Allied Weekly Market Report - Hellenic Shipping News · 2019. 10. 29. · same time the windfall...

1

25 Oct ±∆ ±%BDI 1,801 q -54 -2.9%

BCI 3,009 q -55 -1.8%

BPI 1,695 q -145 -7.9%

BSI 1,187 q -35 -2.9%

BHSI 631 q -20 -3.1%

W-O-W change

Taking a focused look at the dry bulk and tanker sectors, characterizing the chain of

events that have transpired during 2019 as “bizarre” would be a polite term to say the

least. Even though we still have two months to go before the close of the year and

from experience being yet too early to say whether we have seen all that one can see,

it is as good time as any to tale a quick look as to where we stand right now.

After a 9-month period, in which we witnessed both long term highs and lows, the dry

bulk sector seems to be currently enjoying maybe the most stable month since the

beginning of the year. This is all measured using the relative standard deviation metric

for the BCI-5TC and BPI-TCA figures, which are currently in the region of 4% for the

October. Given that earlier in the year, we were seeing 31% and 25% respectively, we

may well say that the market is currently moving in the “correct” direction (towards a

more stable trajectory at least!). Furthermore, given the recent trends noted in freight

rates and given that year-to-date average of the BDI being slightly below that of the

year prior, it seems possible we will be right on time to finish overall with a year that

will be showing positive gains. This is as far as we can go for the time being, given the

lack of direction currently being portrayed in the market.

The tanker sector, on the other hand, was holding back a positive surprise for the end.

Once again, we learned, in an emphatic way, why supply-demand dynamics are "king".

In the mere idea of a potential tonnage shortage playing out, the market reacted

quickly and firmly, pushing freight earnings to extreme highs in just a few days. De-

spite having seen quick movements in different market indices in the past (mostly on

the negative side), this upward short-term rally, is rare, even for the shipping industry.

So, what changed in the market? The range from top to bottom for the year in TCE

figures for VLCCs is more than 5 times higher than that of 2018, while the respective

range for TCE figures for Suezmaxes is more than double. The point of using this

range metric is that it is a good measure for volatility, indicating fairly quickly to any

shifts year-on-year, which in sequence, can also reflect an increase in uncertainty in

market sentiment. This "shouting star" behavior in freight rates caused many to be

baffled as to their market strategy moving forward, in other word, we have strategic

uncertainty. That is because this type of short window of opportunity for excessive

returns is extremely rare and almost impossible to predict in advance, while at the

same time the windfall gains could help cover many periods of mediocre (or bad) mar-

kets. So, at the end one is left wondering as to how to adapt to a market condition

characterized by fatter tails with periodical positive or negative skewness?

At this point, both sectors seem vulnerable to extreme events. Does this mean that

the probability of single shocks is now truly higher? If this is the case, portfolio man-

agement should adapt too (in many aspects). Diversification in sectors, asset classes,

freight market positioning, hedging and financial structures, could help mitigate some

of the risks involved while helping capture some of the benefits. However, given that

most of these are real options for only the “big” few, to what extent can this be seen

as a reasonably strategy for the shipping industry as a whole. It seems as though most

practitioners will just have to make do with good planning, preparedness and “hope

for the best” .

Thomas Chasapis

Research Analyst

21st - 25th October 2019 | Week 43

Dry Bulk Freight Market

Secondhand Market

Newbuilding Market

Demolition Market

Economic Indicators

Tanker Freight Market

25 Oct ±∆ ±%BDTI 1,185 q -247 -17.2%

BCTI 742 q -195 -20.8%

W-O-W change

Avg Price Index (main 5 regions)

