WEEKLY SHIPPING MARKET REPORT

Transcription

1 WEEKLY SHIPPING MARKET REPORT WEEK TH May to 1 ST June 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 BP May Use Botas Grid to Ship Azeri Gas Before Tanap, Sabah Says A BP Plc-led group may use Botas s pipelines to export natural gas to Europe from the Shah Deniz field in the Caspian Sea off Azerbaijan if the planned Trans- Anatolia link across Turkey is delayed, Sabah said today, citing BP Turkey chief Bud Fackrell. Turkey may upgrade state-run Botas network to deliver Shah Deniz gas if the pipeline known as Tanap is not built on time, Sabah said, citing Fackrell. Talks between Turkey and Azerbaijan on construction of Tanap are going well, Fackrell said, according to the Turkish daily. State Oil Co. of Azerbaijan, or Socar, said last month that an agreement on the 2,000-kilometer (1,240-mile) Tanap link is planned by June 30. (Bloomberg) U.S. Govt Could Delay Exxon's Plans To Export Natural Gas The U.S. government could delay its decision on allowing energy companies to export natural gas from the country, according to reports. Currently, companies are required to seek permits to export gas to countries that do not have free trade agreements with the U.S. Hit by low gas prices in the North American market, many private players have approached the Department of Energy for export permits. Natural gas prices in the U.S. have collapsed to their lowest levels in a decade on excess production from shale exploration and so companies are looking to target international gas markets where prices for the commodity are significantly higher. Recently Exxon Mobil, the largest producer of natural gas in the U.S., also revealed plans to export gas from the U.S. Gulf Coast and Canada to target international markets. Gas exports Exxon s CEO Rex Tillerson revealed plans last week to export natural gas from the U.S. Gulf Coast and from Canada, amid efforts to tap into higher prices in the international market. [1] Exxon is pushing for gas exports from the U.S. as a way to end the existing supply glut and as a source for jobs in the U.S. The company has also said that exports of natural gas could help the U.S. bridge its trade gap. American companies are targeting lucrative markets in Asia, in particular Japan, which is looking to diversify from nuclear power. Gas prices in international markets are much higher than in the U.S. as international prices are generally linked to crude benchmarks. Despite the strong case to allow natural gas exports, the U.S. government is proceeding cautiously with the issue. [1] The topic is seen as being politically sensitive and no decision is expected before the November elections. Opponents of gas exports say that production should be retained for local markets to forward energy security. Some are also concerned that allowing exports could increase local price levels, hurting manufacturing that depends on natural gas. Allowing natural gas exports could help Exxon tap into markets with higher gas prices and ramp up its natural gas production in the U.S. (Forbes) Chinese weakening currency adding to commodity woes A softening Chinese currency is adding to the recent troubles facing commodity prices, said TD Securities (TDS) in a commodities briefing. TDS is the global wholesale banking arm of Toronto-Dominion Bank Financial Group. According to TDS, the rates and foreign-exchange research, the dollar was around RMB6.37, taking China s currency back to late-december levels. In previous months, speculative arbitrage bets that China s currency would get stronger prompted some speculators to buy commodities as an investment, particularly copper. As of a latest research note from Bart Melek, TDS director of commodity strategy, Now, inventories are likely to be partly unwound because they are too big relative to expected demand and due to a weakening Chinese currency. The weaker Chinese currency, along with softer global growth, the European debt crisis and commodity over-supply concerns, imply that we should not look for a commodity recovery anytime soon, Melek added. In fact, additional downside is likely and the big shift in speculative interest to the short side of the boat is likely to exaggerate this move, he concluded. (Commodity Online) Taiwanese steel industry's output values up by 7.1pct YoY in MIRDC According to statistics released by the Metal Industries Research & Development Center, Taiwanese steel industry's output value reached TWD 1,519.5 billion in 2011, growing significantly by 7.1% in comparison of TWD 1,418.7 billion in a year earlier. In 2011, the Taiwanese steel industry's export values amounted to TWD billion, increasing by 9.9% from TWD billion in the previous year; the import values reached TWD billion, rising by 7.2% YoY. In the fourth quarter of 2011, the country's steel industry's output values and exports values were at TWD billion and TWD billion, down by 0.3% and 1.6% from a quarter earlier respectively, caused by the EU s debit crisis and economic slowdown in emerging nations. (YIEH) Indonesia's Bayan sees 2012 coal production at 17.5 mln T Indonesia's Bayan Resources sees 2012 coal production at 17.5 million tonnes versus 15.5 million tonnes in 2011, the company director said. "The current expansion that is happening now is based on an investment in infrastructure that has occurred last year or the year before and therefore the current market price hasn't been able to be figured into this year's production volumes," said Alastair McLeod, director and chief financial officer. "It will only really start getting figured in when we look to see what production level we'll be producing next year and the year after," he told Reuters. Last year, Bayan said it was aiming to more than double its annual output to as much as 25 million tonnes by 2013 to meet growing demand from consumers such as India. (Reuters) 1

