Dr. Roar Adland, the head of research at London’s leading shipbroker, Simpson Spence Young (SSY), has issued a cautionary statement regarding the weather patterns for capesize bulk carrier owners. A shift between El Nino and La Nina weather cycles could significantly impact the dry bulk carrier sector. Dr. Roar Adland has expressed concerns over the forthcoming weather forecasts, which appear to be less than favorable for the shipping industry, particularly for owners of capesize bulk carriers. He highlighted that the transition from El Nino to La Nina this year poses potential challenges for the capesize bulk carrier market, as detailed by Simpson Spence Young (SSY)’s research chief. These weather phenomena, part of the El Nino-Southern Oscillation (ENSO), lead to major shifts in Pacific Ocean sea-surface temperatures. El Nino generally supports demand for seaborne dry bulk commodities, whereas La Nina tends to dampen it. As a result, the bulker market might experience significant changes in the coming months, Dr. Roar Adland elaborated. 10-April-2024
Simpson Spence Young (SSY), a premier shipbroker based in London, is intensifying its focus on ship finance by bringing on board a new executive in China. The firm is keen on tapping into the Chinese market, with a particular emphasis on ship leasing operations. To spearhead this initiative, SSY has appointed banker Terry Chen as the leader of its newly established ship finance desk in Shanghai. Terry Chen will assume the role of head of ship finance, marking him as the third addition to the team within a year, and his tenure begins immediately. In a move to strengthen its ship finance division, Simpson Spence Young (SSY) recently welcomed the renowned shipping banker Ali Susanto as the global co-head of ship finance, serving alongside Jarl Magnus Berge, who became part of Simpson Spence Young (SSY) in August 2023. 28-March-2024
Simpson Spence Young (SSY), a premier shipbroking firm in the United Kingdom, is expanding its presence in the commodities market by establishing a specialized agricultural derivatives sales and execution division. Based in London, Simpson Spence Young (SSY) announced that this new section within the Simpson Spence Young (SSY) Futures Commodities Division will primarily concentrate on derivatives related to grains, oil seeds, and soft commodities initially. Leading the operation of the Simpson Spence Young (SSY) Futures Commodities Division will be Andrew Rechten, a seasoned expert in commodities, alongside Francois Churland and Owen Scrimgeour as agricultural experts, who are joining the team as well. With a history of holding high-level positions at prestigious firms like Merrill Lynch, JP Morgan, and Macquarie, Andrew Rechten brings significant experience to the table. “Expanding our commodity derivatives portfolio is crucial for providing our clients with access to a comprehensive range of commodities,” stated Jamie Pearce, a partner and the global head of Simpson Spence Young (SSY) Futures. Simpson Spence Young (SSY), which transitioned to its current name from Simpson Spence Young in 2023 after a legacy spanning 143 years, has 24 offices worldwide. The Futures division of Simpson Spence Young (SSY) initially focused on freight markets but has since broadened its scope to include iron ore, coking coal, steel, base metals, battery materials, and carbon. 5-March-2024
Capesize bulk carrier rates experienced a significant surge, climbing over 10% on the Baltic Exchange just yesterday, nearing the $30,000 per day threshold. This increase is largely attributed to the robust shipments of iron ore from Brazil to northern China. Additionally, Forward Freight Agreements (FFAs) are showing promising figures, with March 2024 contracts exceeding $30,000 per day and the average FFA rate for the rest of the year maintaining above $28,000 per day, and surpassing $20,000 for the entirety of the following year. The performance of capesize bulk carrier spot rates is exceeding expectations, especially noteworthy given the usual first-quarter seasonal downturn. The outlook for capesize bulk carriers is optimistic, as highlighted by Simpson Spence Young (SSY), a leading shipbroking firm, which anticipates a 3.3% increase in capesize bulk carrier tonne-mile growth for 2024, compared to a forecasted fleet growth of just 1.3%. The Atlantic market is primarily fueling this remarkable and somewhat unexpected performance, driven by a lack of vessel availability in the Western Hemisphere. Should the capesize bulk carrier market follow its typical seasonal trends in 2024, earnings for January and February