Luxembourg-headquartered BRS Shipbrokers appointed Gilbert Walter as the new CEO (Chief Executive Officer). Gilbert Walter will replace Francois Cadiou who remains chairman of holding company BRS International, as well as chartering solutions company AXSMarine. BRS Shipbrokers has been serving more than 150 years in the shipping market.
The Baltic Exchange’s Capesize 5TC declined 31.2% over the week to $4,443 per day. The Baltic Exchange’s Capesize 5TC plunged to its lowest level since August 2022. The Baltic Exchange’s Capesize 5TC plunged by a third over the past week as China observed the Chinese New Year holiday.
Hamburg-based shipowner and operator NSC Shipping GmbH & Cie. KG controlled 2012 built handysize bulk carrier 31K DWT MV GMB Eternity (ex MV Almirante Storni) was on fire off Gothenburg in 2021. The Swedish Accident Investigation Authority (SHK) probe has revealed a worn extension cable caused a devastating fire on board MV GMB Eternity (ex MV Almirante Storni). The fire broke out on the anchored MV GMB Eternity (ex MV Almirante Storni) on 4 December when a spark from the cable ignited timber on the deck. MV GMB Eternity (ex MV Almirante Storni) was required to be taken to a shipyard for repairs. No injuries were reported. The Swedish Accident Investigation Authority (SHK) report stated that an extension cable that had been plugged in during loading was left behind when the MV GMB Eternity (ex MV Almirante Storni) departed. The Swedish Accident Investigation Authority (SHK) report stated that the way the timber cargo was loaded pointed out that the fire quickly boosted in intensity and spread elsewhere. The blaze could not be extinguished without moving the MV GMB Eternity (ex MV Almirante Storni) into port and unloading some of the cargo. The Swedish Accident Investigation Authority (SHK) report stated that there are outstanding lessons to be learned from one of the most comprehensive salvage operations in Sweden’s modern history. The Swedish Accident Investigation Authority (SHK) report stated that guidelines for the handling of vessels in need of assistance should be strengthened. Sweden’s coast guard has been commissioned with evaluating its firefighting procedures.
According to a research report commissioned by the Baltic Exchange and authored by Urs Dur, increasing international demand for recycled steel could boost bulk carrier asset prices. Urs Dur states that the increasing appetite for recycled steel is probably to make investing in bulk carriers increasingly less risky if demand for the steel scrap continues to rise over the long term.
The Indian government is going to ban 25-year-old tankers and bulkers from its ports. Furthermore, the Indian government is also set to bar the secondhand purchase of ships of more than 20 years from registration with the Indian flag. This will increase charter costs and poses the question of vessel values. The Indian government’s new age limits for port calls and ship purchases are set to shake up shipping in India. Gas carriers, container ships, other offshore vessels, and tugs will be allowed to operate up to 30 years of age. If the draft is enacted, no foreign tanker or bulker shipowner can compete for Indian cargo with a ship older than 20 years. The Indian government aims to lower emissions and combat pollution, as well as increase the quality of the Indian flag.
Beijing Stock Exchange-listed shipowner and operator Fujian Guohang Ocean Shipping Group Co Ltd ordered six (6) panamax bulk carrier newbuildings at Jiangsu Haitong Offshore Engineering Equipment. Six (6) panamax bulk carrier newbuildings will boost Fujian Guohang Ocean Shipping Group Co Ltd’s competitiveness and decrease operating costs. Lately, Fujian Guohang Ocean Shipping Group Co Ltd was listed on Beijing Stock Exchange. Fujian Guohang Ocean Shipping Group Co Ltd will pay around $128 million total for six (6) panamax bulk carrier newbuildings at Jiangsu Haitong Offshore Engineering Equipment. Fujian Guohang Ocean Shipping Group Co Ltd’s deal includes an option for two (2) additional panamax bulk carrier newbuildings. Fujian Guohang Ocean Shipping Group Co Ltd expressed the new bulk carriers comprised part of the company’s fleet expansion programme.
Zhejiang-based shipowner and operator Zhejiang Xiehai Group ordered two (2) newcastlemax bulk carriers and two (2) kamsarmax bulk carriers for around $190 million. Zhejiang Xiehai Group ordered two (2) newcastlemax bulk carriers and two (2) kamsarmax bulk carriers at Cosco Shipping Heavy Industry Yangzhou Shipyard. Zhejiang Xiehai Group will take the delivery of the bulk carriers in 2024.
The Baltic Exchange’s Capesize 5TC (Capesize Bulk Carriers Spot Rate Averages Across Five Key Routes) bounced 18.3% on Wednesday to nearly $23,200 per day, following an 8.2% leap on Tuesday. Capesize Bulk Carriers Spot Rates jumped for the second straight day on Wednesday, reaching their highest point in five months as China begins construction again. Capesize Bulk Carriers Fixtures have been more abundant over the past week.
BIMCO (Baltic and International Maritime Council) estimates the capacity of vessels being handed over in 2024 will decline to 23.8 million DWT (Deadweight Tonnage). BIMCO (Baltic and International Maritime Council) estimates that the bulk carrier new build order to accelerate in 2023. BIMCO (Baltic and International Maritime Council) is anticipating a return by bulk carrier owners to shipyards towards the end of 2023. BIMCO (Baltic and International Maritime Council) estimates lack of new building contracts in recent years will spur new orders.
BIMCO (Baltic and International Maritime Council) issued Carbon Clause.
BIMCO (Baltic and International Maritime Council) is aiming to give charterers the responsibility for the commercial effects of new Carbon Intensity Indicator (CII) regulations. BIMCO (Baltic and International Maritime Council) Documentary Committee declared the release of its new model CII Time Charter. BIMCO (Baltic and International Maritime Council) Documentary Committee discussed eight months about the new model CII Time Charter. Carbon Clause was issued just six weeks before the new regulation comes into force. Shipowners and Charterers are represented in the drafting of the document. BIMCO (Baltic and International Maritime Council) CII Time Charter’s priority is on giving the paying customer responsibility, rather than the transport service provider.
The Baltic Exchange’s Capesize 5TC (Capesize Bulk Carriers Spot Rate Averages Across Five Key Routes) plummeted 27.3% since 11 November 2022 to $9,305 per day on Friday. The Baltic Exchange’s Capesize C5 iron-ore route from Western Australia to Qingdao, China plummeted 11.3%. The spot rate market for capesize bulk carriers plummeted last week due to China’s economic uncertainty continued, while that for the panamax, ultramax, and supramax bulk carrier spot rates stagnated due to light chartering activity.
Stema Shipping UK Ltd will charter Viridis Bulk Carriers’ ammonia-fuelled bulk carrier. Ammonia bulker start-up Viridis Bulk Carrier is a joint venture between Norwegian shipowner Mosvolds Rederi’s spin-off Amon Maritime and Navigare Logistics. Stema Shipping UK Ltd has become the eighth operator to join the Norwegian Flexbulk NH3 Power Project. Viridis Bulk Carriers will take the first delivery in 2023.
New York-listed dry bulk shipping companies’ stocks increased on Friday amid China’s optimism. The Breakwave Dry Bulk Shipping Exchange Traded Fund bounced 4.7% during the day to reach $7.72. Despite the New York-listed dry bulk shipping companies’ stocks increases, Breakwave Dry Bulk Shipping Exchange Traded Fund increased only a penny for the week after touching its lowest point of 2022. New York-listed dry bulk shipping companies’ investors took a liking to indications that China lockdown annoyances are poised to ease.
Japan-based shipowner Tamai Steamship Co Ltd (Tamai Shosen Co. Ltd.) ordered a supramax bulk carrier 58K DWT at Oshima Shipbuilding. The supramax bulk carrier will be owned through Tamai Steamship Co Ltd’s (Tamai Shosen Co. Ltd.) Liberian-based subsidiary T.S Central Shipping. Tamai Steamship Co Ltd (Tamai Shosen Co. Ltd.) will take the delivery of the supramax bulk carrier in Q1 2025. Tamai Steamship Co Ltd (Tamai Shosen Co. Ltd.) expressed the supramax bulk carrier had been ordered as replacement tonnage. Tamai Steamship Co Ltd (Tamai Shosen Co. Ltd.), affiliated with the Yamashita-Shinnihon Steamship Group, transports goods such as bauxite, aluminum, and gypsum. Tokyo-based Tamai Steamship Co Ltd (Tamai Shosen Co. Ltd.) primarily engaged in the marine transportation business and the real estate leasing business. Tokyo Stock Exchange-listed Tamai Steamship Co Ltd (Tamai Shosen Co. Ltd.) predominantly carry the bauxite and alumina cargoes for Nippon Light Metal Co. Ltd.
November Baltic Exchange Capesize Bulk Carriers FFAs (Forward Freight Agreements) plunged 1.88% to $12,889 per day on 25 October 2022. On the other hand, December Baltic Exchange Capesize Bulk Carriers FFAs (Forward Freight Agreements) plunged 1.48% to $11,829 per day on 25 October 2022. Bulk Carriers FFAs (Forward Freight Agreements) indicate rough times ahead for dry bulk shipping as China encounters financial headwinds. Furthermore, November Baltic Exchange Panamax Bulk Carriers FFAs (Forward Freight Agreements) plunged 3.68% on 25 October 2022. Any spike in Capesize and Panamax Bulk Carrier Spot Rates could be short-lived as China’s economy continues to struggle.
London-based SodaFlexx has announced it is retrofitting 1991 built post-panamax bulk carrier 96K DWT MV Yeoman Bridge with scrubbers that utilize baking soda to remove sulfur oxide emissions. Amsterdam-based Bontrup-controlled MV Yeoman Bridge was installed with a baking soda-operated exhaust gas cleaning system. London-based SodaFlexx accomplished three years of trials. Presently, the application for removing sulfur oxide is in the procedure of receiving a United States patent.
November Capesize Bulk Carriers FFAs (Forward Freight Agreements) plunged nearly 12% on Monday. November Capesize Bulk Carriers FFAs (Forward Freight Agreements) market for bulk carriers collapsed on Monday, while Capesize Bulk Carrier Spot Rates did not provide much excitement for dry bulk shipping. The Baltic Exchange’s Capesize 5TC (Spot Rate Averages Across Five Key Routes) tumbled on Monday due to low cargo volumes in the Atlantic basin.
The International Monetary Fund (IMF) has published an improved outlook for the economies of China and India. The International Monetary Fund (IMF) anticipates GDP growth for China to increase to 3.4% in 2023 from 2.2% in 2022. The International Monetary Fund (IMF) anticipates GDP growth for India to increase to 6.1% in 2023. However, some dry bulk shipowners and shipping professionals are not that optimistic about economic growth in 2023.
Bulk carriers hauling Russian coal were left stranded mid-voyage without insurance in June 2022 after the European Union modified its sanctions guidance. Uninsured bulk carriers were stranded after a European Union sanctions flip-flop and the troubles could reoccur as the European Union agrees on Russia’s oil price cap scheme. One bulk carrier was forced to shift to a safe port before reaching the ship’s scheduled destination to unload cargo to avoid falling foul of regulators. Shipowners and charterers suffered losses over a contract that will end up in the courts.
The Baltic Exchange’s Capesize 5TC (Spot Rate Averages Across Five Key Routes) increased 13.8% on Wednesday to $21,175 per day. The Baltic Exchange’s Capesize 5TC increased to its highest point since the end of July 2022. The Baltic Exchange’s Capesize 5TC increased despite China’s celebration of Golden Week. Capesize bulk carriers have been somewhat limited this week due to the holidays in the Far East. The Forward Freight Agreement (FFA) market decline implies a more serious decline in future spot rates of capesize bulk carriers.
The Baltic Exchange’s Capesize 5TC (Capesize Spot-Rate Average Rates Across Five Key Routes) increased 10% to $18,611 per day to mark its highest point since late July 2022. The Baltic Exchange’s Panamax 5TC (Panamax Spot-Rate Average Rates Across Five Key Routes) increased to $18,987 per day. The Baltic Exchange’s Supramax 10TC (Supramax Spot-Rate Average Rates Across Ten Key Routes) increased to $18,351 per day. The Baltic Exchange’s Handysize 7TC (Handysize Spot-Rate Average Rates Across Seven Key Routes) increased to $18,313 per day. Dry bulk shipping’s spot rates are increasing regardless due to low supply. The low supply balance of bulk carriers will remain tight over the coming years due to more stringent regulatory burdens and a low bulk carrier new building order book in the Far East shipyards. Currently, the international fleet of bulk carriers is around 13,105. Today, 1,937 capesize bulk carriers, 3,008 panamax bulk carriers, 4,069 handysize bulk carriers are trading in the oceans.
The Baltic Exchange Capesize 5TC (Spot Rate Average Across Five Benchmark Routes) has improved 170% since 12 September 2022 to just over $16,900 per day. However, since 12 September 2022, November Capesize FFAs (Freight Forward Agreements) plunged from about $17,800 per day to about $15,100 per day. FFAs (Freight Forward Agreements) indicate a return to lower physical rates after the bulk carrier sector rebounded from September 2022 lows. FFAs (Freight Forward Agreements) is indicating a turn for the more alarming over the next several months.
Marfin Management controlled 2006 built supramax bulk carrier 52K DWT MV Jalma Topic was involved in a collision on the Mississippi River on 12 July 2021. The US National Transportation Safety Board (NTSB) has blamed defective electronics of Marfin Management controlled 2006 built supramax bulk carrier 52K DWT MV Jalma Topic for a 2021 collision on the Mississippi River that saw MV Jalma Topic collide into a barge. The US National Transportation Safety Board (NTSB) reported that Marfin Management controlled 2006 built supramax bulk carrier 52K DWT MV Jalma Topic lost steering after a relay on the bulk carrier’s servo control board failed, stopping the bulk carrier’s rudder from turning.
Suez Canal Authority (SCA) will increase the cost of transiting the Suez Canal as international trade expands. Suez Canal Authority (SCA) will increase Suez Canal Tolls by 15% in 2023. However, Suez Canal Tolls for bulk carriers and cruise ships will be increased by 10% in 2023.
Panamax Bulk Carrier Spot Rates shift downward for the first time since late August as FFA (Forward Freight Agreement) curve moves negatively. Panamax Bulk Carrier Spot Rates took their first plunge in more than two weeks on Thursday, ending a recovery that has seen the Panamax Bulk Carrier segment withstand a dry bulk slump. On Wednesday, the PanamaxFFA (Forward Freight Agreement) market turned the futures curve in a downward direction. The Baltic Exchange’s Panamax 5T (spot earnings of panamax bulk carriers on five key benchmark routes), plunged 2.6%.
The Baltic Exchange’s Panamax 5TC (Average Spot-Rate Across Five Key Routes) increased to $16,786 per day on 9-September-2022 due to port congestion and strong grain cargoes. The Baltic Exchange’s Panamax 5TC increased due to South American grain exports and port congestion. On the other hand, Capesize Bulk Carrier spot rates have declined. Panamax Bulk Carrier spot rates increased as the grain markets in both the East Coast South America (NOPAC) and NoPac (North Pacific) came busy.
The decreasing Atlantic market for Panamax Bulk Carriers is witnessing some hope in the Forward Freight Agreement (FFA) for higher spot rates. However, that does not necessarily mean that a floor for spot rates is on the way. The Average Panamax Spot Rate for the Baltic Exchange P7 Route (the US Gulf to Qingdao) has plunged 19.7% since 1 August to $52.44 per tonne. On the other hand, The Average Panamax Spot Rate for the Baltic Exchange P9 Route (Santos to Qingdao) plunged 27.9% to $39.63 per tonne.
The Baltic Exchange’s Capesize 5TC (a spot-rate average across five benchmark routes) plunged 14.7% during the day to reach $5,636 per day. The Baltic Exchange’s Capesize 5TC is at its lowest point in more than two years, when it came in at $6,177 per day on 4 June 2020. Capesize bulk carrier freight rates plunged to a two-year low as China’s faltering real estate sector forces steel cutbacks. China’s steel production has fallen 6.4% for H1 2022. On 24 August 2022. Capesize bulk carrier freight rates plunged further as China’s hurting real-estate industry continues to put the brakes on turning iron ore into steel for construction.
Capesize bulk carrier spot rates continue to plunge. However, China’s looming $1 trillion economic stimulus plan focused on infrastructure spending may boost the dry bulk shipping market. In Q4 2022, average capesize bulk carrier spot rates may reach $14,500 per day. The Baltic Exchange’s Capesize 5TC (spot-rate average across five key routes) plunged 46% over the past week to $3,413 per day. Currently, the Baltic Exchange’s Capesize 5TC is at the lowest figure in about 27 months. Furthermore, capesize bulk carrier spot rates reached their lowest point since May 2020.
The average spot rate for handysize bulk carriers has plunged to its lowest level since February 2021. The average spot rate for handysize bulk carriers’ freight rates plunged 18-month low as the Atlantic market weakens. The Baltic Exchange’s Handysize 7TC (spot-rate average across seven key routes) dropped to $17,189 per day, marking the lowest level since it came in at $17,011 per day on 22 February 2021. The Baltic Exchange’s Handysize 7TC has been on a downward trend since mid-May when Handysize 7TC topped out at $30,004 per day on 16 May 2022.
The United States and Brazil’s grain exports to Europe have tripled amid the Ukraine conflict. Ukraine port blockade and summer heat may decrease grain exporting volumes. However, the Ukraine grain corridor may make up for any shortfalls. Grain exports from Brazil and the United States to the European Union have tripled since Russia’s de facto blockade of Ukraine’s ports in March 2022. Brazil’s year-over-year grain exports increased to 2.2 million tonnes for July 2022. On the other hand, the United States’ grain export volumes increased to 1.1 million tonnes.
The Baltic Exchange’s Capesize 5TC (Spot-rate average across five key routes) plummeted 20% during the day to reach 7,188 per day. The Baltic Exchange’s Capesize 5TC plummeted below $8,000 per day for the first time since late January 2022. The Baltic Exchange’s Capesize 5TC plummeted due to China’s demand for iron ore staying soft. At the core of 2022’s weak demand for capesize bulk carriers has been the decline in iron ore trades. The economic stimulus from the Chinese government may increase capesize bulk carriers rates.
Under UN World Food Programme (WFP), 1996 built handysize bulk carrier 23K DWT MV Brave Commander was loaded at Yuzhny Port in Ukraine. The first shipment of Ukrainian wheat grain for humanitarian operations was conducted by the UN World Food Programme (WFP). MV Brave Commander will unload a 23,000 metric tonne cargo of wheat grain at Djibouti. Under UN World Food Programme (WFP), 12 bulk carriers are authorized to carry WFP (World Food Programme) humanitarian grain shipments out of the ports of Odesa, Yuzhny, and Choronomork in the forthcoming weeks. Approximately 2 million tonnes per month of grain and other agricultural products will be exported from Ukraine. Ukrainian grain is back on international markets, UN World Food Programme (WFP) has an opportunity to control this international food crisis. UN World Food Programme (WFP) stated that the 1996 built handysize bulk carrier 23K DWT MV Brave Commander voyage symbolizes the commencement of the resumption of commercial and humanitarian shipments out of Ukraine’s Black Sea ports. A total of 16 bulk carriers have also been approved by the UN (United Nations) to sail from Ukraine after being trapped at Ukrainian ports since the war began in February 2022.
The Baltic Dry Index (BDI) fell to its lowest level in a half year as holidays and low demand weighed heavily on dry bulk shipping. The Baltic Dry Index (BDI) which functions as a barometer for dry bulk market performance, plunged 5.3% over the past week to 1,477 points on Friday. The Baltic Dry Index (BDI) fell under 1,500 points for the first time it came in at 1,422 points on 7 February 2022. Capesize bulk carrier market resumes dwelling in the doldrums.
Sophocles Zoullas-led Zenith Shipping Group made a $70 million profit from supramax bulk carrier asset plays. New York-based Zenith Shipping Group. Zenith Shipping Group sold the seventh supramax bulk carrier that Sophocles Zoullas-led Zenith Shipping Group had acquired at bottom prices during the dry bulk market recession. Zenith Shipping Group has completed yet another lucrative sale of a supramax bulk carrier. Zenith Shipping Group extends almost $110 million in revenues since 2021. had paid to acquire the supramax bulk carriers. In six years, Zenith Shipping Group made a profit of around $70 million. In 2015, remarkably rare shipowners were daring to buy bulk carriers when Baltic Exchange indexes were hitting multi-decade lows and bulk carriers were sent en masse to lay up.
UN (United Nations) has been trying to release bulk carriers that are trapped at Ukraine ports since the outbreak of hostilities with Russia in preparation for humanitarian shipments of grain. Frederick Kenney who is the Coordinator for the United Nations Black Sea Initiative expressed the stress is still on bringing bulk carriers out of Ukraine grain ports first. UN’s (United Nations) priority is to free up space so bulk carriers can berth and load cargo. UN (United Nations) concentrated on freeing up Ukraine’s port space for grain shipments. More bulk carriers are set to sail free after six months in Ukraine while many ship operators apply to be authorized in to load at Ukraine grain ports.
Tokyo Stock Exchange-listed shipowner and operator Iino Kaiun Kaisha Ltd reported a substantial boost in both sales and profits due to improved freight rates. In Q1 2022, Japanese shipowner and operator Iino Kaiun Kaisha Ltd reported net sales of $2.5 billion. In Q1 2022, Japanese shipowner and operator Iino Kaiun Kaisha Ltd reported a net profit of $383 million. In Q1 2022, Japanese shipowner and operator Iino Kaiun Kaisha Ltd reported that tankers delivered a 14.6% increase in operating profit and bulk carriers an 8.9% improvement. In the tanker market, Japanese shipowner and operator Iino Kaiun Kaisha Ltd expressed profitability had improved after Iino Kaiun Kaisha Ltd boosted the company’s exposure to the spot market to take advantage of rising rates. In the dry bulk market, Japanese shipowner and operator Iino Kaiun Kaisha Ltd stated conditions resume to be favorable. Tokyo Stock Exchange-listed shipowner and operator Iino Kaiun Kaisha Ltd’s spot exposure in the tanker market is now 30%, and 47% in the dry bulk sector. Tokyo Stock Exchange-listed shipowner and operator Iino Kaiun Kaisha Ltd will boost the fleet in 2023 with the addition of a 40K DWT bulk carrier new building under a long-term charter agreement. In 2022, Iino Kaiun Kaisha Ltd will take delivery of three (3) bulk carrier new buildings including one kamsarmax and two handysize bulk carrier new buildings. Currently, Tokyo Stock Exchange-listed shipowner and operator Iino Kaiun Kaisha Ltd operates a mixed fleet of 94 vessels.
The Baltic Dry Index (BDI) increased to 2,284 points. The dry bulk markets revealed a little hope on Tuesday after plunging steadily for two weeks. Tuesday’s gain marked the first time that the Baltic Dry Index (BDI) enhanced after declining gradually from 2,633 points on 1 June 2022. Capesize 5TC reached over $19,000 per day. Capesize 5TC ascended back to the positive with support mostly from the Atlantic Basin. Capesize C3 route was at $31.18 per tonne on Tuesday. Capesize C5 route was at $12.41 per tonne on Tuesday. Rio Tinto capesize bulk carrier for 190,000 tonnes of iron ore from Dampier, to Qingdao at $12.40 per tonne. The Panamax 5TC route reached $23,657 per day on Tuesday. This small gain came after the Panamax 5TC slid steadily by 23% from $30,392 per day on 23 May 2022.
Tokyo-based shipowner and operator Inui Global Logistics has cooperated with data specialist Sustainable Lab to enhance the company’s greenhouse gas emissions. Japanese shipowner and operator Inui Global Logistics search for alternative methods to lower carbon emissions from the company’s fleet. Yasuyuki Inui-led Inui Global Logistics mainly owns and operates handysize bulk carriers. It is also more difficult to make a return on investment handysize bulk carriers. Inui Global Logistics Vessel Information Board (VIB) will be used jointly with Sustainable Lab’s artificial intelligence non-financial data system that was designed to assist organizations demonstrate the implementation of sustainability initiatives. Starting from 2023, the Carbon Intensity Indicator regulation agreed at the IMO (International Maritime Organization) will mandate shipowners to document to their Flag State on the ship operating efficiency. Under the new Carbon Intensity Indicator system, vessels will be rated between A and E based on their performance. Vessels which fall into categories D and E will have failed to fulfill the minimum international standard. Low rated vessels will have difficulty to find employment in the commercial shipping markets. Currently, Tokyo-based shipowner and operator Inui Global Logistics owns and operates 22 handysize bulk carriers.
Safeen Feeders is entering the dry bulk sector via a collaboration with Saif Powertec. Safeen Feeders will deliver eight (8) supramax bulk carriers which will be taken on bareboat and time charters to the jointly owned and operated bulk shipping services company. Eight (8) supramax bulk carriers will transport bulk cargoes from Fujairah to Chattogram and Mongla. Safeen Feeders and Saif Powertec venture will also manage cargo operations to the Indian subcontinent, South East Asia (SEA). Safeen Safeen Feeders was established in 2020 with the strategic partnership of UAE-based AD Ports and Singapore-based Bengal Tiger Line (BTL). UAE-based AD Ports CEO Captain Maktoum Al Houqani stated that the joint venture will furnish a swift, low-cost service for Safeen Feeders’ charterers in dry bulk shipping. Initially, Safeen Feeders and Saif Powertec venture will carry building materials between the UAE and Bangladesh, along with other dry cargo cargoes. Bangladeshi conglomerate port and logistic operator Saif Powertec is listed on the Dhaka Stock Exchange. AD Ports is a large conglomerate listed on the Abu Dhabi Securities Exchange that serves commercial ports in the UAE.
Baltic Exchange Handysize 7TC decreased to $26,075 per day. Average Spot Rates for Handysize Bulk Carriers reached the lowest levels for the second time in more than a month. On 28 March 2022, Baltic Exchange Handysize 7TC at $32,616 per day. In the Atlantic basin, according to Handysize Shipbrokers, more enquiries would be required for Handysize Bulk Carriers to witness more advancements moving forward. In the Pacific basin, according to Handysize Shipbrokers, Handysize Bulk Carriers suffered a setback as all three transpacific routes reported losses amid light chartering activity. Baltic Exchange Handysize HS6 roundtrip voyage between North China and North America Pacific Coast plunged to $25,750 per day. Handysize Shipbrokers has reported little chartering activity.
Amon Maritime CEO Andre Risholm stated that designing a ship from scratch is still the most reasonable idea. Decarbonization will inevitably affect both newbuildings and green retrofits of current ships. Amon Maritime is a Norwegian ammonia shipping start-up. Amon Maritime is supporting the new shipbuilding designs. According to Amon Maritime CEO Andre Risholm, retrofitting a ship is challenging. Supporters of ship retrofitting claim that it makes no sense in terms of fuel intensity and carbon emissions to build new ships to replace thousands of vintage ships. According to Amon Maritime CEO Andre Risholm, developing a new ship from scratch around a new power system will introduce more efficient ships. Large ships on long legs with heavy cargoes will take some time to replace. Shipowners of large bulk carriers ordered ammonia-ready ships for tomorrow. Amon Maritime is backed by Norwegian shipowner Mosvolds Rederi. Amon Maritime has been working on several new ammonia-fuelled vessel projects.