3 Dry Bulk - Chartering In Brief: Negative sentiment in both basins for all sizes Capes: Rates kept falling in both basins. Further down fall on rates this week with the BCI closing at 1298, decreased by 128 points and the 4 TC routes ending up at USD 4,814, a USD 1,612 decline. In the Atlantic basin, the fronthaul trade has been dramatically decreased by USD 2,000 closing at USD 22,500 mainly due to rare new requirements and the heavy competition of the many available vessels at the area. The same pattern in the Transantlantic round which reported a USD 1,000 reduction ending up at USD 4,000 as well as on Tubarao/Qingdao route which fixed even below USD 18 for mid June dates. The same sentiment in the Pacific market. This was reflected in the Far East round trips which saw a violent decline of USD 1,750 closing at USD 4,500 with the Australia iron ore trade not being able to cover the existing tonnage at the area. Period activity was, also, influenced negatively fixing at USD 10,000 levels for one year. Panamax: Market softening in the Atlantic, whereas in the Pacific stabilizing in low levels due to lack of coal requirements. Last week started with softening trend especially in the Atlantic due to religious holiday for the Catholics. The transatlantic round rates closed at usd for LME type vessels delivered in Continent. For same type of ships the Fronthaul rates from USG/USEC closed at USD 12/13000 aps plus a ballast bonus of USD. We saw an LME type vessel reported at usd 25,000 for trip via USEC to ECI. The ECSA rates also dropped with vessels being fixed at USD mid teens aps plus a ballast bonus of USD. In the Pacific Basin the situation is much worse. The lack of coal requirements has softened the market with LME vessels getting fixed at basis delivery South China for Indo round trips with coal. The Indo/India coal requirements were fixed at usd basis delivery China. The NOPAC rounds closed at USD 7000 basis delivery N.China-S. Japan range whereas the USG rounds paid 6,000 the ballasters from Far East. The short period rates basis delivery Far East closed at USD 8,000 region. Supramax: The trend remains upgoing. Last week passed without much of change compared with the one before. The beginning of the week showed a softening trend which was reversed very quickly after Tuesday, Wednsday when we saw rates reaching the levels of the week before and at the end we saw Fronthaul rates being increased abt 1000 USD compared with the closing of the previous week. The transatlantic rates were increased considerably ( usd better than last week s closing). The coal requirements from US atlantic ports attract balasters from W Med, Continent as well as from NW Africa. The West African Supramax market seems also stabilizing with many vessels getting employment straight from W Africa back to Sing-Japan range at high teens region. Above seems reasonable when tess 57 type vessels were fixed at USD 18,000 basis delivery passing Cape for ECSA/FEAST grain requirements. In the Pacific Basin the Indo/India rates closed at about 7,000 aps plus bonus for N China ballasters. The short period rates closed at usd USD region depending on delivery and vessel s particular. Handysize: Negative sentiment in the market The week started extremely quiet due to the holiday both in Europe and Korea and the BDI kept falling throughout the week. The transatlantic round levels decreased as there was not enough volume of cargo to cover the open tonnage at ECSA. West/East Med and Black Sea remained slow and owners could find only USD 7/8,000 aps Canakkale for trips to West Africa. Pacific was very negative for one more week with the round voyage done at the low levels of USD 7,000. Cargoes ex SEASIA did not pay up, not even to similar levels than the previous weeks, while PG/WCI to Far East was done at around USD 6/7,000 levels. Not much happened on the period front with charterers looking mainly to take vessels for short period but on low levels. 2

4 Dry Bulk - Chartering Baltic Indices Dry Market (*Friday s closing values) Index Week 22 Week 21 Change (%) BDI ,57 BCI ,85 BPI ,17 BSI ,50 BHSI ,61 T/C Rates (1 yr - $/day) Type Size Week 22 Week 21 Change (%) Capesize 160 / 175, Panamax 72 / 76, ,56 Supramax 52 / 57, ,36 Handysize 30 / 35, ,89 Average Spot Rates Type Size Route Week 22 Week 21 Change % Capesize 160 / 175,000 Panamax 72 / 76,000 Supramax 52 / 57,000 Handysize 30 / 35,000 Far East ATL Cont/Med Far East ,16 Far East RV ,00 TransAtlantic RV ,00 Far East ATL ,33 ATL / Far East ,86 Pacific RV ,11 TransAtlantic RV ,89 Far East ATL ,11 ATL / Far East ,80 Pacific RV ,33 TransAtlantic RV ,68 Far East ATL ,29 ATL / Far East ,33 Pacific RV ,15 TransAtlantic RV ,69 3

