BMTI - Independent Dry Cargo Reports & Analysis

BMTI publishes Daily and Weekly Freight market Reports & Research for the worldwide Deep Sea and European Short Sea transportation industry

BMTI - Independent Dry Cargo Reports & Analysis

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BMTI supplies a high quality and up-to-the-minute information service for the international dry bulk shipping industry. The BMTI reports, published in English, provide unbiased professional analyses of the most important developments in the international deep sea shipping business as well as summaries of principal transactions - clearly, accurately and concisely - to decision makers in the global dry bulk shipping industry. BMTI draws its information from a worldwide network of correspondents, news agencies and from market participants themselves.

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CHARTERERS QUESTIONING BLACK SEA RATES From the Black Sea, Supramax owners are sticking to US$ 15,000 daily for a trip to PG, with the charterers wondering whether the market justifies such a num¬ber. From owners of a 55,000 dwt we understand they have been told by charterers that US$ 14,500 daily is the best they could do and would not even be certain to be able to maintain this number. This is understandable given the recent rate of US$ 4,000 daily done on a 57,000 dwt for a trip to the USG. Grain charterers put a 28,000mt cargo to Morocco on subs at US$ 17/mt, which sounds cheap but just mirrors the poor market conditions in the area. South African brokers report on quiet market con¬ditions with fixable business scarcely around. Supras are getting fixed at US$ 8,500 plus US$ 150,000 BB for trips to the East and around US$ 7,000 daily for a trip to the Continent-Med. The rate for Handysize tonnage to the Continent with around US$ 6-6,500 daily is pretty close. Handysizes of 32-5,000 dwt are paid around US$ 10-11,000 daily to the East. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-09-04 00:35:52 GMT

FAR EAST HANDY BULKERS ASCENDANT Sentiment is still on the positive side for Far East Handy bulkers and owners continue to take advantage of a moderately bullish market. Even the Indian Ocean market has been holding firm with Supramaxes fetching over US$ 6,000 daily ex-WCI to South Korea, brokers report. Period business is steady with Handymaxes now fixing US$11-11,500 daily on short deals of 3-5 months. Rates are still rising in the Atlantic with owners getting improved levels from the USEC, the Black Sea-Med and the North Continent. Activity has grown considerable from the US Gulf in recent days. Black Sea market settled some on Friday after a rather bullish week. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-09-01 10:58:49 GMT

PANAMAXES FOCUSED ON SEPTEMBER DATES Pacific Panamaxes closed last week with some slippage in spot rates as open tonnage started expanding again even as owners insisted on locking in DOP rates before the market started to shift back to an APS preference. NoPac rounds are fixing just under US$ 6,000 daily, brokers say, though may be facing more pressure until September arrives. Indeed, stan¬dard Pacific rounds are still doing little better than US$ 4,500 daily, much to owners' chagrin. Activity also started to fade in the Atlantic, though rate trends remain widely firm with front hauls ex-ECSA still holding to around US$ 14,500 daily plus US$ 450,000 BB. Early September dates are being fixed now for the most part, even as many owners, ever confident, prefer to hold out for a September boost. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-25 00:04:10 GMT

STAR BULK SUDDENLY BIGGEST US BULKER OWNER Star Bulk Carriers Corp. [SBLK] saw its share price rise 30% this week to just under US$ 14 after it became the largest US-listed bulk carrier owner when it acquired Excel Maritime [EXM] for US$ 634.91m. Star Bulk has been on something of a buying spree in this quarter, having already purchased OceanBulk last month. Acquiring Excel Maritime will expand Star Bulk's operating fleet by 34 ships as of this December. After all its ships are delivered at the end of 2015, its total fleet will be 103 ships strong. Boasting 6.642m dwt of capacity, Star Bulk now easily exceeds erstwhile US leader DryShips, which has 4.257m dwt. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-22 14:44:54 GMT

REVIVAL IN US GULF HANDY BULK MARKET Supramax owners seem to be enjoying steady demand from the USG where rates to the Continent have risen to US$ 12,000 daily whilst for front haul US$ 15,000 daily ahs been bid by Charterers, brokers say. Tonnage of 33,000 dwt has been rated at around US$ 9,500 daily or a trip to Nigeria, which destination due to Ebola is hard to sell. Not even money will do to lure them into doing it. A new and unexpected challenge charterers are to meet now. It is definitely worth closely following cargoes direction West Africa. Supra rates ex ECSA have been holding. But charterers are putting up their rates to meet the owner's figures which are around US$ 12,750 daily plus US$ 250,000 BB. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-19 10:31:04 GMT