are expected to be about 50% of the yearly average, with peaks in October reaching approximately 140% of the annual average. The market volatility observed in 2023, particularly in the latter months, underscores the delicate balance of the dry bulk sector, especially for capesize bulk carriers. The strategic positioning of the fleet will be crucial in shaping this year’s market dynamics, and monitoring the number of ships heading towards the Atlantic could provide valuable insights into potential market spikes. The current optimism is also evident in the capesize bulk carrier Sale and Purchase (S&P) market, where there’s been a noticeable increase in the volume of transactions involving capesize and newcastlemax bulk carriers, significantly surpassing typical levels. The secondhand ship market is witnessing a momentum gain, with the capesize sector in particular seeing a surge in both prices and sales activities, reaching heights not seen in recent years. The value of capesize bulk carriers aged five, ten, and fifteen years has escalated by 18%, 27%, and 23%, respectively, marking the highest value increase in the past five years. This buoyant mood is fostering a dynamic sales environment, with 55 capesize bulk carriers being sold between October 2023 and February 2024. 1-March-2024
In the final days of January, a court in Hong Kong mandated the dissolution of Evergrande Group, marking the culmination of a two-year period marked by financial turbulence as the firm struggled with its debt repayments. This event highlights the economic difficulties confronting China, given the significant role the real estate sector plays in the national economy, accounting for roughly 25-30% of China’s GDP and about a third of its domestic steel consumption. Despite this, or perhaps as a result, shipbroker Simpson Spence Young (SSY) maintains a positive outlook on China’s steel industry for the coming year, a stance that diverges from the majority of macroeconomic forecasts. This optimism is partly due to the ongoing adjustment in China’s property market for nearly four years, reducing its size in comparison to other sectors that stimulate steel demand — from about 40% of domestic steel consumption in 2020 to an estimated 33% in 2023. Moreover, other industries such as automobile production, shipbuilding, infrastructure, and manufacturing have demonstrated robust growth throughout 2023, with continued support from Chinese policy makers into 2024. Regarding coal, Simpson Spence Young (SSY) anticipates a decrease in China’s imports for the year but expects increased demand from India and Southeast Asia to compensate for this reduction, maintaining global coal trade at current record highs. Dr. Roar Adland and his team at Simpson Spence Young (SSY) project a moderation in overall dry bulk ton-mile demand growth to 2.7%, aligning closely with their forecast for fleet supply growth at 2.6%. In contrast, BIMCO (Baltic and International Maritime Council) projects a modest increase in cargo demand for the dry bulk sector, ranging from 0-1% in 2024 and 0.5-1.5% in 2025, with average sailing distances expected to extend by 0-1% in both years. BIMCO (Baltic and International Maritime Council) also predicts a shift in cargo composition, with a potential decrease in coal shipments and an increase in iron ore, bauxite, and grain shipments from regions like South America and Guinea, known for their longer haul distances. The critical issue is whether the improved rates for larger vessels will influence the rates for smaller vessels, either elevating them or being limited by them. BIMCO (Baltic and International Maritime Council) warns of a slight weakening in the supply/demand balance in 2024, stabilizing in 2025, with supply growth estimated at 1-2% and demand growth at 0.5-1.5% in 2024 and 1-2% in 2025. BIMCO (Baltic and International Maritime Council) anticipates the dry bulk market over the next two years to mirror the conditions of 2023. Analyzing individual size segments, Simpson Spence Young (SSY) projects a stronger tonne-mile growth for capesizes at 3.3% compared to a fleet growth of 1.3% in 2024. Panamax bulk carriers are expected to see a 4.2% tonne-mile growth against a 2.7% fleet growth, whereas geared vessels face a higher fleet growth of 4.1% with only a 1% increase in tonne-mile demand. The significant focus areas for 2024 in shipping include the Suez and Panama Canal diversions, which have notably impacted global dry bulk trade, especially with the recent influence of El Niño. Peter Lindström from Torvald Klaveness estimates a 2.6% increase in dry bulk utilization