Weekly Chartering Report Thursday, 2 e 213 Braemar Seascope ket Indicator Wet* 19--13 Avg Avg YTD 212 Avg TC E ( U S $ / D a y ) TC E ( U S $ / D a y ) TC E ( U S $ / D a y ) TC E ( U S $ / D a y ) 26, NHC AG/EAST TD3 7, 3, -2,5 11, 13, NHC WAFR/USAC TD5 1, 4, 5, 12, 8, NHC NSEA/CONT TD7 3,5 2,5 6,5 7,5 55, CLN AG/JAPAN TC5 5, 6,5 9, 8,5 37, CLN CONT/USAC TC2 7,5 14, 14,5 1, 38, CLN CARIB/USAC TC3 12, 11,5 1, 9,5 * All rates based on benchmark Baltic Exchange speed and consumption figures Dry 19--13 Avg Avg YTD 212 Avg BDI 995 859 827 92 BCI 1,757 1,454 1,353 1,573 BPI 99 814 928 963 BSI 99 891 826 94 Container 17--13 Avg Avg YTD 212 Avg B O X i 58.2 56.44 55.39 55.76 Financial 19--13 Avg Avg YTD 212 Avg BRENT CRUDE US$/bbl 15.4 13.5 18.28 111.81 IFO 38 ROTT US$/tonne 597.5 586.17 63.18 64.97 YEN/US$ 95.24 11. 95.18 79.7 WON/US$ 1,13 1,112 1,11 1,123 US$/EURO 1.34 1.3 1.31 1.34 All details given in good faith but without guarantee Deep Sea Tankers +44 ()2 7535 2626 Dry Cargo Chartering +44 ()2 7535 2666 Container Chartering +44 ()2 7535 2867
Crude Chartering VLCC 2/6/213 It has been a more stable week for freight rates in the AG this week, which has led to stability in all other sectors of the VLCC market. Those charterers more desperate to fix below last week s levels of 27kt x ws42.5 were able to secure only slightly under these levels by fixing marginally older and less well-approved tonnage. Naturally, some charterers do not have the luxury of such a choice and they have managed to only slightly better that rate, but are still unable to quite get to ws4.. If you were to study the tonnage list, you might say that we are facing a similar over-tonnage situation. However, owners are unwilling to give up such hard-fought Worldscale points without resistance. In a turn-around from last week, the AG/West market seems to be slightly softer than AG/East round trips as owners try to take advantage of the increased westerly freight to boost up their triangulation calculation. In West Africa, again rates have remained stable and we are assessing W Africa/China at 26kt x ws4.-ws41. level, depending on the date range. However, most cargoes are now covered for the first two decades, which leaves only the final decade. It has been a quiet week from the Indian charterers, with no fresh cargoes being worked ex-west Africa from their side. IOC have already fixed four cargoes for the first decade of the month and are expected to have at least a couple more for the third decade. BPCL and Reliance have ticked off their one cargo a month quota from the region. Rates in West Africa continue to slip slightly on the back of a softening tendency being felt in the AG due to a lack of volume this week, and IOC will be keen to take any advantage of the same once they enter the market with their third decade y stems. We are assessing W Africa/WC India at US$3.4m and W Africa/EC India at US$3.7m. There has been intermittent activity for fuel oil loading in Rotterdam, but it seems to be marginal as to whether the arbitrage is open or not sufficient to support freight rate levels of US$3.5m. The 3 day availability index shows 55 VLCCs arriving at Fujairah, of which eight are over 15 years old, compared to 59 last week. For the e laycans, we recorded a total of 112 fixtures, which is in line with the usual monthly average. A total of 27 fixtures have now been reported for the first decade of y but with an overhang of only six ships which can make e loading dates, charterers will be in a more difficult situation if late notice replacements are required. The bunker price today is US$612/tonne, up US$1/tonne from last week. The freight rate for 28,mt AG/USG is ws23., down ws.5pts from last week. Owners' earnings are: Assuming one way (excludes any ballast) at 13knots laden, this equates to US$23,5/day (US$25,/day last week) Round Trip Cape Laden (13knots)/Suez ballast (11knots) US$-3,/day (US$-1,75/day last week) The freight rate for 27,mt is ws41., down ws1.5points from last week, so owners' earnings are: Round Trip Ras Tanura/Ulsan at 11knots ballast and 13knots laden: US$2,/day (US$22,/day last week) Route Size Load Discharge Today s Assessment Last Week s Average TD1 28, Ras Tanura LOOP ws23. ws23.5 TD2 265, Ras Tanura Singapore Ws42. Ws43. TD3 265, Ras Tanura Chiba Ws41. Ws42. TD4 26, Bonny LOOP Ws4. Ws41. TD15 26, West Africa China ws4. ws4.5 VLCC AG Weekly Spot Fixtures by Volume Intended Discharge (13-19 e 213) VLCC AG Monthly Spot Fixtures by Volume Final Destination ( 213) Spore/Indo 25% Korea-Japan 1% NW Europe 5% West 22% India 5% Long East 49% China 34% USA 21% Short East 29% Braemar Seascope Weekly Chartering Report 2