The capesize bulk carriers’ spot rates sloped on 24 March 2022 as capesize rates in the Atlantic basin fell while those in the Pacific basin increased. The capesize bulk carriers 5TC route (spot-rate average across five key routes) decreased to $16,333 per day. The capesize bulk carriers C8 route (Atlantic Brazil-Continent) decreased to $12,700 per day. The capesize bulk carriers C10 route (Pacific Australia-China Roundtrip) increased to $19,658 per day. The capesize bulk carriers’ spot rates in Atlantic and Pacific basins moving in opposite trends. The number of capesize bulk carriers increased in the Atlantic. On the other hand, the capesize bulk carriers’ spot rates in the Pacific basin increased. The capesize bulk carriers’ spot rates from Australia to China increased to around $11.70 per tonne. Furthermore, panamax and supramax capesize bulk carriers’ spot rates increased. The panamax bulk carriers 5TC route increased to $30,413 per day. The supramax bulk carriers 7TC route increased to $33,366 per day.
Australia has banned exports of alumina and aluminum ores including bauxite to Russia. Russia depends on Australia for about 20% of the country’s alumina requirements. Australia’s alumina ban is planned to limit Russia’s ability to make aluminum. Aluminum is a vital export for Russia. The Australian government will cooperate with exporters that will be impacted by the alumina ban and try to discover new and develop existing markets. Meanwhile, Anglo-Australian mining goliath Rio Tinto owns an 80% stake in Queensland Alumina Ltd (QAL) in a joint venture with Russia’s Rusal International PJSC. Rusal International PJSC is the world’s second-largest aluminum producer. Furthermore, Australia will donate approximately 70,000 tonnes of thermal coal to Ukraine. The freight cost of the coal to Ukraine will be met by the Australian Government.
Capesize spot-rate average weighted across five key routes (Capesize 5TC) plunged to $22,613 per day. Capesize spot rates plunged due to iron ore from Australia to China declining steadily. The average spot rate for the C10 transpacific roundtrip voyage, which covers the iron ore trade between China and Australia, plunged to $16,767 per day. Rio Tinto chartered seven capesize bulk carriers for iron ore shipment from Australia to China for around $9 per metric tonne. Australia entered cyclone season. Furthermore, average spot rates for the panamax, supramax, handysize plunged over the last week.
Viridis Bulk Carriers received $1.5 million in Norwegian state funding to develop ammonia-fuelled bulk carriers. Viridis Bulk Carriers received $1.5 million from the Pilot-E plan which is a partnership between the Norwegian Research Council, Innovation Norway, and Enova. Viridis Bulk Carriers was established up by Mosvolds Rederi and Navigare Logistics. Viridis Bulk Carriers committed to an environmentally-friendly bulk carrier project. In July 2021, Viridis Bulk Carriers signed collaboration deals with five cargo owners as the company aims to have its fleet operating from 2024. Furthermore, Viridis Bulk Carriers signed a deal with ammonia producer Yara International and Viken AT Market. Viridis Bulk Carriers signed a deal with charterers Elkem, Vestkorn, BioMar, Franzefoss Minerals and Saltimport.
Hong Kong-listed Qinfa Group sold 1998 built panamax bulk carrier 73K DWT MV QinFa 18. Qinfa Group exited from the shipowning business. Qinfa Group will be concentrating on the coal business. The coal business produces a significant portion of the company’s earnings in 2020. Hong Kong-listed shipowner and trader Qinfa Group believe that the disposal of 1998 built panamax bulk carrier 73K DWT MV QinFa 18 means a chance to dispose of the ship at an appropriate price. By selling the MV QinFa 18, Hong Kong-listed shipowner and trader Qinfa Group increased the company’s liquidity position and improved the Qinfa Group’s financial position. In March 2021, Hong Kong-listed shipowner and trader Qinfa Group sold 2011 built panamax bulk carrier 81K DWT MV Super Grace for around $15 million and 2011 built panamax bulk carrier 82K DWT MV Oriental Wise for around $17 million.
The capesize bulk carrier market resumed its upward trend today. The Baltic Exchange Capesize 5TC (Average Five Capesize Benchmark Spot Rates) climbed $43,030 per day. This situation is caused by weather delays and port congestions. Furthermore, there is respectable capesize cargo flow in the Atlantic and more capesize cargoes are predicted in near future. Capesize time charter rates in Q1 2022 are anticipated to be better than historical averages. China’s economic growth may support demand for iron ore. The average freight rate for the iron ore Western Australia-to-China route increased to $14.84 per metric tonne. Panamax, ultramax, and supramax bulk carriers saw more modest spot rate improvements over the last week.
Chinese trust and investment management company China Minsheng Trust Co. Ltd. (formerly known as China Tourism International Trust Investment Co., Ltd) looks to be exiting the shipping business. China Minsheng Trust Co. Ltd. has put its current fleet and newbuildings up for sale. Currently, China Minsheng Trust Co. Ltd. owns 20 bulk carriers and four (4) kamsarmax newbuilding bulk carriers at Chengxi Shipyard. Zhang Bo-led China Minsheng Trust Co. Ltd. is trading the fleet to increase cash for the company. Numerous businesses have filed lawsuits in court against China Minsheng Trust Co. Ltd. for failing to redeem private equity and trust wealth management products on time. Singapore-based Pacific Rim Shipmanagement is assumed to be acquiring the four (4) resale kamsarmax newbuilding bulk carriers from China Minsheng Trust Co. Ltd. In 2020, China Minsheng Trust Co. Ltd. ordered the four (4) kamsarmax newbuilding bulk carriers for around $27 million each. China Minsheng Trust Co. Ltd. ordered four (4) kamsarmax newbuilding bulk carriers against charter contracts from COFCO International. Besides acquiring China Minsheng Trust Co. Ltd.’s four (4) kamsarmax newbuilding bulk carriers, Singapore-based Pacific Rim Shipmanagement is also planning to acquire some resale newbuildings from other Chinese leasing companies. China Minsheng Trust Co. Ltd. was established in 2013, is a subsidiary of Ocean Wide Holdings.
CEO Peter Whitcutt-led mining giant Anglo American strives all of its transportation ventures to be carbon-neutral by 2040. Anglo American set up a shipping desk in 2012. Today, mining giant Anglo American ships more than 70 million metric tonnes of dry bulk commodities per year. Anglo American yearns for a more sustainable shipping sector. Furthermore, Anglo American aims to decrease its Scope-3 emissions by 50% by 2040. Anglo American published Sustainable Mining Plan. Anglo American attempts to expedite the improvement of alternative low-carbon and zero-carbon fuels. Mining giant Anglo American is cooperating with Hydrogenious Maritime and Johannes Ostensjo to search for fuel on Anglo American’s chartered fleet the application of LOHC (Liquid Organic Hydrogen Carrier). London-based mining giant Anglo American endeavors to develop zero-carbon marine fuel. In March 2021, British mining giant Anglo American became a shipowner. Anglo American ordered LNG-fuelled capesize bulk carrier newbuildings. According to Anglo American, LNG-fuelled capesize bulk carrier newbuildings will incrementally decarbonise shipping.
Dry bulk charter rates have proceeded to slip on concerns about China’s reduced steel production. Furthermore, shares of the most significant New York-listed dry bulk shipowners are declining by over 20%. Iron ore futures traded back below $100 per metric ton due to decreasing steel production in China. In FFA Market, the capesize November contract dropped 18% at $25,250 per day. China’s weak iron ore trade retains the stress on ship charter rates. Furthermore, Australian and Brazilian iron ore shipments diminished. Shipping markets are observing significant corrections in the freight rates for spot chartering. China reducing down on acquisitions of coal and iron ore as well as other minor bulks. Therefore, dry bulk freight rates have been decreasing. Daily crude steel production in October dropped to the lowest since March 2020. China’s housing market, an essential source of steel and metals demand, is under pressure from rules directed at restraining leverage as well as a slowdown in the market. China’s diminished demand for iron ore has also affected the main dry bulk shipowners.
The spot-rate average capesize 5TC plunged to $51,463 per day, Last week, the spot-rate average capesize 5TC was $83,865 per day. The accelerated drop is a correction from a spot-rate pressure caused by charterers pushing for capesizes amid spiking iron-ore and coal prices. Commodity traders wanted to secure bulk carriers to catch the cancelling days. Otherwise, commodity traders are risking a notable loss on the trade. Commodity traders want to move the already acquired raw materials as the current raw material prices have now cooled down. Currently, the iron ore price is around $130 per tonne and the coal price is around $230 per tonne. It is challenging to guess where spot rates will go amid such volatility. Australia-China capesize route is around $14.264 per tonne. The FFAs (Forward Freight Agreements) have been indicating a drop in capesize bulk carrier rates. The capesize freight rates increased too high too fast and now it is correcting to these levels.
The capesize spot-rate average weighted across five key routes (5TC) has reached $79,535 per day. The capesize charter rates have soared due to the high demand and port congestion. Dry bulk market experts believe that the capesize bulk carrier spot rates fall into correction territory. Capesize supply is unquestionably low amid pending environmental regulations and the commodity demand is inadequate to push capesize bulk carrier spot rates even further. The capesize spot market may fall over the next few weeks to a higher low. The capesize bulk carrier spot rates may fall 50% by December 2021 as commodity prices stay high and demand starts declining amid limited coal supplies and China’s plans to restrict steel output. It is not the overall supply of the global capesize bulk carrier fleet that is lagging behind demand. The bottlenecks across the supply chain are creating freight prices to spike. In other words, there are enough capesize bulk carriers around, however, these capesize bulk carriers are not in the right spots. China’s volatile construction market and plans to restrict steel output for environmental goals may also pull down capesize bulk carriers rates. High demand for coal in China and India may help capesize bulk carriers rates, however, Evergrande’s debt obstacles could indirectly offset any profits by cutting steel demand.
Shanghai-based leasing giant Bocomm Leasing (Bank of Communications Financial Leasing) has ordered eight (8) 64K DWT ultramax bulk carriers at Cosco Shipping Heavy Industry Zhoushan for around $256 million. Bocomm Leasing (Bank of Communications Financial Leasing) will get the delivery of ultramax bulk carriers in 2023. This is the second shipbuilding deal that Bocomm Leasing (Bank of Communications Financial Leasing) has signed in 2021. Bocomm Leasing (Bank of Communications Financial Leasing) new building ultramax bulk carriers are going to be built according to IMO’s (International Maritime Organization) Phase 3 standards of the Energy Efficiency Design Index. Bocomm Leasing (Bank of Communications Financial Leasing) and CDB Leasing (China Development Bank Financial Leasing) were the only two companies to have booked large numbers of the ultramax bulk carriers in 2021. In June 2021, Bocomm Leasing (Bank of Communications Financial Leasing) ordered eight (8) woodchip carriers for around $310 million.
Tokyo-based shipowner and ship financier ORIX Corporation sold six (6) supramax bulk carriers. ORIX Corporation took delivery of six (6) supramax bulk carriers as newbuildings. In summer 2021, shipowner and ship financier ORIX Corporation ordered ultramax bulk carriers at Tsuneishi Shipbuilding. ORIX Corporation had been trading six (6) supramax bulk carriers for several years. ORIX Corporation sold the supramax bulk carriers when the second-hand bulk carrier prices increased. Tokyo-based shipowner and ship financier ORIX Corporation started a secondhand ship leasing company in Japan in the 1960s. ORIX Corporation has a ship operating company Orix Maritime. Currently, ORIX Corporation owns 30 bulk carriers that are chartered-out first-class charterers (FCC).
Axel C Eitzen-led Eitzen Holding AS will remain the co-owner of the 2008 built supramax bulk carrier 53K DWT MV Sibulk Tradition. Axel C Eitzen acquired a 75% stake of MV Sibulk Tradition in 2015 for around $12 million. Axel C Eitzen put up MV Sibulk Tradition for sale in August 2021. Axel C Eitzen will remain as the co-owner of the MV Sibulk Tradition, however, Axel C Eitzen decreased his stake from 75% to 25%. Essentially, Axel C Eitzen is associated with chemical tankers through Christiania Shipping. In 2018, Axel C Eitzen acquired Herning Shipping from the investment fund Triton.
Athens-based Ivy Shipping sold 2011 built supramax bulk carrier K DWT MV Ivy Delta for around $20 million. Paris Kassidokostas-Latsis-led Ivy Shipping was established as an asset play company when dry bulk businesses were still in the doldrums in 2016. Lately, supramax bulk carrier prices have increased by the soaring dry bulk freight rates. Ivy Shipping had a fleet of four (4) supramax bulk carriers: MV Ivy Delta, MV Ivy Unicorn, MV Ivy Delta, and MV Ivy Blue.
The Baltic Exchange’s assessment of Capesize Bulk Carrier Average Spot Rates (5TC) increased to $52,908 on 12 September 2021. Capesize bulk carrier spot rates reached the highest level observed since May 2010. The most prominent one-day leap of the 5TC was observed on 12 September 2021. Baltic Capesize Index (BCI) influenced the capesize bulk carrier futures market on Monday, especially for front-month contracts. October 2021 capesize future contracts were asking about $47,000 per day. Bauxite exporter Guinea is experiencing a rainy season and last week’s military coup increase the risks. Gigantic aluminum producer Emirates Global Aluminium (EGA) has a facility in Guinea. On the other hand, one of the biggest capesize charterers Vale is striving to obtain capesize bulk carriers to meet the demand. Vale chartered around 20 capesize bulk carriers for loading in October for voyages to China from Brazil, all at around $30.50 per metric tonne which is the most expensive level since November 2009. Iron ore prices are sinking, but fixtures for capesize taking ore voyages to China have achieved higher rates.
Francoisciner Cazor-led commodity data analyst Kpler acquired has agreed to acquire US-based competitor ClipperData. ClipperData specializes in global crude, grain, and refined product movements. The demand has been increasing for data on cargo flows, trades, and inventories globally. Currently, the United States is the most significant market for Kpler in terms of the number of clients and users. ClipperData had produced a novel data offering for the commodity markets, especially in petroleum liquids coverage in the United States. Kpler and ClipperData have made their reputations about high-quality exclusive data. Kpler projects to earn $100 million annually. US-based ClipperData was established by managers in the commodities and energy data analytics industry. ClipperData is backed by private equity firm Nassau Point Investors.
World’s largest ships registry the Panama Ship Registry has added 218 new building ships so far in 2021. Currently, Panama Ship Registry is the largest Flag State. Panama Ship Registry has a total of 2,725 ships of around 112 million GT (Gross Tonnage). Panama Ship Registry said it is the best option for shipowners due to the easy process, Panama’s legal security and professionalism. Panama Flag State is on the white lists of both the Paris and Tokyo MOU (Memoranda of Understanding) on PSC (Port State Control). Panama has also been part of the MACN (Maritime Anti-Corruption Network) since 2020. Panama has been the world’s largest Flag State since 1993.
Taiwan-based shipowner and operator Franbo Lines announced that five (5) geared bulk carriers will be modified to transport around 212 TEU containers on deck. Franbo Lines want to take advantage of fruitful container markets by loading boxes onto dry bulk carriers. Franbo Lines can take containers on deck and advantage of record container ship rates. Franbo Lines plans to transport containers from Asia to Europe and the US. Furthermore, Swire Bulk has been transferring a tiny number of containers on its vessels. Golden Ocean Group has been actively studying how its bulk carriers could be utilized to carry containers. The North P&I (Protection and Indemnity) Club has published an instructive note to shipowners considering switching into the container businesses. The current demand for container slots surpassing supply has led to an increase in inquiries for information from bulk carrier operators to analyze when deciding whether to load large quantities of containers on bulk carriers. Currently, Taiwan-based shipowner and operator Franbo Lines controls 18 bulk carriers.
Istanbul-based shipowner and operator Devbulk acquired 2013 built handysize bulk carrier 34K DWT MV Four Emerald for around $15 million from Italian shipowner and operator Premuda. Hakki Deval-led Devbulk has made its first fleet expansion move in many years. Devbulk is going to take the delivery of MV Four Emerald in November 2021. Devbulk is a self-governing and separate company from two other Deval family companies Deval Marine and Devmarin Shipping. Devbulk’s directors plan further scope for fleet expansion. Devbulk specializes in more modest handy bulk carriers and employs the fleet in short-haul Mediterranean businesses. Istanbul-based players other than Devbulk have also been busy expanding in that ship type. Currently, Devbulk has a fleet of seven (7) handysize bulk carriers.
Gia Shipping ordered two (2) 85K DWT kamsarmax bulk carrier new buildings at Dalian Shipbuilding Industry Co (DSIC) for around $62 million. Gia Shipping will take delivery of kamsarmax bulk carrier new buildings in Q1 2023. Gia Shipping has been concentrated on the Chinese domestic businesses. Gia Shipping ordered two (2) kamsarmax bulk carrier new buildings to extend the shipping business beyond China. Gia Shipping desires to be involved in the global shipping business. Gia Shipping’s kamsarmax bulk carrier new buildings comply with Phase 2 of the IMO’s (International Maritime Organization) Energy Efficiency Design Index standards. Furthermore, Gia Shipping’s kamsarmax bulk carrier new buildings comply with Tier III rules on NOx emissions. Currently, Gia Shipping owns and operates two (2) handymax, one (1) supramax, and one (1) ultramax bulk carrier.
Taipei-based lessor and lender Chailease International Financial Services has taken the step from financial shipowning into operating its ships in-house. Chailease International Financial Services is in the S&P (Sale and Purchase) market for secondhand dry bulk carriers. Chailease International Financial Services recruited Robert Tsai as company advisor. Chailease International Financial Services established an S&P (Sale and Purchase) and chartering desk. Chailease International Financial Services took over the commercial operations of two (2) panamax bulk carriers. Chailease International Financial Services is expected to place its dry bulk fleet rather than seek new charterers for the bulk carriers or dispose of them in the secondhand market. Chailease International Financial Services’ self-operated fleet consists of 2004 built panamax bulk carrier 77K DWT MV Chailease Blossom (ex MV YM Rightness) and 2003 built panamax bulk carrier 76K DWT MV Chailease Glory (ex MV Medi Taipei). Taiwan Stock Exchange lessor and lender Chailease International Financial Services has funded some 90 vessels and has a $400 million shipping portfolio. Chailease International Financial Services has financed international shipowners including First Ship Lease Trust, Besiktas Group, Anglo International, Castor Maritime, and Global Ship Lease.
Singapore-based shipowner and operator IMC Shipping has been transforming from a conventional shipowner into an asset-light ship operator. IMC Shipping has been restructuring the group planned to perform better synergies between markets and economies of scale. IMC Shipping has a sister company IMC Pan Asia Alliance Group which controls ports, shipyards, and logistics in China, Indonesia, and Thailand. IMC Shipping will still be a shipowner but are unlikely to take a significant position in fixed assets. Previously, IMC Pan Asia’s shipping portfolio consisted of a loose collection of separate shipping companies and service entities under IMC Industrial Group. Furthermore, IMC Shipping has an affiliated company Pelita Samudera Shipping which operates in the Indonesian domestic coal trades. Each IMC Shipping sub-company is operated entirely independently from the other. IMC Shipping’s back-office duties and operating methods are being merged into one stage. IMC Shipping commands more than 40 traditional bulk carriers at any given time. Mostly, IMC Shipping trade in the Indian Ocean and the Pacific, although IMC Shipping’s market in the Atlantic is improving. As part of the transformation of IMC Shipping, its wholly-owned independent ship-management company MSI is being taken back into the fold and will be rebranded as IMC Ship Services. Furthermore, IMC Industrial Group is going to provide technical management and newbuilding supervision services to both IMC Shipping and third-party customers.
Freight rates for capesize bulk carriers are plummeting. China reduced the demand for iron ore, one of the two main cargoes for the capesize business. China’s iron ore imports fell to their lowest in 13 months in June 2021. Analysts expect China’s iron-ore consumption to fall during Q3 2021. China reduces its annual crude steel output to reach its emissions targets. In June 2021, China’s iron ore imports slipped to 89 million tonnes. Front-end capesize bulk carrier contracts took the greatest hit. Capesize bulk carrier contracts traded at $32,750 per day by mid-afternoon. On the physical side, chartering activity for capesize bulk carriers has been relatively steady but shipbrokers report that capesize bulk carrier freight rates have softened as charterers and shipowners look around for direction in the market. The Baltic Exchange’s capesize 5TC, a spot-rate average weighted across five (5) routes, plummeted to $30,272 per day. Furthermore, the China-Brazil capesize bulk carrier round voyage plummeted to $27,040 per day. Western Australia-China capesize bulk carrier route plummeted to $10.88 per tonne on Tuesday.
QC Shipping Investments, a joint venture established in 2015 by Swiss-based Quadra Commodities and Athens-based Erasmus Shipinvest, has sold its last ship 2002 built panamax bulk carrier 76K DWT MV QC Matilde (ex MV Fu May) for around $11 million. QC Shipping Investments may select to reinvest in bulk carriers in the future. QC Shipping Investments acquired MV QC Matilde (ex MV Fu May) in 2015 from Foremost Maritime. In 2017, QC Shipping Investments sold 2000 built panamax bulk carrier 72K DWT MV QC Athina (ex Lei Sheng 2). It is not clear whether QC Shipping Investments will remain to operate soon without any bulk carriers.
Shipping market players and commodity giants consider the price gains for raw minerals over the past year to be part of a pricing trend that leads towards the commencement of a supercycle. Governments are going to spend around $16 trillion for decarbonization infrastructure. Decarbonization will need two times the amount of steel currently produced, four times the amount of copper, as well as notable increases in the amount of cobalt, nickel, and manganese-all key components in lithium batteries. Pandemic played a robust role in the increase of commodities prices. Covid-19 pandemic has shown shipping players that global supply chains are astonishingly fragile. Furthermore, labor costs in China are no longer a vital advantage and China’s significant decarbonization efforts are also playing a role. Chinese metal trade was not affected by the Covid-19 pandemic; in fact, demand grew during 2020. There is a strong diversion of capital from the old economy to the new technology economy. Investment is considerably lower than in the last super-cycle, which is a fundamental point for a bullish cycle. Demand growth rates for minerals will be strong in 2021 and 2022. Iron ore prices would remain over $200 per tonne over the next few years.
Bergen-based shipowner and operator Westfal-Larsen’s bulker fleet increased by more than 66% to around $203 million in Q2 2021 due to the strong dry bulk market. In 2019, Westfal-Larsen’s parent holding company Skibsaktieselskapet Navigation carried a large write-down of its bulker fleet. Westfal-Larsen owns eight (8) chemical tankers in addition to its fleet of open-hatch bulk carriers. Open-hatch bulk carriers are operated through pool company Saga Welco, where NYK (Nippon Yusen Kabushiki) is the other partner. Till 2020, the open-hatch bulk carrier fleet was operated by Singapore-based subsidiary Masterbulk. Masterbulk was established in 1995 in reaction to the taxation of shipowners in Norway. In 2020, Masterbulk was moved to Bergen, Norway. Bergen-based shipowner and operator Westfal-Larsen was establied in 1905 and is controlled by Rolf Westfal-Larsen Jr and his family. Currently, Westfal-Larsen owns and operates 16 open-hatch bulk carriers.
Bulk carriers transporting grain cargoes have been waiting as long as four weeks to discharge at major ports in China. Currently, 3.5 million tonnes of cargo have been sitting on bulk carriers. In Q1 2021, China imported 51 million tonnes of grain cargoes. Chinese grain storage facilities have limited capacity to handle the large inbound volumes. China is running short of silo storages. Furthermore, coronavirus operation restrictions have also affected. Most of the Chinese grain terminals on average could have about 10 bulk carriers waiting at the anchorage for the congestion. Lately, at Guangzhou and Shenzhen ports, grain bulk carriers have to wait around 15 days before berthing alongside. China’s imports of grain have been strong and the US had a plethora of maize crops because of diminished biofuel demand. This situation has also increased the ton-mile. Chinese port congestions have almost halved since it hit a high of 70 bulk carriers on 27 May 2021.
Tokyo-based shipowner Inui Global Logistics wants to prevent a potential takeover bid from Alphaleo Holdings. Inui Global Logistics is requesting shareholders to vote for a revised corporate protection plan at its annual shareholders’ meeting. The largest shareholder Alphaleo Holdings controls 31.5% of the Inui Global Logistics’ voting rights. Alphaleo Holdings has filed litigation against Inui Global Logistics eight times. Inui Global Logistics has been asking for shareholders to vote for a revised plan that is aimed only at Alphaleo Holdings and its associated companies such as Makis Holdings and the Melco Group. Currently, Tokyo-based shipowner Inui Global Logistics owns 22 bulk carriers.
Athens-based Minerva Ship Management’s client sold 2008 built panamax bulk carrier 78K DWT MV Soroco for around $16 million. Ted Petropoulos-led Minerva Ship Management have circulated MV Soroco for sale since February 2021. Nevertheless, it took its time to close the deal.
Hong Kong-listed CDB Leasing (China Development Bank Financial Leasing) ordered eight (8) kamsarmax bulk carriers at Cosco Shipping Heavy Industry for $27 million each. CDB Leasing (China Development Bank Financial Leasing) informed shareholders that the company will finance the eight (8) kamsarmax bulk carriers through a combination of its funds and commercial bank loans. CDB Leasing (China Development Bank Financial Leasing) has been expanding its market share in the dry bulk shipping sector. Lately, Hong Kong-listed CDB Leasing (China Development Bank Financial Leasing) raised $1 billion via bond offering. In 2020, CDB Leasing (China Development Bank Financial Leasing) spent $400 million on eight (8) new-building bulk carriers. CDB Leasing (China Development Bank Financial Leasing) controls a fleet of 110 ships.
Spot rates for capesize bulk carriers have surpassed the $40,000 per day. Baltic Dry Index breaks 3,000 points in more than a decade. FFA (Forward Freight Agreements) capesize 5TC contracts for 2022 trade at levels of over $20,000 per day during trading on Friday. Positive sentiment has come to the capesize market on the back of Vale’s announcement that Vale will intend to produce 450 million tonnes of iron ore annually by the end of 2022. Capesize 5TC May contract was trading at levels of around $42,000 per day on Friday in London. Australian miners are striving to ship as much product as possible before the end of the fiscal year and while iron-ore prices remain high. Baltic Exchange Western Australia to China capesize route increased to $13.24 per tonne, its priciest level since mid-December 2013. Dry Bulk Shipping Analysts anticipate capesize rates to average $26,000 per day in 2021.
Bremen-based Harren Bulkers acquired 2011 built post-panamax bulk carrier 93K DWT MV Pablo (ex MV Topas) for around $18 million. Currently, MV Pablo (ex MV Topas) is the largest vessel in the Harren Bulkers fleet. Furthermore, Harren Bulkers took the technical management of two sisterships 2012 built post-panamax bulk carrier 93K DWT MV Constantin Oldendorff (ex MV Turmalin) and 2012 built post-panamax bulk carrier 93K DWT MV Clemens Oldendorff (ex MV Tuerkis). Martin Harren-led Harren Bulkers aims to acquire more vessels and expanding the fleet. Harren Bulkers was established in 2020 with the merger of Bremer Bereederungsgesellschaft (BBG) and Harren & Partner. Bremer Bereederungsgesellschaft (BBG) was operating large bulk carriers since 2010 and Harren & Partner was a family-owned business. Currently, Harren Bulkers manages 22 bulk carriers.
Athens-based shipowner and operator Nereus Shipping controlled 2010 built capesize bulk carrier 182K DWT MV Heroic has been quarantined in Crete after a seafarer was found dead. MV Heroic’s other ten (10) crew members were tested positive for coronavirus. Nereus Shipping is the sub-company of CM Lemos. MV Heroic steamed Port Said to Crete where the 59-year-old chief engineer was airlifted from the bulk carrier. Nereus Shipping controlled 2010 built capesize bulk carrier 182K DWT MV Heroic has 21 seafarers on board. Nereus Shipping has been cooperating closely with the Greek authorities to ensure the safety of the crew onboard MV Heroic. The shipping industry has to find a solution to provide vaccines to seafarers.