25 Oct ±∆ ±%Dry 260 u 0 0.0%

Wet 268 u 0 0.0%

W-O-W change

Aggregate Price Index

25 Oct ±∆ ±%Bulkers 100 u 0 0.0%

Cont 94 u 0 0.0%

Tankers 101 u 0 0.0%

Gas 91 u 0 0.0%

M-O-M change

25 Oct ±∆ ±%Gold $ 1,503 q -2 -0.1%

Oil WTI $ 56 q -2 -3.8%

Oil Brent $ 61 q -3 -4.9%

Iron Ore 88 q -4 -4.3%

Coal 66 p 6 9.6%

M-O-M change

Aggregate Price Index

25 Oct ±∆ ±%Capesize 58 q -1 -1.9%

Panamax 59 q -2 -2.8%

Supramax 61 q -2 -3.3%

Handysize 68 q -2 -2.3%

M-O-M change

VLCC 106 p 10 10.2%

Suezmax 92 p 6 7.3%

Aframax 109 p 10 10.4%

MR 121 p 3 2.9%

2

2018 2019

21st - 25th October 2019

Capesize – Downward pressure seemed to have mounted this past week, with the

BCI sliding even below the 3,000bp threshold, before firmer sentiment pushed

things back up to 3,009bp at Friday’s close. The w-o-w change noted was a de-

cline of 1.8%. Limited activity in both basins and the resistance of charterers to

current freight rates led to lower market rates being seen, while some fresh en-

quiries that emerged in the Atlantic helped curb losses.

Panamax – Another drop was witnessed in the market this past week, with the

BPI losing approximately 7.9% on a w-o-w basis and closing at 1,695bp. The cur-

rent imbalance witnessed between open tonnage lists and cargo availability in

both the Atlantic and Pacific basins pushed rates lower. Meanwhile, the boost

that was seen during previous weeks from S. American activity started to fade.

Supramax – Limited fresh information about fixing started to affect market senti-

ment negatively, leading the whole market lower. The BSI fell by 2.9% on a w-o-w

basis and closed at 1,187bp. The increased demand momentum for Indonesian

coal seems to be not enough to support the market on its own right now, with

sentiment starting to deteriorate amongst owners.

Handysize – The BHSI declined by 3.1% on a w-o-w basis, before closing at

631bp this past week. The mix of increased available tonnage in key areas such as

South America and the limited activity noted in Asia this past week pushed rates

on a downward sliding path. Further downward pressure is likely to be felt over

the coming weeks given the prevailing conditions that are now being faced.

0

10

20

30

40'000 US$/day

25 Oct 18 Oct ±% 2019 2018

Baltic Dry IndexBDI 1,801 1,855 -2.9% 1,331 1,349

CapesizeBCI 3,009 3,064 -1.8% 2,154 2,096

BCI 5TC $ 24,945 $ 25,117 -0.7% $ 17,323 $ 16,457ATLANTIC RV $ 26,900 $ 25,575 5.2% $ 17,791 $ 16,589

Cont / FEast $ 48,855 $ 50,225 -2.7% $ 34,334 $ 30,755PACIFIC RV $ 23,388 $ 23,292 0.4% $ 16,056 $ 16,240

FEast / ECSA $ 21,850 $ 23,114 -5.5% $ 16,751 $ 16,315Panamax

BPI 1,695 1,840 -7.9% 1,404 1,451BPI - TCA $ 13,596 $ 14,751 -7.8% $ 11,245 $ 11,641

ATLANTIC RV $ 13,455 $ 15,115 -11.0% $ 11,489 $ 12,029Cont / FEast $ 23,486 $ 24,845 -5.5% $ 19,677 $ 19,051PACIFIC RV $ 11,884 $ 13,238 -10.2% $ 10,018 $ 10,753

FEast / Cont $ 5,559 $ 5,806 -4.3% $ 3,795 $ 4,731Supramax

BSI 1,187 1,222 -2.9% 888 1,030BSI - TCA $ 13,178 $ 13,595 -3.1% $ 10,031 $ 11,485

USG / FEast $ 24,083 $ 25,625 -6.0% $ 20,943 $ 23,089Med / Feast $ 25,736 $ 26,236 -1.9% $ 18,378 $ 19,519PACIFIC RV $ 12,100 $ 12,343 -2.0% $ 8,981 $ 10,240

FEast / Cont $ 6,630 $ 6,770 -2.1% $ 4,720 $ 6,467USG / Skaw $ 15,500 $ 17,425 -11.0% $ 14,635 $ 18,607Skaw / USG $ 11,250 $ 11,766 -4.4% $ 7,575 $ 8,140