Crude Chartering 2/6/213 Suezmax The status quo prevailed in West Africa this week as rates remained depressed. An early ws47.5 for the USG set the tone and despite a replacement fixing ws2.5 points above the market and a short Angola/South Africa at ws6., it was a late ws48.5 for Sines that offered a true indication of the state of play. Going east, a US$2m was fixed to West Coast India, but overall it was a quiet week of fixing, something owners will not have appreciated. With the market seemingly bottomed out - though we have suggested that prematurely on various occasions - an influx of cargoes was needed dearly and in the absence of this the situation for owners remains dire. In the Mediterranean, a couple of fixtures at healthy rates of ws56.75 for a prompt Sidi/Moham voyage and part cargo 8kt x ws97.5 (replaced at ws1.) for a short cross-med should not distort the equally grim picture. In reality, cross- Med rates are around ws5. off natural dates and the eastbound rates fared little better, exemplified later on by a China-bound Mediterranean cargo fixing sub-us$3m. The lack of activity in the Black Sea, with e dates closed out and y stems only just coming into play, did little to help. The sole fixture in the region went for a meagre 135kt x ws5.. The North Sea did little to help matters, trans-atlantic fixing at ws45. for USG and 135kt x ws43.75 for USAC, with US$3.1m fixed to Singapore. In the AG, a busy week of fixing did little to alleviate downward pressure, with westbound rates remaining particularly depressed despite a recent upturn of sorts in VLCC levels. Ws47.5 for South Africa, ws3. for USG and ws29. fixed/ failed for Brazil were all achieved, with a ws27.5 to Sarroch rounding out the week. As for eastbound voyages, a high of ws65. for China was fixed from Bashayer, demonstrating the normal premium, with standard rates suggesting a far weaker market as ws52. for WC India and ws54.5 for Thailand indicated. Route Size Load Discharge Today s Assessment Last Week s Average TD5 13, Bonny Philadelphia ws5. ws5. TD6 135, orossiysk usta Ws5. Ws5. 135, Mediterranean UK Cont ws5. ws5. 135, North Sea US Gulf ws42.5 ws42.5 135, Ras Tanura South East Asia ws55. ws55. Suezmax WAFR Weekly Spot Fixtures by Volume Intended Discharge (13-19 e 213) Suezmax Weekly Spot Fixtures by Volume Load Area (13-19 e 213) India East 25% Med/Red Sea 13% USA 62% Black Sea 7% USA 7% Carib/EC Mex 12% NW Europe 14% Med/Red Sea 15% W Africa 21% AG 24% Braemar Seascope Weekly Chartering Report 3
Crude Chartering 2/6/213 Aframax A busy week for the North and Baltic, both areas with firming rates. Cross Continent is up at 9kt x WS8 being paid for a prompt market cargo. With the first decade of the programme now out for the Baltic and 1-5 y cargoes being covered at 1kt x ws62.5, rates have held steady so far. However, with the tonnage list constantly tight owners are still feeling bullish especially due to 1kt on unconfirmed subjects at ws8. Charterers may well hold off from covering their cargoes end first and early second decade dates in order to ascertain if this market firming is here to stay. A busy week for the Mediterranean and Black Sea with rates steady and firm at TD19 ws77.5. As y programmes have begun to start the tonnage list has thinned for prompt ships available to do the end month cargoes. This is reflected by a prompt replacement being done at 8kt x WS1 cross med. The black sea is also steady for the beginning of the new month with 8kt x WS75 being done consistently. With a busy month expected from the black sea on 8kt there is the sentiment there to remain steady and potentially firm further. This week, there has been a fair amount activity in the Far