EGPN Bulk Carrier Co. Ltd (EGPN) ordered a kamsarmax bulk carrier 82K DWT at Chengxi Shipyard. This kamsarmax would be EGPN Bulk Carrier’s first new-building bulk carrier order. Kamsarmax bulk carrier will be constructed according to IMO (International Maritime Organization) Tier III NOx rules. Currently, the new-building kamsarmax bulk carrier price tag is around $29 million. In 2014, EGPN Bulk Carrier Co. Ltd (EGPN) was established by nickel ore operator Eastern Ocean Transportation and grain importer Great Pacific Navigation. In 2017, EGPN Bulk Carrier Co. Ltd (EGPN) acquired 2014 built kamsarmax bulk carrier 82K DWT MV Sirocco (ex MV Smooth Vitality) for around $15 million. In January 2021, EGPN Bulk Carrier Co. Ltd (EGPN) acquired a 2010 built capesize bulk carrier 180K DWT MV Eastern Freesia (ex MV Tiger Jiangsu) for around $15 million from Greathorse International Shipping. Currently, EGPN Bulk Carrier Co. Ltd (EGPN) owns and charters out five (5) bulk carriers.
Rizhao Steel’s shipping arm Cara Shipping chartered out 2010 built capesize bulk carrier 180K DWT MV Stella Alice for around $20,650 per day to Rio Tinto for the long-term. Currently, Singapore-based Cara Shipping owns and operates fourteen (14) large bulk carriers. Australia-based Rio Tinto has booked capesize bulk carriers for iron-ore voyages from Dampier Port to China. Capesize bulk carriers FFA (Forward Freight Agreement) rates surpassing $25,000 per day for Q2 and Q3 2021. Lately, Baltic Exchange’s 5TC capesize bulk carrier rates have increased to $22,468 per day. Capesize bulk carrier front-haul rates from the Continent to China increased to $45,000 per day. Other Australia-based mining giant BHP chartered in capesize bulk carriers for iron-ore voyages from Western Australia to China for around $10.30 per tonne. Recently, iron-ore prices approached $170 per tonne which increased the capesize freight rates.
Istanbul-based Iskenderun Ship Management acquired 2001 built supramax bulk carrier 50K DWT MV Bozburun-M (ex MV Bene) for around $5 million from Croatia-based shipowner and operator Jadroplov Ltd. In September 2020, Iskenderun Ship Management was appointed as the ship-manager of 2001 built supramax bulk carrier 52K DWT MV Ata-M (ex MV Harvest Plains). MV Ata-M (ex MV Harvest Plains) was acquired for around $5 million from Archer Daniels Midland. Iskenderun Ship Management is the ship-management arm of New York-based Med Brokerage & Management Corporation. Ibrahim Mazman-led Med Brokerage & Management Corporation was established in 1995. Furthermore, in July 2020, Iskenderun Ship Management was appointed as the ship-manager of 2009 built handysize bulk carrier 34K DWT MV Deniz-M (ex Baltic Wind). MV Deniz-M (ex Baltic Wind) was acquired for around $8 million from Genco Shipping & Trading. Currently, Iskenderun Ship Management controls a fleet of twelve (12) bulk carriers.
Holland-based heavy-lift shipowner Jumbo Maritime and Germany-based heavy-lift shipowner SAL Heavy Lift are plotting a JV (Joint Venture) that will run 30 heavy-lift ships. If Jumbo Maritime and SAL Heavy Lift merger is approved by regulators, this JV (Joint Venture) is going to build a heavy-lift market leader. Jumbo Maritime and SAL Heavy Lift applied for JV (Joint Venture) approval from competition authorities in Germany and Holland. Jumbo Maritime and SAL Heavy Lift joint venture’s main competitor is Spliethoff-controlled BigLift. Holland-based heavy-lift shipowner Spliethoff-controlled BigLift operates around 20 heavy-lift ships. In 2019, Spliethoff-controlled BigLift purchased 10 heavy-lift ships previously operated by Hansa Heavy Lift. Currently, the top three heavy-lift shipowners Spliethoff-controlled BigLift, Jumbo Maritime, and SAL Heavy Lift operate in a niche section of the shipping market for outsized cargoes. In July 2017, Japanese shipowner K Line sold SAL Heavy Lift to Germany-based Harren & Partner. In October 2020, SAL Heavy Lift obtained a predominant stake in the US-based MPP operator Intermarine.
Nicholas J. Goulandris company Hydroussa Navigation sold 2012 built kamsarmax bulk carrier 82K DWT MV Magica G for around $16 million to a Greek shipowner and operator. In 2012, MV Magica G was constructed at STX Offshore & Shipbuilding. In June 2017, MV Magica G went through SS (Special Survey). Kamsarmax bulk carrier prices have been rising in S&P (Sale and Purchase) market. In 2019, Athens-based Hydroussa Navigation acquired 2012 built kamsarmax bulk carrier 82K DWT MV Magica G from Greek shipowner and operator Byzantine Navigation for around $19 million. The price tag for the MV Magica G indicates the soaring prices for kamsarmax bulk carriers. Athens-based Hydroussa Navigation controls the bulk carriers in the London-based Nicholas J. Goulandris Group. Currently, Nicholas J. Goulandris Group’s tanker arm Andriaki Shipping controls nine (9) tankers. Currently, Hydroussa Navigation controls eleven (11) large bulk carriers.
Greek Petrakis-family controlled Iolcos Hellenic Maritime Enterprises sold 2007 built panamax bulk carrier 74K DWT MV Evangelia Petrakis for around $9 million. MV Evangelia Petrakis was one of the oldest bulk carrier in the fleet of Iolcos Hellenic Maritime Enterprises. Iolcos Hellenic Maritime Enterprises has been renewing its fleet. Greek shipowner and operator Iolcos Hellenic Maritime Enterprises first known bulk carrier sale since 2014. Currently, Iolcos Hellenic Maritime Enterprise has a fleet of seventeen (17) large bulk carriers.
Greek shipowner and operator Vergos Marine Management sold 2001 built panamax bulk carrier 73K DWT MV Very Maria for around 5.5 million. MV Very Maria was the last bulk carrier in the fleet of Vergos Marine Management. Nevertheless, Vergos Marine Management aims to stay in the shipping business by acquiring modern tonnage. Athens based shipowner and operator Vergos Marine Management last returned to the shipping business in 2014 after an absence of almost ten years from the shipping business.
Copenhagen-based shipowner and operator Celsius Shipping 2014 built ultramax bulk carrier 63K DWT MV GH Storm Cat for around $16 million. In 2016, Celsius Shipping acquired MV GH Storm Cat for around $12 million. MV GH Storm Cat was built at the Sainty Shipbuilding. In 2016, Jeppe Jensen-led shipowner and operator Celsius Shipping acquired twelve (12) ultramax bulk carriers. Danish shipowner and operator Celsius Shipping remains active in the S&P (Sale and Purchase) market. Recently, Celsius Shipping sold 2016 built ultramax bulk carrier 63K DWT MV GH Seabiscuit for around $17.5 million. In January, secondhand dry bulk carriers’ price tag increased 8%. Celsius Shipping concentrate on asset play deals. Copenhagen-based shipowner and operator Celsius Shipping was established in 2012. Currently, Celsius Shipping has a mixed fleet of 50 ships.
Athens-based shipowner and operator Nereus Shipping SA sold 2012 built supramax bulk carrier 58K DWT MV Asiatic and 2012 built supramax bulk carrier 58K DWT MV Laconic for around $11.5 million each. In 2008, CM Lemos subsidiary Nereus Shipping SA ordered MV Laconic and MV Asiatic at the top of the dry bulk boom at SPP Shipbuilding for around $50 million each. Nereus Shipping SA assumes that the moment is right to sell the supramax bulk carriers. MV Laconic and MV Asiatic was the first order of Nereus Shipping SA at a South Korean shipyard. Previously, Nereus Shipping SA favored Japanese shipyards. Since then, Athens-based shipowner and operator Nereus Shipping SA has continued its investment focus on the tanker sector.
Istanbul-based shipowner and operator Marinsa Shipping sold 2012 built supramax bulk carrier 57K DWT MV Densa Jaguar for around $10.5 million to Asian shipowner and operator.
Chinese shipowner and operator Jiuzhou Star Shipping sold eight (8) bulk carriers in 2020. Jiuzhou Star Shipping has left with 2011 built capesize bulk carrier 176K DWT MV Yuan Fu Star. Jiuzhou Star Shipping plans to sell MV Yuan Fu Star after discharging Australian coal in China. However, the Chinese government’s controversial import ban has made Jiuzhou Star Shipping careful of coal cargoes. Jiuzhou Star Shipping will focus on iron ore cargoes if Jiuzhou Star Shipping remains in capesize sector. Jiuzhou Star Shipping controlled MV Yuan Fu Star has been waiting in North China for six (6) months because it is loaded with Australian coal. Fortunately, MV Yuan Fu Star is not on voyage charter but on time charter to Pacific Bulk Shipping. Jiuzhou Star Shipping has traditionally favored operating bulk carriers near the scrapping age. Yu Dabin-led Jiuzhou Star Shipping started as a coal miner and trader but moved into the shipowning business. Recently, Jiuzhou Star Shipping sold 2012 built capesize bulk carrier 176K DWT MV Han Fu Star to Greece shipowner and operator Moundreas.
Hong Kong King Shan Group sold 2000 built capesize bulk carrier 170K DWT MV An Li (ex MV Alpha Era) for around $10 million to scrapyard. In June 2020, Hong Kong King Shan Group acquired MV An Li (ex MV Alpha Era) for around $7.5 million. However, in December 2020, MV An Li (ex MV Alpha Era) was allowed to discharge Australian coal cargo. When the MV An Li (ex MV Alpha Era) scrap value had risen by about $2 million, Alpha Bulkers tried to cancel the transaction and would refund the deposit. Hong Kong King Shan Group this unacceptable. Because MV An Li (ex MV Alpha Era) was conveniently in Chinese waters, Hong Kong King Shan Group arrested MV An Li (ex MV Alpha Era) through the Beihai Maritime Court and succeeded in forcing a sale. Lately, Hong Kong King Shan Group acquired 2003 built capesize bulk carrier 177K DWT MV Lin Jie for around $8.5 million from Zhong An Shipping. Jin Jingbiao-led Hong Kong King Shan Group acquires vintage bulk carriers and operates them intensively before scrapping them. Hong Kong King Shan Group scrapping decision arrived as an implied result of China’s ban on Australian coal imports.
The United States added the Islamic Republic of Iran Shipping Lines (IRISL) CEO Mohammad Reza Modarres Khiabani to its blacklist. Furthermore, the United States expanded sanctions on the Islamic Republic of Iran Shipping Lines (IRISL). According to the United States State Department, the Islamic Republic of Iran Shipping Lines (IRISL) had shipped grain-oriented electrical steel to Hoopad Darya Shipping Agency, another Iranian firm previously sanctioned, prompting authorities to sanction the Islamic Republic of Iran Shipping Lines (IRISL) further. According to the United States State Department, companies that keep trading with the Islamic Republic of Iran Shipping Lines (IRISL), its subsidiaries, and other Iranian shipping entities, risk sanctions. The other companies sanctioned were Iranian firms Zangan Distribution Transformer Co, Mobarakeh Steel Co, Sapid Shipping and Iran Transfo Co, China-based Jiangyin Mascot Special Steel Co, and UAE-based Accenture Building Materials. The United States sanctions on Iran have often had repercussions on shipping, with the United States blacklisting several Iranian companies and dozens of its ships and anyone who conducts business with them.
On 13 January 2021, Capesize bulk carriers weighted TCE (Time-Charter Equivalent) average rate reached to $26,489 per day. This is the highest point since October 2020 due to a stronger outlook for the capesize market. On 13 January 2021, the Baltic Exchange attributed the capesize physical rally to the paper market rising on 2021 optimism but remarked the capesize market viewed the paper spike as unsustainable. Capesize FFA (Freight-Forward Agreement) rates are still showing momentum and gained for February 2021 to $15,338 per day. On 6 January 2021, Capesize FFA (Freight-Forward Agreement) volumes increased to 6,251 lots from 2,310 lots. In FFA (Freight-Forward Agreement), a lot is equal to 1,000 metric tonnes of cargo or one day of charter hire.
Greek shipowner and operator Union Marine Enterprises SA acquired 2011 built capesize bulk carrier 175K DWT MV Cape Istanbul for around $19 million from Istanbul-based Eregli Shipping. MV Cape Istanbul will be the largest bulk carrier so far in the fleet of Union Marine Enterprises SA. Greek shipowner and operator Union Marine Enterprises SA is owned by the Varonis family of Chios. In 2020, Union Marine Enterprises SA acquired a 2010 built supramax bulk carrier 55K DWT MV Union Glory (ex MV Yutai Breeze) for around $9.5 million. Furthermore, in 2020, Union Marine Enterprises SA acquired a 2010 built supramax bulk carrier 53K DWT MV Union Victory (ex MV Vega Lea) for around $7 million. Low-profile Athens-based shipowner and operator Union Marine Enterprises SA is confident about the dry bulk market. Istanbul-based Eregli Shipping was established in 2004 by Akmar Shipping and Levent Karacelik which joined forces to acquire capesize bulk carriers. In 2011, Eregli Shipping took the delivery of MV Cape Istanbul from Hanjin Heavy Industries and Construction Philippines. In 2011, MV Cape Istanbul was seized by US-based operator Probulk Shipping & Trading and Karacelik, which saw the Eregli Shipping emerged as victorious. Eregli Shipping has never expanded the fleet, even though individual shareholder Akmar Shipping expanded the fleet. Ultimately, Eregli Shipping shareholders might decide to dissolve the JV (Joint Venture).
HNA Group’s transportation arm HNA Technology acquired 2012 built capesize bulk carrier 175K DWT MV Bulk Harvest and 2012 built capesize bulk carrier 175K DWT MV Bulk Joyance for around $22 million each. HNA Technology had intentions to close its bulk carrier operations. In the 2010s, HNA Group’s transportation arm Grand China Logistics operated one of the world’s biggest bulk fleets. However, Grand China Logistics defaulted on charter payments during the shipping market downturn. Since 2017, HNA Group has merged its shipping and shipbuilding assets into the HNA Technology division. In 2018, HNA Technology projected to sell its entire fleet. However, the plan has never been materialized. MV Bulk Joyance and MV Bulk Harvest are both built Jinhai Intelligent Manufacturing Shipyard which belongs to HNA Group. MV Bulk Joyance and MV Bulk Harvest have been chartered to and operated by HNA Technology for years. MV Bulk Joyance and MV Bulk Harvest transaction might indicate HNA Technology’s renewed focus on the maritime division. In December 2020, HNA Technology sold Ingram Micro for around $7 billion to increase liquidity. HNA Group has since been deleveraging to decrease its debt burden. HNA Group’s arm Hainan Airlines experienced huge losses due to the coronavirus outbreak.
Athens-based Centrofin Management acquired 2017 built kamsarmax bulk carriers 81K DWT MV SBI Parapara, MV SBI Jive, MV SBI Swing, and MV SBI Mazurka from Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT). Greek shipowner and operator Centrofin Management is led by Dimitris Procopiou. Dimitris Procopiou is the brother of George Procopiou, who controls Dynacom Tankers. Since the beginning of 2020, Scorpio Bulkers (SALT) has sold 19 bulkers. Greek shipowners and operators such as Titan Maritime, Alpha Bulkers, Globus Maritime, Blue Seas, Eastern Mediterranean, and Niovis Shipping have acquired as many as 12 bulk carriers from Scorpio Bulkers (SALT). Athens-based Centrofin Management has invested $125 million so far in 2020.
Decelerating dry bulk supply growth coupled with the latest Chinese stimulus package increased ship earnings. In 2008, the dry bulk new-building order-book was 80% of the total fleet when the Chinese government launched its stimulus package to counter the effects of the global financial crisis. In 2011, the dry bulk new-building order-book was 26% of the total fleet. In 2015, the dry bulk new-building order-book was 12% of the total fleet. In 2020, the dry bulk new-building order-book is 7% of the total fleet. In 2020, the total number of dry bulk newbuilding orders ordered so far is the second-lowest on record and is well below the annual average since 2000. Shortness of newbuilding financing, regulatory and technological ambiguities have dropped order-book. Since the beginning of 2020, only 10 capesize newbuilding orders have been placed. Since 2010, around 90 capesize newbuilding orders have been placed annually. Since the beginning of 2020, only 22 panamax newbuilding orders have been placed. Since 2010, around 155 panamax newbuilding orders have been placed annually. Since the beginning of 2020, only 20 handysize newbuilding orders have been placed. Since 2010, around 208 handysize newbuilding orders have been placed annually. Since the beginning of 2020, only 64 supramax newbuilding orders have been placed. Since 2010, around 155 supramax newbuilding orders have been placed annually. Unlike the past shipping cycles, increasing ship incomes are not awaited to trigger another series of aggressive new-building bulk carrier orders. Even if new-building orders accumulate in Q4 2020, this situation would not have a notable impact on fleet growth until 2022. In 2020, dry bulk market players anticipate dry bulk seaborne trade to shorten for the first time since 2009.
Baltic Capesize Index TCA (Weighted Time-Charter Average) increased to $18,749 per day on 23 October 2020. Baltic Capesize Index volatility has been relatively low this week. Capesize market players are optimistic for Q4 2020. Brazil iron-ore cargo supported the capesize spot rates. Capesize market exceeded to the downside late last week, due to negative sentiment rather than real cargo imbalance in the Atlantic. Abundant capesize tonnage supply in the Atlantic contributed remarkable pressure to capesize charter rates on the Brazil-China route and for trans-Atlantic voyages. However, mid-week, Brazil iron-ore cargoes reversed the situation and capesize spot rates increased. Brazil’s iron-ore giant Vale’s quarterly production report contributed positive sentiments for the capesize market. On the Pacific market, capesize bulk carrier supply reached something of an equilibrium with iron-ore cargo supply from Australia, which pointed to work in charterers’ favor. While the capesize bulk carriers experienced more favorable charter rates, supramax and handysize charter rates kept falling. Handysize TCE (Time Charter Equivalent) from the US Gulf to China decreased to $13,414 per day.
Piraeus-based Bulkseas Marine Management S.A. acquired 2009 built kamsarmax bulk carrier 83K DWT MV Vela Star (ex MV Ikan Bagang) for around $13 million from Japanese shipowners. Previously, MV Vela Star (ex MV Ikan Bagang) was operated by Pacific Carriers Ltd (PCL). Two months ago, Pacific Carriers Ltd (PCL) proposed Japanese shipowners either take back their bulk carriers or reduce charter rates. Stavros Meimetis-led Bulkseas Marine Management S.A. last ship purchase was in 2018. Bulkseas Marine Management S.A. is in a fleet renewal programme. In May 2020, Bulkseas Marine Management S.A sold 2002 built panamax bulk carrier 76K DWT MV Chang Yang Jin Sha (ex MV Lucky Star) for for around $6.5 million. Bulkseas Marine Management S.A. has an outstanding collaboration with Greek Alpha Bank which financed MV Vela Star (ex MV Ikan Bagang). Low-profile shipowner and operator Bulkseas Marine Management S.A. was established in 2011. Bulkseas Marine Management S.A. prefers second-hand Japanese built bulk carriers. Currently, Greek shipowner and operator Bulkseas Marine Management S.A. has a mixed fleet of 2 capesize, 5 panamax, 1 kamsarmax, and 1 supramax bulk carriers.
Capesize bulk carrier prices are increasing due to the high iron ore demand of China. Capesize bulk carrier prices are gradually recovering, after a fall in asset prices in Q2 2020 due to the coronavirus recession. However, small bulk carrier prices remain flat due to weaker demand for grain and coal. China increased iron ore imports in Q3 2020 and Brazil’s iron ore exports have led to a swift capesize bulk carriers rate recovery. Consequently, this situation has boldly moved capesize bulk carriers valuations. Capesize and panamax bulk carriers second-hand values have increased since May 2020, while values for supramax and handysize bulk carriers have remained flat. In Q3 2020, China’s coal imports plunged 30% due to prolonged custom clearance and port congestion in Q2 2020. Increased scrapping has further boosted capesize bulk carrier values. In Q3 2020, there have been almost no capesize newbuilding orders. Since Q1 2020, dry bulk shipping rates have reflected ship values. Bulk carrier prices and dry bulk shipping rates are intrinsically linked to market forces. on 6 October 2020, capesize bulk carrier TCE (Time Charter Equivalent) has more than doubled to $34,896 per day.
Hamburg-based ship-manager NSB Niederelbe Schiffahrtsgesellschaft GmbH & Co. KG appointed Panneer Selvam to manage the company’s new Singapore office. NSB Niederelbe Schiffahrtsgesellschaft GmbH & Co. KG endeavors to strengthen the company’s position in Singapore and expands the company’s services throughout the Far East. Panneer Selvam has been appointed as general manager of NSB Niederelbe Schiffahrtsgesellschaft GmbH & Co. KG in the Singapore. Previously, Panneer Selvam was the technical general manager of PIL (Pacific International Lines) in Singapore. Panneer Selvam was a former Singapore naval officer and worked at the shipyards. Panneer Selvam will strengthen NSB Niederelbe Schiffahrtsgesellschaft GmbH & Co. KG’s expertise Recently, German ship-manager NSB Niederelbe Schiffahrtsgesellschaft GmbH & Co. KG has been expanding to the global market to decrease the dependency on the slumping German market. The decease of the KG model and the departure of liner ship operators to Chinese leasing companies presented a difficulty to conventional tonnage providers in Germany. NSB Niederelbe Schiffahrtsgesellschaft GmbH & Co. KG is one of the most comprehensive ship-managers in Germany. Currently, NSB Niederelbe Schiffahrtsgesellschaft GmbH & Co. KG manages a fleet of 82 vessels.
Courage Investment Group reported a net profit of $1.1 million in Q2 2020. Singapore and Hong Kong-listed Courage Investment Group reported a revenue of $3.5 million in Q2 2020. However, these profits were inadequate to mitigate the losses suffered by other non-shipping expenses. Courage Investment Group blames the slump in revenue to the reduction in freight earnings of its directly-owned ships due to the coronavirus recession. Furthermore, the decline in revenue was the declaration to scale back Courage Investment Group’s presence in the panamax sector in February 2020. Therefore, Courage Investment Group canceled the long-term charter of panamax bulk carrier that Courage had been operating since June 2018. According to Courage Investment Group, panamax market was not advantageous due to the trade conflicts between the United States and China. Consequently, Courage Investment Group is planning to come back to panamax market when market conditions improve. Courage Investment Group is aiming to acquire second-hand supramax bulk carriers. However, Courage Investment Group is careful for new investments due to coronavirus recession. Courage Investment Group is optimistic about the prospects of the shipping business in the long-term. Currently, Courage Investment Group owns and operates one (1) panamax and three (3) supramax bulk carriers.
Capesize rates continue soaring due to China’s continued demand for iron ore and tight capsize bulk carrier supply. On 25 September 2020, capesize bulk carriers average TCE (Time-Charter Equivalent) reached at $24,200 per day. Currently, capesize bulk carriers break even at around $15,000 per day. Capesize bulk carrier owners are appreciating China’s growing appetite for iron ore. Capesize rates also depend on Vale and China’s iron ore inventories. Currently, capesize bulk carriers supply is scarce amid weak order-books with an abundance of vintage capesize bulk carriers will be scrapped. Capesize rates will increase in Q4 2020 due to the strong market triggered by China’s steel production continues pretty high amid extremely low iron-ore inventories. Furthermore, Capesize rates will increase in Q4 2020 due to the increasing demand for coking coal. Coking coal spot prices have rocketed to their highest levels since March 2020. October 2020 Capesize FFA (Future Freight Agreements) increased to $21,000 per day. Capesize shipping market has been unpredictable despite directing into its best season, however China’s iron-ore demand should keep capesize bulk carrier rates stable through Q4 2020.
Shipping activity at the Russian Arctic waters of the Northern Sea Route (NSR) has been progressing. Furthermore, In winter 2021, Sovcomflot and Rosatom are planning to transit the Northern Sea Route (NSR). Russian Yamal LNG project developer Novatek has specified round-trip sailing days from the Yamal peninsulas to China at 38 days, compared with 65 days via the Suez Canal with specialized ice-breaking LNG carriers. Russia is attempting to open up the northerly passage for commercial shipments which cuts off more than a third of the sailing time to Asia over a similar voyage via the Suez Canal. In 2020, Russia’s Northern Sea Route Administration (NSRA) has reported around 1,000 petitions to transit Northern Sea Route (NSR). Some leading shipowners such as Cosco Shipping, Golden Ocean Group, Oldendorff Carriers, Nordic Bulk Carriers have applied Russia’s Northern Sea Route Administration (NSRA) to transit Northern Sea Route (NSR). In 2020, the Arctic has recorded its hottest summer on record. Russia inks hopeful projections for Northern Sea Route (NSR) navigation. On the other hand, The Clean Arctic Alliance has been lobbying for a prohibition on the use and carriage of heavy fuel oil by shipping in the Arctic. Starting from 2024, Russia endeavors the Northern Sea Route (NSR) opened to commercial shipping year-round. In September 2020, Russia delivered the world’s largest nuclear-powered ice breaker to be used in the Northern Sea Route (NSR)
Chinese shipowner and operator Fuzhou Xinjiahong Shipping sold 1996 built handymax bulk carrier 45K DWT MV Hong Kai to another Chinese shipowner and operator for around $2.5 million. After the sale of MV Hong Kai, Chinese shipowner and operator Fuzhou Xinjiahong Shipping has exited shipowning after three decades. Fuzhou Xinjiahong Shipping entered the shipping business in 1990. Fuzhou Xinjiahong Shipping has no further plans in shipping. Fuzhou Xinjiahong Shipping is led by Wang Zhihe. Wang Zhihe followed the Fuzhou local shipowning model which acquire vintage second-hand ships and operate them till the recycling market is up. Notwithstanding, at the end of 2010, Fuzhou Xinjiahong Shipping controlled 2001 built handymax bulk carrier 50K DWT MV Hong Wei sunk and 10 seafarers lost their lives. After this tragic incident, Fuzhou Xinjiahong Shipping decreased its fleet and steadily departed out of shipping.
Australian Maritime Safety Authority (AMSA) has banned Taiwanese shipowner and operator Sincere Industrial from Australian ports for a year over unpaid crew wages. Australian Maritime Safety Authority (AMSA) discovered that crew members have been underpaid during the inspection 2008 built handysize bulk carrier 28K DWT MV AC Sedosa. Furthermore, the Australian Maritime Safety Authority (AMSA) announced that Taipei City-based shipowner and operator Sincere Industrial had strived to conceal from Australian authorities the fact that Sincere Industrial had underpaid the MV AC Sedosa’s crew members. According to the Australian Maritime Safety Authority (AMSA), Sincere Industrial produced a fabricated crew wage record which showed that crew members had been paid in full. Australian Maritime Safety Authority (AMSA) banned four (4) ships from Australian ports since the beginning of 2020. Australian Maritime Safety Authority (AMSA) will not permit such deliberate and dishonest mistreatment of crew members on vessels that call at Australian ports. Australian Maritime Safety Authority (AMSA) has zero tolerance for the underpayment of seafarers. Previously, the Australian Maritime Safety Authority (AMSA) banned MV Unison Jasper, MV TW Hamburg, and MV Agia Sofia.
