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BALTIC INDEX POSTS BIGGEST DAILY PERCENTAGE DECLINE IN 2 MONTHS

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, registered its biggest one-day percentage fall in about two months, primarily on weaker rates for capesize bulk carriers.

The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell for the fifth consecutive session on Wednesday.

The Baltic dry index fell 2.55 percent, or 32 points, to 1,223 points – its biggest daily percentage fall since Feb. 7. The capesize index lost 153 points, or 6.42 percent, at 2,229 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell $1,126 to $16,149 – lowest since mid-March.

NEWBUILDING RATES SEEN HIGHER

Shipyards anxious to recoup part of the losses of the past years are eagerly awaiting for higher contract to materialize, in order to raise prices. In its latest weekly report, Allied Shipbroking noted that “despite the still limited flow being seen in terms of new orders.”

In a separate shipbuilding report, it is said that in Tankers, CSSC Offshore Marine (ex. GSI) is reported to have received an order from Taiwanese owner Formosa Plastics Marine for three firm 50,000 DWT MR Tankers. Delivery for the three units is due within 2019.

 

VLCC MARKET FINDS FLOOR, BOUNCES BACK

Things have been tough for VLCC owners of late, with the negative direction of the VLCC market extended through the start of the previous week, as the reality of a supply/demand imbalance at multiple‐year highs combined with a pullback in Middle East demand further soured sentiment. As the week progressed, however, rates appeared to have found to an effective floor – from which they subsequently bounced to conclude with a modest weekly gain.

Key factors behind the bounce likely include a further acceleration of demand in the West Africa market, where the fixture tally jumped 38 percent w/w to a ten-week high of 11 fixtures and growing resistance from owners reluctant to lock into trades with potentially sub-OPEX returns.

ASIAN LNG IMPORTERS SET FOR 60PC CHARTER FLEET BOOST

The LNG carrier fleet controlled by Asian importers is set to grow by almost 60 percent during the next few years, as 39 ships on order are completed and added to the 67 vessels currently in service.

An LNG World Shipping review of the region’s LNGC commitments shows that the newbuildings will boost the cargo-carrying capacity of the Asian LNG importer charter fleet to 16.2 million m3, from 9.9 million m3. The rapid expansion of the fleet highlights the drive by the region’s buyers to exert more control over the LNG supply chain.

PASSENGER CRUISE SERVICES BETWEEN INDIA AND BANGLADESH

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved MoU on passenger cruise services on the coastal and protocol routes between India and Bangladesh for starting regular movement of passengers and tourists in water crafts between the two countries. The operationalization of this MoU will promote people to people contact and cooperation between the two countries in respect of economic, social and cultural advancement. It will also generate employment opportunities for the people of India and Bangladesh.

SPLIETHOFF ENLARGES ITS MEDLINER SERVICE TO VERACRUZ

Following the end of Nordana/Weco’s 60 year old service from the Mediterranean to the Americas Spliethoff responds by extending the popular Medliner service.

Apart of the usual regular direct calls in Gemlik, Izmir/Gulluk, Monfalcone, Porto Marghera and Genoa to Chester, Port Everglades, New Orleans and Houston the service with immediate effect will also incorporate a direct call to Veracruz. An additional effort will be made for the existing Latin American destinations served on a transshipment basis which includes West Coast destinations. The service is presently offering 2 sailings per month. Look out for further announcements.

PARADIP PORT CARGO TRAFFIC AT ALL-TIME HIGH

Paradip Port Trust (PPT) has handled an all-time high cargo throughput of 88.95 million tonnes (mt) in 2016-17, up 16.46 percent year-on-year over FY16.

The cargo volume handled by Paradip port is the second highest among all major ports in the country after Kandla. The port’s operating revenue showed a growth of 15 percent in last financial year whilst operating ratio improved to 54 percent. The surge in the port’s cargo was driven by the rebound in iron ore traffic and also POL cargo comprising crude oil, LPG and lubricants.

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