NEWBUILDING PRICES GROWING TREND CONTINUES
The slumping days of the newbuilding ordering market seem to be over. Prices have been on the climb over the past few weeks, a trend which has continued unabated during the course of the past week as well. It is said that the fact that prices are moving upwards has also led to disruptions on buying interest as well, as many are waiting to see what best deals are on offer still.
According to the source, one of the major factors that has influenced the pricing front has been the increases being noted in terms of specifications on offer, with most of the price quotes being offered being for TIER III engines, especially in the case of slots being quoted from Chinese shipbuilders. The Capesize Hyundai Talent (180,000 DWT, Apr 2012, Sungdong) sold to Navios Maritime Partners LP for US$30.5 million vs 32.22 million.
DUBAI SEEKS FORMING $1BN SHIPPING INVESTMENT FUND
Dubai is looking into creating a $1 billion investment fund focused on shipping to develop the Gulf city’s maritime sector and ride out a global industry downturn, sources quoted as saying last week.
It is said the Dubai Maritime City Authority, the government entity responsible for developing the maritime industry in the emirate, was examining ways to establish a fund to provide financial investment support to Dubai-based firms.
BAKKEN PRODUCERS TO GET EASIER, CHEAPER PIPELINE ACCESS
With the startup of the Dakota Access Pipeline (DAPL) set for June 1, Bakken producers are only days away from gaining easier, cheaper pipeline access to the Gulf Coast. DAPL runs from North Dakota to the crude hub at Patoka, IL, from where the new Energy Transfer Crude Oil Pipeline (ETCOP) links volumes to Nederland, TX.
Bakken producers are keen to explore new worldwide export markets and these pipelines offer them an economical way to get their crude at least into PADD 3. The 450,000 b/d DAPL promises to provide a safer and more direct route for US.
CARGO HANDLING INCHES UP AT BUSAN PORT
Container cargo handled at South Korea’s biggest port of Busan has edged up over the past eight months despite the demise of Hanjin Shipping Co, once the country’s No. 1 shipping firm. Container cargo processed at the southeastern port came to 13.05 million twenty-foot-equivalent units between September 2016 and April this year, up 1.6 percent from the same period from 2014-15, according to the data by the municipal government.
URALS EX-BALTICS MARKET TUMBLES
A sharp rise in freight rates for Aframax cargoes loading in the Baltics and steaming to the UK-Continent coupled with a falling Urals CIF-Rotterdam assessment has helped send the FOB Urals Ex-Baltics market to its lowest value versus dated Brent since April 21.
FOB Ex-Baltics Aframax Urals cargoes were assessed at a $2.665/b discount to the Mediterranean Dated Strip Tuesday, down 37.5 cents/b day-on-day. Platts assesses FOB Novorossiisk Aframax cargoes as a freight netback to the CIF-delivered Rotterdam Urals market, using the Baltic to UK-Continent 100,000 mt freight route to calculate the Urals value back to its loading point at the Russian Baltic ports of Ust-Luga and Primorsk.
BRAZIL PROJECTS SET TO MEET LATAM AMERICA REFINING DEMANDS
Potential has certainly been there, but for a number of reasons, Latin American oil-rich countries haven’t been able to capitalize on it. It is said that despite plentiful supply of crude oil, the region has historically had to rely on imports to supplement its domestic refining output, and despite the promise, has struggled to make progress on the refining front over the past few years.
Indeed, much hope rested on Brazil, with several major projects under construction, many of which should have been operational.
SHIPPING BENEFIT FROM INCREASED GLOBAL TRADE BETWEEN EAST AND WEST
China’s Belt and Road Initiative is slowly taking shape, as was evidenced over the course of the past few days. However, exactly how will shipping benefit from this colossal project is still a bit hazy, although most analysts would argue that the potential is there.
Allied Shipbroking discussed the developments surrounding the Belt and Road summit, which was held over the previous days, as Xi Jinping welcomed 28 heads of state and government in Beijing, as he sought to further promote his most ambitious foreign policy under the banner of the belt and road” initiative”. It is further said that with roughly US$ 150 billion spending in investment per year in over 68 countries, there is a whole lot riding on this scheme for both China as well as all its participating partners.