Indonesian shipowner and operator Samudera Shipping has been trying to acquire 2010 built supramax bulk carrier 56K DWT MV Christos Theo from Athens based Evripos Shipmanagement for around $8 million. Indonesian shipowner and operator Samudera Shipping has been renewing its fleet and low pricing levels for supramax bulk carriers are attractive. Many Indonesian shipowners enquire geared supramax bulk carriers for Indonesian domestic coal trades. Indonesian shipowners like Samudera Shipping are keen to refresh their aging bulk carriers with the modern bulk carriers.
Jurong Port expects to entice larger bulk carriers after spending $146 million investment in its facilities in Singapore till 2023. Jurong Port develop RMC (ready-mixed concrete) port-centric ecosystem which is going to increase to 6 million metric tonnes of aggregates discharged at the Jurong Port per year. Jurong Port expects this linear discharge capability, along with its current port infrastructure and deepwater berths, can entice large bulk carriers transporting aggregates. Currently, aggregates are unloaded in western Singapore, will progressively be discharged at the RMC ecosystem. Jurong Port has three (3) deepwater berths at its cement terminal that can handle up to supramax bulk carriers. RMC (ready-mixed concrete) ecosystem is part of a bigger organization ecosystem that incorporates cement and steel, both of which are currently discharged and handled at Jurong Port. Currently, cement and steel are Jurong Port’s most significant cargoes by volume.
Norwegian shipowner and operator Vincent Shipping has been endeavoring to accomplish attractive asset play deals. CEO Jan Lund led Vincent Shipping denies ultramax new-building orders in China. Oslo-based Vincent Shipping has been avoiding new-buildings and prefers second-hand bulk carriers. At the beginning of 2020, Norwegian shipowner and operator Vincent Shipping sold 2010 built supramax bulk carrier 56K DWT MV Vincent Gemma to Nanjing King Ship Management for around $10 million. Vincent Shipping was established in 2016 by Jan Lund, Klaus Kjaerulff, and Jan Bech Andersen.
Dry bulk shipping rates continue to decline due to the post-coronavirus recession and global economic uncertainty. Capesize bulk carrier TCE (Time-Charter Equivalent) declined to $15,482 per day. Panamax bulk carrier TCE (Time-Charter Equivalent) declined to $12,330 per day. Supramax bulk carrier TCE (Time-Charter Equivalent) declined to $10,238 per day. However, China’s demand for commodities should lead to a more vigorous dry bulk market in Q4 2020. China increase iron-ore and grain imports amid the Chinese government stimulus package. On the other hand, Brazil’s iron-ore giant Vale is developing iron-ore production and aims to meet its year-end targets. Shipbrokers hold optimism for Q4 2020. Dry bulk market players anticipate that Australian iron ore export volumes will recover towards Q4 2020 due to the Chinese robust steel demand. Furthermore, dry bulk market players anticipate a lot of grain shipments from the US Gulf and East Coast South Americas to the Far East in Q4 2020.
Bahamas-registered Monaco-based shipowner Liberty Maritime International sold two post-panamax bulk carriers 2010 built 93K DWT MV ASL Saturn (ex MV LM Victoria) and 2009 built 93K DWT MV Bonavia (ex MV LM Selene) for around $9 million each. Liberty Maritime International sold MV ASL Saturn (ex MV LM Victoria) to Agricore Ship Management. Liberty Maritime International sold MV Bonavia (ex MV LM Selene) to Dauelsberg Herm. After the sale of two post-panamax bulk carriers Monaco-based shipowner Liberty Maritime International has left with no ships.
An unknown shipowner registered and named his company as FC Bayern Shipping in the Marshall Islands. Furthermore, FC Bayern Shipping acquired 1994 built handysize bulk carrier 26K DWT MV Bayern S. FC Bayern Shipping acquired 2003 built handysize bulk carrier 32K DWT MV Super Bayern (ex MV Almendro). German football club fan shipowner might be from the Middle East, where football is remarkably popular. Both bulk carriers are managed by Athens based ship-manager Sonar Ships Management Co. Besides, Sonar Ships Management Co. manages eleven (11) bulk carriers. FC Bayern Shipping might keep naming its bulk carriers after the German football club and its players.
Danilo Fumarola-led Gestion Maritime sold 2020 Japanese-built kamsarmax bulk carrier 82K DWT MV Giovanni Corrado for around $30 million to a Chinese shipowner. Monaco-based shipowner Gestion Maritime ordered MV Giovanni Corrado at the end of 2015 at Oshima Shipbuilding, Japan. Due to coronavirus recession reduced dry bulk carrier prices commenced to soar. Gestion Maritime has a fleet of seven (7) bulk carriers. In 2019, Gestion Maritime sold the last two (2) MR product carriers, and currently, Gestion Maritime is a pure bulker owner.
Turkish shipowner Derin Shipping (Derin Denizcilik – DD) sold 2012 built supramax bulk carrier sisterships 57K DWT MV DD Ege, MV DD Maramara, MV DD Karadeniz for $10 million each. There is a little-known relationship between Turkish shipowner Derin Shipping (Derin Denizcilik – DD) and Dutch Zealand Shipping. Till 2019, MV DD Ege, MV DD Maramara, MV DD Karadeniz were trading as MV Zealand Rotterdam, MV Zealand Amsterdam, MV Zealand Almere in the fleet of Zealand Shipping. In October 2019, Dutch Zealand Shipping sold trio to Turkish shipowner Derin Shipping (Derin Denizcilik – DD). Furthermore, these three (3) supramax bulk carriers changed their flag from the Dutch to Turkish. This might be an internal transaction and that Zealand Shipping and Derin Shipping are affiliated companies.
Handysize bulk carriers TCE (Weighted Time Charter Equivalent) increased to $8,846 per day on 14 August 2020 due to firm handysize bulk carrier fixture activity in European markets. BHSI (Baltic Handysise Index) increased to 491 points and reached 2020’s peak. Capesize bulk carrier spot rates dropped while handysize bulk carriers spot rates reached new highs. Handysize bulk carriers spot rates increased ex-United States Gulf. However, the Pacific handysize bulk carriers spot rates remained considerably flat. Handysize bulk carriers TCE (Weighted Time Charter Equivalent) for the South America-Skaw/Passero route increased to $11,388 per day on 14 August 2020. Panamax bulk carriers TCE (Weighted Time Charter Equivalent) increased to $16,415 per day on 14 August 2020 due to limited tonnage supply. Capesize bulk carriers TCE (Weighted Time Charter Equivalent) increased to $19,916 per day on 14 August 2020.
London-based Greek shipowner Seven Seas Maritime’s subsidiary Athens-based Alloceans Shipping has commenced renewing its fleet. Alloceans Shipping acquired 2015 built handysize bulk carrier 39K DWT MV Arcadia (ex MV Cielo di Cartagena) from D’Amico Shipping for around $13 million. In February 2020, Alloceans Shipping sold 2002 built supramax bulk carrier 50K DWT MV Luna II (ex MV Arcadia) for around $5 million to Al Shumookh Construction in UAE.
Greek handysize shipowners have been busy in the secondhand market.
Greek shipowners sold vintage handysize bulk carriers and acquired new tonnages in S&P (Sale and Purchase) market. Greek shipowner and operator Samios Shipping acquired 2010 built handysize bulk carrier sisterships 35K DWT MV Agios Nikolaos (ex MV Asian Pearl III) and MV Agia Dynami (ex MV Asian Pearl IV) for around $5 million each from Asia Maritime Pacific (AMP). Previously, Samios Shipping acquired panamax bulk carrier from Arpeni Pratama. Currently, Greek shipowner and operator Samios Shipping has a fleet of six (6) bulk carriers. Furthermore, Asia Maritime Pacific (AMP) has been trying to sell 2010 built handysize bulk carrier 35K DWT MV Asia Pearl V.
Greek shipowner and manager Lamda Maritime S.A. acquired 2013 built handysize bulk carrier 34K DWT MV Hydra Dawn (ex MV Swakop) for around $8 million from John T Essberger. Recently, Lamda Maritime S.A. sold 1997 built handysize bulk carrier 24K DWT MV Master to scrapyard in Pakistan for around $336 per ldt (Lightweight Displacement Tonnage). At the beginning of 2020, Lamda Maritime S.A. sold 1996 built handysize bulk carrier 28K DWT MV Refined (ex MV Happy Venture) for around $3.5 million to Chinese shipowners.
Athens-based shipowner and operator Pontos Marine acquired 2010 built handysize bulk carrier 32K DWT MV SAM Eagle in an auction on behalf of lender Credit Suisse. MV SAM Eagle was controlled by SAM Shipping. Furthermore, Greek handysize shipowner and operator Pontos Marine acquired 2003 built handysize bulk carrier 29K DWT MV Lily Mumbai for around $3.7 million from Zeamarine Carrier. Currently, Pontos Marine has a fleet of four (4) bulk carriers.
Panamax bulk carrier’s TCE (Average Time Charter Equivalent) increased to $14,070 per day due to strong demands for American grain and Australian coal. Panamax bulk carrier’s rate for the benchmark US-China route improved to $43.25 per metric tonne this week. Panamax bulk carrier’s TCE (Average Time Charter Equivalent) for the Japan-South Korea transpacific roundtrip increased to $13,242 per day. Atlantic panamax market increased with strong grain demand from US Gulf as well as a coal shipping from the Baltic sea. On the other hand, capesize bulk carrier rates see more modest gains last week. Capesize bulk carrier’s TCE (Average Time Charter Equivalent) for the Brazil-China route increased over the week to $17,486 per day.Capesize bulk carrier’s rates for a voyage from Australia to China at $8.50 per metric tonne. Capesize bulk carrier’s TCE (Average Time Charter Equivalent) should stay around $19,000 to $21,000 per day for the rest of 2020.
Nagashiki Shipping controlled 2007 built bulk carrier 203K DWT MV Wakashio grounded of Mauritius last week has started to leak oil after heavy weather conditions caused the hull to tear. Nagashiki Shipping has been taking measures to control the oil spill. MV Wakashio was carrying around 4,000 tons of low sulphur fuel oil and diesel onboard. ITOPF (International Tanker Owners Pollution Federation) has been monitoring the oil spill and is advising the shipowner Nagashiki Shipping, salvage company Smit and the Mauritius government. Nagashiki Shipping and Japan P&I Club has stationed specialist oil response and salvage team. Japanese shipowner Nagashiki Shipping takes its environmental commitments very seriously and will attempt to preserve the marine environment and stop extra oil pollution.
Athens based shipowner and operator Soloi Inc sold 2010 built panamax bulk carrier 76K DWT MV Faye for around $13 million. Soloi Inc is proceeding to sell bulk carriers in a prediction that the dry bulk market recovery has been too little, too late for shipowners striving to cope with the downturn in 2020. In 2018, Soloi Inc acquired MV Faye for around $18 million. Previously, Soloi Inc proclaimed to be selling half of its dry bulk fleet. Greek shipowner and operator Soloi Inc was established in 2006 by Johnny Kalimeris and Stelios Joannou. Prosperous asset play with a panamax bulk carrier encouraged Soloi Inc to expand further into shipping. In 2008, Greek shipowner and operator Soloi Inc ordered four (4) supramax and one (1) kamsarmax bulk carrier new-buildings at Jinling Shipyard. However, Soloi Inc’s growth went into reverse in early 2020 due to falling freight rates. In February 2020, Greek shipowner and operator Soloi Inc sold 2010 built supramax bulk carriers sisterships MV Maria and MV Lietta for total $17.5 million which was a fraction of the new-building price. In May 2020, Soloi Inc sold 2017 kamsarmax bulk carrier 81K DWT MV Andromache. Currently, Soloi Inc has a fleet of two (2) supramax bulk carriers MV Ellie and MV Dimi.
Yangzijiang Shipping controlled 2012 built bulk carrier 93K DWT MV TW Hamburg was banned by The Australian Maritime Safety Authority (AMSA) from entering an Australian port for a year after it was found that MV TW Hamburg’s crew had been underpaid. During the inspection in Gladstone, The Australian Maritime Safety Authority (AMSA) was informed hat crew members are underpaid. Furthermore, The Australian Maritime Safety Authority (AMSA) noticed that the quantity and quality of food provided by Yangzijiang Shipping controlled MV TW Hamburg is entirely below the standards. The Australian Maritime Safety Authority (AMSA) has forbidden 16 vessels from Australian ports since 2014 for underpaid crew members.
Over the past week, capesize bulk carrier rates improved insignificantly. TCE (Weighted Time Charter Equivalent) for capesize bulk carriers increased by 7.5% to $18,300 per day. The capesize bulk carrier rates increase simply represent a precursor to another move upwards. The capesize bulk carrier rates increase is driven predominantly by the Brazil and Australian round voyages on continued iron ore demand strength”, the Baltic said. The capesize bulk carrier rates for Brazil-to-China route gained increased to $17.47 per tonne. On the other hand, capesize bulk carrier rates for Australia-China route increased to $7.16 per tonne. Handysize bulk carrier rates continued to increase quietly. TCE (Weighted Time Charter Equivalent) for handysize bulk carriers rates increased to $8,539 per day. Handysize bulk carriers rates were broadly flat with limited cargoes from ECSA (East Coast South America) and in the Pacific market.
Greek shipowner and operator Arista Shipping sold 2011 built supramax bulk carrier 55K MV Panworld (ex MV Montecristo) for around $10 million to a Chinese shipowner. In 2013, Arista Shipping acquired MV Panworld (ex MV Montecristo) for around $27 million from D’Alesio Group. In December 2019, Arista Shipping sold 2004 built handysize bulk carrier 28K DWT MV Panforce to Shenzhen Shipping for around $6 million. In 2011, Arista Shipping acquired MV Panforce for around $20 million from Clipper Shipping. Currently, Arista Shipping has a fleet of two (2) bulk carriers, 2012 built supramax bulk carrier 55K DWT MV Pangea and 2011 built handysize bulk carrier 28K DWT MV Panvision. Greek shipowner and operator Arista Shipping is controlled by Alexander Panagopoulos. Arista Shipping has a strong balance sheet and controls modern high-quality bulk carriers.
Fearnleys is opening a brand-new office in Stockholm, Sweden. Shipbroker Fearnleys’ Stockholm office is going to cover the dry bulk market. Peter Ulfvin is going to manage the Fearnleys’ Stockholm office. Fearnleys’ Stockholm office is going to cover coasters up to handysize bulk carriers for charterers in the Scandinavian market. Shipbroker Fearnleys is part of Norwegian Astrup Fearnley. Shipbroker Fearnleys also has offices in Oslo, Beijing, London, Dubai, Hong Kong, Shanghai, Singapore, and Tokyo. Shipbroker Fearnleys offers professional services in tankers, dry bulk, LPG, LNG, Ro-Ro, New-Building, and S&P (Sale and Purchase) markets.
Dutch shipowner and operator MUR Shipping has commenced transporting mineral sands from Weipa, Australia to China. Previously, bauxite was exported from Weipa, Australia. Mineral sands exports have been executed by Clear Logistics Australia which is a part-owner of Green Coast Resources. Mineral sands such as ilmenite, rutile, and zircon are adopted in the production of paint, ceramics, sunscreen, and cosmetics. Port of Weipa, Australia exports around 30 million tonnes of bauxite per year for Rio Tinto.
Capesize freight rates jumped to $19,036 per day on Wednesday. Capesize spot markets are no longer being fixed at loss-making levels. Baltic Dry Index (BDI) passed the 1,000-point mark for the first time in 2020. A standard capesize bulk carrier requires around $9,000 per day to break-even on an operating cash flow basis and around $14,000 daily on a free cash flow basis, after deducting regular debt repayments. Brazilian mining giant Vale’s iron ore export has returned to the market after mining stoppages due to coronavirus lockdowns and heavy rains. Baltic Dry Index (BDI) July 5TC contracts closed at $22,266 daily. Baltic Dry Index (BDI) Panamax contracts are also increased essentially due to the movement in the capesize market rather than any underlying factors.
S&P Global Platts has started KMAX 9 index which a new dry bulk weighted average index for the kamsarmax segment. S&P Global Platts has been planning to introduce a new index for supramax segment. Previously, S&P Global Platts launched dual daily time charter equivalent (TCE) for scrubber, non-scrubber ships. KMAX 9 index is obtained by applying an allocated weighting to the daily time charter equivalent (TCE) assessments of nine (9) essential voyages. KMAX 9 index is going to support index-linked ship charters that are for hedging purposes as part of a risk management application. Dry market players require clarity and this is rendered by a weighted average time charter equivalent (TCE) index, unlike time charter index.
Baltic Dry Index (BDI) increased to, supported by a more robust capesize spot market. In May 2020, the Baltic Dry Index (BDI) reached the lowest level reported for that period in 20 years. However, BIMCO predicts that dry bulk markets will survive at gloomy levels for the remainder of 2020. According to BIMCO, there will be a vital decrease in demand in the dry bulk market in 2020, as well as extraordinary supply-side overcapacity as seen in 2016. After the global financial crisis in 2008, the Chinese financial incentive rescued the dry bulk market. However, 2020 will not be the same recovery. Capesize bulk carriers earnings were appraised at $6,177 per day. Capesize bulk carriers in the spot market back above the estimated daily operating expenditure of $5,019, excluding bunker costs.
Greek shipowner and operator Remi Maritime’s 2008 built supramax bulk carrier 57K DWT MV Blue Marlin I was sold in auction for around $5 million. Currently, MV Blue Marlin I scrap value is around $3.1 million. In 2019, Remi Maritime’s supramax bulk carrier MV Blue Marlin I was arrested in China by the National Bank of Greece. In 2019, the National Bank of Greece also arrested and auctioned another Remi Maritime’s 2007 built supramax bulk carrier 57K DWT MV Blue Cat for around $9 million. In 2006, both supramax bulk carriers were ordered at Zhejiang Zhenghe Shipbuilding for around $30 million each. Currently, MV Pangeo (ex MV Blue Cat) is controlled by Amalthia Marine Inc.
In 2020, shipowners with vast cash reserves will survive the coronavirus recession. Shipowners will be burning cash reserves in 2020 due to the upturn that had been expected in Q2 2020 could be delayed. In the dry bulk sector, prevailing time charter rates and FFAs (Forward Freight Agreements) in 2020 look grim throughout the year. According to our 2020 shipping outlook, shipping companies will be facing a cash burn till unforeseeable feature and many shipowners will not be able to sustain during coronavirus recession. Furthermore, due to the low bunker prices, shipowners with higher leverage, shipowners that opted to install scrubbers will face challenging markets. In 2020, publicly listed dry bulk companies are in a better financial state than the 2014-2015 downturn. Debt-free shipping companies with healthier balance sheets will easily handle the approaching storm. Small shipping companies with eco-bulk carriers and low overhead costs will be able to survive if the coronavirus recession lasts shorter than expected. Capesize spot rates averaged $4,500 per day during Q1 2020 and scrubber-fitted capesize bulk carriers averaged $10,500 during the same period. Capesize FFAs (Forward Freight Agreements) are trading at $12,500 per day for Q2 2020. Thus, this expected dry bulk shipping upturn in Q2 2020 might be reversed or delayed due to coronavirus recession. After opening Wuhan and having normalizing daily life, China’s imports seem to be increasing, but at a very slow pace. Handysize and panamax bulk carriers could still be challenged by a lack of cargo availability in Q3 2020. On the other hand, capesize bulk carriers will have enough iron ore cargoes from Brazil and Australia. But, coal cargoes will be at risk. There will be a reduction in coal exports from the United States, South Africa, and Canada in Q3 2020. We are expecting weak steel demand in Q3 2020 from importing countries such as Europe and the United States due to slow economic activities during coronavirus recession.
Marine bunkers tracking company BunkerTrace has signed a contract with Marfin Management. BunkerTrace submits a service to ensure bunker quality to shipowners. Marfin Management operates eleven (11) bulk carriers and will be able to trace bunker supplies by the assistance of BunkerTrace. BunkerTrace’s block-chain service will record compliant bunker supplies across Marfin Management’s fleet. BunkerTrace was established to register each bunker transaction on a block-chain based platform. BunkerTrace is able to trace any dilution of bunker fuels and provide an apparent chain of guardianship for excellent quality assurance. BunkerTrace annexes special labels at particular points of the fueling operation, from ship terminals to bunker barges. This process will be approved and validated in real-time. Block-chain journals supply an audio track that can be used in front of a judge if any disputes arise over quality or contamination of bunkers. Collaborating with BunkerTrace will assure that prudent shipowners are compliant with IMO (International Maritime Organization) 2020 Rules.
Shipping lender Pareto Bank is endeavoring growth as a shipping lender. According to Norwegian shipping lender Pareto Bank, shipping markets are not well served. Pareto Bank concentrates fundamentally on medium-sized shipping companies. Pareto Bank has been in the shipping and offshore finance market since 2011. Up to now, Norwegian shipping lender Pareto Bank has financed 25 ships. According Pareto Bank, there is still room for growth and many opportunities in the shipping market. Pareto Bank is intending to finance quality tonnage and private shipowners with strong balance sheets.
Standard Club urged shipowners about raised pollution fines in Turkey. Substantial ship pollution penalties has been executed as of 1 January 2020. Turkey’s Environmental Protection Agency (EPA) has increased shipping pollution fines by more than 20% for 2020. Pollution fines might be tripled for corporate shipowners. Turkey’s Environmental Protection Agency (EPA) will reinforce disciplinary fines for ballast discharges. If a ship pollutes the environment, a 25% discount full amount of the fine or security must be paid immediately, otherwise, the ship might be arrested. Standard Club warned shipowners that the P&I (Protection and Indemnity) Club of LOU (Letter of Undertaking) is not regularly accepted in Turkey.
European Union has granted to extend Cyprus’ tonnage tax regime for 10 more years. 10 more years extension of Cyprus’ tonnage tax regime will boost the registered tonnage in Cyprus. Cyprus has been in lengthy negotiations with European Commission regarding Cyprus’ tonnage tax regime. Cyprus has committed to the sustainable growth of the shipping and the shipping companies will evolve in Cyprus. Cyprus has a reasonable and simple tonnage tax system. Cypriot-flagged ships has been growing steadily. Cyprus ship register has more than 1,000 ships. EU desires to promote ship registration in Europe. Cyprus has also seafarer schemes that allow labor costs such as income tax and social security contributions to be partly or totally reduced on ships flying the flag of any European Union.
Mumbai-listed state-owned company Shipping Corporation of India (SCI) appoints first-ever female Managing Director (MD) Harjeet Kaur Joshi. According to the India Ministry of Shipping, Harjeet Kaur Joshi will be the Managing Director (MD) on a permanent basis until May 2022. Harjeet Kaur Joshi had been managing Shipping Corporation of India (SCI) on a provisional basis after Anoop Sharma. Shipping Corporation of India (SCI) was established in 1961 and since the establishment, the company has been managed by all-male Managing Directors (MD). Harjeet Kaur Joshi takes over at a historic time for Shipping Corporation of India (SCI). In 2015, Harjeet Kaur Joshi joined Shipping Corporation of India (SCI). The Indian government has confirmed the privatization of the Shipping Corporation of India (SCI). Currently, Shipping Corporation of India (SCI) has a diversified fleet of 135 ships.
P&I (Protection and Indemnity) insurer Shipowners’ Club has declared a 5% general raise on ship insurance premiums. Lately, Shipowners’ Club reported a $38 million loss. P&I (Protection and Indemnity) insurer Shipowners’ Club has a method of underwriting to a breakeven position. Up to now, UK P&I Club, the Standard Club, and Steamship Mutual has increased ship insurance premiums 7.5% at renewal in 2020. In 2019, Shipowners’ Club was struck by two major claims. In 2020, Shipowners’ Club anticipates an increase in the number of shipowners and total tonnage.
European Union (EU) appeals to the World Trade Organization (WTO) for the Indonesian government’s nickel ore export restraints. Indonesian nickel export restrictions put various businesses in the EU’s steel industry at risk. Especially, Indonesian export restrictions strike the supramax bulk carrier segment. Indonesian government desires to be export value-added commodities instead of solely exporting raw materials.
Antwerp based ship operator Conti7 appointed Pierre Dincq as new COO (Chief Operating Officer). Conti7 operates 40 bulk carriers. Fundamentally, Conti7 is concentrated on operating handysize, supramax, and ultramax bulk carriers. Conti7 was established in 1923. Conti7 has offices in London and Hong Kong. Family-owned company Conti7 is active in shipowning, ship operating, agency, logistics, forwarding, and warehousing. Moreover, Conti7 cooperates with GMT Hong Kong and Antartic Chartering.
VesselsValue has cooperated with ship inspector Idwal Marine for condition-based appraisals. VesselsValue and Idwal Marine partnership will provide ship value assessments that take into account maintenance and will render estimates representing the condition of a particular vessel. For the first time in the maritime industry, the computerized Condition Adjusted Values (CAV) assistance utilizes the condition of the ship coupled with algorithmically-derived market values. Condition Adjusted Values (CAV) will serve shipowners and operators to perceive value for the extra time, effort, and cost of sustaining quality ships. Shipowners can inquire about a ship’s actual inspection documents throughout the VesselsValue platform. If no permission has been granted by the shipowner, or if no recent inspection reports are available on VesselsValue platform, users can request to commission a new inspection report. VesselsValue and Idwal Marine cooperation will contribute shipowners more transcendent clarity into a vessel’s actual value.
Maritime Department of Malaysia announced that ships, which are adopting open-loop scrubbers for exhaust gas cleaners, are promptly prohibited in Malaysian waters. Malaysia Maritime Department declared that ships calling at the Malaysian ports are recommended to switch to the compliant bunker (VLSFO) or switch over to the closed-loop system before entering Malaysian waters and ports. Besides Malaysia, Singapore and Fujairah (UAE) have already forbidden open-loop scrubbers from their waters. According to International Maritime Organisation (IMO) 2020 regulations, which will be effective on 1 January 2020, ships either must be installed scrubbers or use low sulfur bunkers for low emissions.
United States sanctions are prompting congestion in Iranian ports. More than 20 bulk carriers have been stuck in Iranian ports for over a month. The delays in Iranian ports are triggered by bank payment lags. United States sanctions discouraged abroad banks from doing business in Iran. Bulk carriers are being lingered at BIK (Bandar Imam Khomeini) and Bandar Abbas ports due to delayed payments.
Zeamarine has appointed Chad Call as a new CFO (Chief Financial Officer). Michael Dumas, who was CFO at Intermarine for more than 20 years, resigned after supervising the establishment of Zeamarine by parent company Zeaborn. Zeamarine is created by merging Intermarine, Zeaborn Chartering, and Rickmers Line. Zeamarine and Zeaborn has a fleet of about 90 multipurpose heavy-lift ships.
International Organisation for Standardisation (ISO) published the International Maritime Organization (IMO) 2020 fuel specifications. International Organisation for Standardisation (ISO) endeavors to prevent the shortage of certainty over low-sulfur bunkers’ viscosity. International Organisation for Standardisation (ISO) broadcasted a paper concerning specs for brand-new IMO 2020-compliant low sulfur fuel. International Organisation for Standardisation (ISO) has published its 23263:2019 Publicly Available Specification (PAS) on its website after cooperating with bunker suppliers, testers, shipowners, class societies, and bunker traders. International Organisation for Standardisation (ISO) document 23263:2019 Publicly Available Specification (PAS) marks quality studies that implement to marine fuels in view of the implementation of a maximum of 0.5% bunkers from 1 January 2020. International Organisation for Standardisation (ISO) document 23263:2019 specifies common provisions that refer to all 0.5% fuels and reinforces the applicability of its previous document.
Switzerland based, British–Swiss multinational commodity trading and mining company, Glencore has joined a group of charterers aiming to digitalize activities world-wide. In October 2018, world’s four largest grain traders: ABCD (Cargill, Louis Dreyfus, Archer Daniels Midland, Bunge) and later on COFCO started a chartering regeneration and associated mutually in order to review current technologies such as blockchain and artificial intelligence to automate grain and oilseed post-trade accomplishment methods, diminishing expenses required to transport agricultural and food products throughout the world.