East, causing the amount of latent tonnage off Singapore to thin out considerably and rates to firm up to about ws8. Indo/Up off prompt dates and ws75. for end e. Meanwhile, eastbound rates from the AG continue to hover around the high/mid ws7s. While freight levels overall leave much to be desired, owners are hoping that a fresh influx of y cargoes next week will invigorate the market. A similar story is unfolding in the AG, although rates continue to move sideways and chartering activity remains subdued. There are, however, a few cargoes working privately below the radar but it seems they will do little to improve sentiment. Route Size Load Discharge Today s Assessment Last Week s Average TD7 8, Sullom Voe Wilhelmshaven Ws9. Ws85.5 TD8 8, Mina Al Ahmadi Singapore Ws77.5 Ws77. TD9 7, Puerto La Cruz Corpus Christi Ws82.5 Ws84. TD14 8, Seria Sydney Ws7. Ws68.5 TD17 1, Primorsk Wilhelmshaven Ws62.5 Ws62.5 TD19 8, Ceyhan Lavera Ws77.5 Ws77. Aframax (West of Suez) Weekly Spot Fixtures Intended Discharge Area (13-19 e 213) Aframax (West of Suez) Weekly Spot Fixtures Load Area (13-19 e 213) Med/Red Sea 37% USA 24% Carib/EC Mex 13% UKC 7% USA 4% Baltic 3% W Africa 4% NW Europe 39% N Africa/E Med 17% Black Sea 19% Med 6% Braemar Seascope Weekly Chartering Report 4
Jan Jan Jan Crude Tanker Summary Jan 2/6/213 TD3-26 - Ras Tanura - Chiba TCE 5, 4, 3, 2, 211 212 213 1, -1, -2, TD5-13 - Bonny - Philadelphia TCE 4, 3, 2, 211 212 213 1, -1, TD7-8 - Sullom Voe - Wilhelmshaven TCE 5, 4, 3, 211 212 213 2, 1, TD9-7 Puerto La Cruz- Corpus Christi TCE 55, 45, 35, 211 212 213 25, 15, 5, -5, Braemar Seascope Weekly Chartering Report 5
Jan-9-9 -9-9 Jan-1-1 -1-1 Jan-11-11 -11-11 Jan-12-12 -12-12 Jan-13-13 -12-12 -12-12 -12-12 -12-12 Jan-13-13 -13-13 -13 US$/day US$/day Projects 2/6/213 Time Charter It s been some time since we saw larger tonnage being chartered in. During this week two VLCCs have been reported to be fixed by two oil traders with rates ranging from US$18,/day to US$2,/day. Furthermore, an owner has fixed two of its Suezmaxes to an oil major and an owner/operator at rates around US$17,5/day. Finally, an Aframax and two MRs have been fixed at rates that do not deviate from last week s expectations. Overall market rates are considered to remain stagnant for the time being. Vessel Size Yard Built Period Rate Charterer Patris VLCC Daewoo 2 12m 18, EGPC Formosa Petrochallenger VLCC IHI 21 2 yrs 2, PKN Orlen Almi Explorer Suezmax Daewoo 212 12 m 17,5 Stena Almi Odyssey Suezmax Daewoo 213 12 m 17,25 BP Sea Lady Aframax Sumitomo 23 6/6 m 1, Shell Apollon MR Hyundai 25 2/1 years 16, Irving Afrodite MR Hyundai 25 2/1 years 16, Irving 1 yr 3 yr 5 yr US$/day Handy 13, 13,5 14,75 MR 14,25 14,75 15,75 LR1 14,5 15,5 17, Panamax 13, 14,5 16,5 LR2 15,75 16,75 18,25 Aframax 1,75 13,5 16,75 Suezmax 14,5 18, 22,5 VLCC 17, 2,5 25, 6, 5, 4, 3, 2, 1, 1 Year Time Charter Rates Past 5 Years MR Aframax VLCC 3, 25, 2, 15, 1, 5, 1 Year Time Charter Rates Past 12 Months MR Aframax VLCC Contact tanker.project@braemar.com London: Michael B. Friis / Mike Roberts Singapore: Iain Rennie / Ben Dudman Braemar Seascope Weekly Chartering Report 6
Jan Jan CPP Chartering 2/6/213 Clean Products - East It appeared to be a promising start to the week for LR2 owners east of Suez as a number of cargoes were quoted on Monday and Tuesday, causing a slight stir in the market. In reality, these early week requirements were to be the only cargoes quoted and there was nothing to back them up and push momentum. As a result, the market has actually softened a touch. TC1 is on subjects twice at ws73. basis 75, tonnes of naphtha, earning round trip US$4,5/day. Voyages westbound have fared no better with US$1.9m, although unconfirmed, having been put on subs for 9, tonnes of gasoil from West Coast India to the UKC. Reliance beat the market up into East Africa by taking a ship on subs 8, gasoil x ws94.. All in all, a disappointing week east of Suez. In the West, there has been a flurry of activity, admittedly the majority of which is driven by the naphtha arbitrage to the Far East, which will result in half of the vessels put on subjects failing if the past is anything to go on. Med/Japan