PAPER MARKET LEADS PHYSICAL IN RALLY Driven by paper, South African brokers claim to see improved sentiment with Supra owners talking higher numbers like US$ 8,000 daily plus a bonus of US$ 175,000 lumpsum for trips back east. There is a lot of optimism in the market, which owners understandably want to reap the benefit of. Handysize activity has been negligible, brokers say. In the East, backhaul rates for 35-38,000 dwt vessels have been exchanged in the region of US$ 6-7,000 daily for direction Med. Aussie charterers continue to rate 28,000 dwt tonnage at US$ 4,500 daily for an Australian RV with delivery in the Singapore area. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-15 11:46:12 GMT

RATES RALLY ON CAPES - BUT FOR HOW LONG? Capesizes' time has come while their rates push ahead, likely for the rest of this week if not even beyond. Traders are still sceptical that the rally will last, but for now day-on-day increases are very sizable indeed with Pacific RVs moving upward from the low teens to potentially US$ 13,000 daily before the weekend. UKC front hauls to China are up into the high US$ 20,000s, poised to hit US$ 30,000 daily by early next week, assuming that rate trends hold. Pacific trips via Australia are fetching rates closer to US$ 7,000 daily while TARVs are flat at US$ 9,000 daily. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-14 14:13:34 GMT

BLACK SEA GETS HANDY BULK ATTENTION Stable conditions have been reported from the Black Sea where a 32,000 dwt was traded for a trip to the Continent at US$ 6,500 daily. Steel charterers were disappointed to see owners of a 34,000 dwt walking away from negotiations which they opened at US$ 4,500 daily for a trip to the USG. The next best ship they were seeing was a 41,000 dwt at US$6,500 daily, which was of no avail to them since they could not utilize her cargo capacity. Grain charterers quoting 30,000mt from Russian Black Sea to EC Mexico have seen tonnage at US$ 23.5/mt basis very fast loading and discharging. Off the West African coast rates for Supras to the East are hovering around US$ 12-13,000 daily reading between the lines of owners and charterers rates exchanged. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-13 13:35:44 GMT

A WAKE-UP CALL FOR THE DRY BULK BUSINESS Leverage and its effects post-bust are topics that have been occupying this correspondent's mind for some weeks. Many of the loans out there in the shipping market, simply put, will never be repaid. Owners struggle on, servicing their debt (if even that) while the lenders find ever more imaginative ways to self-deceive, deceive their owners, or the regulators. Solely interest paid, without principal repayments, on a depreciating asset, is a bad debt and should be bought to book. The idea that in shipping; better returns are around the corner is a deception. The owners and their financiers—if too exposed to the sector—are zombies, going on but neither alive nor dead. Because the can is being perpetually kicked along the road until some time in the future a vessel eventually ends up on the beach with US$ 20m owed on it and a US$ 3-4m cheque when the bad debt is finally realised, ship values are patently overvalued. The idea that a five-year-old Handy can be worth US$ 19.5m as reported in a publicly listed owner's half-yearly report (quoting a ship broker) does not appear to pass muster. Currently, Handy owners are lucky to earn US$ 2,000 per day over operating costs x 365 days = US$ 750,000. On a 4% loan this can only service a loan of US$ 18.75 with no principal repayment. Clearly an asset with that kind of income is not worth US$19.5m a quarter of the way through its life, no matter what discount rate is applied. The ship value fantasy is kept afloat (pardon the nautical pun) by the contango fantasy, which is in turn kept afloat by a whole raft of other fantasies. To name some of the backing examples: the demand growth fantasy, the non-delivering orderbook fantasy, the scrapping fantasy (old ships are the only ones that make a return!), the we can order new ecoships when they are cheap but other owners won't fantasy and finally the ecos don't work and won't eventually be the marginal price-setter fantasy. The dry bulk sector, in this commentator's opinion, is unfortunately buried in vested interests all sustaining each other whilst stumbling onward. This current bust is lamentable, but investors and shareholders deserve honesty. The same owner who published that a five-year-old Handy is worth US$ 19.5m has bought three ships so far this year and has another 18 on order, many of which have been added to their orderbook since early 2013. This begs the question: will shareholders see value from these asset purchases? [by BMTI's New Zealand Chartering Correspondent, 7.Aug.2014] Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-11 11:59:49 GMT

ATLANTIC HANDIES SEE BOOST IN ACTIVITY DOP freights are limited on Pacific Panamaxes, but those that are fixed to India are fixing rates just under US$ 5,000 with fertilizers from North China. Activity is still firming up among the Pacific Handy bulkers thanks to the monthly switch-over as well as renewed demand for mineral and steel products to Southeast Asia where Handysizes are now fetching US$ 7-800 daily ex-South China. The North Continent is heating up again for the Supramaxes and the Black Sea continues to push upward on freights with grain front hauls to Southeast Asia moving toward US$ 13,000, given present trends. The South Atlantic, however, remains plagued by overtonnage. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-08 10:33:19 GMT

