BALTIC INDEX DOWN FOR TWELFTH STRAIGHT SESSION
The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for a 12th straight session on Wednesday as rates fell across vessel segments.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, closed down 22 points, or 2.44 percent, at 878 points – its lowest level since March 1. The capesize index fell 53 points, or 3.39 percent, to 1,511 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $431 at $11,053. The panamax index was down 13 points, or 1.54 percent, to end at 829 points.
LPG SHIPPING MARKET IMPROVES IN 1Q
VLGC rates averaged US$15,800 per day in Q1 2017, or US$29.7 per ton on the benchmark Baltic route according to BW LPG in its market outlook. This compares to BW LPG spot performance of US$15,540 per day and total fleet performance of US$20,900 per day. According to the ship owner, in early Q1, freight rates improved from Q4 2016 following strong US export volumes and wider geographic LPG price spreads. Seaborne LPG trade grew by 0.5 percent in Q1 2017 compared to Q1 2016, led by import growth of 40 percent, 21 percent and 9 percent in India, Korea and China, respectively. US seaborne LPG export volumes continue to grow, standing at approximately 8.1 million tons in Q1 2017, compared to 6.4 million tons in Q1 2016.
VESSEL TO HAUL IRON ORE FOR BRAZIL DELAYED
A second vessel contracted to haul iron ore for Brazilian miner Vale SA was delayed for repairs following the loss of a similar ship that mysteriously sank en route to China leaving 22 people presumed dead.
The Stellar Queen departed Vale’s port terminal in northeastern Brazil on May 7 carrying almost 300,000 metric tons of ore. However, the ship then stayed anchored in a nearby bay for nearly three weeks after the commandant discovered cracking on the main deck and decided to delay the voyage until repairs could be made.
SHIPPING CAN MAKE 75PC GHG CUTS BY 2050
Sleeker hulls, bigger ships, efficient operations and the use of sustainable biofuels can ensure the shipping sector radically cuts its greenhouse gas footprint by mid-century.
Work by a team of Norwegian scientists identified six groups of measures based on existing technologies with high mitigation potential: hull design; economy of scale; power and propulsion; speed; fuels and alternative energy sources; weather routing and scheduling.
Emissions can be reduced by more than 75 percent, based on current technologies and by 2050, through a combination of measures if policies and regulations are focused on achieving these reductions.
GOOD TIME IN BOXSHIP FLEET DEPLOYMENT TRENDS
Trends in containership deployment are driven by several key factors, including trade growth, the ‘cascade’ of ships from one trade lane onto another, and infrastructure capabilities.
In the midst of rapid growth in the ‘mega boxship’ fleet, and nearly a year on from the opening of the new expanded locks of the Panama Canal in June 2016, it is a good time to take a look at recent trends in boxship deployment. The 15,000+ TEU ‘mega boxship’ fleet has expanded rapidly in recent years, and stood at 76 ships of 1.4m TEU at the beginning of May, up 29 percent y-o-y in TEU terms. Deployed solely on the Asia-Europe route, and representing 36 percent of capacity on the route at the start of May, up from 27 percent a year earlier, growth in the 15,000+ TEU fleet has caused ‘cascading’ of smaller (but still relatively large) containerships off this trade.
CARGO HANDLING IN THE CHITTAGONG PORT RESUMED AFTER CYCLONE
Cargo handling in the Chittagong Port resumed after 24 hours as the cyclone Mora crossed the Chittagong coast without causing any major damage.
It is said loading, unloading and other cargo handing activities in the port jetties resumed at 4:00 pm on Tuesday. But unloading of consumer goods is yet to resume as the vessels that left the jetties on Monday afternoon have not yet returned to the port. It is also said that the vessels would reach the jetties on Wednesday morning during high tide. There were 24 vessels in the jetties on Monday, but they were sent off the port for safety of the port and vessels.
SHIPPING NEEDS FURTHER SCRAPPING TO RECOVER
While all shipping markets are eagerly waiting for more ship scrapping activity moving forward, in order to be able to alleviate the tonnage oversupply and stage a viable and sustainable recovery, things don’t seem to be able to move that way. In the latest weekly report, it is said that negotiations, fixtures and overall local activity ground to a virtual standstill with most end buyers focusing their attention on the budgets of Pakistan and Bangladesh, before deciding on whether to/what to offer on future tonnage.