is paying an even US$2.3m currently and there are four ships on subs for these routes and a further one already fixed. Distillate is moving out of the Baltic and ARA on these sizes too, and it will be interesting to see if all these ships get confirmed and the impact it will have on the market. Unfortunately, the tonnage list is still well-supplied with ships which poses the question: why would you quote a 2nd or even 1st decade y cargo now when rates are still stalling where they are? The LR1 market has been very quiet this week. TC5 is rating down as the week with the last done fully fixed vessel being confirmed 55kt x ws95., but there is a widely understood report that ws87.5 is on subs loading out of the AG. Reliance took a vessel on subs at US$2.275m Sikka/USAC off 5-1 y, which is back to the bottom levels we saw a month or so ago. 6 gasoil was confirmed Sikka/Red Sea at US$85, also, a far cry from the US$1.m levels we were seeing a couple of weeks ago. All in all, a disappointing week for owners and the absence of fixing has only served to keep the market depressed moving into next week. The MR market has failed to excite this week. There has been a fair amount of activity off the prompt dates, but rates have remained level and there are little or no signs to suggest that next week things will improve. TC12 has fallen to 35kt x ws1. for WC India/Japan, AG/East Africa is on subs 35kt x ws172.5 and South Africa ws162.5. Cross-AG rates into Iraq are stuck at US$22, 1:1, and AG/Red Sea rates are circa US$8, to Saudi Red Sea. There are simply too many ships fighting for the cargos. Charterers continue to run their stems prompt on as there is no need to fix ahead. They are then able to pick and choose which boat they want with a few days to spare and keep the market depressed. Route Size Load Discharge Today s Assessment Last Week s Average TC1 75, Ras Tanura Yokohama Ws74. Ws74. TC5 55, Ras Tanura Yokohama Ws95. Ws96.5 TC4 3, Singapore Chiba Ws121.5 Ws122.5 TC12 35, WC India Japan ws13.. ws13. TC1-75 - Ras Tanura - Yokohama TCE TC5-55 - Ras Tanura - Yokohama TCE 35, 25, 211 212 213 25, 2, 15, 211 212 213 15, 1, 5, 5, -5, -5, Braemar Seascope Weekly Chartering Report 7
Jan Jan CPP Chartering 2/6/213 Clean Products - West "I don't care too much for money, money can't buy me... cargoes", seems to have been the chorus line of the week for the Flexi tonnage owners. The bottom line is that natural size cargoes for these ships have been severely lacking; it s not even from an aggressive stance that rates have gone south, simply a lack of stems. And it wouldn't take too much for someone to take this to ws18., but currently owners hopes are a little above this. Handies have fared somewhat better than their smaller cousins. Rates have come off but at least there has been some enquiry. As expected after last week s doldrums, the market is currently residing at 3kt x ws137.5. Expectation is still that there will be continued light activity, although most are doubtful rates will come off any more. TC2 this week has been a little disappointing, with an extra-ordinarily slow start to the week that would have made glacial shift seem hasty. A mid-week flurry has mopped up tonnage to the end of the month and hopefully bottomed out this market, with some prompt methanol tonnage taking a small hit at ws11.; at its height this week we have seen ws12.. With light activity forecast and no new cargoes on the books this morning, I would probably be calling this a ws117.5 market tran-atlantic, with all eyes to next week. Across the pond is another story, with tonnage drying up from enquiry off the Gulf and tonnage reportedly ballasting across from West Africa. Rates have gone to ws1. for the back haul, which as a comparison is equivalent to time charter earnings of US$5,/day. But in combination with TC2, this would be over US$15,/day. Caribs/Up TC3 is also rising to ws14. as tonnage is sucked out of the area. Overall expectation is that this is due to continue as trading has seen that over 2m mts per month for y and ust are booked USA into Europe, and the lion s share of this is ULSD, at around 75%. The Mediterranean market this week continues to meet expectations of lacking anything meaningful to write about. Enquiry still very low and tonnage aplenty, meaning rates have stuck around the same point, currently 3kt x ws125., with no Black Sea/Med premium evident. "Send me a postcard, drop me a line, stating point of view". Route Size Load Discharge Today s Assessment Last Week s Average TC2 37, Rotterdam New York ws117.5 ws115.5 TC3 38, Aruba New York Ws14. Ws132.5 TC6 3, Skikda Lavera Ws125. Ws127.5 TC2-37 - Rotterdam - New York TCE TC3-38 - Aruba - New York TCE 3, 2, 211 212 213 35, 3, 25, 2, 211 212 213 1, 15, 1, 5, Braemar Seascope Weekly Chartering Report 8