Glencore has joined the group for a digital shipping ambition. The group is anticipating to start of the modern program in Q2 2020 subjected to administrative permission. ABCD (Cargill, Louis Dreyfus, Archer Daniels Midland, Bunge), COFCO, and Glencore aims to improve a digital program that will leverage the most innovative technologies and has the potential to transform shipping business. This digital program will perform contract fulfilling methods extra effective, more reliable also more simple. Digital program advantages will be observed by corporations of every size with the post-trade chain. A pilot scheme will soon be encompassed to comprise shipments of soybeans from Brazil to China.
In the first week of September 2019, surging iron ore exports from Brazil will keep Capesize and VLOC (Very Large Ore Carrier) ships in high demand in the Atlantic Ocean which will support the continued surge in dry bulk freight rates. Capesize market is witnessing a festive period with spot rates reaching record highs despite growing concerns of a slowdown in the global economy due to the USA-China trade war. Recent strength in spot dry bulk freight rates are expected to continue over Q4 2019 due to the upcoming IMO (International Maritime Organization) 2020 regulations and Brazil’s iron ore exports. In January 2019, Vale’s dam accident triggered widespread casualties in Brazil. Hence, iron ore supply from Brazil tumbled in the first half of 2019. In April 2019, Brazil could export less than 20 million metric tonnes of iron ore. Baltic Capesize Index (BCI) dropped to historical low values in the first week of April 2019. In Brazil, after approval from the court, Vale’s iron ore supplies have now resumed. After Vale’s dam collapsed in January 2019, Brazil’s iron ore exports registered a steep recovery. In July 2019, Brazil exported 34 million tonnes of iron ore which is more than 80% higher than the exports in April 2019. There is a strong demand for capesize bulk carriers in Brazil which created a shortage of capesize tonnage in the Atlantic Ocean. Hence, huge demand for capesize tonnage has been leading to skyrocketing spot capesize freight rates. Brazil exports most of its iron ore to China. China has been accounting for the lion’s share, capesize bulk carrier takes about 90 days to complete a round voyage from ex Brazil to China. Capesize bulk carriers that loaded cargo in June at Brazilian ports for discharge in China would be available again for loading only in September. According to AIS data, not many capesize bulk carriers and VLOCs (Very Large Ore Carriers) repositioned in the Atlantic to meet the surging demand in Brazil which triggered spot rates are on an upward spiral. Additionally, in the run-up to the impending IMO (International Maritime Organization) 2020 regulations, effective supply of capesize bulk carriers has contracted. In order to avoid using expensive low sulfur fuel and save on bunker costs, many shipowners are retrofitting their capesize bulk carriers with scrubber before IMO (International Maritime Organization) regulation comes into force on January 2020. Scrubber fitting at the shipyard takes about a month, during which time the bulk carriers will be removed from the operating fleet. In total, 45 Capesize bulk carriers and VLOCs (Very Large Ore Carriers) were retrofitted during June-August 2019 which is equivalent to 3% of the Capesize bulk carriers and VLOCs (Very Large Ore Carriers) operating fleet in terms of DWT (Dead Weight Tonnes). As IMO (International Maritime Organization) deadline (January 2020) approaches with almost 10% of the additional Capesize bulk carriers and VLOCs (Very Large Ore Carriers) fleet scheduled for retrofitting at shipyards in the remaining months of 2019. Hence, these two conditions will be taking the spot rates even higher during Q4 2019.
Taiwan based shipowner and operator Chinese Maritime Transport (CMT) has appointed James SC Tai as president of the company. Taipei based capesize shipowner and operator Chinese Maritime Transport (CMT) has a modern fleet of ten (10) capesize bulk carriers. Chinese Maritime Transport’s new president James SC Tai graduated from both the National Taiwan Ocean University and the University of Strathclyde in Glasgow. Taiwan based capesize shipowner and operator Chinese Maritime Transport (CMT) has a fleet of ten (10) capesize bulk carriers. The comparatively tiny range of newbuilding projects at Chinese Maritime Transport (CMT). Both Orient Overseas Container Line (OOCL) and Chinese Maritime Transport (CMT) are by-products of the Tung family shipping empire. Former Orient Overseas Container Line (OOCL) chairman Tung Chee-hwa is positively acknowledged as a politician.
Switzerland based shipowner and operator Doris Maritime Services has been intending to exit shipowning by selling its four (4) ultramax bulk carriers:
- MV Naess Absolute (63K 2015 built)
- MV Naess Courageous (63K 2015 built)
- MV Naess Endurance (63K 2015 built)
- MV Naess Intrepid (63K 2015 built)
Doris Maritime Services is preparing to sell ultramax bulk carriers to China Development Bank Leasing. Doris Maritime Services has new investment objectives. Besides bulk carriers, Doris Maritime Services has also invested in container vessels. Doris Maritime Services ordered four (4) ultramax bulk carriers at Cosco Shipyard, China. Sister company Naess Ship Management is also controlled by Doris Maritime Services’ CEO Nicholas Wirth. Naess Ship Management’s name comes from the late Norwegian shipping magnate Erling Dekke Naess. In the 1950s, Erling Dekke Naess owned the world’s third-largest shipping company. In 1994, Erling Dekke Naess sold Naess Ship Management for a symbolic sum to its employees.
On 2 September 2019, Baltic Capesize Index (BCI) reached 4,659 points, its highest level since 17 May 2010. Baltic Exchange’s five capesize routes (5TC) reached $36,101 per day today which is the highest in 9 years. In the last three weeks, capesize benchmark routes have increased by 27%. On 22 July 2019, Baltic Exchange’s five capesize routes (5TC) reached $32,963 per day. Capesize spot rate increase caused by cargo supply especially Brazil’s iron ore exports continues to outstrip the list of available capesize ships in the Atlantic Ocean. Brazil’s healthy iron ore demand struggled to find capesize tonnage. According to market veterans, capesize spot rates might potentially reach $50,000 per day over the next few months. In April 2019, Brazilian iron ore exports dropped to 18 million tonnes, but in July 2019 Brazilian iron ore exports reached 34 million tonnes which is predicted to stay at this level till the end of 2019. Baltic Exchange’s capesize Brazil-China (C3) benchmark reach to $28.73 per tonne. On the other hand, capesize spot rates for Trans-Atlantic (TA) round-trips continue to trade at around an $8,000 premium to those for round-voyages across the Pacific Ocean where capesize vessel supply is greater. On 2 September 2019, Baltic Exchange Capesize Index (BCI) Gibraltar-Hamburg (C8_14) for Trans-Atlantic (TA) round voyage reached at $39,725 per day. Baltic Exchange Capesize Index (BCI) China-Japan (C10_14) Trans-Pacific round-trips round voyage reached at $31,688 per day. Baltic Exchange’s Forward Freight curve still points to a bearish trend in rates for the rest of 2019. Current capesize spot rates reflect strong momentum in the physical shipping market. Baltic Exchange’s Capesize Forward Freight assessment for September 5TC contracts rose to $32,058 per day and October 5TC contracts rose to $28,708 per day. Baltic Exchange’s Capesize Forward Freight Contracts for the fourth quarter (Q4) 2019 also rose, but are still lower than those seen for the third quarter (Q3) 2019.
The struggling panamax segment is bouncing back as ship operators raise the bidding for longer employment. Panamax operators are chartering in tonnage as the period market tries to catch up with a peaking spot market. Panamax spot market is near a three-year high. Last week of August 2019, Japanese kamsarmax newbuilding has been fixed this week straight out of shipyard at $16,000 per day for 12 months. The latest fixture represents a significant increase as the previously lackluster segment continues to improve. Furthermore, Kwang Ming-controlled 2014 built kamsarmax bulk carrier 80K DWT KM Shanghai was fixed at $14,500 per day for 12 months. On the other hand, Athens based Olive Shipmanagement’s 2010 built panamax bulk carrier 79K DWT MV Elinda Mare was fixed $14,000 per day for 7 to 9 months. Copenhagen based Dampskibsselskabet NORDEN A/S was caught long on cargo when Norden fixed in 2019 built kamsarmax bulk carrier 81K DWT JY Hongkong at $15,400 per day for 7 to 9 months. Currently, all period tonnage that was taken in 2018 is trading very profitably now. Last year, German bulker giant Oldendorff and Norwegian Klaveness as players that had acted in time to catch the wave. Panamax and kamsarmax market is generally firming and will keep on as long as you can do period deals at a discount to spot. Panamax FFA (Future Freight Agreement) curve is standing at $16,000 per day for 2020’s trading would be worth it due to long-haul grain cargoes to the Far East. Currently, in the panamax market grain is key cargo. Besides, coal cargoes to China from Australia and Indonesia are just stable now, but China has been sourcing grain from long route East Coast South America which will be pushing panamax market up. End week of August 2019, kamsarmax bulk carriers are fixed at some $18,000 per day in the Pacific spot market. Kamsarmax bulk carriers are fixed around $20,000 per day for East Coast South America to Singapore and India range. First week of September, we might see some corrections in panamax spot market because panamax rates jumped too fast. There are about 250 newbuilding panamax bulk carriers on order in shipyards. Total orders include 75 kamsarmax newbuilding orders for delivery before the end of 2019. Shipowners are discouraged by the newbuilding order book. United States-China trade war is the second reason that triggered panamax bulk carrier spot market. United States-China trade war has increased tonne-miles by moving China’s grain and soybean sourcing from the United States Gulf to Brazil and Argentina. In the panamax and kamsarmax segment, speculative shipowners seem like winners of the market, if panamax and kamsarmax segment remains bullish. In previous years, kamsarmax bulk carriers have been one of the most popular financial investment plays in the dry bulk sector. Bank of Communications Financial Leasing, AVIC International Leasing, ICBC Leasing, and China Development Bank Leasing have unchartered bulk carriers on order in panamax and kamsarmax segment. AVIC International Leasing alone has a reported 12 kamsarmax bulk carriers on order.
Greek shipowner and operator Avin International might fully exit the dry bulk market. Avin International sold one of its two panamax bulk carriers. Athens based Avin International sold 2004 built panamax bulk carrier 76K DWT MV Vamos (ex MV Million Trader) for around $9 million. MV Vamos (ex MV Million Trader) was built at Tsuneishi Shipbuilding, Japan in 2006. MV Vamos (ex MV Million Trader) is not due for a special survey (SS) till February 2024. In May 2015, Vardinoyannis family-controlled Avin International acquired MV Vamos (ex MV Million Trader) from Japanese shipowner Nisshin Shipping for around $9 million. After the sale of MV Vamos (ex MV Million Trader), Avin International’s dry bulk fleet is left with 2000 built panamax bulk carrier 74K MV Evangelia. MV Evangelia was built at Sasebo Heavy Industries, Japan in 2000. In March 2013, Avin International acquired MV Evangelia for around $11 million. Avin International is primarily a tanker owner and has a fleet of 32 tankers.
Singapore’s High Court sold 2012 built handymax bulk carrier 37K DWT MV Long Bright. MV Long Bright was controlled by Highrich Logistics. MV Long Bright was built at Shandong Huahai Shipbuilding, China in 2012. MV Long Bright has spent over a year in lay-up and its certifications have expired. MV Long Bright was arrested in March 2018 by Singapore’s DP Shipbuilding & Engineering over an unpaid repair bill. Later on, a Chinese bank had taken control of MV Long Bright together with a sister ship MV Long Glory. Hong Kong-based Highrich Logistics acquired MV Long Bright and MV Long Glory as part of a deal from Shandong Huahai Shipbuilding, China. MV Long Bright and MV Long Glory had originally been ordered in 2006 by Sider Navi.
World Economic Forum warned about a possible recession and trade uncertainties may worsen. Prominent economists have been predicting that global growth since the 2008 financial crisis is running out of steam. Global economic growth expected to decrease to 3% in 2020. In 2019, global economic growth will be affected by:
- United States trade war with China
- Slowing growth in the European Union
- Increasing political instability in many countries
These connected obstacles will weaken confidence in various sectors of business. But, the shipping business will be affected deeply. Notwithstanding the low newbuilding orders at the shipyards and a developing supply-demand balance.
World Economic Forum summarized that global uncertainties are escalating. The world economy would have to master how to manage the next recession. Today, risks are frequently inter-related and the ability to deal with those risks was diminishing. Slowing growth, increasing debt, trade tensions, and mounting inequality are numerous difficulties that would require a world-wide collaborative scheme to solve. Demands on shipping to slash carbon emissions by financing modern combustibles is merely one portion of the enormous challenges the world faces.
Marshall Islands-registered Hunter Maritime received a warning from Nasdaq. Nasdaq requires Hunter Maritime to hold an annual general meeting. Hunter Maritime has 45 days to present a program for an annual meeting. Hunter Maritime commenced in 2016 with a $152 million IPO (Initial Public Offering) with the purpose of acquiring dry bulk carriers at the bottom of the shipping cycle. Hunter Maritime has failed to acquire bulk carriers as investors seemed to draw their capital out of Hunter Maritime.
Shipping business generated $15 billion to Greeks in the first nine months of 2018. In 2018, the total number of active Greek shipping companies reached 1,400. The number of ships under Greek management companies is around 4,500 ships with a capacity of around 200 million DWT. In Greece, shipping companies employed around 17,000 people.
As trade war has been intensified between the United States and China, shipping stocks plunged. Almost, every single New York-traded shipping stock ended the day in the red. Golar LNG, GasLog, Scorpio Tankers, and Matson were the most unsatisfactory performers. Among all shipping companies, Matson had the worst day on the stock exchange. Tanker stocks have not pummeled like other segments. Because China is not importing any US crude oil and crude is not on the tariff list.
Bergen-based coaster shipowner and operator Misje Rederi AS has been endeavoring to renew its coaster fleet with a series of hybrid-powered new-building bulk carriers. Norwegian family-owned Misje Rederi AS has approached shipyards in Norway, China, and the Netherlands for offers on coaster bulk carriers. Newbuilding coaster eco-bulkers will use batteries at the ports and diesel engines at the sea. Misje Rederi AS has collaborated with Marine Design & Consulting and Norwegian Electric Systems to develop the new ship design. Currently, Misje Rederi AS controls 14 coaster bulk carriers.
Heavylift, project, and break-bulk operator Zeamarine Carrier is very close to its aim of more than 100 multipurpose (MPP) ships after taking delivery of six (6) time-chartered new-buildings from Chinese ship manager New Legend. In January 2019, Zeamarine Carrier took delivery of 2019 newbuilding 13K DWT MV Zea Frontier F-class 900 designs outfitted with two 450 tons cranes. In September 2018, Germany based Zeaborn and Houston based Intermarine merged to establish Zeamarine Carrier. Zeamarine Carrier has also chartered in 2018 build 12K DWT MV Zea Servant outfitted with two 250 tons cranes MPP ship for the long-term. MV Zea Servant was constructed at Chinese shipyard Taizhou Sanfu Shipbuilding. MV Zea Servant was formerly ordered by Nordic Hamburg but has been secured by Chinese ship manager New Legend. In November 2018, MV Industrial Fame and MV Industrial Fusion were taken from CSSC Leasing. MV Industrial Fame and MV Industrial Fusionare are technically managed by Germany based Hammonia Reederei. Zeamarine Carrier chartered in vessels of bankrupt heavy-lift operator Hansa Heavy Lift.
Norwegian-Swedish owned Ro-Ro behemoth operator Wallenius Wilhelmsen expressed that European Union ship scrapyards must be able to satisfy the continuing recycling requirements of the EU-flagged vessels. In the last decade green-recycling advocate Wallenius Wilhelmsen has demolished 30 ships. Wallenius Wilhelmsen expressed that approved European Union facilities must be fitted for continuing recycling requirements of the EU-flagged ships and extra scrapyards should be introduced on European Union’s list Irresponsible recycling is solely not compatible with Wallenius Wilhelmsen’s own standards. Wallenius Wilhelmsen will proceed to recycle their ships only according to high standards.
Guinea will increase bauxite shipping after a brand-new mine was given permission. Guinea’s Kimbo project will generate around 3 million metric tons of bauxite per year and 1.5 million metric tons of alumina per year. Tremendous investments will be harmonized into the development of a refinery, highways, and railways.
Guinea government declared a range of infrastructure and constitutional bills for expansion in the bauxite shipping industry. Guinea’s bauxite producer Societe Miniere de Boke (SMB) is going to contribute $1 billion to build a railway. Societe Miniere de Boke (SMB) is a joint venture between Winning Shipping, Guinea, Shandong Weiqiao Aluminium & Power Co, and UMS International. On the other hand, in order to regulate the transportation of bauxite, Guinea’s government is introducing a national agency. Guinea is base for a quarter (1/4) of the worlds bauxite reserves. In 2018, total Guinea bauxite exports reach to 55 million metric tons which is around half of the world’s bauxite exports.
Kamsarmax bulk carrier (82K DWT) received its title by fitting a 229 meter limit on ship length at the Port of Kamsar, Guinea. Port of Kamsar, Guinea is a significant bauxite shipping port. Capesize bulk carriers require transshipment via barge to load at Guinea bauxite export ports.
In 2019, newcastlemax bulk carriers account for a quarter of Guinea’s bauxite exports. Chinese giant shipowner and operator COSCO Bulk Shipping is planning to order at least 6 newcastlemax bulk carriers to meet 5 million metric tons per year agreement with Chinese aluminum producer Chalco. Bauxite trade is expected to account for around one fifth (1/5) of dry bulk trade growth in terms of tonne-miles in 2019.
Three prominent shipping names Guy Hindley (Howe Robinson), Denis Petropoulos (Braemar Shipping Services), and Andy James (China Navigation) have joined the Baltic Exchange Council. Baltic Exchange Council governs the Baltic Exchange’s strategy and activities. Lambros Varnavides and John Hadjipateras have stepped down from Baltic Exchange Council. John Hadjipateras will remain on the Baltic Membership Council. Baltic Exchange Council is chaired by Duncan Dunn. Baltic Exchange Council governs the Baltic Exchange’s strategy for membership services, social responsibility, charities, and its relationship with its members, governments, regulatory bodies, and the global shipping community.
1997 built 9K DWT MV Paksoy-1 was attacked at the coast of Nigeria and 10 crew members were taken as hostages. Istanbul based Turkish shipowner and operator Kadioglu Maritime’s MV Paksoy-1 was in ballast from Douala to Abidjan in Ivory Coast. No injuries or loss of lives has been reported. Later on, 10 crew members were released by the assistance of the Nigerian government.
Shanghai-based Haiyi Shipping ordered four (4) newbuilding bulk carriers 12K DWT at CSC Jiangdong Shipyard in China. Haiyi Shipping is a subsidiary of Chinese Anhui Conch Cement. Four (4) newbuilding bulk carriers will be delivered in 2020. Currently, Anhui Conch Cement has a fleet of 15 small bulk carriers. Four new building bulk carriers 12K DWT will be the biggest ships in the fleet of Anhui Conch Cement.
Japanese shipowner and operator K Line’s 2017 built capesize dry bulk carrier 183K MV Cape Taweelah is the first fully-laden capesize bulk carrier to call at Khalifa Port, Abu Dhabi. Emirates Global Aluminium (EGA) long-term chartered in 183K MV Cape Taweelah. MV Cape Taweelah is transporting bauxite from Guinea for Emirates Global Aluminium (EGA)’s new Al Taweelah alumina refinery. Emirates Global Aluminium (EGA) will employ capesize bulk carriers to reduce per tonne transportation costs. Emirates Global Aluminium (EGA) agreed a deal with Abu Dhabi Ports in late December 2017 to dredge and widen channel at Khalifa Port to enable large capesize dry bulk carriers to berth fully-laden. Except for Khalifa Port, at other ports in the region capesize bulk carriers must be partially unloaded offshore before capesize bulk carriers can berth at port safely.
Athens-based PrimeBulk Shipmanagement sold 2009 built supramax bulk carrier 57K DWT MV Moonray to a Chinese shipowner and operator for around $10 million. MV Moonray is a Dolphin 57 type supramax bulk carrier. The Dolphin 57 series supramax bulk carrier is the work of the Shanghai Merchant Ship Design Research Institute which is a part of China State Shipbuilding Corporation. Chinese shipowner and operator intended to use the MV Moonray for international trading as the China-flag domestic market struggles with charter rates and more stringent emissions prerequisites for imported tonnage imposed in 2018. Currently, Athens-based PrimeBulk Shipmanagement has a fleet of five (5) bulk carriers.
Wood Resources International (WRI) published that China imports of logs reached another record high in 2018. This is the third sequential year of year-on-year increases. China log import volumes reached around 40 million cubic meters. New Zealand (44%) is a leading supplier of logs to China. Russia’s log export share has fallen to 18% in 2018.
German ship financing bank Nord/LB withdraws from the maritime sector. German shipping lender Nord/LB is pulling out of ship financing as it looks to restructure with a capital injection of $4 billion. Nord/LB is taking an enormous hit on the remaining $11 billion maritime books. Nord/LB expects a refinancing deal with the German Savings Banks Association (DSGV). Nord/LB has been dropping NPL (Non-Performing Loans) in shipping at a quick rate and has taken tremendous provisions on the maritime book in recent years. Nord/LB will completely withdraw from ship financing and will focus on energy, infrastructure, property, and aircraft.
Panamax P8 Brazil-China soybean route will be introduced for Forward Freight Agreement (FFA) traders. Traders will be able to hedge grain and soybean voyages. Brazil-China soybean route is flourishing with 150 million tonnes of soybean annually. The US-China trade war and uncertainty in the global economy triggers to hedge freight and fuel risk on the booming Panamax P8 Brazil-China soybean route. Demand for soybeans has been highly elastic in China and fuel prices set to rise in 2019. Consequently, the timing is perfect for the introduction of Panamax P8 Brazil-China soybean route on Forward Freight Agreement (FFA). Panamax P8 Brazil-China soybean route means owners, charterers, and traders can manage their risk more accurately than using the existing Panamax 2A Continent-Far East route. Panamax P8 Brazil-China soybean route will bring liquidity in dry FFAs.
Capesize dry bulk carrier freight rates have plummeted below operating costs of $5,000 per day last week. Capesize dry bulk carrier owners are planning to idle their vessels because of the weak capesize dry bulk freight market. Experienced shipping market veterans believe that capesize market has bottomed out and is set for a rebound. Capesize dry bulk carrier freight rates can’t go much lower before ship owners start idling vessels. Capesize dry bulk carrier freight rates reached bottom and that an upturn should materialize very shortly. Capesize to panamax dry bulk market ratio is now is the lowest level since early 2016. Previously, when capesize dry bulk carrier freight rate was at such low levels, market rebound followed. Current capesize dry bulk carrier freight rate weakness represents the intra-year low for 2019, and forecast the Baltic Dry Index to average around 125% higher in Q2 2019. Currently, capesize dry bulk carrier freight rate costs around 40% less to hire a vessel and having 125% more cargo capacity. Soon, panamax dry bulk charterers to pool cargoes into capesize dry bulk carriers. United States – China trade negotiations are expected in late March could also trigger a rally in dry bulk rates. Capesize dry bulk operators are turning towards slow steaming amid the weak earnings. Capesize dry bulk carriers’ optimal speed for was lower at 11 knots at the beginning of 2019.
In 2015, Malaysia was the biggest bauxite supplier in China. Notwithstanding, in 2016, Malaysia outlawed bauxite mining due to notable pollution. Newly, the Malaysian environment minister published that its mining ban will not be extended after it terminates in March 2019. Malaysia’s bauxite export could damage the weak dry bulk market by lowering ton-miles. Malaysia bauxite was a substitute for Indonesian bauxite. However, in recent years China has invested profoundly in mines and infrastructure in Guinea. In 2018, China increased its bauxite imports to 83 million tons.
Indonesian coal exporters could encounter an unpredictable prospect due to regulative concerns. By 2027, Indonesia’s domestic coal consumption for energy will increase to 157 million tons. Indonesian government aims to preserve coal reserves and this is a potential risk for Indonesian coal exporters. Indonesian coal export laws appear to replace every year. Indonesia’s Domestic Market Obligation (DMO) obliges coal producers to trade 25% of coal production on the domestic market. Indonesian coal is particularly quite known for its low Calorific Value (CV). Australian and Russian coal is not technically feasible because Asian coal importing countries like India and China were building coal-fired plants around Indonesian coal specifications. Any decrease in Indonesian coal export volumes would lead to longer ton-miles which would be positive for the dry bulk shipping market. Coal demand in Asia, particularly in China and India, will soar in the upcoming years as many power plants are currently under construction.
Bankrupted Greek shipowner and operator Toisa Shipping has submitted a bankruptcy reorganization plan to the Southern District of New York bankruptcy court. Bankrupted Greek shipowner and operator Toisa Shipping has been in discussions with moneylenders including ING, Commerzbank, DNB, Citi Bank, and DVB. Southern District of New York bankruptcy court’s scheme presents the Toisa Shipping debtors to sell all assets. An inspector will be designated to liquidate Toisa Shipping‘s assets and wind down. Toisa Shipping filed for bankruptcy in early 2018. Greek Toisa Shipping had $1.7 billion appraised assets, including offshore vessels, tankers, and dry bulk carriers.
Norwegian coaster shipowner and operator Hagland Shipping acquired 2011 built coaster bulk carrier 4K DWT MV Hagland Carrier (ex MV Estime). MV Hagland Carrier (ex MV Estime) will be converted to a self-unloading bulk carrier. Hagland Shipping acquired DWT MV Hagland Carrier (ex MV Estime) from JR Shipping. Norwegian coaster shipowner and operator Hagland Shipping has a fleet of 14 self-unloading bulk carriers. Norwegian Hagland Shipping was established in 1872.
Florida-based World Fuel Services has filed a second lawsuit in Miami federal court on 10 January 2018 and arrested a second MPP carrier of German Hansa Heavy Lift to pay allegedly unpaid fuel bills. Previously, World Fuel Services arrested Hansa Heavy Lift’s other ship 2008 built MV HHL Elbe in France for unpaid bunker bill. After the MV HHL Elbe was seized in France, Hansa Heavy Lift filed an insolvency petition in Hamburg, Germany courts. An extremely challenging operating environment is the cause according to Hansa Heavy Lift’s major shareholder Oaktree Capital Management.
Greek shipowner and operator Dominion International acquired 2011 built kamsarmax 81K DWT MV India Vision (ex MV Trade Vision). 81K DWT MV India Vision (ex MV Trade Vision) was built at Guangzhou Longxue. Ioannis Chandris led Dominion International has not been active in S&P market for several years. Immediately, Dominion International delivered MV India Vision (ex MV Trade Vision) in M2M Management Panamax Pool. Dominion International was established in 1969 in Piraeus under the management of a JD Chandris. 81K DWT MV India Vision (ex MV Trade Vision) was the last vessel from the sale of 26 dry bulk carriers and tankers in the bankrupt Greek Toisa Ltd.
Hong Kong-headquartered Fleet Management has taken over NAESS Ship Management in Amsterdam. NAESS Ship Management was set up in 1973. Fleet Management has over 450 vessels under management. Hong Kong-headquartered Fleet Management has offices in London and Cyprus.
Wood Resource International (WRI) has published that China has imported record volumes of woodchips in Q3 2018. In Q3 2018, Chinese woodchip imports totaled 3.5 million tons, a year-on-year increase of 21%. Vietnam and Australia together account for just over 80% (28% Australia, 52% Vietnam) of Chinese woodchip imports in 2018, with the remainder being supplied by Chile, Thailand, Brazil, South Africa, and Malaysia. Vietnam’s woodchip export has been trending upward for over 15 years and will likely reach a new record high of almost 10 million tons in 2018.