HandysizeBHSI 631 651 -3.1% 484 597

BHSI - TCA $ 9,146 $ 9,415 -2.9% $ 7,100 $ 8,704Skaw / Rio $ 8,830 $ 9,270 -4.7% $ 5,846 $ 7,558

Skaw / Boston $ 9,104 $ 9,500 -4.2% $ 6,294 $ 7,509Rio / Skaw $ 13,156 $ 13,489 -2.5% $ 10,694 $ 11,858

USG / Skaw $ 10,264 $ 10,854 -5.4% $ 7,844 $ 10,664SEAsia / Aus / Jap $ 8,182 $ 8,218 -0.4% $ 6,610 $ 8,032

PACIFIC RV $ 7,725 $ 7,886 -2.0% $ 6,450 $ 7,988

Spot market rates & indices Average

0

1,000

2,000

3,000

4,000

5,000

6,000

BDI BCI BPI BSI BHSI

0

5

10

15

20'000 US$/day

0

5

10

15

20'000 US$/day

0

3

6

9

12

15'000 US$/day

3

2018 2019

Crude Oil Carriers – With the continuation of the freight market correction look-

ing inevitable after the recent boom, it is worth mentioning that despite the fall,

VL rates have still remained at healthy levels. However, available cargoes have

diminished considerably now, shifting the market balance. The same pattern was

seen in the Suezmax front, where rates may fall further due to limited fresh inter-

est, but the hope is for further demand to kick in early November, bringing things

back on the positive. Lack of new cargoes in key regions also push rates down-

wards for Aframaxes, with things though expected to improve next week.

Oil Products – On the DPP front, the short tonnage lists noted in the Black Sea

and Med regions helped rates to firm somehow this past week. Activity may not

be impressive but was enough to support the market. In direct contrast, freight

rates in the CPP market moved lower this past week. Lack of fresh interest, along

with long tonnage lists in the Atlantic pushed rates lower, while demand in the

MEG was overall subdued.


25 Oct 18 Oct ±% 2019 2018

Baltic Tanker IndicesBDTI 1,185 1,432 -17.2% 778 805BCTI 742 937 -20.8% 570 583

VLCCWS 58.41 73.18 -20.2% 28.51 24.20

$/day $ 40,409 $ 59,887 -32.5% $ 2,364 -$ 8,894WS 97.21 119.42 -18.6% 59.91 57.66

$/day $ 73,762 $ 98,174 -24.9% $ 33,773 $ 30,942WS 95.00 116.46 -18.4% 58.89 56.96

$/day $ 71,039 $ 94,928 -25.2% $ 31,181 $ 19,167WS 105.00 107.50 -2.3% 58.87 57.12

$/day $ 134,993 $ 139,883 -3.5% $ 61,205 $ 57,289SUEZMAX

WS 150.00 175.00 -14.3% 76.79 74.28$/day $ 95,900 $ 115,479 -17.0% $ 37,841 $ 35,009

WS 163.33 211.94 -22.9% 94.11 96.08$/day $ 74,080 $ 106,704 -30.6% $ 24,174 $ 17,261

AFRAMAXWS 140.00 192.22 -27.2% 105.56 112.83

$/day $ 38,528 $ 73,428 -47.5% $ 15,778 $ 9,431WS 179.17 207.78 -13.8% 114.63 107.15

$/day $ 36,449 $ 46,914 -22.3% $ 14,478 $ 6,495WS 185.63 210.31 -11.7% 112.45 134.08

$/day $ 40,996 $ 49,233 -16.7% $ 13,733 $ 12,485WS 116.67 160.00 -27.1% 84.67 90.31

$/day $ 39,118 $ 66,187 -40.9% $ 18,341 $ 13,541DPP

WS 200.00 215.00 -7.0% 144.61 131.14$/day $ 48,740 $ 54,173 -10.0% $ 28,535 $ 23,505