5 Dry Bulk - Chartering ANNUAL APRIL 2012 JUNE

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: VLCC activity in the Middle East accounted 28 fixtures. Rates did not keep on last week s rise prompting losses. Eastbound rates concluded at WS 56, some 4 points down from last week. Respectively on the AG USG route rates corrected by 1 point to end week at WS 39. Despite the strong activity in the Atlantic basin rates did follow the same direction. Ballast units from the Middle East became more attractive thus driving eastbound rates to WS 57,5. On the other hand, on WAFR USG route rates also declined to WS 60. Suezmax: Negative week on the Suezmax front as rates olunged to WS 82,5 on the WAFR USAC route. Lower bunker prices as well as more attractive VLCC rates were the major drivers for this activity Aframax: Despite the pressure to cover requirements in light of the Memorial Day, rates did progress upward. Towards the end of the week there were some fresh inquiries which were not sufficient to hold rates. On the benchmark CBS USG route market concluded at WS 107,5. Panamax: On the Panamax front activity was more stable with the week concluding at WS 155 on the CBS USAC route. Nevertheless, there was some pressure in the market mainly due to the falling Aframax market resulting in more attractive rates. Products: Caribbean product market was quite stable this quite with only some slight changes. On the USG TA route rates remained around WS 80 whilst the CBS USAC route corrected to WS 127,5. Higher vessel availabiltu in the European market meant a decline in rates on the Cont TA route at WS 147,5. Baltic Indices Wet Market (*Friday s closing values) Index Week 22 Week 21 Change (%) BCTI ,15 BDTI ,64 T/C Rates (1 yr - $/day) Type Size Week 22 Week 21 Change (%) VLCC ,500 22,000 2,27 Suezmax ,500 16,250 1,54 Aframax ,500 13,750-1,82 Panamax ,500 13,500 0,00 MR ,000 14,000 0,00 7

9 Tanker - Chartering Crude Tanker Average Spot Rates Type Size (Dwt) Route Week 22 WS Week 21 WS Change % 280,000 AG USG ,82 VLCC 260,000 W.AFR USG ,33 260,000 AG East / Japan ,50 Suezmax 135,000 B.Sea Med 77,5 82,5-6,06 130,000 WAF USAC 70 82,5-15,15 80,000 Med Med 82,5 82,5 0,00 Aframax 80,000 N. Sea UKC 97,5 95 2,63 80,000 AG East ,57 70,000 Caribs USG 102,5 107,5-4,65 Product Tanker Average Spot Rates Type Size (Dwt) Route Week 22 WS Week 21 WS Change % 75,000 AG Japan ,57 Clean 55,000 AG Japan ,00 38,000 Caribs USAC ,5-1,96 37,000 Cont TA ,5-8,47 Dirty 55,000 Cont TA 137, ,85 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 Preparing for Posidonia 2012 Ahead of the Posidonia week, there was limited activity in the S&P sector. After a long time, bulker sales were very few whereas tanker transactions dominated this week s market. In Shiptrade s enquiry index, demand for dry cargo vessels was in the forefront. Handysize vessels led buying interest followed by Handymaxes, whereas there were very few enquiries for MR tankers. Chinese buyers are reported to have committed M/V Xiao Yu (76,000 DWT built in 2011 in Hudong, CHN) for USD 24 Mill with two-year employment attached. Greek buyer are reported to have bought Aframax vessel M/T Ruby River (107,081 DWT built in 2004 in Koyo, JPN) for USD 21,5 22 Mill. Chemical tankers M/T Jo Ask (19,000 DWT built in 1997 in Juliana, ESP) / Jo Eik (19,000 DWT built in 1998 in Juliana, ESP) are reported sold en bloc to undisclosed buyers for USD 13 Mill and USD 14 Mill respectively. NEWBUILDINGS In the newbuilding market, we have seen 4 vessels reported to have been contracted. 2 Bulk Carriers (Ultramax) 2 Tankers (MR) DEMOLITION The general sentiment is weak because of full yards and oversupply of tonnages, followed by the subcontinents monsoon season, weak currencies and steel prices. Bangladesh continues having reduced buying interest if any. The Indian market has paused with end buyers unwilling to offer competitive prices. Pakistan continued to wait for the budget announcements which where due early this month. China is still softening with end buyers in need to digest previously acquired tonnages. 11