Finland-based coaster and project shipowner Meriaura Logistics has been expanding its fleet by acquiring two dry bulk carriers. Meriaura Maritime Logistics sister company VG Shipping acquired 1998 built 4,200 DWT MV Aava VG (ex MV Nemuna) and 1997 built MV Lotta VG (ex MV Visurgis) from German shipowner and operator Shipcom Bereederungs GmbH. New ships are going to strengthen VG Shipping market position in European coaster size market. VG Shipping has a fleet of 8 coaster bulk carriers and sister company Meriaura Logistics operates a fleet of 20 dry bulk carriers.
Chinese leasing company CSIC Leasing signed capesize new-building bulk carriers at Qingdao Beihai Shipbuilding Heavy Industry against long-term charters from German energy powerhouse RWE. China Shipbuilding Industry Co (CSIC) controlled shipyard has been commissioned to construct four (4) scrubber-fitted IMO Tier II standard capesize dry bulk carriers (180K DWT) for delivery between late 2020 and early 2021. Each capesize dry bulk carrier has a price tag of $54 million. CSIC Leasing deal is the second-largest newbuilding charter contract linked to RWE.
World’s largest scrap ship cash buyer GMS founder Anil Sharma has a positive outlook for Indian shipbreaking. GMS founder Anil Sharma has recently been supporting the Indian subcontinent’s green recycling. Indian, Pakistani, and Bangladeshi shipbreakers are frequently criticized for their beaching methods. Indian, Pakistani, and Bangladeshi shipbreakers can really lessen the environmental impact of beaching by following the IMO’s Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Furthermore, Indian, Pakistani, and Bangladeshi shipbreakers can use concrete floors to prevent pollutants from entering the subsoil. GMS is scrapping approximately 200 ships per year.
Bremen based MPP (MultiPurpose) ship operator dship Carriers has ordered two (2) MPP ships at Taizhou Sanfu Shipyard in China. dship Carriers picked up F-500 type Eco Traders which will join the fleet in Q1 and Q3 2019. MultiPurpose vessels F-500 type has been developed to reduce fuel consumption and to increase stowage flexibility.
Hong Kong-based shipowner and operator Great Harvest Maeta Group seeking to diversify from its core dry bulk carrier business in order to decrease shipping risk. Great Harvest Maeta Group is planning to enter construction, tourism, and real estate projects. Hong Kong-based shipowner and operator Great Harvest Maeta Group will strictly control operating costs and reduce all unnecessary expenses. Great Harvest Maeta Group is seeking to charter out its fleet to reputable charterers. Currently, Hong Kong-based shipowner and operator Great Harvest Maeta Group has a fleet of four (4) panamax dry bulk carriers.
Great Lakes-St Lawrence Seaway dry bulk trade increased 38% due to the high demand for construction materials like asphalt, cement, and stone this summer. According to Canada’s Chamber of Marine Commerce construction projects increased across the region. Shipping activity at Great Lakes-St Lawrence Seaway increased to a total of 12 million tonnes.
International Maritime Organization (IMO) has invited the International Organization for Standardization (ISO) to introduce standards and to reassure shipowners that an identical type of methanol will be ready at ports. Developing ISO standard is a critical move for methanol to gain broader adoption as a marine fuel. International Maritime Organization (IMO)’s Maritime Safety Committee has been revising guidelines for low flashpoint fuels like methanol and LNG (liquefied natural gas). International Maritime Organization (IMO) already has standards for methanol as a cargo, but not as a marine fuel. Nevertheless, methanol as marine fuel encounters difficulties in terms of sufficient space and commercial availability.
Paris MOU port state organization banned 33 ships in 2017. In 2016, Paris MOU port state organization banned 20 ships. Last 3 years, Moldova, Tanzania, and Togo have recorded the highest number of ship bans of Paris MOU port state organization. In 2017, Paris MOU port state organization annexed Poland and South Korea to the white flag list. Iran, Kazakhstan, Russia, and the US moved from white to grey list. In 2017, Paris MOU port state organization blacklisted Ukraine.
Price tags of vintage secondhand dry bulk carriers slumped due to yuan and sluggish Chinese domestic bulk market. Secondhand bulk carriers are unlikely to gain interest from buyers outside China. Shipowners are keen to sell their vintage bulk carriers.
German shipowner and operator MLB Manfred Lauterjung Befrachtung GmbH & Co. KG ordered two (2) dry cargo vessels 2K DWT at Szczecin Shipyard in Poland. MLB Manfred Lauterjung Befrachtung GmbH & Co. KG has not reported price tag for new-building bulk carriers. German shipowner and operator MLB Manfred Lauterjung Befrachtung GmbH & Co. KG has a fleet of 23 ships from capesize dry bulk carriers, boxships and MPPs.
2001 built bulk carrier 51K DWT MV Sirina suffers blaze in Southampton, United Kingdom. British firefighters extinguished the fire. No injuries were reported.
Two (2) Ukrainian crew discovered dead in 2017 built handysize dry bulk carrier 31K DWT MV Atlantic Harmony off Cape Verde. MV Atlantic Harmony is controlled by Turkish shipowner and operator Istanbul Shipping. Further investigations started.
One of the largest Russian foodstuff producer Aston Group is endeavoring to acquire 10 river type dry bulk carriers from Chinese shipyards. 8K DWT river type dry cargo ship design is the largest to enter ports along the River Don. In the first week of April 2018, Aston Group has also started operating 4 handymax dry bulk carriers.
Greek shipowner and operator Arista Group’s affiliate Forward Maritime signed LOI (Letter of Intent) with Jiangsu Yangzijiang Shipbuilding to construct the world’s first truly LNG-powered ships. The world’s first truly LNG-powered ships 84K DWT kamsarmax dry bulk carriers are described as Forward Bulker 84-LNG.
Greek shipowner and operator Vita Management controlled 2001 built panamax dry bulk carrier 74K DWT MV Vitaspirit smashed into historical mansion at the Bosphorus during her Istanbul Strait passage on 7 March 2018. No injuries or pollution have been reported. Fortuitously, an expensive historical mansion was not occupied during the incident. Half of the waterside of the historical mansion was devastated. Authorities closed the Bosphorus Strait traffic for north and southbound after the terrible accident. Malta-flagged MV Vitaspirit was carrying 62K barley cargo from Russia to Saudi Arabia.
Indonesian government determined to postpone new cabotage limitations on coal shipping until 2020. In early 2018, the Indonesian government proposed to limit shipments of coal to Indonesian-flagged ships. However, cabotage restrictions postponed after tremendous objections from coal producers and shipowners. Indonesian Coal Mining Association is eager to assist Indonesian new cabotage regulations if national shipping companies are available. Moreover, Indonesian new cabotage regulations will also affect palm oil cargoes.
China imports approximately 40% of its soybean from the USA. Soybean trade accounts for 5% of total dry bulk ton-mile demand. If South American soybean farmers are able to fill the gap, 5% of total dry bulk ton-mile disappear could be negligible. The US-China trade war timing is terrible for the weak dry bulk shipping market. Tariffs also affect dry bulk shipping companies’ stocks.
Analyst Clinton Webb at AXIA Capital Markets released dry cargo rate forecasts for 2018 and 2019. According to analyst Clinton Webb demand will continue to outpace supply growth and that will trigger capesize, panamax and supramax dry bulk carrier rates. Analyst Clinton Webb believes that 2017 was just the first part of a dry bulk market recovery. AXIA Capital Markets’ report explains that in Q1 2018 dry bulk shares have been flat due to new building deliveries and Chinese New Year. Analyst Clinton Webb at AXIA Capital Markets raised its dry cargo rate forecasts by 20% on average for 2018. Analyst expects the upward trend to continue in 2019 due to the current order-book-to-fleet ratio at 9.6%.
Two multipurpose (MPP) and heavy-lift sector giants American Intermarine and German Zeaborn Shipping is in probable consolidation discussions in order to design multipurpose (MPP) company. Intermarine and Zeaborn Shipping are contemporary competitors in the multipurpose sector. Intermarine and Zeaborn Shipping plans to team up, consolidate and grow in the multipurpose (MPP) sector. Currently, multipurpose (MPP) sector top-two players in the heavy-lift sector by deadweight are Cosco Shipping and BBC Chartering respectively. Intermarine and Zeaborn Shipping merger as Zeamarine would be the third-largest player. In 2017, German Zeaborn Shipping acquired operations of Rickmers Linie. In 2018, German Zeaborn Shipping acquired ER Schiffahrt and its shipbroker arm Harper Petersen & Co.
Chinese shipowners have the greatest share with 21 million DWT of dry bulk carriers. Brazilian iron ore giant Vale’s 39 VLOC (Very Large Ore Carrier) newbuilding project is prolonging China’s rising prominence in the dry bulk market. Chinese shipowners’ fleet overall number is increased to 145 million DWT. China is the third-largest bulk carrier shipowner nation behind Greece and Japan. In 2018, Chinese shipowners control 18% of the global dry bulk fleet. In 2008. Chinese shipowners were controlling barely 7% of the global dry bulk fleet.
Briese Schiffahrts controlled MV BBC Neptune collided with Delphis’ container ship MV Delphis Gdansk off Denmark. Both ships MV BBC Neptune and MV Delphis Gdansk have been damaged but no injuries and no pollution has been reported.
Donald Trump is proposing to impose tariffs on $60 billion worth of goods shipped from China. Last year, the USA imported goods around $375 billion more than it exports. Trade war is launching new uncertainties in the world economy. Shipping market stocks were amidst those influenced by potential reciprocity. The largest parts of the USA and China trade are in containerized goods. On the other hand, soybeans remain the second-largest US export to China. Soybean is a major cargo in the dry bulk trade from the USA to China and most apparently will be affected by presumable tariffs and trade wars.
Chinese shipowner and operator Zhejiang Xin Yi Hai Shipping bought six (6) small dry bulk carriers. Before this acquisition Zhejiang Xin Yi Hai Shipping had a fleet of ten (10) dry bulk carriers. Zhejiang Xin Yi Hai Shipping is part of Zhejiang Shipping Group.
Indonesian Asian Bulk Logistics (ABL) is plotting to enter into the dry bulk sector. Asian Bulk Logistics (ABL) is financing in cargo transfer ships and barges. Presently, Jakarta-based Asian Bulk Logistics (ABL) is endeavoring to establish a dry bulk shipping fleet. Asian Bulk Logistics (ABL) aims to develop a ship owning and logistics company. Currently, the Indonesian government restricted coal trade to domestic ships.
President Donald Trump declared raising tariffs 25% on steel and 10% on aluminum. There would be a possible retaliation from China, Europe, and Canada for the US tariffs. Dry bulk shipowners have been following the US tariffs’ repercussions. USA president Donald Trump wants to protect domestic steel and aluminum producers.
Russia’s State Transport Leasing Company (STLC) subsidiary GTLK Europe is opening an office in Ireland. Russian GTLK Europe is going to control aircraft and shipping assets worth more than $1.5 billion.
Fujian Mawei Shipbuilding published that Dubai’s Marine Assets Corporation (MAC) has missed an installment of $18 million on a new mining ship in China. Mining ship is due to be delivered at the end of 2018 and will be chartered out to Canada-listed Nautilus Minerals for 5 years. Mining ship MAC Goliath construction has been almost completed. Canada-listed Nautilus Minerals requires MAC Goliath for the Solawara gold and copper mining project off Papua New Guinea.
Italian tanker and bulk carrier shipowner Rizzo Bottiglieri De Carlini Armatori (RBD Armatori) has declared bankruptcy. Italian judge in the court of Naples, Italy decided for bankruptcy. Rizzo Bottiglieri De Carlini Armatori (RBD Armatori) has failed to reach a settlement with mortgagers. In 2017, Pillarstone acquired a debt of $674 million from Italian banks owned by Rizzo Bottiglieri De Carlini Armatori (RBD Armatori). Pillarstone will now possibly chase the ships managed by Rizzo Bottiglieri De Carlini Armatori (RBD Armatori). Italian tanker and bulk carrier shipowner Rizzo Bottiglieri De Carlini Armatori (RBD Armatori) has a debt of around $1 billion. Rizzo Bottiglieri De Carlini Armatori (RBD Armatori) a fleet of 6 tankers and 7 dry bulk carriers. In 2012, compatriot Italian shipowner Deiulemar was also hit by the bankruptcy.
Dry bulk charterers are looking to keep or increase period and time-charter coverage for capesizes in 2018 after the extreme volatility in spot freight rates seen in 2017. Charter coverage demand comes as the capesize markets fall below the record highs seen in Q4 2017 and as forward rate expectations also weaken. Dry bulk shipowners are said to be holding out for better rates on expectations of a tighter capesize market in 2018. Main dry bulk charterers and operators Oldendorff Carriers, Cargill, SwissMarine, and Koch Shipping are keeping existing chartered in tonnages and potentially entering new charter deals. In December 2017, one-year period rates for capesizes were $18,600 per day are on the rise. For example, giant iron ore producer and one of the biggest dry bulk charterer Rio Tinto took Zodiac Maritime’s 2016 built capesize 179K DWT MV Buccleuch for a year at $20,000 per day. Cargill Ocean Transportation chartered in 2007 built capesize dry bulk carrier 178K DWT MV Pontotriton and 2011 built capesize dry bulk carrier 180K DWT MV New Shanghai at floating rates linked to the BCI (Baltic Exchange’s Capesize Index). 2017 was one of the most volatile years for spot capesize rates, which swung between $4,600 per day and $30,500 per day. Volatility continued into the new year of 2018. This volatility triggered to more demand for long-term charter coverage. Capesize operators would like to charter in more tonnage but shipowners are greedy and reluctant to fix at today’s low levels. Capesize spot rates are at $16,600 per day ahead of the seasonal slowdown due to the Chinese New Year. Baltic Exchange’s Forward Freight Assessment (FFA) for capesizes dry bulk carriers at $17,150 per day for 2018. FFA market does not fully reflect better fundamentals in the dry bulk market. After the end of the Chinese New Year (February 16) steel mills are expected to increase production again and so spot rates to strengthen again by March 2018. Furthermore, China’s construction activity should also grow in May 2018. There is going to be a supply deficit in 2018 due to capesize order-book stands at between 10 and 15 dry bulk carriers in 2018 which is creating further tightening of supply. Capesize dry bulk carriers should reach $25,000 per day levels by the beginning of Q3 2018.
Nova Marine Carriers’ 1992 built cement carrier 9K DWT MV NACC Valbella was attacked by Somali pirates on 21 January 2018. MV NACC Valbella was passing through the Gulf of Aden and was destined to Cebu, Philippines. MV NACC Valbella was attacked by pirates at 100 miles southeast of Mukalla. Special Anti Piracy Unit (SAPU) was onboard of the MV NACC Valbella fired warning shots and pirates escaped. MV NACC Valbella’s crew are reported as safe.
Norwegian tycoon John Fredriksen’s private company Seatankers Group has ordered four 82K DWT kamsarmax dry bulk carries at Chinese Shipyard Dalian Shipbuilding Industry Co (DSIC) around $25 million each. Seatankers Group also plotting to order up to four kamsarmax dry bulk carriers at another Chinese Shipyard Cosco Shipping Heavy Industry. John Fredriksen’s private company Seatankers Group paid a total of $650 million.
In 2017, Dalian Shipbuilding Industry Co (DSIC) and Shanhaiguan Shipbuilding Industry merged. Dalian Shipbuilding Industry Co (DSIC) is going to construct Seatankers Group’s kamsarmax dry bulk carriers according to the old NOx IMO (International Maritime Organization) Tier II emission standards.
Seatankers Group has also ordered firm four newcastlemax dry bulk carriers with two options at New Times Shipbuilding. Norwegian tycoon John Fredriksen’s private Seatankers Group has a fleet of 16 dry bulk carriers and 2 aframax tankers.
Bankrupted Italian shipowner and operator RBD Armatori’s 2010 built panamax dry bulk carrier 87K DWT MV RBD Italia has been detained in Malaysia after authorities accused it of anchoring illegally. Malaysia Maritime Enforcement Agency (MMEA) quoted that MV RBD Italia anchored without the necessary documents.
Japanese shipowner and operator Meiji Shipping Group is expecting to report a $17 million profit in 2017. This profit will be 64% higher than previous predictions. Meiji Shipping Group owns and operates bulk carriers, VLCCs, VLGCs, MRs, PCTCs, and containerships.
IMO’s (International Maritime Organization) global sulphur cap will begin in 2020 but the adoption of scrubbers in ships remains low. As of December 1, 2017 just 240 ships have been installed scrubbers according to Clarkson Research Services (CRS). Passenger vessels make up almost half of these ships comprising 57 ro-ros, as well as 62 cruise and ferry units have been installed scrubbers. Meanwhile, just 25 gas carriers and 23 tankers also ready for IMO’s (International Maritime Organization) global sulphur cap will begin in 2020. Shipowners currently have a number of compliance options to meet the IMO requirements: low sulphur petroleum-based fuels such as marine gas oil (MGO), fuels with a low sulphur content such as LNG, or a scrubber system to ‘clean’ SOx particles from the ship’s exhaust gases. Scrubber-fitted new building fleet looks set to accelerate in the near future. Many shipowners appearing to adopt a ‘wait and see’ policy. Shipowners are reluctant to install scrubber systems due to high installation costs. Besides, dual-fuel LNG engines, leading shipowners to remain cautious about installing scrubber systems.
World’s largest ore transshipment ship 1993 built 280K MV Ore Fabrica was sold to India scrapyard for around $19 million by Vale. MV Ore Fabrica was employed in Subic Bay, the Philippines for transhipments of iron ore. Valemax bulk carriers were outlawed to discharge at Chinese ports.
Maritime Port Authority (MPA) of Singapore has invested around $9 million for the construction of new LNG bunker vessels (LBVs) to facilitate the construction of ship-to-ship LNG bunkering in Singapore Port. Singapore, as the world’s most comprehensive bunkering hub. Financed firms by Singapore Maritime Port Authority (MPA): Keppel SMIT Towage, Maju Maritime, Harley Marine Asia, Sinanju Tankers, and PSA Marine.
German shipowner and operator Reederei Roth sold 2000 built panamax dry bullk carrier 72K DWT MV Silver One for around $8 million to Chinese shipowners. In 2003, GReederei Roth acquired MV Silver One for around $20 million. Reederei Roth is managed by Torsten Meier.
MV Koza’s 13 crew members have been safely rescued from a listing ship that sent a distress signal 100 miles south of Freetown, Sierra Leone on 7 December 2017. 2004 built 9K DWT MV Koza’s captain announced a puncture in the engine room and the crew prepared to abandon ship. MV Koza is operated by Burtrans, Turkey.
Former Hangin Shipping CEO was imprisoned for 18-months for insider trading. Choi Eun-young was accused of trading off her family’s stock in the Hangin Shipping just before it filed for a court-led restructuring in 2016.
Indian shipowner and operator West Asia Maritime sold 1984 built handymax dry bulk carrier 41K DWT MV Gem of Paradip to a Bangladesh scrapyard for 396 per ldt (lightweight displacement tonne) i.e. $3 million.
Bankrupted German shipowner and operator Bertram Rickmers is behind six (6) new-building containership orders in a Chinese Fujian Mawei Shipbuilding. Rickmers Holding filed for bankruptcy. Bertram Rickmers is restoring fleet with his own capital. German Bertram Rickmers’ new company is called Asian Spirit Steamship Co.
Arrested 2011 built handy bulk carrier 35K DWT MV Trading Fabrizia which has been lying in Kingston, Jamaica since 2016, will be sold at auction. Italian dry bulk carrier MV Trading Fabrizia has been left in Kingston, Jamaica.
Norwegian shipowner and operator Fonnes Shipping sold 1993 built coaster size dry bulk carrier 2.3K DWT MV Bon Vivant (ex MV Vestfjord) to Latvian shipowner Bon Vivant SIA.
UK Marine Accident Investigation Branch (MAIB) is examining ECDIS (Electronic Chart Display and Information Systems) of 2008 built coaster dry carrier 5K DWT MV Muros. MV Muros grounded on the coast of England. Numerous different grounding events might be caused by ECDIS (Electronic Chart Display and Information Systems).
Congo-based Lignes Maritimes Congolaises (LMC) chartered in 2011 built multipurpose MPP 8K DWT MV Thorco Reef from Thorco Shipping. Lignes Maritimes Congolaises (LMC) is projecting to develop business in West Africa. Broekman Logistics chartered in MV Thorco Reef on behalf of Lignes Maritimes Congolaises (LMC) which has been serving as an agent since 1975.
Around 13,500 vessels transited the expanded Panama Canal between October 2016 and September 2017. Containerships are the most general transitting vessel that is followed by tankers, bulk carriers respectively.
Orest Alexandrovich Sychenikov died in Russia. Under Orest Alexandrovich Sychenikov’s administration, Novorossiysk Shipping Co (Novoship) became a tanker market leader. In 2007, Novorossiysk Shipping Co (Novoship) was taken over by Sovcomflot (SCF). Orest Alexandrovich Sychenikov (1922-2017) advanced Russia’s port and shipyard infrastructure.
Dubai based shipowner and operator Emerald Shipping controlled 2010 built supramax dry bulk carrier 57K DWT MV Emerald Star sank in the Philippines Sea on 12 October 2017. Two (2) crewmembers have been missing. MV Emerald Star was carrying nickel ore cargo from Indonesia. Densa Shipping’s 2011 built cape size dry bulk carrier 180K MV Densa Cobra rescued 15 crew members of MV Emerald Star. Shagang Steel chartered in MV Emerald Star.
Bangladeshi shipowner and operator Meghna Group bought 2006 built supramax dry bulk carrier 56K DWT MV Santa Phoenix for around $12 million from Sanzo Enterprise of Japan. In 2016, Dakha based shipowner and operator Meghna Group bought sister ship 2006 built supramax dry bulk carrier MV Fleet Phoenix for around $9 million. In March 2017, Bangladeshi shipowner and operator Meghna Group bought MV Honest Spring. In May 2017, Bangladeshi shipowner and operator Meghna Group bought MV Marjatta P. Meghna Group has a fleet of 7 dry bulk carriers and 14 small tankers.
Greek tanker owner and operator Atlas Maritime signifies returning to the dry bulk sector after ten years. Greek shipowner Leon Patitsas led Atlas Maritime acquired kamsarmax dry bulk carrier. Atlas Maritime exited the dry bulk sector in 2007.
Turkey-based Karadeniz Powership sold 1996 built 109K DWT MT Karadeniz Powership Esra Sultan for around $7.5 million to Bangladesh scrapyard. In 2016, Karadeniz Powership bought MT Karadeniz Powership Esra Sultan (ex OBO MT SKS Tana) for around $7 million. In April 2017, Karadeniz Powership sold 1997 built 109K DWT MT Karadeniz Powership Yurdanur Sultan to Bangladesh scrapyard for around $7 million. In 2014, Karadeniz Powership bought MT Karadeniz Powership Yurdanur Sultan for around $15 million.
Corpus Christi Port Authority has been evaluating the devastation after Hurricane Harvey cleared through an area north of the port. Corpus Christi Port Authority will control the bottom of the channel as silt may be accumulated at the entrance at La Quinta. Currently, United States Coast Guards (USCG) prohibits vessels from Houston to Corpus Christi.
Four well-armed pirates boarded in 2008 built handysize dry bulk carrier 33K DWT MV Star Lily in Straits of Malacca off Singapore. MV Star Lily’s crewmembers activated anti-piracy devices on board. Pirates escaped and no crewmembers were injured.
US Navy destroyer USS John S McCain collided with Brave Maritime’s 50K DWT MT Alnic MC off Singapore. Search and rescue efforts continued with local Singapore authorities.
MV Spring Sky’s captain was airlifted by The US Coast Guard (USCG). 2014 built ultramax bulk carrier 61K DWT MV Spring Sky’s captain became sick and was airlifted 200 miles off Port Canaveral.
Erasmus Shipinvest will control three (3) capesize dry bulk carriers owned by Chinese Minsheng Trust. Erasmus Shipinvest will control 2004 built 175K DWT MV Msxt Vivienne, 2012 built 180K DWT MV Msxt Capella, and 2010 built 178K DWT MV Msxt Trinity. Furthermore, Erasmus Shipinvest will take technical and commercial management of 2009 built panamax dry bulk carrier 77K DWT MV Agri Kinsale (ex M/V Santa Celia). Currently, Erasmus Shipinvest is operating 16 dry bulk carriers.
German shipping lender HSH Nordbank sold a $570 million bond. HSH Nordbank commenced the privatization period. HSH Nordbank has been striving with outstanding shipping loans.
Singapore Court manager Yit Chee Wah scraps deal to transfer Mercator Lines’ Singapore stock exchange listing to Nickolaos Mitropoulous and Dimitrios Podaridis. Currently, Mercator Lines’s shares are suspended and the Mercator Lines fleet was sold to repay mortgages.
Sovcomflot (SCF) asked Russian administrators for enhanced Arctic navigation. Sovcomflot (SCF) requires substandard vessels to be forbidden from the Northern Sea Route (NSR). Sovcomflot (SCF) demanding a prohibition on substandard vessels and crews sailing in the Arctic region. Sovcomflot (SCF) shuttle tankers started year-round oil shipments from Novy Port at the beginning of 2017 and Yamal LNG is expected to come onstream in late 2017. Sovcomflot’s (SCF) new-generation vessels for Arctic trade are scheduled for delivery in 2018.
Swedish Alfa Laval Pure Ballast System gains agreement for ballast treatment equipment in the USA. Alfa Laval Pure Ballast System gained an order to retrofit up to 53 ships for US Coast Guard’s standard endorsement for ships steaming in US waters. In the USA, The Ballast Water Management Convention enters into force on 8 September 2017. IMO (International Maritime Organisation) has been attempting to delay the deadline for installing ballast water treatment equipment.
Shipowner and operator Wagenborg controlled 2010 built 14K DWT MV Flevobor grounded in Canada. MV Flevobor’s main engines stopped in St Lawrence. was carrying maize. MV Flevobor was refloated by tugs.
Ecuadorian police detained 25 crew members in 1996 built handysize bulk carrier 27K DWT MV Kraken I. The ship was transporting 5 tonnes of cocaine and controlled by Marshall Islands-registered Dellwood Marine.
Founder of Parakou Shipping CC Liu has passed away. Currently, Parakou Shipping has a fleet of 20 dry bulk carriers and tankers. In 1971, CC Liu began working for Ocean Tramping. Eventually, CC Liu acquired Parakou Shipping from a law firm in 1985.
Chinese Fred Cheng led shipowner and operator Shinyo International acquired two (2) capesize and one (1) panamax dry bulk carriers for around $45 million from distressed Shanghai-based Zhong An Shipping Co. Zhong An Shipping Co is led by Shi Kaicheng. 2003 built capesize dry bulk carrier 177K DWT MV Lin Jie, 2011 built panamax dry bulk carrier 79K DWT MV King Peace and 2002 built 177K DWT MV King Sail.
One of the largest shipping lender Deutsche Bank cut credit impairments by 56% in Q1 2017. German shipping lender Deutsche Bank’s revenues improved due to improved production in the metals, mining, oil, and gas portfolios. Chinese HNA Group owns a stake of 10% in Deutsche Bank.