Jan-9-9 -9-9 Jan-1-1 -1-1 Jan-11-11 -11-11 Jan-12-12 -12-12 Jan-13-13 US$/day BCI Dry Cargo Chartering 2/6/213 Capesize The Cape market has seen significant gains over the week and rates being fixed continue to improve. West Australia/China has been reported at US$8./tonne for an early ship, with US$7.9/tonne levels being concluded for y dates. On time charter R/Vs, a 17, Dwt (1996 built) vessel has been fixed basis delivery Xingang at a firm US$11,/day and another vessel is rumoured to have achieved US$12,/day via EC Australia. The front haul market perked up today, with rumours of US$2./tonne achieved on a e cancelling cargo. Coupled with news of a modern 18, Dwt vessel achieving US$23,/day for a trip east via EC Canada and a trans-atlantic trade being concluded at US$1,/day, we are seeing a few more owners willing to sail past Singapore and head to the Atlantic. Period fixing has led to short period rates improving to US$11,5/day on 17, Dwt vessels. We are not aware of longer being fixed at present, but if the spot market can maintain itself at current levels for a while longer, we expect this to change. The Baltic Capesize Index vs Atlantic & Pacific Earnings 125, 1, 1, Atlantic Pacific BCI 8, 75, 5, 25, 6, 4, 2, -25, Braemar Seascope Weekly Chartering Report 9
Jan-9-9 -9-9 Jan-1-1 -1-1 Jan-11-11 -11-11 Jan-12-12 -12-12 Jan-13-13 US$/day BPI Dry Cargo Chartering 2/6/213 Panamax Positive sentiment from last week has been developing into firmer fixture numbers, with levels improved across both sides of the basin. In particular, the EC S America grain trade has shown a marked improvement, with eco-type vessels trading on APS basis at US$15,/day plus US$5, for front-haul trips. Sudden improvements have caused forward grain freight spreads to widen at the near-term end of the curve as operators upwardly revise their freights by several dollars in the face of unexpected upward market adjustment. Encouraging signs have withheld some European head owners from rating fresh time-charter ideas whilst they contemplate the impact of the current trend. For the time being, market expectation is positive and the consensus view is for the rates to remain firm up to around mid-y dates. The Baltic Panamax Index vs Atlantic & Pacific Earnings 6, 6, 5, Atlantic Pacific BPI 5, 4, 4, 3, 3, 2, 2, 1, 1, Braemar Seascope Weekly Chartering Report 1
Jan-9-9 -9-9 Jan-1-1 -1-1 Jan-11-11 -11-11 Jan-12-12 -12-12 Jan-13-13 US$/day BSI Dry Cargo Chartering 2/6/213 Handy/Handymax/Supramax North coast South America tonnage is tight, however we are seeing more and more ballasters from West Africa opt for north coast South America than east coast South America this week due to an indecisive grain market and an already long tonnage list in south Brazil/Argentina. There was talk of charterers aiming around the US$13,/day level for a trip with petcoke ex north cost South America to Far East on a handymax. Voyage rates ex north coast South America to Far East are also stable with owners being bullish and looking to achieve around US$5/tonne about 4, tonnes cargo. In addition the US Gulf handy market has remained firm this week and look forward to these conditions to continue into next week. At the moment we are seeing a lack of prompt/2nd e capable tonnage in the handy sector on the Continent which, when combined with strong scrap rates on both voyage and TC are producing a very strong market. We have seen several owners with early y/very end e positions that are focusing on period (either two to three laden legs or three to five months) as they