this year, with a specific 3.3% rise for the panamax sector. A bullish outlook is further supported by capesize bulk carrier spot rates reaching 15-year highs for this period, driven primarily by the Atlantic market’s performance, attributed to a shortage of vessels in the western hemisphere, as noted by Breakwave Advisors. They foresee a persistently strong spot market. Simpson Spence Young (SSY) concludes by reiterating the significant question of whether the higher rates and market sentiment for larger ships can influence the smaller vessel market, leaning towards a fundamental perspective that suggests a cap, although recent market dynamics indicate a potential for positive sentiment to boost rates across the spectrum. 22-February-2024
According to Simpson Spence Young (SSY), one of the leading shipbroking firms, there’s an impending battle among shipowners for the acquisition of modern vessels due to limited availability. Toby English, a prominent shipbroker at Simpson Spence Young (SSY), maintains an optimistic stance, highlighting the sustained demand for secondhand tankers and bulkers. Toby English anticipates that the quest for older tonnage will remain robust. English suggests that this intense demand will spark vigorous competition in the secondhand market as shipowners vie for available tankers and bulk carriers. In Simpson Spence Young’s (SSY) outlook report for 2024, the firm expresses a bullish forecast for the sale-and-purchase (S&P) and newbuilding orders sector. Simpson Spence Young (SSY) points out the strong market demand for modern eco-friendly tonnage across all sectors, combined with the constrained capacity for newbuilding, is expected to drive fierce competition for the scarce tonnage available on the market. 2-February-2024
Leading shipbroker company Simpson Spence Young’s (SSY) commodities arm, SSY Futures, has facilitated the largest-ever trade in iron ore futures. The transaction involved rolling a 5 million tonne position from a 2023 prompt date to 2024, resulting in a total futures volume of 10 million tonnes. The trade included counterparties from both the physical and financial markets and was cleared by the Singapore Exchange. This significant trade is seen as an important milestone in the evolving iron ore futures market, reflecting increased activity and interest among clients in trading large blocks of futures contracts. Jamie Pearce, global head of derivatives at Simpson Spence Young (SSY), emphasized the market’s ongoing development. 21-November-2023
Leading shipbroker company Simpson Spence Young (SSY) acquired seven (7) tanker shipbrokers from rival shipbroker company Lightship Chartering in a new office in Genoa, Italy. Stanko Jekov-led Simpson Spence Young (SSY) resumes the growth of the company’s global network by opening a new office in Genoa, Italy. Simpson Spence Young’s (SSY) Genoa office will be opened in Q3 2022. Simpson Spence Young’s (SSY) Genoa office will concentrate on dry bulk carriers and tankers. Simpson Spence Young (SSY) declared that several shipbrokers from a local shipbroking firm will join the team at its new Genoa office. Currently, the leading shipbroker company Simpson Spence Young (SSY) is one of the top ten (10) shipbrokers in the world and has many international offices. Simpson Spence Young (SSY) is very comfortable to be establishing a base in Genoa and continuing to expand Simpson Spence Young (SSY) Dry Cargo division. At the beginning of 2022, Simpson Spence Young (SSY) extended the company’s global network with the acquisition of Anchor Shipbroking in Athens. Simpson Spence Young (SSY) is on the hunt to hire other shipbrokers. Anchor Shipping has been merged into the new office that Simpson Spence Young (SSY) opened in Athens. In July 2022, Simpson Spence Young (SSY) confirmed that the company has appointed three senior tanker shipbrokers from rival shipbroker Charles R Weber in the USA. Simpson Spence Young’s (SSY) shipbroker hire approach might sound unethical in the shipping community. In June 2022, Simpson Spence Young (SSY) appointed three (3) handysize shipbrokers in Singapore from Simpson Spence Young’s (SSY) rival Maersk Broker Bulk Chartering. Currently, Simpson Spence Young (SSY) employs about 400 shipbrokers worldwide. 12-August-2022