Hong Kong Stock Exchange (HKSE) listed Courage Marine canceled the sale of bulk carrier in order to sustain company listing at Hong Kong Stock Exchange (HKSE). Courage Marine will be removed from Hong Kong Stock Exchange listing if the shipowner sells the last ship in the fleet. Hong Kong Stock Exchange (HKSE) denounced that Courage Marine would not have satisfactory assets. In February 2017, Courage Marine agreed to sell a 2011 supramax dry bulk carrier 57K DWT MV Zorina for around $7 million. Courage Marine has been communicating with the buyer for permissible termination of the ship sale.
Egypt based Nejem Co Marine managed 1977 built livestock carrier MV Youzar Sif H collided with Russian warship near in the Black Sea off Turkey. Russian warship sank shortly after suffering a hole in the hull.
Singapore is honored as the world’s top maritime city. Singapore is followed by Hamburg, Oslo, Shanghai, and London. Singapore has a large, sophisticated shipping community, world-class services, and a solid, convenient political environment.
Taiwanese dry bulk shipowner and operator Sincere Navigation reported a weaker profit for 2016.
New York-based investment bank Stifel Financial Corp. alerts about the latest dry bulk market rise. The dry bulk market has recovered sooner than anticipated. Dry bulk carriers secondhand prices approximating newbuilding prices. Therefore, shipowners will unavoidably start ordering new vessels.
Jacques de Chateauvieux led Setaf Saget has sold 2010 built supramax dry bulk carriers 58K DWT MV JS Bandol and MV JS Pomerol for total $24 million.
Italian shipowner and operator RBD Armatori sold three (3) panamax bulk carriers: 1999 built 75K DWT MV Giovanni Battista Bottiglieri, 1999 built 75K DWT MB Grazia Bottiglieri, and 2001 built 75K DWT MV Orsolina Bottiglieri.
is sold to Tianjin Dongjiang Shipping Co for $4.37 million. 1999 built 75K DWT M/B Grazia Bottiglieri is sold for $5.1 million for further trading. 2001 built 75K DWT M/V Orsolina Bottiglieri is sold to Ausbulk Pte for $6.5 million.
2015 built panamax dry bulk carrier 81K DWT MV Key Opushas saved the life of a Polish yachtsman on the coast of New Zealand. MV Key Opushas ballasted two (2) days under severe weather conditions and saved the life of yachtsman en-route to Chile.
Singapore became an LNG-capable bunkering port that will serve truck-to-ship LNG bunkering to ships. Singapore commenced the LNG Truck filling equipment at the SLNG Terminal.
Chinese conglomerate shipowner and operator HNA Group offered $1 billion to take over Singapore based logistics company CWT. Furthermore, HNA Group also offered $775 million to acquire majority stake in Glencore’s PPSL business.
2013 built small coaster size dry bulk carrier 3K DWT MV Star 62 destroyed three (3) houses along the Cha River in Thailand due to steering system malfunction. Vietnamese M/V Star 62 is operated by Hung Hung Trade & Transport.
The first license is granted to export Indonesian nickel ore cargo. Aneka Tambang is granted a license to export up to 12 million tons of nickel ore in 2017. Due to liquefaction, 81 seafarers lost their lives between 2010-2013 while shipping nickel ore from Indonesia to China. Indonesian nickel ore is the world’s most dangerous cargo to ship however there is robust demand from China.
Indonesian shipowner and operator Samudera Shipping intends to dispose of 6 uneconomical vintage ships. Samudera Shipping’s earnings dropped to $260 million due to bankrupted Korean shipowner Hanjin Shipping. Currently, Samudera Shipping has a fleet of 37 container ships, tankers, and bulker carriers.
Turkish shipowner and operator Glamour Maritime’s arrested 1985 built handysize bulk carrier 34K DWT MV Infinity will go to public auction in India. Glamour Maritime’s bulk carrier was arrested by mortgager ING Bank and bunker supplier OW Bunker.
Chinese Communist Government ordered coal traders to reject North Korean fully laden ships to discharge in Chinese ports after North Korea tested missiles. Chinese Communist Government distributed official orders to coal traders to block coal from North Korea.
Ohio USA based Interlake Steamship outfitted exhaust gas scrubbers to fit IMO low sulphur 0.5% conditions in January 2020. Exhaust gas scrubbers installed on 1977 built laker ship 61K DWT MV Mesabi Miner and 1981 built 69K DWT Paul Tregurtha.
Singapore listed Rickmers Maritime Trust (RMT) will not be able to cope with challenging market conditions and the company will be terminated. Rickmers Maritime Trust (RMT) can not deal with moneylenders to restructure its debt. Moreover, Rickmers Maritime Trust (RMT) can not raise new equity to resume its services.
Till February 2018, Panama Canal Authority booked more than 60 LNG ships from the enlarged Panama canal. Since the new Panama Canal opening in 2016, more than 100 LNG ships passed.
On 8 April 2017, Oldstone Ship Management’s 1999 built handysize dry bulk carrier 35K DWT MV OS 35 was attacked by pirates off Somalia. M/V OS 35 was en-route to Aden from Malaysia. Pirates had obviously escaped before the navy operation.
German Federal Bureau of Marine Casualty Investigation (BSU) remarked that in December 2015, MV BBC Maple Lea grounded Lake Saint-Louis, Canada due to speed. After grounding, 2007 built 12K DWT MV BBC Maple Lea refloated the next day. Inspectors indicted excessive speed caused the incident.
International Maritime Organization (IMO) adopted the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention) is signed by Turkey. This moves the Hong Kong Convention a bit closer towards entering into force. Turkey’s ratification is unlikely to shift local shipbreakers’ focus away from complying with a separate set of rules adopted by the European Union (EU). EU-flagged ships have been Turkey’s main source of scrapping business. Other maritime nations signed and ratified Hong Kong Convention are Panama, Norway, France, Belgium, and Congo. According to the International Maritime Organization (IMO) at least 15 countries must ratify the Hong Kong Convention before it can enter into force. Shipbreakers in Turkey craves to captivate EU-flagged tonnage as a green ship demolition destination.
Greek tycoon George Economou led Cardiff Marine bought kamsarmax newbuilding 81K DWT MV BSI Lennox from Berkeley Shipping for around $26 million. MV BSI Lenno will be delivered in June 2017 from Hudong Zhonghua Shipbuilding. In December 2016, Malta-based Berkeley Shipping sold the sistership MV BSI Cadogan for around $20 million.
Dry bulk carriers demolition prices struck $400 per ldt (lightweight displacement tonnage) which would indicate an entire improvement in the demolition market. Recycling market prices utterly sustains as capesize demolition sales struck the $400per ldt (lightweight displacement tonnage). Because of the dry bulk market spike last week, demolition nominees decreased. The latest dry bulk market increase in freight and period charter rates affected secondhand, new building, and now increased demolition prices.
One of the greatest shipping lender ABN AMRO decreases down credits due to tonnage oversupply. ABN AMRO favors not to finance new shipbuilding orders that conclusively affect stability. Oversupply has been a well-known bar on shipping cycle rehabilitations. ABN AMRO decided not to finance any ships even with charter backed contracts. Netherlands based shipping lender ABN AMRO intends to prevent speculative tonnage. ABN With a $12 billion shipping portfolio, ABN AMRO is the third biggest ship lender after Nord/LB $18 billion and DNB $13 billion.
Greenship Bulk Trust sold 5 ultramax bulk carriers for around $17 million each. Crown-63 type ultramax bulk carriers were financed by DVB Bank and HSH Nordbank.
Greenship Bulk Trust’s five ultramax dry bulk carriers were
German HSH Nordbank reported a loss of around EUR 2 billion due to complications in shipping markets. Shipping NPE (Non-Performing Exposure) constituted EUR 9 billion. HSH Nordbank contracted a few contracts with blue-chip international shipping companies. HSH Nordbank shipping portfolio covers more than 1,300 ships.
2000 built multipurpose (MMP) sister ships 8K DWT MV Lady Gloria and MV Lady Gaia were put up for auction by a court. Bankrupt Italian shipowner Navemar was established in 2003.
2010 built small coaster dry bulk cargo ship 3K DWT MV Hai Thanh 26-BLC sank off Vung Tao City. 2 crew members were rescued by another ship and 9 crew members are missing. MV Hai Thanh 26-BLC was carrying clinker cargo and operated by Phuong Thinh Trading.
Dry bulk shipping tycoon George Economou’s Ocean Rig has filed for bankruptcy under Chapter 15 of the US Bankruptcy Code due to $3.69 billion debts and a lengthy drillship market downturn. Dry bulk shipping magnate George Economou’s Ocean Rig has reached a settlement with mortgagers expressing over 72% of its $3.69 billion debt for a financial restructuring. George Economou explained that Ocean Rig will rise as a more powerful corporation after Chapter 15. New York-listed Ocean Rig operations will proceed as usual.
Chinese shipowner and operator Globe Marine sold 1999 built handymax dry bulk carrier 45K DWT MV Seawing 3 for around $4.5 million. Chinese shipowner and operator Tosco Shipping sold 1997 built handy bulk carrier 28K DWT MV Alice to another for around $3 million.
Korea Maritime Transport Co (KMTC) is exiting dry bulk market by selling its last bulk carrier 2003 built supramax bulk carrier 52K MV KMTC Challenge (ex M/V New Navigation) for $6 around million. In 2011, Korea Maritime Transport Co (KMTC) bought MV KMTC Challenge (ex M/V New Navigation) from another Korean shipowner and operator Pan Ocean for around $23 million. Currently, Korea Maritime Transport Co (KMTC) is focusing on container ships and has a fleet of 21 container ships.
Russian based shipowner and operator Anship LLC ordered two (2) coaster size dry bulk carriers at United Shipbuilding Corporation (USC) shipyard for around $17 million. Russian based shipowner and operator Anship LLC ordered Voga Don RSD 49-type coaster bulk carriers which are 140 meters long and can transit the Volga-Don Shipping Canal in Russia through the Caspian Sea. Voga Don RSD 49-type coaster bulk carriers are river type and seagoing ships.
United Ocean Group sold 2014 built panamax dry bulk carrier 81K MV United Prestige for around $22 million to Greek shipowner. Second-hand panamax bulk carriers’ prices increased. In July 2016 similar panamax dry bulk carrier 2014 built 82K MV Ocean Lord was sold for around $18 million.
Hong Kong-listed shipowner and operator Courage Marine sold its last supramax dry bulk carrier 2011 built 57K DWT MV Zorina for around $7 million to Universal Ship Investment Corp. After selling MV Zorina, Courage Marine will be repaying the bank loan for ships. In January 2016, Hong Kong-listed ship owner and operator Courage Marine raised around $12 million to use as general working capital. The preponderance shares of Hong Kong-listed Courage Marine is controlled by Paul Suen Cho Hung.
Tote Maritime’s US-flagged MV El Faro apparently experienced a cargo shift during Hurricane Joaquin in November 2015. Marine survey firm National Cargo Bureau’s chief Philip Anderson boosted attention regarding the lashing of moving cargo on MV El Faro. Cargo shift may have prompted the disturbance that sank MV El Faro.
German-based shipowner and operator Briese Schiffahrts operated 2008 built multipurpose (MPP) ship 6K DWT MV BBC Caribbean’s eight (8) crew members abducted off Nigeria. On 5 February 2017, MV BBC Caribbean was attacked by pirates. Pirates surrounded MV BBC Caribbean and kidnapped the crew members without using guns.
Korea Development Bank (KDB) has been collecting bids for ten (10) bulk carriers and containerships of collapsed Hanjin Shipping by 21 February 2017. Korea Development Bank (KDB) is attempting to rescue some of its loans. In 2016, Korean Woori Bank and EXIM Bank each sold off four (4) ships of Hanjin Shipping.
Otto Gregard Tidemand controlled Norwegian shipowner and operator Z Bulk filed for bankruptcy in Norway. Z Bulk was working with Canpotex of Canada. Z Bulk has been working with Canadian giant Canpotex for 20 years. Eastern Bulk Holdings’ company Eastern Bulk has provided Z Bulk significant capital for a solution. Nonetheless, Z Bulk has filed for bankruptcy.
Greek shipowner and operator Efploia Shipping Co. SA’s 2010 Korea built panamax dry bulk carrier 80K DWT MV Maverick Genesis will be auctioned on 31 January 2017. In 2007, M/V Maverick Genesis was ordered at the peak of the shipping market for $54 million. Credit Suisse has been trying to sell the ships for credit debts. In December 2016, MV Maverick Genesis sister ship MV Maverick Gunner was also sold at auction to Empire Bulkers for around $13 million. In November 2016, 2012 built panamax dry bulk carrier 83K DWT MV Maverick Guardian was sold at auction to Byzantine Maritime for around $15 million.
1991 North Korea built dry bulk carrier 9K DWT MV Chong Gen sank off Japan. MV Chong Gen’s 26 crew members picked up safely near Japan. MV Chong Gen sent distress signals on 11 January 2016 from the Goto Islands of Japan. MV Chong Gen was carrying about 5,000 tonnes of rice from North Korea to Wongsan. North Korean shipping company owns MV Chong Gen.
USA based shipowner and operator Probulk Carriers sued Eregli Shipping and Mr. Levent Karacelik for around $13 million unpaid arbitration award from 2013 against Marvel International Management and Transportation. Eregli Shipping has issued a denial of allegations that the Turkish company is an alter ego of vice-chairman Levent Karacelik’s Marvel International Management and Transportation.
Italian tanker and bulker owner Premuda SpA is in debt restructuring program with Pillarstone. Premuda SpA might be delisted from the Milan Stock Exchange. Private Equity company Pillarstone will be left as the largest shareholder of the shipowner Premuda SpA. Formerly, Premuda SpA controlled by the Duferco, Rosina family, and Generali Insurance. Currently, Italian shipowner Premuda SpA has debts around EUR 335 million. Enormous impairments are likely to wipe-out existing shareholders at Premuda SpA.
On 21 December 2016, 2005 built supramax dry bulk carrier 53K DWT MV Star Harmony grounded at Istanbul Bosporus Strait. MV Star Harmony was loaded with grain cargo. MV Star Harmony was heading from Odessa to Egypt. MV Star Harmony is managed by Greece based Dekoil.
Legendary Greek shipowners are going to flock towards the Portuguese ship registry over the next few weeks. Many renowned Greek shipowners have already accepted to participate in Portugal’s newly-founded International Shipowners’ Association (EISAP). Many Greek shipowners will shift to International Shipowners’ Association (EISAP). International Shipowners’ Association (EISAP) has offices in Hamburg and Rotterdam, Lisbon. International Shipowners’ Association (EISAP) which is established in 2013 has already had extraordinary progress in pulling shipowners, especially from Germany. Up to now, the International Shipowners’ Association (EISAP) has attracted around 300 ships under the Portuguese flag. Presently, Euromar is intending to replicate this success in Greece.
Argentine shipowner and operator Ultrapetrol bought a newbuilding kamsarmax dry bulk carrier while still considering a bankruptcy filing. Argentine shipowner and operator Ultrapetrol bought 2016 built 81K DWT MV BSI Cadogan from Malta-based Berkeley Shipping for around $20 million. 2016 built 81K DWT M/V BSI Cadogan was built at Chinese Shipyard Hudong-Zhonghua Shipbuilding Group a sub-company of state-run China Shipbuilding Group Corp (CSSC). Argentine shipowner and operator Ultrapetrol have been focusing on its core business, river barge, and offshore fleets. In November 2016, Argentine shipowner and operator Ultrapetrol planned to put the river fleet into a pre-packaged Chapter 11 restructuring and would explore an out-of-court restructuring for its offshore supply vessels.
Dry bulk freight rates have been in the doldrums for eight years. Dry bulk shipping has grown up on the premise that world trade will increase that the trick to maintaining healthy earnings lies in keeping the supply equilibrium in check. Shipowners restraint in new orders, restraint in leveraging, restraint in keeping vintage tonnage trading, but shipowners actually over-order, shipowners love leverage, and vintage tonnage has been known to be a cash cow. Shipowners are subjected to repetitive and even conflicting vetting, inspections, surveying by a multitude of regulatory bodies, charterers, insurers, financiers, and others. Shipowners allowed to be manipulated by lesser groups with special interests. In the dry bulk shipping sector, if shipowners continue recycling this year at the pace of 2016 over the next 12 to 18 months and don’t shoot themselves in the foot with new orders, then even with the lackluster demand equation and scheduled deliveries, we should be poised for a return to a robust freight market in late 2017 and 2018.
New York-based Med Brokerage & Management Corp. is selling 2003 built supramax dry bulk carrier 53K DWT MV Besiktas M (ex MV Global Galaxy) for around $5.5 million. In 2015, Med Brokerage & Management Corp. bought the MV Besiktas M (ex MV Global Galaxy) for $8 million. New York-based Med Brokerage & Management Corp. co-operates with Turkey-based Iskenderun Ship Management which is listed with a fleet of 9 dry bulk carriers. Last year, Iskenderun Ship Management bought 2007 built supramax dry bulk carrier 55K DWT MV Deniz M (ex M/V Karaagac). Ibrahim Mazman is the owner of both Iskenderun Ship Management and Med Brokerage & Management Corp.
Desperate shipping markets have squeezed Greek shipping companies but big shipowners continue to get bigger. Smaller shipowners have been suffering for many months and have been forced to sell their ships. Large Greek shipowners are becoming larger as they take advantage of low ship prices. Greek shipowners fleet has expanded by 10% to 362 million DWT despite record scrapping in 2016. Greek shipping companies fleet number has increased to 5,230.
2000 built handymax bulk carrier 46K DWT MV Aurora Christine is sold for around $5 million. 1997 built handymax bulk carrier 46K DWT MV Baofeng is sold for around $2.5 million. 2009 built handy bulk carrier 21K DWT MV Qin Feng 180 is sold for around $4 million.
Greek shipowner and operator Adelfia Shipping has been rejecting rumors that the company is selling half of its fleet under order from debt lenders. Greek shipowner and operator Adelfia Shipping insists this is part of a reorganisation programme. Greek shipowner and operator Adelfia Shipping was founded in 1981. After these sales Greek shipowner and operator Adelfia Shipping fleet consist of with three ships: 2004 built panamax dry bulk carrier 76K DWT MV Agios Nikolas for about $36 million, 2002 built panamax dry bulk carrier 75K DWT MV Anna for about $34 million and 2005 built supramax dry bulk carrier 56K DWT MV Galini for $41 million.
Chinese shipowner and operator bought 2009 built handy bulk carrier MV Qin Feng 180 for around $4 million. Furthermore, Amsterdam based shipowner and operator Reederei Nord sold 2001 built panamax bulk carrier 75K DWT MV Nordems to Chinese shipowner for around $5 million.
MV Antaios’ 19 crew members safely picked up after fire 800 miles off Cape Town. 1999 built handy bulk carrier 27K DWT MV Antaios suffered flooding in its engine room after the blaze. MV Antaios was en route from Argentina to Saudi Arabia with a grain cargo. The fire caused some damage to MV Antaios which led to flooding in the engine room. When the flooding became uncontrollable, the captain of MV Antaios decided to make a distress call. In 2013, Greek owner and operator Amalthia Shipping bought MV Antaios for about $10 million from Ellora Sea Carriers.
Russian shipowner and operator Fesco Shipping has made less in the first 9 months of 2016 as tough shipping market conditions, lower time charter rates, and a general lack of demand for container ships. Russian shipowner and operator Fesco Shipping reported an operating profit of $30 million till Q3 2016. Russian shipowner and operator Fesco Shipping planning to sell shares.
The shipping outlook stays negative in 2017. Overcapacity in the shipping sector in 2017 putting pressure on freight rates and driving further consolidation and defaults. All segments will be under pressure but tanker shipping will face slightly less stress than dry bulk and container shipping. Funding is more critical for companies that are not able to cover their upcoming maturities. In 2017, shipping companies defaults are likely to be concentrated among companies with weak liquidity.
Irish shipowner and operator Arklow Shipping ordered four (4) 16K DWT small dry bulk carriers. Arklow Shipping has a fleet of 47 ships.
Chennai based shipowner and operator Sanmar Shipping sold 1985 built handymax bulk carrier 54K MV Sanmar Phoenix to demolition for about $4 million. MV Sanmar Phoenix was the last dry bulk carrier in Sanmar Shipping’s fleet. In August 2016, Chennai based shipowner and operator Sanmar Shipping sold 1996 built panamax bulk carrier 73K DWT MV Sanmar Paragon for demolition. After selling MV Sanmar Phoenix, Chennai based shipowner and operator Sanmar Shipping is temporarily exiting the dry bulk shipping market.
Korean financial institution sold 2010 built supramax bulk carriers 56K DWT MV CS Champ, MV CS Daisy, and MV CS Brave for $7 million each. Furthermore, 2011 built MV Jin Hai Xin was sold for around $8 million. MV Jin Hai Xin was built Jiangsu Yangzijiang Shipbuilding, China.
Greek shipowner and operator Rethymnis & Kulukundis (R&K) sold 2001 built handymax bulk carrier 45K DWT MV Star Capellafor for around $5 million. Greek shipowner and operator Rethymnis & Kulukundis (R&K) also owns a sistership 2002 built MV Star Canopus. After 16 years Rethymnis & Kulukundis (R&K) has started a new-building ship program.
Cyprus reunification would be a significant escalation to Cyprus’s shipping industry. Cyprus reunification would promote the country as an international ship-management hub. Cyprus reunification would have real strong consequences on shipping if Greek and Turkish Cypriot leaders overcome Cyprus’s historical division. Cyprus has been divided since 1974 north as Turkish Cyprus and south as Greek Cyprus. A deal to reunify Cyprus would absolutely lead to an end of Turkey’s prohibit Cyprus-flagged vessels from calling at Turkish ports. Lifting maritime sanctions could bring a paramount boost and might double the size of Cyprus flagged ships. Cyprus’ open register was established in 1960 and has almost 2,000 registered vessels with a total tonnage exceeding 20 million DWT. Cyprus reunification deal could also produce benefits on the ship-management side, where Cyprus is already one of the world’s top ship-management hubs. Cyprus reunification could attract more numerous ship-managers, particularly from Turkey and shipowners that trade with Turkey.
Donald Trump is corresponding to the Iran nuclear treaty that was negotiated with the United States, United Kingdom, France, Germany, Russia, and China. Donald Trump cautioned to shred the Joint Comprehensive Plan of Action (JCPOA) agreement. This might have a major impact on the Iranian shipping industry. Once again the US might restrict foreign shipowners from calling at Iranian ports or loading Iranian cargoes if shipowners want to continue trading to US ports. On the other hand, the Islamic Republic of Iran Shipping Lines (IRISL) and National Iranian Tanker Co (NITC) fleet renewal programmes might be crashed.
Donald Trump’s presidency could have significant impacts on the global shipping industry, especially in terms of foreign trade and security policy, the environment, and world trade. Donald Trump said he will pull the US out of a string of international deals, alliances, processes, and organizations. Currently, the United States is one of the largest single markets outside Europe for shipowners and a more isolationist USA will inevitably have consequences for shipping companies. Donal Trump’s statements about renegotiating existing trade deals and pulling the plug on processes such as the Transatlantic Trade and Investment Partnership (TTIP) and ratifying the Trans-Pacific Partnership (TPP) inescapably have effects for shipping companies.
Indian shipowner and operator Liberty Marine Syndicate went out of shipowning business with the sale of its single ship. Liberty Marine Syndicate sold 2003 built supramax bulk carrier 52K DWT MV Liberty Prudencia (ex MV New Orion) for around $6 million. In 2010Kolkata based shipowner and operator, Liberty Marine Syndicate acquired MV Liberty Prudencia (ex MV New Orion) for around $29 million from STX Pan Ocean.
In the second week of September 2016, Baltic Dry Index (BDI) punched through the 1,000-point mark and hitting highs not seen for nearly 2 years. Capesize rates at least have shown signs of life after a terrible year. Panamax rates have been on a steady upward trend helped by the recent rebound in Asian coal markets and seasonal demand from the US Gulf and Black Sea grain trades. Ship values at lows not seen since the 80s. 5-year-old capesize ships are now worth only around $24 million, panamax and supramax ships only $14 million to $15 million. Dry Bulk Shipping market’s recent rebound can be attributed to the usual seasonal bounce and shipping analysts believe the market is in for around another two years of poor freight rates as new deliveries and weak trade growth slows any rebound. In 2016, 44% of expected new dry bulk deliveries have been delayed which helped the market. Strong and bold shipowners who would be able to sustain at least another 18 months flat rates, then today looks like a good time to invest.
Capesize freight rates seem short-lived and were at the highest level since mid-2015. In November 2016, capesize freight rates saw spot earnings reached $16,000 per day. Capesize freight rates sparked due to higher commodity prices including iron ore, coking, steam coal, and following a reduction in Chinese stocks. Analysts expect spot rates of capesize bulk carriers to fall back below operating costs in the New Year essentially due to softer iron ore trade in Q1 2017 and more solid Chinese coal production has been narrowing coal import.
Indian Government’s commitment to ship recycling convention ratification which is provoked by compromises with Japan. India and Japan made the commitment to ratify the International Maritime Organization (IMO) Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). Hong Kong International Convention requires the backing of nations representing a proportion of world shipbreaking capacity to enter into force. Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC)’s shortage of support of recycling nations like India was seen as a possible stumbling block. Indian Government’s ratification will be representing more than 50% of the level required. Japan is encouraging notable overseas development compensation to promote India’s recycling industry.
Italian shipowner and operator D’Amato sold 2011 built handy bulk carrier 35K DWT MV Trading Fabrizia to a Greek shipowner for about $10 million.
Japanese shipowner and operator Daiichi Chuo Kisen sold 2011 built handy bulk carrier 37K DWT MV Ocean Hawk for about $10 million.
Korean shipowner Hanjin Shipping’s tankers, bulkers, and containerships will be sold or refinanced. According to Sale-and-purchase (S&P) market sources $500 million worth ships under the control of 9 banks: Korea Exim Bank, Korea Development Bank (KDB), Woori Bank and Shinhan Financial Group and five European banks. While dry bulk sectors sentiment rising and shipowners eyeing specific candidates in collapsed Hanjin Shipping’s fleet, some lenders may opt to dispose of their tonnage. Around $16 million suggested by Sale-and-purchase (S&P) market players for eco-ship kamsarmax dry bulkers 2012 built 82K DWT MV Hanjin Port Kamsar, MV Hanjin Hadong, MV Hanjin Rosario, MV Hanjin Paradip. Around $19 million suggested by Sale-and-purchase (S&P) market players for capesize bulk carriers 179K MV N Fos (ex MV Hanjin Fos), MV Hanjin Rizhao, MV Hanjin Dangjin, MV Hanjin Esperance.
Bankrupt Taiwanese shipowner Today Makes Tomorrow (TMT) has lodged a lawsuit against JP Morgan Chase over allegations about wrongfully failing to turn over the Today Makes Tomorrow’s cash. US federal court in New York civil complaint alleges that Today Makes Tomorrow (TMT) has been unable to regain access to at least $5.2 million of deposits at Royal Bank of Scotland (RBS) that were transferred to a JP Morgan account. In July 2007, Today Makes Tomorrow (TMT) deposited $5 million into the account and was transferred to a JP Morgan account for the benefit of Today Makes Tomorrow (TMT), according to legal papers filed by lawyers. New York-based lawyers say Today Makes Tomorrow (TMT) has demanded the return of the $5.2 million or, if it is no longer at the JP Morgan Bank, that JP Morgan provides information about its current location. Today Makes Tomorrow (TMT) also has asked for account statements for any cash held in the company’s name by JP Morgan.
Greek shipowner and operator Tri-Marine Shipping sold its last ship in fleet 2000 built panamax bulk carrier 75K DWT MV Capetan Tassos (ex M/V Amalia) for about $4.5 million to another Greek shipowner. In 2012, Tri-Marine Shipping bought MV Capetan Tassos (ex MV Amalia) for about $16 million. Greek shipowner and operator Tri-Marine Shipping sold 1997 built handymax bulk carrier 47K DWT MV Maria TL to a scrapyard for about $2 million.
