There is currently a significant gap in the delivery of Very Large Ore Carriers (VLOCs), which could lead to a spike in freight rates for this largest category of dry bulk carriers in the coming months, according to a new analysis by shipbroker Barry Rogliano Salles (BRS). Cargo volumes carried by VLOCs, which Barry Rogliano Salles (BRS) defines as vessels above 220,000 DWT, have been steadily increasing by 2.2% annually, rising from 281 million tons in 2015 to 335 million tons in 2023. Despite this steady growth, newbuilding orders for VLOCs peaked with 31 orders in 2016 and 39 in 2017, after which the pace of ordering significantly declined. Currently, the global order book for VLOCs consists of just 16 ships, primarily driven by orders from Winning Shipping for its Guinean bauxite project and Shandong Shipping for Brazilian iron ore shipments, with the earliest delivery not expected until 2026, according to Barry Rogliano Salles (BRS) analysis. The analysis suggests that VLOC cargo volumes in 2024 are likely to exceed those of 2023. “Given that no additional vessels will be delivered by year-end, this indicates that freight rates should remain strong as long as demand continues to rise,” Barry Rogliano Salles (BRS) projected in a dry bulk market update. Barry Rogliano Salles (BRS) is one of the world’s oldest and most respected shipbroking firms, with a history dating back to 1856. Headquartered in Paris, BRS has a global presence with offices in key maritime hubs such as London, Singapore, and Shanghai. The firm offers a wide range of services, including shipbroking, market research, and consultancy across various sectors of the maritime industry, such as dry bulk, tanker, container, and offshore. BRS is known for its comprehensive market reports and in-depth analyses, which provide valuable insights into market trends and forecasts. In this particular analysis, BRS highlights that the vacuum in VLOC ordering has not only put upward pressure on freight rates but has also led to the aging of the fleet. The average age of the VLOC fleet, which was 6.5 years in 2021, has now increased to 9.3 years. This aging fleet, combined with the lack of new deliveries, is expected to further support freight rates in the near future. 20-August-2024
François Cadiou has stepped down as chairman of the Luxembourg-headquartered shipbroker Barry Rogliano Salles (BRS), concluding his tenure in the role he assumed four years ago. François Cadiou will be succeeded by Gilbert Walter, the current CEO of Barry Rogliano Salles (BRS). Walter, who has a background as a seafarer spanning 14 years, joined BRS in 1997 and ascended to the position of CEO in 2022. François Cadiou’s distinguished career with Barry Rogliano Salles (BRS) spans 34 years, during which he has played pivotal roles, including taking over the chairmanship after Tim Jones departed from the company. Although stepping down from the chairman position, Cadiou will continue to contribute to the Barry Rogliano Salles (BRS) group, particularly maintaining his involvement as a newbuilding shipbroker. This transition marks a significant leadership shift within Barry Rogliano Salles (BRS), positioning Gilbert Walter to steer the company forward, building on his extensive experience within the maritime sector and his deep understanding of the company’s operations and strategic direction. 28-June-2024
Brazil’s soybean crop prospects, already diminished, have faced further setbacks due to severe rains and floods in Rio Grande do Sul, one of the country’s largest soybean-producing states. Luxembourg-headquartered shipbroker Barry Rogliano Salles (BRS) reported that the Brazilian national supply company Conab has indicated that the adverse weather could affect 30% of the soybeans still to be harvested, roughly amounting to 7 million tonnes. Initially, Conab had projected a soybean yield of 21.89 million tonnes for Rio Grande do Sul as the harvesting began promisingly, setting the stage for the state to become Brazil’s second-largest soybean producer. Barry Rogliano Salles (BRS) noted that it would be challenging to determine the full extent of the damage since about 40% of the soybeans in the central and southern regions, and approximately 10% in the northern regions of Brazil, remained unharvested. Conab is planning to update its national output forecast by mid-May, with the preliminary estimate for the 2023-24 season set at 146.5 million tonnes, which is 5.2% lower than the previous year and below the US Department of Agriculture’s forecast of 155 million tonnes. Given the recent flooding, industry stakeholders may need to adjust their expectations for the season. Many anticipate that Brazil’s soybean exports will surge in the second half of 2024, potentially bolstering demand for panamax and kamsarmax vessels in the East Coast South American region. Despite these disruptions, Barry Rogliano Salles (BRS) suggested that the third quarter, typically the peak export period, might still see strong support for regional freight rates from available tonnage. Furthermore, Rio Grande do Sul is also a major producer of rice, heightening the impact of the recent severe weather on agricultural commodities and shipping trade. Platts reported that exporters are hopeful about harvesting the remaining 10-15% of the rice crop, although the flooding has raised concerns about potential losses and reduced quality, especially with reports of damage to rice stored in silos. The grain exporters’ association Anec earlier noted that access to the port of Rio Grande, which is now operational following a temporary halt, had been compromised due to a local rail line outage. Road blockades are forcing grain trucks to detour an additional 400 kilometers to reach the port, further inflating freight costs. The floods in Bazil have resulted in at least 107 deaths, with 136 people still missing and over 165,000 displaced, many rescued by boat from their flooded homes. 13-May-2024
Barry Rogliano Salles (BRS) is expanding its presence in China by recruiting shipbrokers for a new office in Hong Kong, as part of its ongoing global expansion efforts. The Paris-headquartered shipbroker is also nearing completion of a deal to absorb the broking team of Colombia’s Amazonas Shipping and is set to open a new office in Vietnam within the next month. Despite already having offices in Beijing and Shanghai, BRS CEO Francois Cadiou believes that Hong Kong, with its access to various shipowning companies and traders, remains a strategic gateway to China. The initial focus in Hong Kong will be on dry cargo chartering, with plans to later expand into the sale and purchase (S&P) and newbuildings sectors. BRS Chairman Tim Jones mentioned that they are looking to assemble a small team of about three shipbrokers who are eager to join BRS and become part of a larger organization. Given that many of BRS’s clients in China also have operations in Hong Kong, the city is a familiar landscape for the company, particularly in the dry cargo sector. Like its other global ventures, the Hong Kong office is expected to start small, adapting to the local market needs and expanding its activities gradually. For example, when BRS launched in Greece in 2015, it began with a team of four chartering shipbrokers from Platou’s local operation, initially focusing on dry bulk and later expanding as seen in the Geneva office. Similarly, BRS entered the US market in 2015 by integrating the team from Connecticut-based Bulk Ocean Chartering and, in 2017, opened a tanker desk in Houston led by former Koch Industries chartering manager Currie Evans. In its approach to international expansion, BRS has emphasized that the Hong Kong operation must be entirely under its control, reflecting lessons learned from less successful joint ventures. The company is not interested in acquiring other firms outright. Amazonas Shipping, based in Bogota and owned by Eduardo Silva who is set to retire after a transitional period, has collaborated with BRS for many years and includes three chartering shipbrokers. One of these brokers has already undergone further training at BRS’s Stamford office. Currently, Barry Rogliano Salles (BRS) employs around 500 staff globally, including over 200 shipbrokers, demonstrating its substantial footprint in the international shipping brokerage industry. 22-February-2019