WS 145.31 175.00 -17.0% 109.35 114.67$/day $ 21,524 $ 29,333 -26.6% $ 10,092 $ 9,614

WS 177.88 207.50 -14.3% 105.38 103.44$/day $ 42,891 $ 54,541 -21.4% $ 15,650 $ 9,525

WS 126.28 181.11 -30.3% 105.16 114.77$/day $ 27,810 $ 51,193 -45.7% $ 15,797 $ 11,902

CPPWS 177.50 296.25 -40.1% 113.31 106.16

$/day $ 36,561 $ 72,825 -49.8% $ 16,582 $ 9,310WS 150.83 158.89 -5.1% 126.30 133.64

$/day $ 14,431 $ 15,842 -8.9% $ 9,065 $ 5,830WS 140.00 170.00 -17.6% 124.79 135.20

$/day $ 22,334 $ 30,184 -26.0% $ 17,271 $ 19,126WS 94.29 120.71 -21.9% 89.62 103.87

$/day $ 5,617 $ 10,340 -45.7% $ 3,102 $ 1,952

MED-MED

CONT-USAC

USG-CONT

MEG-USG

MEG-SPORE

WAF-USG

BSEA-MED

MEG-SPORE

MEG-JAPAN

WAF-USAC

NSEA-CONT

CARIBS-USG

CARIBS-USAC

SEASIA-AUS

MEG-JAPAN

CARIBS-USAC

BALTIC-UKC

ARA-USG

Spot market rates & indices Average

0

500

1,000

1,500

2,000

BDTI BCTI

-50

50

150

250'000 US$/day

0

50

100

150'000 US$/day

0

20

40

60

80'000 US$/day

5

10

15

20

25

30'000 US$/day

4

last 5 years

25 Oct 20 Sep ±% Min Avg Max

VLCC

$ 47,500 $ 36,250 31.0% $ 19,000 $ 32,940 $ 65,000

$ 35,000 $ 30,000 16.7% $ 23,500 $ 31,740 $ 45,000

Suezmax

$ 36,250 $ 25,500 42.2% $ 15,500 $ 24,577 $ 44,000

$ 29,000 $ 22,750 27.5% $ 18,000 $ 24,947 $ 35,000

Aframax

$ 26,500 $ 21,500 23.3% $ 13,250 $ 19,604 $ 30,000

$ 20,750 $ 20,000 3.8% $ 15,500 $ 19,614 $ 27,000

MR

$ 16,500 $ 15,250 8.2% $ 12,000 $ 14,748 $ 21,000

$ 15,750 $ 14,250 10.5% $ 14,000 $ 15,030 $ 18,250

12 months

36 months

12 months

36 months

Tanker period market TC rates

12 months

36 months

12 months

36 months

last 5 years


Capesize

$ 20,000 $ 21,750 -8.0% $ 6,200 $ 15,395 $ 31,450

$ 16,500 $ 17,000 -2.9% $ 6,950 $ 15,084 $ 25,200

Panamax

$ 13,000 $ 13,250 -1.9% $ 4,950 $ 10,395 $ 15,450

$ 12,000 $ 12,500 -4.0% $ 6,200 $ 10,608 $ 15,325

Supramax

$ 12,000 $ 12,500 -4.0% $ 4,450 $ 9,901 $ 13,950

$ 10,000 $ 10,250 -2.4% $ 6,200 $ 9,766 $ 13,700

Handysize

$ 9,000 $ 9,000 0.0% $ 4,450 $ 8,203 $ 11,200

$ 8,250 $ 8,250 0.0% $ 5,450 $ 8,233 $ 10,450

12 months

Dry Bulk period market TC rates

12 months

36 months

36 months

12 months

36 months

12 months

36 months


Latest indicative Dry Bulk Period Fixtures

Latest indicative Tanker Period Fixtures

79

1113151719212325

5

7

9

11

13

15

17

56789

1011121314

4

5

6

7

8

9

10

11

17

27

37

47

57

67

77

15

20

25

30

35

40

45

50

12141618202224262830

11

12

13

14

15

16

17M/T ''OLYMPIC LYRA'', 320000 dwt, built 2019, $46,000, for 3 years

trading, to MERCURIA

M/T ''SCF PRIMORYE'', 158000 dwt, built 2009, $41,000, for 1 year

trading, to TRAFIGURA

M/T ''SEAVOYAGER'', 110000 dwt, built 2009, $22,500, for 3 years trading,

to EXXONMOBIL

M/T ''ARAMON'', 74000 dwt, built 2010, $19,000, for 1 year trading, to ST

SHIPPING

M/T ''SILVER POINT'', 50000 dwt, built 2011, $14,750, for 1 year trading,

to MJOLNER