PANAMAX OWNERS EXPECT AUGUST GRAIN SURGE Short-lived order surges that encouraged Panamax owners early last week did not see much replay as the week went on with APS terms once again dominating proceedings, even in the West, where USG/ UKC trips are now fixing around US$ 9,000 daily plus US$ 90,000 BB, levels nominally down from a week earlier. Coal voyages from the USG to ARA are estimated now to be around US$ 13/mt or lower. Tonnage available from ECSA continues to exceed cargoes, thus keeping front hauls under pressure and last-done freights at around US$ 12,500 plus US$ 250,000 BB. With grain season starting to come to an end in the next few weeks, owners are hoping for a final burst of grain activity to buoy rates in August. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-08-04 11:50:03 GMT

FLUCTUATIONS IN US GULF HANDY BULK Petcoke charterers withdrew interest in a 45,000 dwt at US$ 10,000 daily from the USG to the Med after they saw 55,000 dwt tonnage fix US$ 9,500 daily. The trading pattern in the East has been all the same. In the Korea-Japan area Handysize rates look quite promising whilst in SE Asia the market remains depressed, which led owners of a 32,000 dwt to resume trading a trip ex-ECI to the Red Sea at US$ 6,000 daily. Steel charterers took a 55,000 dwt from China to the Continent at US$ 6,750 daily for the first 70 days and US$ 11,000 daily thereafter, which is not too bad a deal. A cargo of 10,000mt steels ex-Taiwan to North Spain was booked at US$ 40/mt. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-30 13:43:49 GMT

OUTLOOK BRIGHTENS FOR ATLANTIC PANAMAXES Pacific regional Panamax activity began the week relatively subdued with holidays in Indonesia and Singapore, among others. APS terms continue to dominate proceedings with charterers still resistant to give anything much higher than APS rates that equate to DOP levels of roughly US$ 3,000—again, nothing to write home about. New cargoes are being registered, although there is no strong trend that would suggest a recovery in the market. Period business remains decent with year period deals going for around US$ 9,500, plus or minus US$ 500 depending on terms. Atlantic cargoes are also slow coming, even as gen- eral sentiment remains on the positive side, if barely. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-29 11:01:41 GMT

Bayraminiz Kutlu Olsun! Eid Mubarak! Blessed Eid! عيد مبارك

Published on 2014-07-28 14:07:40 GMT

PACIFIC SURGE LIFTS SENTIMENT, NOT RATES Losses were less for Capesizes in the past seven days (down 3% week-on-week) than in the week before, but that comes, obviously, as faint comfort for owners still struggling to make ends meet, especially those trying to get trans-Atlantic business. A big surge in chartering activity from Australia on Pacific rounds by major chartering houses fired up the market in the Pacific on those routes, but even so failed to lift rates much higher than were they were trading when the week began, i.e. US$ 7.8/mt for Dampier or Hedland to Qingdao or similar. Brazil/China voyages did firm slightly into the upper US$ 18s/mt on the increased activity—Atlantic shipowners say they hope against hope that this uptick in sentiment will translate into real spot freight improvements in the week ahead. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-28 10:27:45 GMT

HANDY BULK INTEREST SPORADIC IN PACIFIC In the East, Chinese charterers are expressing interest in 30,000 dwt from Singapore area to China at US$ 7,000 daily. Australian charterers took a 29,000 dwt at US$ 4,500 daily for an Aussie RV with delivery in Singapore, whilst owners of a 45,000 dwt were coming with US$ 5,500 daily for a trip from Singapore via Australia to the Continent. With the USG market almost collapsed to find cheap tonnage from WC India like US$ 2,500 daily etc, to go there is almost impossible and takes a lot of explanation to make charterers realize that they have to pay up to attract owners at all. On the Supramax front, grain charterers are offering US$ 8,500 daily plus US$ 300,000 for a trip from NoPac to Japan-China range. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-23 14:25:25 GMT

CAPES FLATTEN AS OWNERS RESIST PRESSURE Activity is still subdued on most of the Capesize routes, though Pacific enquiry does seem to have picked up slightly over the weekend, helping the trans-Pacific RVs to stabilize at around US$ 8,500 daily. Likewise, the TARVs, which nonetheless stick to US$ 5,000 daily and the front hauls from UKC that remain within the US$ 24-25,000 daily range. Pacific rounds are still rather hard for owners to stomach with standard rounds not rising much higher than US$ 4,000 daily DOP. APS terms, at any rate, still dominate most of the Far East fixtures with the possible exception of NoPac. On the bullish side, Panamax brokers report seeing less open tonnage compared to last week, though this doesn't seem to have registered with charterers, who have become almost cocky about their dominant market position. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-22 13:48:23 GMT

