WEEKLY SHIPPING MARKET REPORT

Transcription

1 WEEKLY SHIPPING MARKET REPORT WEEK 8-19 th February to 26 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 Chemical tanker market improves as orderbook shrinks Drewry s latest Chemical Forecaster report highlights a significant change in the orderbook. Persistent fleet expansion far in excess of trade growth has persistently eroded utilisation rates, checked only by scrapping. The only good news is that current market conditions are making it harder to get credit for newbuild orders, which has led to a shrinking of the orderbook. With a lot of publicly listed companies under duress as earnings decline, they are forced to cut costs and cut back their investment in newbuilds. A strong decline in new orders has seen the chemical tanker orderbook drop to its lowest in 10 years. From a high of 39% in 2006, the orderbook remained above 30% through to 2008 as boom conditions prevailed. After the global economic fallout in 2008, when the orderbook stood at 33%, it declined rapidly to 19% in 2010 to the current low of 7.6%. The fallout of this has been disastrous for shipyards, with many reportedly closing down in China. South Korean yards accounted for over half of the orderbook, with Chinese shipyards accounting for just under 30%. Japanese and Turkish shipyards took the remainder, but both had shares in single figures. The emergence of Chinese shipyards is significant. Eleven years ago, only 34 chemical tankers with a total of 642,000 dwt had been delivered from just ten different Chinese shipyards. During the next ten years, over a 100 different Chinese shipyards delivered 627 ships with a total dwt of 10.6 million dwt. Eighty of the total 151 ships on the orderbook were delivered in 2012, all coming from yards in China, including several that were thought to have been cancelled. Of these 80 ships, 68 are below 20,000 dwt and most are in the 5,000 to 10,000 dwt class, with many now trading Palm Oil. Korean yards delivered 28 ships; all but one being above 37,000 dwt. Japanese yards delivered 24 ships in sizes ranging from 1,231 dwt to over 50,000 dwt. The average dwt of the ships on order is now 32,015 tonnes against 23,934 tonnes a year ago. New ordering activity of late is gravitating towards larger sizes of 38,000 dwt or above for deliveries spread into The move towards MRs and Handysize tankers has been prompted by better fuel efficiency and more environmentally friendly engines. The larger ships are mainly IMO 2, which are mostly for the petroleum product trades with chemicals or vegetable oils as opportunistic cargoes. The overtonnaging in the smaller ship sizes has restricted ordering and it is doubtful if many will be ordered speculatively for a few years to come. (Drewry Maritime Research) Iran offshore oil reserves valued at USD2.75tn Iran s offshore oil reserves in the Caspian Sea and Persian Gulf are estimated to earn the country USD2.75 trillion, a report says. The Fars News Agency report based its projection on a 25-percent recovery factor from 106 billion barrels of in-place oil in the waters of the Persian Gulf and Caspian Sea. Managing-Director of the Iranian Offshore Oil Company (IOOC) Mahmoud Zirakchianzadeh said recently that Iran sits atop more than 96 billion barrels of in-place oil in the Persian Gulf. Furthermore, Khazar Exploration and Production Company (KEPCO) has put at 10 billion barrels the oil content of Sardar-e-Jangal hydrocarbon field, which was discovered in March Iran envisages a one-percent recovery enhancement from its oil reserves by 2015 when the country s Fifth Five-Year Economic Development Plan ends. On January 21, Deputy Oil Minister Mohsen Khojasteh-Mehr said Iran has discovered 14 billion barrels of crude oil reserves during the first three quarters of the current Persian calendar year (started March 20, 2012). He pointed to Iran s 300- percent progress in the discovery of oil and natural gas resources and noted that the Oil Ministry is currently ahead of its discovery plans. Even in the absence of new discoveries, Iran will be capable of producing oil for the next 140 years, Khojasteh-Mehr pointed out. Iran's total in-place oil reserves have been estimated at more than 560 billion barrels, with about 140 billion barrels of recoverable oil. Moreover, heavy and extra-heavy varieties of crude oil account for roughly billion barrels of the total reserves. (Press TV) India: LNG demand to rise 4.6% annually over 15 years The demand for liquefied natural gas (LNG) is forecast to rise by 4.6 per cent annually over the next 15 years. According to organisers of an industry event here, LNG is one of the fastest growing segments of the gas market, with industry research suggesting that LNG demand is forecast to rise by 4.6 per cent annually over the next 15 years. In the Middle East and North Africa (MENA) region alone, the International Energy Agency (IEA) expects demand for natural gas to rise by 79 billion cubic meters (bcm) or 20 per cent between 2011 and 2017, outstripping incremental supply in the region by 7 bcm as low gas prices encourage higher consumption by the utilities and transportation sectors. On the customer side, demand from the Asia- Pacific region for LNG from the MENA region is strong particularly from Japan, Korea and India. This trend looks like it will continue through 2020 with a significant increase in demand from China and Korea expected, industry experts said. To meet these growing demands, the infrastructure underpinning global trade in LNG storage tanks, terminals, tankers will need to grow and develop in tandem, they added. The growth of the global LNG market is spurring innovation in the industry as companies think bigger but leaner at the same time. There are some fascinating cutting edge technologies being developed at the moment, which we will be getting an insight into at LNG 17, said Jay Copan, Executive Director of LNG 17. (PTI) Damen introduces anti-fouling foil Damen Shipyards (Gorinchem, Netherlands) and the Port of Amsterdam are launching a pilot project today to test Thorn-D, a relatively new antifouling film that is applied to ships hulls below the water line. The film has an expected lifetime of five years. That is much longer than conventional antifouling coatings, which need to be replaced every six months on average. Dr Rik Breur, the founder of supplier Micanti, developed the film and tested it extensively on trial surfaces and work vessels. That attracted the attention of the Port of Amsterdam, which is concerned about the safety and sustainability of its vessels. The film is an excellent additional application. Damen is applying the antifouling film to one of the Port s patrol vessels today, and will complete the work on Tuesday. We re using two boats in the pilot project: one with the film and the other with a conventional antifouling coating, says Willem Spoelstra of the Port of Amsterdam s Nautical Division. The pilot will run for a year and we ve agreed with Micanti that the film has to remain problem-free for at least two years. They ve given us certain guarantees concerning durability and so on, in any event. We can now assume that the film will not come off. The great thing about this test is that the two vessels will be operating in precisely the same area. That s ideal for a pilot project. The film is being marketed internationally under the brand name Thorn- D. Breur, the managing director and owner of Micanti, and Eric Pieters, the firm s commercial director and co-owner, can already point to their product s proven performance. Two vessels one a tug belonging to Dutch company BMS Towing and another located in Florida have already been operating for some time after application of the antifouling film. The film has so far been tested up to 30 knots. We can now say that we ve achieved a breakthrough with our application: we ll be applying our film to a fleet of approximately fifteen work vessels and crew vessels in the months ahead, says Pieters. They include boats run by towing companies in the Netherlands, the Middle East and a tug owned by the Port of Los Angeles. It s no surprise that Damen is involved in this innovation. The Dutch shipyard has shown itself to be in the vanguard when it comes to environmentally friendly, innovative and cost-efficient shipbuilding. It will no doubt be using the Thorn-D antifouling film on more of its vessels. (DamenShipyards) 1