M/V ''VASSOS'', 76015 dwt, built 2004, dely Nantong 27/30 Sep , $12,750,

for min 6 / max 9 months, to Glencore

M/V ''GREAT HOPE'', 75480 dwt, built 2012, dely Otake 21 Sep, $12,500,

for 1 year period, to Sinoeast

M/V ''PERIDOT'', 56723 dwt, built 2012, dely Chittagong 20/30 Sep ,

$13,500, for min 15 Nov max 15 Dec, to Propel Shipping

M/V ''IVS KNOT'', 33143 dwt, built 2010, dely Abidjan 12 Sep, $11,000, for

5/7 months, to Centurion

M/V ''LEO OCEAN'', 61315 dwt, built 2015, dely Rostock 20 Sep, $20,000,

for 3/5 months, to Western Bulk Carriers

5

Reported Transactions

Another week with sluggish newbuilding activity in the dry bulk sec-

tor, as overall buying interest remains low. The volatility noted in

earnings during the year so far has diminished confidence, a fact that

makes it hard right now to justify the extra cost against the second

hand market levels. Having said all that, this past week we noticed

one new order, placed from Singaporean owners for three Post Pan-

amax vessels. There is no sign that things will change in this sector

anytime soon, given the prevailing freight market conditions. The

same limited activity was seen last week for tankers as well. Only

one new order came to light and this was for 4 MR units from Singa-

pore owners. Despite the recent boom in freight rates, We haven’t

seen any spectacular rush for new orders in the crude oil tanker

space, affect that further bolsters the idea that most in the market

hold the view that the current market fundamentals can’t hold these

bullish freight levels for very long.


10

20

30

40

50

60

Capesize Panamax Supramax Handysize

US$ million

30405060708090

100VLCC Suezmax Aframax LR1 MR

US$ million

Indicative Dry NB Prices (US$ million) last 5 years


Dry Bulkers

Capesize (180,000dwt) 53.0 53.0 0.0% 41.8 48.6 58.0

Kamsarmax (82,000dwt) 34.0 34.0 0.0% 24.3 28.5 34.0

Panamax (77,000dwt) 33.0 33.0 0.0% 23.8 27.7 33.0

Ultramax (64,000dwt) 32.0 32.0 0.0% 22.3 26.4 32.0

Handysize (37,000dwt) 26.0 26.0 0.0% 19.5 22.6 26.0

Container

Post Panamax (9,000teu) 82.5 82.5 0.0% 82.5 84.9 91.0

Panamax (5,200teu) 48.5 48.5 0.0% 48.0 52.1 58.5

Sub Panamax (2,500teu) 27.0 27.0 0.0% 26.0 28.7 33.0

Feeder (1,700teu) 21.5 21.5 0.0% 21.5 23.6 27.0

Indicative Wet NB Prices (US$ million) last 5 years


Tankers

VLCC (300,000dwt) 93.0 93.0 0.0% 80.0 90.8 101.0

Suezmax (160,000dwt) 61.5 61.5 0.0% 53.0 60.3 66.0

Aframax (115,000dwt) 51.0 51.0 0.0% 43.0 49.6 55.0

LR1 (75,000dwt) 48.5 48.5 0.0% 42.0 45.3 48.5

MR (56,000dwt) 36.5 36.5 0.0% 32.5 35.3 37.3

Gas

LNG 175k cbm 185.5 185.5 0.0% 184.0 192.6 200.0

LPG LGC 80k cbm 70.0 70.0 0.0% 70.0 73.5 80.0

LPG MGC 55k cbm 62.0 62.0 0.0% 62.0 64.4 68.5

LPG SGC 25k cbm 40.0 40.0 0.0% 40.0 42.1 45.5

Type Units Shipbuilder Price Buyer Delivery Comments

BULKER 3 87,000 dwt Mitsui SB, Japan N/A Pacsari Pte Ltd, Singapore 2020/2021 Tier III

