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TANKER ORDERING ACTIVITY PICKS UP, ALBEIT AT SLOW PACE

Newbuildings are still hard to come by in today’s market. However, over the course of the past few weeks, a new trend has started emerging, which sees more ordering activity in the tanker segment.

It is said that interest in the tanker sector has started to allow for a small inflow of new orders to creep in, with prices having also shown a slight correction from where they closed off at the end of 2016.

That’s not to say that these orders are coming in easy, as shipbuilders are facing a considerable squeeze from their negative bottom lines, with some shipbuilders now being reported to be at risk from losing orders they though the had in the bag.

Tanker market could see additional changes on trade route patterns and ton-mile demand.

It has long be touted as a potential “game-changer” for the crude tanker market and it now seems to be gaining traction.

US oil exports in quantities enough to make a difference on the market, appear to be on the radar for ship owners, especially after the ascension of Donald Trump in office.

One item of significance to the oil trades was the decision to give a second chance to two controversial oil pipelines.

HUTCHISON PORTS AND DP WORLD TO ENTER UKRAINIAN SEA PORTS

Hutchison Ports and DP World, ones of the world’s biggest port operators will enter Ukraine as soon as this year. According to Infrastructure Minister Volodymyr Omelyan, Hutchison Ports will start operating in the port of Chornomorsk in June-July and DP World by the year end.

Hutchison Ports has already signed a memorandum of understanding with the state enterprise Chornomorsk Commercial Sea Port. The Group is interested primarily in developing and managing container terminals.

COAL LOADING DELAYS PERSIST

Road blockages and bad weather in Kalimantan on the Indonesian side of Borneo Island are being blamed for a disruption of coal supplies from one of the world’s most important export regions.

Coal traders and ship operators cited several reasons for the loading delays. According to the local authorities, coal hauling roads were closed by the South Kalimantan government in three locations, leaving thousands unable to work. It is reported that the delays have affected coal ports near Samarinda in the province of East Kalimantan and Taboneo, near the capital of South Kalimantan, Banjarmasin.

 

BRAZILIAN SOY SHIPPERS HEADING FOR A RECORD MONTH

Brazil has begun its 2016-17 soybean export campaign this month as it looks to start offloading what should comfortably be a record-large harvest.

The shipping schedule on the docket for February is rather aggressive, but there is good reason to believe that soybean exports will push to new highs for the month.

Brazil, the leading exporter of soybeans, is expected to ship roughly 60 million tons of the oilseed over the next year — some 17 percent greater than the country’s 2015-16 effort.

FIRST VLCC TO TAKE FORTIES FAR EAST

The first VLCC to be fixed to take Forties to the Far East in March has been booked by Trafigura.

Trafigura was heard to have fully fixed the Trickwong Venture at a $5 million lump sum for a Hound Point-South Korea voyage with a March 1-5 lay can.

According to Platts, trade flow software cFlow the vessel is currently steaming West through the Mediterranean with an iDestination of Hound Point.

According to Platts tracking of North Sea physical cargoes, Trafigura currently holds three of the first four March Forties cargoes.

HANJIN’S FIVE NEW PANAMAX BOXSHIPS UP FOR AUCTION

Five 13,100 TEU container vessels built in South Korea in 2012 and 2013, and belonging to Hanjin Shipping, are being sold in Hong Kong.

Sealed bids for the last real jewels in the once mighty Hanjin crown are to be lodged at a court in Hong Kong.

While technically the winning bid is scheduled to be announced on February 14, source has told that one line has jumped the queue with what is thought to be an unbeatable offer.

The rumor doing the rounds is that a very serious buyer is already lined up by the arresting party and that it’s unlikely the tender will go to a second round.

WHAT NEXT FOR THE SMALLER TEU FLEET?

Smaller TEU vessels in particular have to take advantage of the commodities that require a reactive export or import program where the larger TEU vessels can’t monopolize the trade routes.

The lack of port infrastructure, shallower waterways or cheaper inland transport costs provide the opportunity to become the versatile workhorse businesses want to offer to their clients for a customer-focused approach. This could also ease the pressure not only on the banks but also the oversupply of shipping capacity and have a positive effect on freight rates.

PROTECTIONISM TO HIT SHIPPING INDUSTRY

World trade growth could soon be faced with the repercussions of “naive” to say the least political decisions, as a wave of protectionism around the globe threatens to derail the positive fundamentals which have been slowly building up in many aspects of the freight market.

It is reported that the end of 2016 came with a rejuvenated sentiment amongst most traders and investors, in part through the sigh of relief that 2016 was finally coming to an end.

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