Donald Trump is well-known antipathy towards trade deals and Iran sanctions may be eased. But the protection of domestic shipping under the Jones Act is expected to remain unchanged. Donald Trump protectionism on trade is more pronounced. Donald Trump’s victory also brings uncertainty to the domestic shipping policy. Donald Trump having a supportive secretary of transportation and maritime administrator is key for the health of the US-flag sector. Donald Trump’s stance on protecting US jobs and defense, the Jones Act is expected to be safe. Jones Act restricts shipping between US ports to vessels that are built-in domestic yards, crewed by Americans, and owned by a US company. Donald Trump campaign pledged to reduce the red tape and bureaucratic hurdles facing oil, natural gas, and coal projects in the US. This development potentially represents more cargoes for tankers and dry bulk ships heading out of the US, and may potentially represent a disruption of current trade flows as the US further reduces its dependence on seaborne oil from other countries. Donald Trump’s stance on fossil fuels could end up as a marginal plus for the US oil sector but it is far too early to draw any conclusions about what his victory will eventually mean to oil prices
Indian Sanmar Shipping sold 1996 built panamax bulk carrier 73K DWT MV Sanmar Paragon to Bangladesh scrapyard for about $3 million.
It is almost impossible for Korean Shipowner and Operator Hanjin Shipping to resurface despite it going under court protection. In the past some Korean dry bulk shipping companies that were protected by the court made a comeback and survive but Hanjin Shipping is a container operator and it will be difficult to come back. Shippers would not want to continue using a liner shipping company Hanjin Shipping that has collapsed. Liner operators like Hanjin Shipping operate differently from bulker operators because Liner operators have more customers, more ports to call and the volumes of cargoes vary. On
the bulker front, an embattled company can rely on long-term COA (contracts of affreightments)to turn things around. A containership company will have difficulty making freight income once it collapses. In 2015, Samsun Logix, Daebo International Shipping and
SW Shipping has also sought court receivership. Hanjin Shipping is the second liner company with Hyundai Merchant Marine and 5th largest Korean Shipping Company which was established in 1977.
Korean Hanjin Shipping filed for court receivership the first week of September 2016. Hanjin Shipping was set for a windup with assets returned to primary lenders, after state-owned secondary lender Korean Development Bank rejected the restructuring proposal devised by Morgan Stanley on the Korean Hanjin Shipping behalf. After the Korean Hanjin Shipping bankruptcy, 30 international banks are said to be exposed to the biggest lenders DVB Bank, ING Bank, DNB Bank, HSH Nordbank, Commerzbank, and Nord/LB. Unfortunately, these banks will have to take their ships back. Korean taxpayer will not support the shipping sector after all the problems with shipbuilding.
NewLead Holdings 2013 built handy bulk carrier 35K M/V NewLead Castellano sold at auction for $7.4 million. USA based MT Maritime Management’s (MTMM) dry bulk carrier arm Strategic Bulk Carriers SBC is the buyer of the vessel. After the auction, plaintiffs in two separate lawsuits that seized the handy dry bulk carrier are fighting over whether their cases should be combined now. DHL Project & Chartering has also filed a separate $14.3 million lawsuit.
Troubled Royal Bank of Scotland has more than $1.50 billion of dry bulk nonperforming loans in the shipping portfolio. According to the Royal Bank of Scotland, dry bulk has been mostly responsible for a near-trebling of the shipping loans and is considered to carry a 100% probability of default. Royal Bank of Scotland more than 15% of its current exposure to shipping debt around $8.7 billion. Royal Bank of Scotland is backed by the United Kingdom government. Royal Bank of Scotland attempted to sell all or parts of its shipping portfolio with help from investment bank Lazard. Royal Bank of Scotland’s current exposure of $8.7 billion, about $7.8 billion is assigned to new building vessels and shipyards.
Singapore based MSI sold 1998 built panamax bulk carrier 75K DWT MV Grand Sky to Chinese shipowners for about $3 million. Greek Kassian Maritime sold 1998 built panamax bulk carrier 75K DWT MV North Prince to Chinese shipowners for about $3.5 million. 1998 built panamax bulk carrier MV Jimei Funao (ex MV Jimei Funao) sold for about $2.5 million to Chinese shipowner Golden Hero Shipping. 1999 built 29K DWT handy bulk carrier MV Golden Lyderhom was sold to Chinese shipowners for about $3.5 million. Greek Sea Justice sold 1999 built panamax bulk carrier 73K MV Dong Jiang Li (ex MV Endless) to Chinese shipowners Tianjin Dong Shipping for about $3 million.
Greek Capital Management Services is trying to sell its last ship 1999 Japanese built panamax dry bulk carrier 74K DWT MV Salandi for around $3 million. MV Salandi is not due for a special survey (SS) until March 2019. Greek Capital Management Services is led by Leonidas Voyazides. In 2003, Capital Management Services acquired MV Salandi (ex MV World Rye) for about $20 million from BW Group. In 2014, Greek Capital Management Services the last ship sale was 1984 built handy bulk carrier 29K DWT MV Cleanthes for about $2.5 million.
Chinese shipowners and operators are showing an appetite for the late 1990s built panamax dry bulk carriers and vintage units. Last week, at least 6 panamax dry bulk carriers have been sold for trading, and 7 could soon follow.
Indian shipowner Mercator Line sold 2007 built panamax bulk carrier 74K MV Ganges (ex MV Gauri Prem) and 2001 built panamax bulk carrier 73K MV Yangtze (ex MV Prem Aparna).
Norwegian shipowner Kristian Gerhard Jebsen Skipsrederi sold eight (8) the 1990s built aframax 109K DWT Oil Bulk Ore (OBO) combined carriers. Kristian Gerhard Jebsen Skipsrederi sold 1996 built MV SKS Tyne and MV SKS Tana to Turkish shipowner Kardeniz Energy Group for $7 million each. Norwegian shipowner Kristian Gerhard Jebsen Skipsrederi is looking for ship buyers for other vessels for further trading.
Seoul based Hayne Shipping sold 1997 built panamax bulk carrier 73K DWT MV Evelyn Hayw for demolition in Bangladesh for about $3 million. In 2014, Korean shipowner Hayne Shipping bought MV Evelyn Hayw (ex MV Chang Sheng) for $7 million. Currently, Hayne Shipping has one more 1996 built handy bulk carrier 28K DWT MV Gloria Hayne in its fleet.
Norway DNB Bank is planning to appoint a new shipping chief for DNB Asia Ltd. Christos Tsakonas from Singapore, will take the position of current DNB Asia Ltd manager Vidar Andersen. DNB Asia Ltd has 15 employees in DNB Asia Ltd.
2010 built handy bulk carrier 27K DWT MV Qin Feng 318 was sold for about $2.7 million.
Japanese 1997 built handy bulk carrier 28K DWT MV Castle Island was sold for about $2 million. MV Castle Island is due for SS (special survey) in June 2017.
1997 built bulk carrier 18K DWT MV Moondy Bay sold at auction in Italy last week for about $1.8 million. Greek Antares Ship Management was the manager MV Moondy Bay. M/V Moondy Bay was arrested in December 2015 for financial debts and wages owing to crew members. Italian ship class RINA suspended the ship’s class in June 2015. Greek Antares Ship Management bought M/V Moondy Bay as M/V Bulk Sunset for about $4 million in 2013.
South Korean shipowner and operator Daebo International Shipping continues to reduce its fleet to two kamsarmax bulk carriers. Daebo International Shipping sold supramax 2007 built MV Maemi Pioneer for about $8 million. Daebo International Shipping has been under court protection since December 2015. In January 2016, Daebo International Shipping sold 2002 built 70K M/V Daebo Trader for about $5 million. In 2011, South Korean Daebo International Shipping owned a fleet of 11 bulkers which were acquired at the peak of the shipping market between 2007 and 2009. Daebo International Shipping was established in 1974 and operated a fleet of 35 vessels but currently having financial difficulties.
Singapore based cash ship buyer Wirana Shipping lost top legal advisor Shashank Agrawal. Shashank Agrawal will continue his career to assist shipowners for legal issues involving sale-and-purchase (S&P) and chartering activities. Shashank Agrawal decision might be triggered by the decline in the ship demolition market, due to the fall in demand for steel.
Greenship Bulk sold 2012 build supramax bulk carrier 63K DWT MV JS Meuse for around $12 million. In July 2016, Jacques de Chateauvieux led Greenship Bulk sold sistership supramax bulk carrier M/V JS Rhone for around $12 million. Norwegian Greenship Bulk has a fleet of 16 sister-ships which are operated by French Setaf-Saget.
Another lawsuit filed against 2012 built bulk carrier 25K DWT MV Bulk Rose which is still under arrest in India since last October. Indonesian marine supplier Gamarends has been claiming $55K against MV Bulk Rose. 2012 built bulk carrier 25K DWT MV Bulk Rose is owned by Turkey-based shipowner Deniz Endustrisi. Deniz Endustrisi might abandon the bulk carrier which has a market value of around $6 million. Indian Gujarat Maritime Board set to take under the hammer in the forthcoming weeks.
Netherlands based shipowner and operator Wagenborg sold 1996 built multipurpose (MPP) bulk carrier 9K DWT MV Keizersborg for about $2 million.
Lorentzen Skibs has been expanding its fleet with acquisitions of both dry bulk carriers and containerships in Q12016. Five (5) ships have been bought by KS (limited partnership) companies. Lorentzen Skibs has also bought 2002 built supramax bulk carrier 52K DWT MV Anna. Generally, CEO Nicolai E Lorentzen takes around a 20% stake in the company’s projects. Furthermore, Lorentzen Skibs will acquire three (3) supramax bulker carriers and two (2) containerships.
Oslo Shipbrokers in profit in 2015 despite the slowdown in the newbuilding market. Norwegian privately-owned shipbroker reported a pre-tax profit of $1.8 million in 2015. Oslo Shipbrokers CEO Paal J Norenberg finds the result satisfactory. Paal J Norenberg says that 2016 will be more challenging due to the late payment of commissions. CEO Paal J Norenberg holds 40% Of the shares in the Oslo Shipbrokers. Oslo Shipbrokers was set up in 1987 by 7 shipbrokers. Oslo Shipbrokers specializes in newbuilding and sale-and-purchase (S&P).
Pankaj Khanna led Pioneer Marine in a loss in Q2 2016. Pioneer Marine canceled two (2) new-buildings at Chinese Shipyard. Pioneer Marine. Pioneer Marine reported a loss of $6.7 million in Q2 2016 including cancellation fees at Chinese Yangzhou Guoyu Shipyard. Pioneer Marine looking for more opportunities in the second-hand market for bigger dry bulk carriers. Pioneer Marine total revenue dropped to $7.1 million due to time charter equivalent dropped to $5,070 per day.
Greek shipowner and operator Efploia Shipping’s 2010 built kamsarmax dry bulk carrier 81K MV Maverick Gunner was detained in Singapore due to unpaid services. In 2010, MV Maverick Gunner was built in the Korean STX Shipyard. Greek Shipowner Efploia Shipping has a fleet of modern three kamsarmax bulk carriers M/V Maverick Genesis, M/V Maverick Guardian, and M/V Maverick Gunner.
India Cements Ltd (ICL) sold 1983 built 41K DWT handymax bulk carrier MV Chennai Jayam to Bangladesh Scrapyard for $290 per ldt. In 2007, India Cements Ltd (ICL) bought MV Chennai Jayam (ex M/V Effy N) for $30 million from Greek Shipowner AM Nomikos. India Cements Ltd (ICL) fleet has 2001 built 52K DWT MV Chennai Selvam. India Cements Ltd (ICL) will focus on spot chartering ships to transport coal and limestone to India.
Thailand’s Wong Samut Navigation’s general cargo ship 1980 built 8K DWT MV Bangsrimuang was sold to Bangladesh ship scrapyards. Bangladesh Shipping Corp’s 1980 built 17K DWT MV Banglar Kallol was sold to Bangladesh ship scrapyards. GMZ Ship Management sold 1985 built handy bulk carrier 28K DWT MV Arwad Tower to Pakistan ship scrapyards. RK Shipping & Trading of Singapore’s sold 1990 built 7K DWT MV Jai Krishna to India ship scrapyards.
ACT Shipping started Indian Coastal Shipping with 1997 built handy dry bulk carrier 30K DWT M/V Propel Progress. Due to Indian Government initiatives to promote coastal shipping in India. In April, M/V Propel Progress loaded steel cargo at Paradip India and discharged at Mumbai India. In order to promote Indian Coastal Shipping, Mumbai port has reserved 2 berths exclusively for coastal ships besides a 40% discount on Port DAs.
NewLead Holdings’ 1990 built 135K DWT small capesize bulk carrier M/V NewLead Castellano was arrested off Savannah USA in April 2016. No detentions found and no crew wage complaints on M/V NewLead Castellano. USA based Ray is trying to recover $1.6 million it claims is due on $6 million in convertible promissory notes that it took in 2013 from Tiger Capital. NewLead Holdings is putting up $7 million in security to release M/V NewLead Castellano.
Republic of Iran Shipping Lines (IRISL) orders worth close to $2.5bn at South Korean shipyards. Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI) and Daewoo (DSME) top managers recently visited Iran in order to talk with Iranian leaders. Memoranda of Understanding (MOU) signed with Tehran officials for offshore vessels, mega-containerships and handysize bulkers. Republic of Iran Shipping Lines (IRISL) has made an agreement with Hyundai Mipo Dockyard (HMD) to build 10 handysize products tankers and 6 handysize bulkers and 3 pieces 14,500 TEU containerships at Korean Shipyards. Republic of Iran Shipping Lines (IRISL) sister company Iranian Offshore Oil Co ordering 5 jack-up rigs worth more than $200m each at Daewoo (DSME) Shipyard. Republic of Iran Shipping Lines (IRISL) is in talks with medium-size Korean yard SPP Shipbuilding to convert 10 handysize bulker new-buildings into an equal number of medium-range (MR) tankers.
Due to higher iron and steel prices pushed upward trend in capesize bulk carrier spot rates in the first quarter of 2016, dry bulk shipping should remain cautious about speculative housing boom in China and economic growth signals. It is obvious that China’s housing boom is more speculative than substantial. Mostly, the housing boom and housing price gains inexpensive high rise buildings in big cities. In order to lower the steel demand, China’s government would tighten the credits. Steel prices almost entirely government-driven instead of market-driven demand. Underperforming loans in China are still a major economic risk. Furthermore, the Chinese economy is not growing steadily with consumers’ demand. China’s heavy industries and shipbuilding is another major problem. China’s socialist government might withdraw support for inefficient domestic miners that could trigger Brazilian and Australian iron ore imports. China’s coal imports also affect the dry bulk shipping market. Coal imports are in long-term decline due to the greater use of natural gas. Predicting that coal will continue to maintain a negative trend and so on dry bulk shipping. Chinese government’s agricultural policy is unclear. China has been the biggest consumer of surplus grain produced in the US and Europe. China’s government wants to favor domestic grain production. In sum, all these factors in commodities markets affect freight rates. The dry bulk shipping market will soon find a proper equilibrium point for demand and supply.
Oaktree Capital Management sold 2006 Chinese built handymax bulk carrier 50K DWT MV Neer for $3.6 million.
A maritime Law firm based in the USA, Vedder Price, move into Far East Singapore. Vedder Price New York partner Ji Woon Kim will lead the new setup and begin recruiting new staff in both maritime and aviation. Vedder Price has grown into the maritime sector as part of a geographical expansion from its home base of Chicago, USA. Vedder Price is active in transport, corporate, and employment law.
Troubled Indonesian shipowner and operator PT Meranti Bahari is losing control of handysize bulk carrier 27K DWT MV Kenanga which will be sold at public auction in Cape Town. MV Kenanga was arrested in January 2016 by STX Marine Services Co for outstanding ship management fees. Indonesian shipowner and operator PT Meranti Bahari operates 3 handysize and 3 panamax bulker carriers. Company’s many ships are under arrest while PT Meranti Bahari was seeking cash to settle debtor claims and crew wages. In December 2015, PT Meranti Bahari filed for bankruptcy protection to survive in Indonesia Jakarta Central Court in January 2016. PT Meranti Bahari was granted protection in Indonesia which is similar to a Chapter 11 filing in the US. PT Meranti Bahari’s other 1995 built panamax bulk carrier 75K DWT MV Kayu Ramin is under arrest in Dubai. PT Meranti Bahari’s 69K DWT MV Kayu Putih and 27K DWT MV Mahoni have been idle in China and waiting for enough money to undergo surveys and drydocking.
Seth Glickenhaus was a believer in the dry bulk shipping story that saw so many owners go public in New York between 2004 and 2007. Seth Glickenhaus was a link to the old days and old ways of Wall Street underpinned by experience that stretched back before the stock market crash of 1929. Seth Glickenhaus was a believer in the dry bulk sector and his dry bulk investments came in New York’s Eagle Bulk Shipping which he placed a $12 million order in 2006. The dry bulk shipping market is full of freshly-minted junior analysts who were new to shipping but Seth Glickenhaus was an experienced gentleman who was a macro guy who looked the world from a different perspective.
Greek Phoenix Energy Navigation sold its two oldest baby cape size bulk carriers to Indian shipowners. Korean Daewoo 2003 built baby cape size bulk carriers 104K DWT MV Phoenix Alpha and MV Phoenix Beta sold for $20 million each. Greek Phoenix Energy Navigation bought both bulk carriers in 2004 for $53 million each as M/V Finesse and M/V Felicity. In January 2016, Greek Phoenix Energy Navigation bought cape size bulk carrier built 2005 176K DWT MV Maritime Power (ex M/V Nord Power) from Dampskibsselskabet NORDEN A/S for $12 million.
Loss-making fixtures causing shipbrokers to work for a discount in a dry bulk market where both shipowners and shipbrokers would be suffering together. In the current depressing market, shipbrokers are still providing the same services and information as in a peak dry bulk market. Shipbrokers comment “fixture below operating expenses is better than no coverage at all”. The discounting for shipbrokers services from 1.25% to 1% is said to be particularly widespread in the Far East. Big players, including Chinese State-Owned Enterprises prefer not to use shipbroker services and deal directly with charterers.
ABYO is a new joint venture between Augustea Bunge, York Capital Management, Oceabulk. New joint venture ABYO bought one (1) panamax and one (1) cape size bulk carrier. ABYO bought 2006 built panamax bulk carrier 82K DWT MV ABYO Oprah and 2011 built cape size bulk carrier 175K DWT MV ABYO Audrey.
Last two remaining Greek shipping companies are leaving the London Stock Exchange. Goldenport Holdings and Hellenic Carriers are planning to take their publicly listed companies to private. Dry bulk shipping markets have been historical deep conditions as the main reason for their leaving. London may be a very big center for shipping services but, unfortunately, not for shipping investment like New York.
Allianz reported that concerns increased in the number of ship losses and casualties likely be caused by the cuts made by shipowners to operating standards due to the financial difficulties. Ship maintenance has already being stretched to the longest possible intervals. Cold layups might cause further unexpected problems when vessels return to the shipping market that has moved on to new technologically. Especially seafarers might confront with many risks.
Japanese Daiichi Chuo Kisencan can repay a fraction of its debt to creditors $1.79 million. Kurushima Dock which is a subsidy of Daiichi Chuo Kisen is also understood to be supporting the rehabilitation plan.
Kristian Gerhard Jebsen Skipsrederi sold OBO (Oil Bulk Ore Carrier) 110K DWT MV SKS Tana built 1996 to Turkish shipowner for $7 million was mainly used as a tanker. OBOs phasing out gradually from the market.
Italian shipowners will soon mass flag-out if Italian laws are imposed restricting the use of cheap foreign crew instead of the Italian and European Union (EU) crew. 600 ships will be forced to leave the Italian registry if the new laws are enacted. 13,000 seafarers will lose their jobs after flagging out.
Panamax bulker sale is evidence of strong buying interest in the sector and a leveling off asset prices after heavy falls. This week some panamax and kamsarmax bulk carriers changed ownership. Ship sale and purchase (S&P) shipbrokers say the unusually high interest in today’s market is due to the fact that some shipowners are simply testing the market. MV FD Isabella, MV Sadan K, MV Zeynep K, MV Tenshin Maru, MV Tensei Mara, and M/V Triple were sold this.
Norway’s KG Jebsen family is selling 2012 built supramax bulk carrier 53K MV Anne Kjersti for around $9 million. MV Anne Kjersti was built in 2012 at Ha Long Shipyard in Vietnam. MV Anne Kjersti is managed by KGJ Cement which is owned by Hans Peter Jebsen. M/V Anne Kjersti was trading as a conventional supramax bulk carrier but converted into a cement carrier.
Greek shipowners have pushed fleet number more than 4,100 ships in 2016 which is representing 16% of the world fleet in Deadweight Tonnes (DWT) terms around 320 million DWT. In 2016, Greek shipowners have 347 new ship orders.
Confirmation of 30 more Valemax 400K DWT, i.e. $85 million per ship, bulkers shows China intends to enforce control of the iron ore freight market. For the next ten years, there is no chance of a spike in profits for capesize owners like in 2005. 30 Valemax mega bulkers will be built at Chinese domestic yards to carry iron ore from Brazil to Chinese mills. Order total $2.55 billion. China’s long term strategic aim of carrying 50% of its seaborne trade on its own vessels.
Norwegian war risks mutual Den Norske Krigsforsikring for Skib (DNK) fully covers Iran without the risk of claims going partially unpaid. Oslo based DNK has decided to bridge any gap in cover, so can provide full regular cover for legitimate trade to Iran.
Erasmus Invest chartered out most of its fleet to commodity companies majors for the long term. The next ship to come up for charter renewal will be in 2017. Erasmus Invest fleet consists of 1 ultramax, 7 panamax, and 1 kamsarmax bulk carriers.
From Athens to London, Europe is facing a crisis of confidence in shipping. Athens’ claims that its shipping sector deserves special treatment and tonnage tax policy. The threats of the Union of Greek Shipowners (UGS) that its members will quit Greece and head to Asia if Brussels drives a hard bargain on the tonnage tax will carry some weight.
Australian bulker 1998 built handysize bulk carrier 36K DWT DWT M/V Portland (built 1988) involved in an acrimonious crewing row between unions, employers and the government is sailing into a fresh controversy over where it should be demolished. Environmental recycling lobby group NGO Shipbreaking Platform says that Australia is a signatory to the Basel Convention on Transboundary Movement of Hazardous Waste and that since it is an Australian-flagship operating in the Australian cabotage trades it should be demolished in line with the convention. Under Basel Convention‘s ban amendment, the owner, Alcoa Australia, is obliged to dispose of the bulker at another OECD member country and none of the mainstream ship recycling nations (Bangladesh, India, Pakistan) with the exception of Turkey, are members of the OECD.
MV El Fara sinking has revealed a potential weakness in the oversight of US programs that delegate the US Coast Guard (USCG)’s authority to carry out flag-state inspections and plan approval.
New Panama Canal Pilots had previously complained of plans for two-way traffic of post-panamax ships of up to 49 meters beam in the Culebra Cut, the narrowest area of the canal. Londor Rankin, who became secretary-general of the Panama Canal Pilots Association in January, says the union still has some concerns, particularly with regard to the prospect of the first LNG carriers to transit the canal.
Top protection and indemnity (P&I Clubs) plan to join forces to create a superclub that would be bigger than the current market leader Gard. Britannia and UK clubs are in merger talks. Britannia and UK clubs confirmed they are in discussions with the aim of creating a world-beating mutual. Currently, there are 13 International Group P&I Clubs.
Hadley Shipping sold 2001 built panamax bulk carrier 73K DWT MV Cymbeline for $3.3 million. The buyer has not been identified. Last month, M/V Cyrnbeline began a six-month charter to Denmark’s Norden Shipping at $5,250 per day. MV Cymbeline sale price is marginally above the panamax bulk carrier’s scrap value.
Dry Bulk Shipping market could even worsen in 2016 as India’s increasing self-sufficiency in coal defies. The oversupply of dry bulk tonnage is well known, with this year seeing the daunting prospect of 173 capesize, 199 panamax, and 554 handymax bulk carrier new-buildings are entering in and trading at all-time lows. The growth predictions for the five main dry bulk cargoes – iron ore, coal, grain, soya beans, and other minerals add up to zero. In 2015, seaborne trade in the five main bulk car-goes aggregated 3.1 billion tonnes. That level is expected to stagnate in 2016. Nor do things look much better for the minor bulk trades, which the broker estimates are expected to grow by just 2% in 2016. All eyes have been on China’s iron ore imports, which are set to fall by 2% this year in line with the country’s declining steel production.
Turkish shipowner Gulnak Shipping has acquired supramax M/V Gulluk (ex M/V Karavadosthe) for $5.5 million from Neda Maritime Agency. Greek shipowner, Neda Maritime Agency sold 2002 built supramax bulk carrier 51K DWT M/V Gulluk (ex M/V Karavadosthe) in December to Gulnak Shipping.
Sale and Purchase Shipbrokers are reporting this week that Hanjin Shipping has sold 2004 built handysize bulk carrier 33K DWT M/V Great Dream to Vietnamese shipowner for $4.8 million. Shipping market sources describe this as a new low for handysize values, with one noting that vessels of a similar size and age fetched higher prices even after the 2008 market collapse. Handysize prices have been in steady decline since January 2015, when the M/V Great Dream would have been worth $13 million. Hanjin Shipping acquired M/V Great Dream from Cido Shipping in 2011 for about $22 million. Market observers expect that values for handysize will continue to decline, as there are few fundamentals that point to any improvement in earnings in the foreseeable future. Dry Bulk Shipping outlook is dire.
1985 built handysize bulk carrier 27K DWT M/V South Star has been severely damaged by an accommodation block fire in Vietnam, at anchorage in Tonkin Bay northeast of Haiphong. M/V South Star is owned by Tuan Huy Shipping. Severely damaged M/V South Star was extinguished after two hours and no injuries were reported.
American TOTE Maritime’s sinking M/V El Faro case claims reached $20 million. M/V El Faro case cargo claims total includes nearly $13.8 million in potential claims that New York law firm Nicoletti Hornig & Sweeney has indicated it will file in the Jacksonville federal court on behalf of Starr Indemnity & Liability, Zurich American Insurance, Pfizer Pharmaceuticals, and others. Settlements with family members of 10 crew members will be adding $5 million. After the loss of the M/V El Faro 5,330 lane meter (built 1975), that sank off Crooked Island, Bahamas, after it lost propulsion and was beset by Hurricane Joaquin in the deadliest US-flag casualty in decades, BMW taking steps to lodge an insurance claim.
Besides coal and iron, seaborne grain markets may provide little comfort to failing dry bulk companies. Worldwide grain surplus has sent export shipments falling to three-year lows. Senior Economist Jay O’Neil explained that there are too many ships and not enough demand from the grain trade. US Department of Agriculture (USDA) estimates world grain stores stand at 3.027 billion tonnes and estimated world trade for 2015/2016 to be at 361 million tonnes. Senior Economist Jay O’Neil explained that US soybean exports to China have remained healthy but corn and wheat exports are lagging and likely not going to meet current projections. Freight rates reflect that weakness. Supramax rates from the US Gulf to China and south Japan destinations have fallen from $19,800 per day in August 2015 to $8,000 per day as of January. Besides the USA there is growing competition from other exporters like Argentina. Argentina’s combination of a devalued currency and relaxed export duties cut a soybean export tariff and several crop taxes, brightened Argentina’s export outlook