3 Sale & Purchase Steady steps for improvement Last week the Sale and Purchase activity was interesting. Despite the instability of the market and the patience of the buyers, there was an encouraging amount of sales. In the dry segment a few sales, of 90ies built vessels, were reported. While at the wet sector, post 2000 built tankers, of different sizes were reported sold. Worth mentioning sales are those of the VLCC MAERSK ELI built 2000, which was sold for USD 31 million to undisclosed buyers; and the sale of Aframax tanker PACIFIC PARTNER built 2004, reported sold for USD 19 million to Middle Eastern buyers. Shiptrades enquiry index remains at same levels as per last week. In the dry sector handysize vessels built 90ies up to modern are attracting interest. Also handymax, supramax and panamax vessels built late 90ies up to modern remain of serious interest. In the wet sector buyers are concentrating even more on modern tonnages. There is firm interest for MR tankers built end 90ies up to modern. Furthermore modern Aframax tankers remain firm on buyers preferences. We have also noticed some fresh interest for modern Suezmax tankers. NEWBUILDINGS In the newbuilding market we have seen 13 vessels to have been contracted. 9 Bulk Carriers (Supramax, Panamax, Cape) 4 Tankers (MR) DEMOLITION The demolition market is at same weak levels as previously. The subcontinent market is stable with prices at Bangladesh remaining in the region of low USD 400/LT. In the Indian and Pakistan market, prices in some occasions could be even below USD 400 per LT. The Chinese market is open again, with prices being in the region of USD 410 per LT. 2