HIGH HOPES FOR BLACK SEA GRAIN The South Atlantic has gone quiet for Supramaxes in much the same way that the US Gulf market has—currently new trips ex-USEC to the Mediterranean are fetching about US$ 11,000 daily, when cargoes are even available. Tonnage continues to expand along the USEC and the Continent, owners complain, with little in terms of stimulating cargo demand seen in the pipeline. Front hauls from Black Sea to SE Asia are getting Handymaxes rates of about US$ 8,000. But owner hopes remain high as more grain slowly comes on in the Black Sea basin. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-21 14:47:33 GMT

SIGNS OF LIFE FOR CONTINENTAL HANDIES Enquiry is starting to perk up along the North Continent Handy bulk markets, brokers report, though rates thus far remain unimpressed, trending on a sideways path. Scrap trips from the Continent to the East Med remain sporadic at best. Black Sea front hauls to the Far East are giving modern Handymaxes rates in a wide band of US$ 9-11,000 daily, depending on terms. Activity from the South Atlantic has been steady, helping keep rates at last-done, though im- provements are not seen. In the East, rates are flat-to-down with Supramaxes fixing Pacific rounds from Southeast Asia at US$ 6,500 at best. Activity is modest in the Indian Ocean amid monsoon season. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-16 13:41:44 GMT

ATLANTIC RATES FADE IN CAPE CORRECTION Capes are tumbling after an overheated week with average rates down 21% week-on-week as tracked by the BCI. Sentiment remains sluggish in the Atlantic, though the Pacific is comparatively better with West Australian RVs holding to around US$ 7.5/mt. The Brazil/China routes are worrisomely slow with last-done at about US$ 20.5/mt and possibly going lower. USEC/FE front hauls are at US$ 28,000 daily. Panamaxes have cooled in the Atlantic with TARVs under mild pressure, slipping just under US$ 5,000 daily at last-seen levels. Front hauls from ECSA to the Far East continue to maintain an upside as cargo demand has stayed fairly robust. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-14 00:45:54 GMT

WALL STREET RAINS ON BULKER PARADE It ended up being a rather disappointing week for bulk carrier shares on Wall Street with not a single positive performer, despite early week rumblings of a market recovery. Scorpio Bulkers Inc. [SALT] was among the least effected, falling only 2.5% over the week, recovering from a 4% drop early on Thursday to close at about US$ 8.7. Listed bulker veterans such as Navios Maritime Holdings Inc. [NM] seemed to be less fortunate, losing 10% on the week to settle at US$ 9. Bulker firm Genco Shipping & Trading Ltd. says it has exited Chapter 11 bankruptcy reorganisation, having reduced debt by US$ 1.2 billion. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-11 16:34:20 GMT

ATLANTIC PANAMAXES GO WOBBLY Grain cargoes ex-ECSA to Singapore-Japan are fixing APS rates within a large band between US$ 12,250 daily and US$ 14,000 daily plus US$ 225,000 BB or US$ 400,000 BB, depending on terms. However current trend suggest that the majority of new deals will be at the lower end of that spectrum. Pacific business is also slower, but sentiment remains positive with spot cargo demand still proving strong enough to keep freight rates firming. Coal trips from EC Australia to China are fixing US$ 7,500 daily while coal from Port Kembla (New South Wales) to Taiwan can conclude as much as US$ 8,000 daily. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-10 15:34:55 GMT

NCSA OFFERS NO RESPITE FOR HANDY BULK From ECSA, a 57,000 dwt has been taken at around US$ 10,750 daily for a trip via Red Sea with redelivery Port Said. A 39,000 dwt in ballast from West Africa was rated by a major grainhouse at US$ 8,500 daily from Brazil to Libya, a number the owners would love to get and submitted their offer close to this level. From the NCSA-USG trade regions, there seems to be no light at the end of tunnel. Even to carry a dirty cargo does not necessitate a premium rate with owners of a 33,000 dwt talking below US$ 8,000 daily for a trip from the Caribbean to the East Med. Petcoke charterers keep sticking to US$ 9,000 daily for Supramax tonnage ex-US Gulf to the Mediterranean. Start a no-risk trial subscription to the BMTI Daily Report today:

Published on 2014-07-09 00:53:47 GMT

NEW IDEAS NEEDED IN GERMAN SHIP FINANCE The financial and economic crisis initiated by the fall of Lehman Brothers in 2008 is still being felt in the shipping industry and being reflected, among other reasons, in today's persistently low rates. The slide in vessel prices (newbuilding and secondhand) has led to a loss of value in shipowning companies. The financial resources of many owners have faded away to support the existing fleet or pay for newbuildings ordered pre-crisis. With the crash of KG funds in Germany, owners are now searching for new money. Many of them are eying private equity sources or shipping bonds. But both of these financing methods require higher rates of return and often have a shorter duration not well-adapted to the long-cycle of shipping. Start a no-risk trial subscription to the BMTI Daily Report today: