BALTIC MAIN INDEX RISES AS RATES OF LARGER VESSELS RECOVER
The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, snapped a six-session losing streak on Wednesday as rates for larger vessels improved.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, rose 12 points, or 0.92 percent, to 1,320 points. The capesize index rose 49 points, or 1.87 percent, to 2,667 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose $468 to $18,397 after falling for six straight sessions. The panamax index rose 29 points, or 2.33 percent, to 1,276 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose $231 to $10,253.Among smaller vessels, the supramax index fell 16 points to 968 points, and the handysize index fell three points to 609 points.
CHINESE HOLIDAY SENDS VLCC FREIGHT RATES UP
Rotterdam to Singapore VLCC freight rates have hit a four-and-a-half-month high as traders attempted to shift product to Asia before factories shut down for China’s National Day.
Known as Golden Week, the holiday will last from October 1-8. Lumpsum rates soared to $3.3 million for a VLCC, basis 270,000 mt, at the end of last week, the highest since May 16. The holiday will mean muted demand from Asia this week, and market players have tried to jump ahead and organize fixtures to the East before it started, pushing freight rates higher.
INDIA RECEIVES ITS FIRST US OIL SHIPMENT AT PARADIP
India last Monday received its first ever shipment of US crude oil with state-owned Indian Oil Corporation (IOC) importing a 1.6 million barrels parcel at Paradip in Odisha. MT New Prosperity, a very large crude carrier (VLCC), with a capacity to haul two million barrels of crude, left the US Gulf Coast on 19 August and arrived at Paradip port.
IOC will process the crude at its refineries located at Paradip, Haldia (in West Bengal), Barauni (in Bihar) and Bongaigaon (in Assam). A function was held at the Paradip port to mark the arrival, which was attended by officials of IOC, oil ministry and the US embassy.
CARGO SHIPMENTS FROM NEWCASTLE COAL PORT DELAYED
Delays to some thermal coal shipments from Newcastle port are likely after the closure of the Ulan railway used by a string of mines in the Western coal field in the Australian state of New South Wales, market sources said on Wednesday.
Train movements on the Ulan rail line were suspended Wednesday to allow for engineering checks on a rail bridge that left up to six coal trains stranded on the western side of the bridge.
INDIA’S COAL SHIPMENTS DECLINE 14PC
Coal shipments handled by major Indian ports in August fell over 14 percent from a year earlier to 9.3 million tones, government data showed, as demand for overseas coal declined due to higher domestic production.
The share of coal in cargoes handled at major ports fell to about 18 percent in August from 21 percent a year ago, the data showed, following India’s push to use more domestic coal and cut import dependency.India’s coal imports fell for the second straight year in 2017, and declined by 8.1 percent in the first quarter of fiscal year 2018.
SEVEN ISLANDS SHIPPING FILES FOR IPO
Seven Islands Shipping has filed preliminary papers with SEBI to raise Rs450 crore through an initial public offering. According to draft papers filed with the markets regulator, the IPO comprises fresh issue of shares worth Rs200 crore, besides sale of scrips to the tune of Rs250 crore by private investor Wayzata Investment Partners and the promoters.
Funds raised through the issue will be used to buy a very large crude carrier and for other general corporate purposes.Edelweiss Financial Services is the sole book running lead manager to the issue. During April-September this fiscal, as many as 19 Indian companies raised close to Rs27,000 crore through IPOs, much higher than Rs16,535 crore garnered by 15 firms in the year-ago period.
WHAT’S IN STORE FOR CONTAINER BOX PRICES IN Q4?
Container box freight rates may face a normal seasonal dip in Q4, after the Golden Week holidays, but a quick recovery is possible for short-haul routes in the Atlantic amid extra EU sugar demand. Some rates may come from a void sailing announced by a couple of carriers for October, which may keep capacity tighter, but the influence of this on the actual freight could be limited.Despite facing a similar seasonal decline, there are still a few factors in play that could see that market rebounding quicker. From October 1, the current EU sugar regime officially ended for production quotas and exports after 11 years. With most producing countries having taken advantage of the lift in production quotas and increased their planted area this season, export forecasts for this season could realistically see container demand for sugar double.