look to capitalise off the firm rates for 2nd e with quoted rates from owners around high US$9,/day to US$1,/day for modern/eco handies. Going forward into next week it seems that the vitality in the market will depend on how many positions for y we see circulated into the market in the next 1 days and whether owners will attempt to keep their tonnage off-market in order to perpetuate the feeling of a supply-tight market. Handy size vessels in the Far East have been seeing rates in the high US$5,/day for 28, Dwt vessels and low mid US$6,/day on the larger 35, Dwt for short duration Russian CIS/China coal business. Rates to east coast India have been a tick more, generally in the mid-high US$6/day and tick over US$7,/day for larger vessels. The Baltic Supramax Index vs Atlantic & Pacific Earnings 5, 5, 4, Atlantic Pacific BSI 4, 3, 3, 2, 2, 1, 1, Braemar Seascope Weekly Chartering Report 11
Asia / Australia ket News 2/6/213 Asia / Australia News China scraps iron ore import licensing system to help companies China, the world s largest iron ore buyer, has scrapped a licensing system for imports of the steelmaking raw material. The abolition of the permit system will allow small and medium-sized trading companies easy access to the raw material. Easier import rules may help cut shipment costs and make purchases more transparent and efficient for buyers. The changes won t have much impact on larger companies as they held licenses under the previous system. China imported a record 745m tonnes of iron ore in 212. Inventories at China s ports and mills are at the lowest in 2 1/2 years at 2 days of demand. Monsoon covering India in record time may boost rice, sugar Monsoon season, which accounts for 7% of India s annual rainfall, covered the entire country in a record time, accelerating plantings of crops from rice to soybeans and cotton. Rains covered the whole of India on Monday, the earliest ever and ahead of the normal date of y 15. Monsoon showers have been 48% above a 5-year average since they arrived e 1. The early arrival of rainfall has helped ease a drinking water shortage and relieved crops threatened by the worst drought in four decades in India s western region. A bumper harvest may help Asia s thirdbiggest economy curb food prices and revive economic growth from the lowest level in a decade. Oakajee port and rail to take five years Oakajee port and rail network aimed at opening up a new iron ore province in Western Australia will take at least five years to develop following the collapse of a $6 billion plan to build the infrastructure. Mitsubishi last week shelved plans to develop a port at Oakajee, 24km north of Geraldton, and a 57km rail network through the Mid- West, as well as its associated Jack Hills iron ore mine. The company blamed weaker iron ore prices and a failure to secure an equity partner to fund the massive project. Australian cane industry enjoying a period of rejuvenation' This year's Australian sugarcane harvest has started in north Queensland amid a reversal of previous trends for cane fields to be taken out of production. The failure of tropical tree plantations such as mahogany and teak has opened up opportunities for the expansion of cane farming north of Mackay, as export prices look brighter due to the fall in the value of the Australian dollar. The move has been hastened by the new trend of cane fields to be bought by sugar mills, most of them now owned by foreign conglomerates. Over the past decade, cane plantings declined by 17% from a record 45,ha harvested in 22. For the first time, this year has seen a rebounding of previous declines, with 4,ha of cane set to be harvested down the east coast of Australia between Mossman and Ballina between now and ober. Adani to build $3m power line to Galilee Basin Indian energy giant Adani Group is planning to build a A$3m electricity transmission line to its proposed mine in the Galilee Basin in Central Queensland. Adani is confident its project, to mine up to 6m tonnes of thermal coal a year, is economically viable because it controls all the stages from pit to port, including the rail line, Abbot Point coal terminal to feed and power stations in India. NSW government plans sale of Newcastle coal port The New South Wales Government said it plans to sell Newcastle port, the world's biggest coal export terminal, meaning another chunk of the country's vast resources industry could be sold to foreign buyers. The state's budget for 213-214 delivered on Tuesday outlined plans to sell a 99 year lease to operate the port for an estimated A$7m. Newcastle exported more than 12m tonnes of coal last year, most of which was shipped to Asia for use in power plants and steelworks. West Africa piracy rises More seafarers were affected by piracy off the West coast of Africa last year than near Somalia, which has seen a dramatic reduction in attacks thanks to armed guards and naval patrolling. Armed attacks off the West coast of the continent affected 966 seafarers in 212, compared to 851 in Somalia. However, the 349 seafarers taken hostage off Somalia still dwarfs the 26 captured in West Africa, where pirates often favour hit and run tactics, stealing cargo and possessions, rather than holding vessels and their crew for ransom. Somali pirates also hold hostages for an average of 11 months, compared to just four days in West Africa. Braemar Seascope Weekly Chartering Report 12
Jan-8-8 -8-8 Jan-9-9 -9-9 Jan-1-1 -1-1 Jan-11-11 -11-11 Jan-12-12 -12-12 Jan-13-13 Container Chartering 2/6/213 Containers A relatively quiet but steady week in the container market resulted in little movement in our BOXi, except for the 1,7TEU sector where a continued tightening of supply has seen rates rise further still as operators have to pay up to secure what little tonnage is available. Rates in the low to mid US$7,s/day will be a welcome relief for owners who less than six months ago were struggling to hit the US$6,/day mark and break opex. Indeed, the struggles of this size until recent months are possibly, somewhat ironically, part of the reason for the lack of available tonnage in this relatively elderly sector due to the impact it had on encouraging owners to go down the scrapping route. With only a modest orderbook in this size and the continued future need for feeder tonnage, a now popular thread of opinion is that this size will continue its upward trend. At the same time, however, owners of the smaller 1,1TEU size in the Far East struggle to find employment, and with vessels still fixing 12 month periods at mid US$5,/day levels, it could be seen that owners here lack the optimism that is evident for their larger feeder cousins. The headlines were of course dominated by the news of STX Pan Ocean filing for bankruptcy and the resultant ramifications associated with charter hire payment defaults and service reshuffling among the partners. What is clear is that it will take some time for the dust to settle and until then it is difficult to speculate as to the impact this will have, if any, on the charter market as a whole. But it is inevitable that, whilst not to the same extent as in the dry bulk sector, a number of container owners' cash flows will be dramatically affected. Another development to grab the headlines was the naming of the first of Maersk's 18, triple E types - a potentially ominous sign for a market struggling to cope with overcapacity and the cascading process associated with large newbuild tonnage. However, at the same time positive news has emerged showing a sharp reduction in levels of idle tonnage - Lloyds List Intelligence has quoted a figure of 388,13TEU currently in lay-up, representing just 2.35% of the total global cellular fleet, compared to 5% as recently as il this year. The fact that the market is able to absorb this with rates continuing to show improvements, albeit modest, should be seen as encouraging. Vessel (TEU/HMG) Index + / - 77/44 TEU (GL) 17.5 k 3.28. 1,43/66 TEU (GL) 18 k Eco 4.74. 1,1/715 TEU (G) 19 k 7.67. 1,7/1,125 TEU (G) 19.5 k 8.75.3 1,74/1,3 TEU (G) 2.5 k 8.75.29 1,714/1,25 TEU (G) 19 k Bkk Max 5.34.6 2,5/1,9 (G) 22 k 4.51.5 2,8/2, TEU (GL) 22 k 3.33. 3,5/2,5 TEU (GL) 23 k 1.61. 4,25/2,8 TEU (GL) 24 k 3.8. 5,5/4,2 TEU (GL) 25 k 3.33. 6,5/4,8 (GL) 25 k 4.69. Index Total 58.2.7 The Box Index B O X i 2 16 12 8 4 Braemar Seascope Weekly Chartering Report 13