Dry Bulk FFA: Capesize Market on Positive Territory
Capesize FFA Commentary:It was a positive morning yesterday for cape paper as rates pushed in anticipation of the index breaching $30k. There was however some nervousness about as a quiet afternoon brought on some sharper selling interest allbeit in small volume. Despite the fact Dec may continue to push higher, many are acutely aware of the drop going into Jan and the lack of transactions at these rates which may keep a lid on rates going further out.
China may take top spot in global shipbuilding orders
China’s shipyards may capture the top position for new orders worldwide in 2017, outpacing those in South Korea, South Korean newspaper Aju Business Daily reported on Friday, citing marine industry tracker Clarkson Research. This would be the seventh consecutive year that China would be number one in terms of annual cumulative order intakes.
Brittany Ferries Inks Financing for LNG-Powered Unit
zoomImage Courtesy: Brittany Ferries The European Investment Bank (EIB), Societe Generale and Brittany Ferries have inked the first green maritime financing under EIB’s EUR 750 million Green Shipping Guarantee (GSG) programme.The new vessel Honfleur will be Brittany Ferries’ first liquefied natural gas (LNG) powered ferry. It is scheduled to enter service in April 2019 on the company’s Caen-Ouistreham (France) and Portsmouth (UK) route.
Small Bulkers in High Demand
Newbuilding activity picked up over the past week, while in the S&P market, the main focus has been dry bulk carriers of the smaller size-segments. In its latest weekly report, shipbroker Allied Shipbroking said that “following the relatively slower flow of activity in the Newbuilding market noted the week prior, things seemed to be warming up slightly again, with a flurry of fresh orders being reported these past couple of days. In the Dry Bulk sector, new ordering activity didn’t start the year with the enthusiasm that was to be expected, given the improved freight market conditions. This all seems to have changed this past week with a number of fairly impressive deals coming to light and showing a renewed interest to invest further. On the tanker side, with the bearish attitude having a strong hold on the sector, new order placing remains minimal, a mere reflection of a market of low earnings and poor fundamentals. In part, the most recent activity boost seems to have been created by a drive in new orders being seen in the containership and Gas carrier sector, which helped fill in the gap left by the Tanker sector. With both of these sectors showing much more promise than what was being noted a couple of months back, it wouldn’t be of great surprise if we were to witness a continual flow of buying interest emerge over the coming months”.
Exporting Australia To The World
January 26th is Australia Day, a chance to celebrate all things Australian: vegemite, sporting prowess, BBQs, surfing, unusual (and frequently lethal) wildlife, digeridoos, Uluru, Kylie, Mad Max and so on. But from a shipping and seaborne trade perspective, perhaps the most relevant features of Australia are literally from the land ‘down under’, namely iron ore, coal and natural gas.
VLCC Surplus in the Middle East Set for Reduction in the Coming
A looming fall in VLCCs’ availability in the Middle East over the coming weeks could help boost the freight rate market in the weeks to come. According to the latest weekly report from shipbroker Charles R. Weber, “VLCC rates moved broadly higher this week as participants reacted to a narrowing Middle East availability surplus that materialized during January’s last decade loading program. The gains came despite a slowing of demand in the Middle East as draws on the region’s positions to service West Africa demand rose for a third consecutive week. The Middle East market observed 20 fresh fixtures, representing a 46% w/w decline. Meanwhile, demand in the West Africa market inched up by one fixture to a one‐month high of ten. Average earnings on AG‐FEAST routes surged 93% y/y to ~$20,411/day”.