13 Sale & Purchase Indicative Market Values ( 5 yrs old / Mill $ ) Bulk Carriers Week 22 Week 21 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 /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/

14 Sale & Purchase Reported Second-hand Sales Bulk Carriers Name Dwt DoB Yard SS Engine Gear Price Buyer Xiao Yu Hudong, CHN 01/2017 B&W - 24 mill With two years TC attached Chinese Gitta Oldendorff Saiki, JPN 07/2015 MIT 4 X 30 T 14.5 mill Greek Tankers Name Dwt DoB Yard SS Engine Hull Price Buyer Ruby River Koyo, JPN 10/2014 B&W DH 21.5 mill Greek Jo Ask Juliana, ESP 11/2012 B&W DH 13 mill Undisclosed Jo Eik Juliana, ESP 03/2013 B&W DH 14 mill En Bloc 13

15 Newbuildings Newbuilding Orders No Type Dwt / Unit Yard Delivery Owner Price 2 BC Jinhaiwan 2014 Laskaridis 26 mill 2 Tanker STX Dalian 2014 Frontline - 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 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 22 Week 21 Change % Baltic Trading Ltd (BALT) NYSE 3,64 3,80-4,21 Diana Shipping Inc (DSX) NASDAQ 7,70 8,25-6,67 Dryships Inc (DRYS) NASDAQ 2,12 2,29-7,42 Euroseas Ltd (ESEA) NASDAQ 1,19 1,23-3,25 Excel Maritime Carriers (EXM) NYSE 0,69 0,89-22,47 Eagle Bulk Shipping Inc (EGLE) NASDAQ 2,75 3,69-25,47 Freeseas Inc (FREE) NASDAQ 0,67 0,63 6,35 Genco Shipping (GNK) NYSE 3,02 3,22-6,21 Navios Maritime (NM) NYSE 3,25 3,48-6,61 Navios Maritime PTN (NMM) NYSE 13,21 13,91-5,03 Paragon Shipping Inc (PRGN) NASDAQ 0,55 0,58-5,17 Star Bulk Carriers Corp (SBLK) NASDAQ 0,76 0,74 2,70 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 2,17 2,70-19,63 Safe Bulkers Inc (SB) NYSE 6,43 6,62-2,87 Golden Ocean Oslo Bors (NOK) 4,35 4,39-0,91 Tankers Capital Product Partners LP (CPLP) NASDAQ 7,04 7,54-6,63 TOP Ships Inc (TOPS) NASDAQ 1,38 1,51-8,61 Tsakos Energy Navigation (TNP) NYSE 5,05 5,25-3,81 Other Aegean Maritime Petrol (ANW) NYSE 4,51 5,27-14,42 Danaos Corporation (DAC) NYSE 3,97 4,06-2,22 StealthGas Inc (GASS) NASDAQ 5,33 5,82-8,42 Rio Tinto (RTP) NYSE 43,13 44,77-3,66 Vale (VALE) NYSE 18,06 18,27-1,15 ADM Archer Daniels Midland (ADM) NYSE 30,92 32,25-4,12 BHP Billiton (BHP) NYSE 61,05 61,81-1,23 Commodities Commodity Week 22 Week 21 Change (%) Brent Crude (BZ) 98,62 107,77-8,49 Natural Gas (NG) 2,45 2,53-3,16 Gold (GC) ,40 Copper (LME) 3,98 3,51 13,39 Wheat (W) 259,77 282,92-8,18 16

18 Financial Market Data / Bunker Prices / Port Congestion Currencies Week 22 Week 21 Change (%) EUR / USD 1,24 1,25-0,80 USD / JPY 78,03 79,69-2,08 USD / KRW ,25 USD / NOK 6,12 6,01 1,83 Bunker Prices IFO 380 IFO 180 MGO Piraeus Fujairah Singapore Rotterdam Houston Port Congestion* Port No of Vessels China Rizhao 22 Lianyungang 42 Qingdao 77 Zhanjiang 35 Yantai 20 India Chennai 10 Haldia 17 New Mangalore 10 Kakinada 10 Krishnapatnam 15 Mormugao 8 Kandla 39 Mundra 12 Paradip 18 Vizag 67 South America River Plate 388 Paranagua 57 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 22 of year