM) NYSE 15,61 16,95-7,91 Paragon Shipping Inc (PRGN) NASDAQ 0,91 1,11-18,02 Star Bulk Carriers Corp (SBLK) NASDAQ 1,36 1,43-4,90 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 3,24 3,18 1,89 Safe Bulkers Inc (SB) NYSE 6,73 7,01-3,99 Golden Ocean Oslo Bors (NOK) 4,39 4,15 5,78 Tankers Capital Product Partners LP (CPLP) NASDAQ 6,54 7,08-18,75 General Maritime (GMR) NYSE 0,18 0,27-10,08 Omega Navigation Enterprises (ONAV) NASDAQ 0,21 0,20-4,67 TOP Ships Inc (TOPS) NASDAQ 2,49 2,82-7,41 Tsakos Energy Navigation (TNP) NYSE 5,94 6,04-1,35 Other Aegean Maritime Petrol (ANW) NYSE 5,11 5,37 0,19 Danaos Corporation (DAC) NYSE 3,26 3,90-5,32 StealthGas Inc (GASS) NASDAQ 4,10 4,20 5,83 Rio Tinto (RTP) NYSE 55,81 58,55-5,35 Vale (VALE) NYSE 26,12 26,62-7,25 ADM Archer Daniels Midland (ADM) NYSE 29,05 30,34-7,13 BHP Billiton (BHP) NYSE 79,00 83,15-8,24 Commodities Commodity Week 44 Week 43 Change (%) Brent Crude (BZ) ,48 Natural Gas (NG) 3,67 3,76-2,39 Gold (GC) ,92 Copper (LME) 3,52 3,58-1,68 Wheat (W) ,69 16

18 Financial Market Data / Bunker Prices / Port Congestion Currencies Week 44 Week 43 Change (%) EUR / USD 1,37 1,41-2,84 USD / JPY 78,23 75,79 3,22 USD / KRW ,73 USD / NOK 5,60 5,43 3,13 Bunker Prices IFO 380 IFO 180 MGO Piraeus Fujairah Singapore Rotterdam Houston Port Congestion* Port No of Vessels China Rizhao 31 Lianyungang 33 Qingdao 40 Zhanjiang 12 Yantai 21 India Chennai 7 Haldia 25 New Mangalore 13 Kakinada 37 Krishnapatnam 4 Mormugao 6 Kandla 54 Mundra 16 Paradip 6 Vizag 46 South America River Plate 237 Paranagua 69 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 44 of year