4 Sale & Purchase Indicative Market Values ( 5 yrs old / Mill $ ) Bulk Carriers Week 8 Week 7 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 27/12/2011-9/1/ /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/ /7-17/7/ /7/ /7/ /8/ /8/ /8/ /8/ /8-4/9/ /9/ /9/ /9/ /9-2/10/ /10/ /10/ /10/ /10/12 31/10-6/11/ /11/ /11/ /11/12 28/11-4/12/ /12/ /12/12 19/12/12-8/1/ /1/ /1/ /1/13 30/1-5/2/ /2/ /2/13 3

5 Sale & Purchase Reported Second-hand Sales Bulk Carriers Name Dwt DoB Yard SS Engine Gear Price Buyer Valparaiso Szczecinska, POL 06/2013 Sulzer 3 X 40 T Valbella Szczecinska, POL 08/2013 Sulzer 3 X 40 T Valdivia Szczecinska, POL 04/2013 Sulzer 3 X 40 T En bloc Chinese Valdemosa Szczecinska, POL 09/2013 Sulzer 3 X 40 T Tankers Name Dwt DoB Yard SS Engine Hull Price Buyer Maersk Eli Hyundai, KOR 01/2015 Sulzer DH Undisclosed Pacific Partner Hyundai, KOR 05/2014 B&W DH Middle Eastern Sea Crystal Samho, KOR 03/2015 B&W DH Sea Ruby Samho, KOR 03/2015 B&W DH En bloc Korean 4

6 Newbuildings Newbuilding Orders No Type Dwt / Unit Yard Delivery Owner Price 4 Tankers SPP 2014 Scorpio 33 mill 2 BC Oshima 2015 Nordic 30.5 mill 1 BC Mitsui 2015 MBC 26 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) 5

7 Demolitions Demolition Sales Vessel Type Built Dwt Ldt Buyer Country Price HLL Baltic Container India 425 as is Singapore with 250 T bunkers ROB Renate Schulte Container India 435 Silver Star BC India 405 Demolition Prices ($ / Ldt) Bangladesh China India Pakistan Dry Wet Demolition Prices Bulk Carriers (2008 Today) Tankers (2008 Today) 6

8 Dry Bulk - Chartering In Brief: Positivity for Pmx/Supra, the opposite for Cape/Handy Capes Negativity for Capes Downward trend for Capes throughout the week with the BCI ending up at 1335 points thus decreased by 99 points. The Atlantic market suffered due to the strike at Colombia which affected mostly the transatlantic round trips which closed at around USD 5,000 reporting a reduction of around USD 2,750 compared to last week s levels. The Tubarao/Qingdao route remained at low levels by yielding a TCE of around USD 18,000 whereas the fronthaul trips ex Cont/Med were fixed at about USD 21,000, a USD 1,500 reduction. In the Pacific basin, Australian iron ore trade gave fresh requirements with the W Aussie/Qingdao route closing at around USD 7,250/7,500 more or less at the same levels than last week, whereas pacific round trips were fixed at mid 5 s decreased by USD 1,000. Period levels at around mid 10 s for one year. Panamax: Slow movement in the Atlantic, positive in the Pacific BPI index at the beginning of the week was at 845 points to finally close UP by 64 points at 909 on Friday. This week started rather slowly as US was on holidays. Transatlantic round trips were seen fixing at around USD 7,5/8,000, levels somewhat increased than last week s fixtures. Fronthauls ex ECSA were reported closing at USD 13/14,000 plus k ballast bonus whilst owners were aiming little higher rates for fronthaul trips ex US Gulf or Continent while some reported at USD 8500 levels plus about 400k ballast bonus basis delivery passing Cape of Good Hope. Pacific basin s overall scene was fairly positive this week and rates were increased respectively. NOPAC market was rather slow and fixtures were seen at USD 6,5/7,000 levels basis dop. Aussie rounds yet very few but still were reported fixing at about same levels of USD 6,500. Additionally, there were some Indonesian round trips to China and India at USD 7,5/8,250 levels. Finally there was some short period fixtures reported at about USD 8/8,500 levels daily basis 4/7 months. Supramax: Positive sentiment in both basins As expected the Atlantic market showed some improvement after the end of the Chinese holidays. Fronthauls from the USG to Far East were paying around low USD 20,000s whereas trips from the Gulf to East Med are hovering around USD 16/17,000 aps mainly on coal and pet coke cargoes. In addition, the ECSA also has a strong reaction looking forward to the commencement of the grain season with large eco Supras expected to get around USD 12,500 plus a ballast bonus of USD k. Pacific market has also recovered after a negative period during the Chinese holidays. A lack on prompt vessels was observed in the area leading to an increase in the rates. Indo/India coal delivery passing Singapore was paying around USD 8,250/8,750 levels whereas large Supras for Indo/China coal were getting around USD 12,000 on a dop basis. Additionally, the Indian market has shown a strong reaction with a number of cargoes hitting the market. For short period, the numbers were quite strong with charterers showing some interest at levels close to USD 9,000. Handysize: Stability Both the Index and the physical market remained stable throughout the week. The end of the holiday in China did not affect significantly the market and we still faced over supply of vessels compared to the firm orders. Once again the transatlantic round was done at low USD 6 s since ECSA remained slow and tonnage opening at West Africa burdened the market even more. Black Sea and Continent produced very low rates for Atlantic direction while the fronthauls did not pay up either. Far East did not improve much after getting back at work since there was much tonnage gathered there and the round voyage was still at around low/mid USD 6 s while the NOPAC and AUSSIE round voyages were done at around USD 5,250. Some activity on the period front with couple of short periods reported at USD 7/7,250. 7