Simpson Spence Young (SSY) stated that 2021’s rising coal prices drove an impressive ride to raise inventory ahead of what is presumed to be a difficult winter in China. According to Simpson Spence Young (SSY), coal, controls, and queues are expected to develop the dry cargo market in the upcoming months. Simpson Spence Young (SSY) stated that the strength of the steam coal price displayed a trade negative from the point of view of demand loss, due to power rationing, and government interferences to propose a range of price caps and conflicts with domestic mining companies, which have led to buyers avoiding from coal acquiring. Simpson Spence Young (SSY) stated that the ensuing silence in coal acquiring activity sustained to pull delivered prices of imported coal and non shipped coal prices. Simpson Spence Young (SSY) stated that steel fundamentals in China have been worsening since mid-2021, with the prospect of China Evergrande concerns. According to Simpson Spence Young (SSY), the Chinese government’s attempts directed at fighting winter air pollution in areas of North China, steel production controls were supposedly introduced in mid-2021 and aimed to limit full-year output at 2020 levels. The effect on possible steel consumption has been dramatic. Steel demand has collapsed by 28% to 68 million tonnes by October 2021. Widespread limitations on steel production and iron ore sintering during Q1 2022 have already been published, which threaten steelmaking raw material demand and affect the capacity for mills to lift output once 2021 limitations expire. Furthermore, Simpson Spence Young (SSY) stated that the number of laden capesize bulk carriers waiting to berth has decreased. Generally, a decline in steel production has negative indications for seaborne iron ore and coking coal trades, though scrap-fed electric arc furnaces, which comprise 9% of 2020 crude steel production in China, face higher energy costs than iron ore and coking coal-consuming blast furnaces. 16-November-2021
Simpson Spence Young (SSY), a leading London-based shipbroker, is making a strategic move into the energy derivatives market by hiring James Whistler, a seasoned energy broker from BGC Partners. This initiative marks Simpson Spence Young’s (SSY) intent to broaden its scope into the energy sector, with a keen focus on liquefied natural gas (LNG). James Whistler, who brings 18 years of experience in LNG and crude oil markets, has been appointed as the head of energy derivatives at SSY Futures in Singapore, a key location that complements Simpson Spence Young’s (SSY) existing presence in New York and London. Whistler’s role will encompass covering the gas and power markets, providing clients with solutions to manage their physical energy risks effectively. This addition is part of Simpson Spence Young’s (SSY) broader strategy to enhance its service offerings in freight, iron ore, coking coal, and steel, and to make a significant entrance into the rapidly evolving energy sector. Mark Richardson, Simpson Spence Young’s (SSY) chairman, expressed enthusiasm about this venture, highlighting the importance of LNG in the global energy mix and the potential for SSY to leverage its shipping expertise in new markets. Furthermore, Simpson Spence Young (SSY) is bolstering its LNG capabilities with additional hires in Asia and plans for expansion in London. Toby Dunipace, who leads the LNG department at Simpson Spence Young (SSY), announced the recruitment of Scott Leong, a former BW LPG employee with a strong background in projects and newbuildings, to operate from Singapore alongside shipbroker Josh Choo. In another strategic expansion, Simpson Spence Young (SSY) announced the opening of a new office in Dubai, focused on bulker chartering. This new base, set to commence operations in November under the leadership of Manish Pamecha, formerly of Maersk Broker in Dubai, signifies Simpson Spence Young’s (SSY) commitment to extending its global footprint. With this addition, Simpson Spence Young (SSY) now operates 21 international offices, with its dry cargo department active in 18 of these locations, offering comprehensive shipbroking services for dry bulk shipowners and charterers. This global network underscores Simpson Spence Young’s (SSY) position as a formidable player in the shipbroking industry, poised for growth in both traditional and emerging markets. 20-November-2019
Simpson Spence Young (SSY) published a new office in Dubai. Simpson Spence Young (SSY) recruited Maersk Broker’s Dubai chief for the new chartering office. Simpson Spence Young’s (SSY) new Dubai office will be led by Manish Pamecha. Currently, the leading shipbroker company Simpson Spence Young (SSY) is one of the top ten (10) shipbrokers in the world has 21 international offices. Dubai became a maritime business hub for many shipbrokers. The London-headquartered Simpson Spence Young (SSY) could make additional hires in the future. 8-October-2019