9 Dry Bulk - Chartering Baltic Indices Dry Market (*Friday s closing values) Index Week 8 Week 7 Change (%) BDI ,73 BCI ,90 BPI ,25 BSI ,70 BHSI ,00 T/C Rates (1 yr - $/day) Type Size Week 8 Week 7 Change (%) Capesize 160 / 175, ,00 Panamax 72 / 76, ,67 Supramax 52 / 57, ,09 Handysize 30 / 35, ,00 Average Spot Rates Type Size Route Week 8 Week 7 Change % Far East ATL ,69 Capesize 160 / 175,000 Cont/Med Far East ,67 Far East RV ,38 TransAtlantic RV ,48 Far East ATL ,92 Panamax 72 / 76,000 ATL / Far East ,00 Pacific RV ,69 TransAtlantic RV ,38 Far East ATL ,85 Supramax 52 / 57,000 ATL / Far East ,09 Pacific RV ,00 TransAtlantic RV ,34 Far East ATL ,00 Handysize 30 / 35,000 ATL / Far East ,23 Pacific RV ,17 TransAtlantic RV ,00 8

10 Dry Bulk - Chartering ANNUAL DECEMBER 2012 FEBRUARY

11 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

12 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 $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 S7 ECI / CHI AVG ALL TC 11

13 Tanker - Chartering VLCC: Rates from Middle East to Far east earned 2.4 points average to ws34 levels. The USG was a bit quiet with the WAFR-CHINA route gaining 5 points to average ws35. Suezmax: - Aframax: Following the previous weeks problems with fog and ullage delays the CBS-USG route gained 12.5 points to ws Panamax: For similar reasons as explained above, the list of available tonnages shortened, thus the CBS-USAC route presented strong gains of 10 points, concluding ws82.5 points. Products: In the Caribbean many fixtures have failed, resulting in a longer list of available ships which in turn pushed rates lower. USG-TA route lost 10 points to conclude at ws82.5. The Cont-TA route lost 20 points, resulting in ws150. Baltic Indices Wet Market (*Friday s closing values) Index Week 8 Week 7 Change (%) BCTI ,14 BDTI ,42 T/C Rates (1 yr - $/day) Type Size Week 8 Week 7 Change (%) VLCC ,250 19,250 0,00 Suezmax ,250 16,500-1,52 Aframax ,500 13,750-1,82 Panamax ,500 13,750-1,82 MR ,750 13,750 0,00 12

14 Tanker - Chartering Crude Tanker Average Spot Rates Type Size (Dwt) Route Week 8 WS Week 7 WS Change % 280,000 AG USG ,00 VLCC 260,000 W.AFR USG ,00 260,000 AG East / Japan ,25 Suezmax 135,000 B.Sea Med 70 57,5 21,74 130,000 WAF USAC 60 52,5 14,29 80,000 Med Med 82,5 82,5 0,00 Aframax 80,000 N. Sea UKC 87,5 85 2,94 80,000 AG East 82,5 85-2,94 70,000 Caribs USG 112, ,50 Product Tanker Average Spot Rates Type Size (Dwt) Route Week 8 WS Week 7 WS Change % 75,000 AG Japan ,80 Clean 55,000 AG Japan ,38 38,000 Caribs USAC ,29 37,000 Cont TA ,76 Dirty 55,000 Cont TA ,00 50,000 Caribs USAC ,50 13

15 Tanker - Chartering VLCC Trading Routes 2011 / 12 Suezmax Trading Routes 2011 / 12 Aframax Trading Routes 2011 / 12 14

16 Tanker - Chartering Clean Trading Routes 2011 / 12 Dirty Trading Routes 2011 / 12 15

17 Financial Market Data Shipping Stocks Dry Bulk Company Stock Exchange Week 8 Week 7 Change % Baltic Trading Ltd (BALT) NYSE 3,48 3,36 3,57 Diana Shipping Inc (DSX) NASDAQ 8,46 8,82-4,08 Dryships Inc (DRYS) NASDAQ 1,97 2,18-9,63 Euroseas Ltd (ESEA) NASDAQ 1,00 1,01-0,99 Excel Maritime Carriers (EXM) NYSE 0,52 0,54-3,70 Eagle Bulk Shipping Inc (EGLE) NASDAQ 1,87 2,06-9,22 Freeseas Inc (FREESE) NASDAQ 1,21 1,94-37,63 Genco Shipping (GNK) NYSE 2,79 3,12-10,58 Navios Maritime (NM) NYSE 3,76 3,84-2,08 Navios Maritime PTN (NMM) NYSE 13,44 14,00-4,00 Paragon Shipping Inc (PRGN) NASDAQ 2,71 3,38-19,82 Star Bulk Carriers Corp (SBLK) NASDAQ 5,85 6,07-3,62 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 2,08 2,10-0,95 Safe Bulkers Inc (SB) NYSE 3,90 3,63 7,44 Golden Ocean (GOGL) Oslo Bors (NOK) 5,70 6,25-8,80 Tankers Capital Product Partners LP (CPLP) NASDAQ 7,80 7,99-2,38 TOP Ships Inc (TOPS) NASDAQ 0,97 0,96 1,04 Tsakos Energy Navigation (TNP) NYSE 3,83 3,99-4,01 Other Aegean Maritime Petrol (ANW) NYSE 7,13 7,40-3,65 Danaos Corporation (DAC) NYSE 3,33 3,33 0,00 StealthGas Inc (GASS) NASDAQ 10,24 9,25 10,70 Rio Tinto (RIO) NYSE 53,57 57,77-7,27 Vale (VALE) NYSE 18,09 19,51-7,28 ADM Archer Daniels Midland (ADM) NYSE 32,10 32,57-1,44 BHP Billiton (BHP) NYSE 75,77 79,58-4,79 Commodities Commodity Week 8 Week 7 Change (%) Brent Crude (BZ) 113,61 116,86-2,78 Natural Gas (NG) 3,41 3,26 4,60 Gold (GC) ,93 Copper 356,45 368,10-3,16 Wheat (W) 300,01 316,91-5,33 16

18 Financial Market Data / Bunker Prices / Port Congestion Currencies Week 8 Week 7 Change (%) EUR / USD 1,31 1,33-1,50 USD / JPY 93,43 93,52-0,10 USD / KRW ,56 USD / NOK 5,66 5,54 2,17 Bunker Prices IFO 380 IFO 180 MGO Piraeus Fujairah Singapore Rotterdam Houston Port Congestion* Port No of Vessels China Rizhao 20 Lianyungang 35 Qingdao 81 Zhanjiang 30 Yantai 26 India Chennai 5 Haldia 18 New Mangalore 25 Kakinada 27 Krishnapatnam 33 Mormugao 28 Kandla 18 Mundra 14 Paradip 12 Vizag 62 South America River Plate 168 Paranagua 74 Praia Mole 12 * 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