TANKER 2 + 2 52,000 dwt Hyundai Mipo, S. Korea N/A Eastern Pacific, Singapore 2021

PASS 1 1,610 pax Austal Philippines, Philippines N/A Molslinjen, Denmark 2022

Size

6

Indicative Dry Bulk Values (US$ million)


Capesize180k dwt Resale 52.00 52.50 -1.0% 34.5 47.7 65.0180k dwt 5 year old 29.50 30.00 -1.7% 23.0 33.7 53.0170k dwt 10 year old 23.50 24.00 -2.1% 12.0 22.7 38.0150k dwt 15 year old 14.00 14.50 -3.4% 6.5 13.7 25.0Panamax82k dwt Resale 31.00 31.50 -1.6% 22.5 29.0 34.082k dwt 5 year old 23.50 24.00 -2.1% 11.5 20.2 28.076k dwt 10 year old 13.50 14.00 -3.6% 7.3 13.4 23.074k dwt 15 year old 9.50 10.00 -5.0% 3.5 8.6 14.5Supramax62k dwt Resale 28.00 28.50 -1.8% 19.0 26.9 33.058k dwt 5 year old 17.50 18.00 -2.8% 11.0 17.4 27.056k dwt 10 year old 13.00 13.50 -3.7% 6.0 12.6 22.052k dwt 15 year old 7.50 8.00 -6.3% 3.5 8.1 13.5Handysize37k dwt Resale 23.50 24.00 -2.1% 17.0 21.9 26.037k dwt 5 year old 17.25 17.50 -1.4% 7.8 14.5 21.032k dwt 10 year old 9.75 10.00 -2.5% 6.0 10.1 16.028k dwt 15 year old 6.25 6.50 -3.8% 3.5 6.2 11.0

last 5 years


We seem to have hit a pause in the market from a fairly active year

so far. The fair corrections that have taken place in the freight mar-

ket lately seem to have curbed buying interest for the time being,

something that is likely to continue over the following weeks. Focus

was given these past few days on the Panamax and Supramax sizes,

as these sectors look to be less volatile while at the same time their

current earnings are still at satisfactory levels.

On the tanker side, the current freight market correction seems to

have not been enough to trim investors’ appetite for oil product ton-

nage, with more than 10 MR units changing hands during this past

week. The positive outlook for the last quarter of the year and for

2020 have expanded interest from several owners that would like to

further invest in this market. We expect activity for oil product units

to remain on this upward trend over the coming weeks.

-2%

-5%-6%

-19%

-25%

-20%

-15%

-10%

-5%

0%

1 month diff 3 months diff6 months diff 12 months diff

-2%

-4%

-6%

+2%

-7%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%


-3%

+0% +0%

-5%-6%

-5%

-4%

-3%

-2%

-1%

0%


-1% -1% -1%

+11%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%


+6% +6%

+8%

+15%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%


+6% +6%+7%

+19%

0%

5%

10%

15%

20%

25%


+8% +8%

+14%

+30%

0%

5%

10%

15%

20%

25%

30%

35%


+0% +0%

+5%

+10%

0%

2%

4%

6%

8%

10%

12%


Indicative Tanker Values (US$ million)


VLCC310k dwt Resale 100.00 96.00 4.2% 82.0 93.8 105.0310k dwt 5 year old 75.00 71.00 5.6% 60.0 70.4 84.0250k dwt 10 year old 52.00 47.00 10.6% 38.0 46.9 59.0250k dwt 15 year old 38.00 32.00 18.8% 21.5 29.1 41.0Suezmax160k dwt Resale 72.00 67.00 7.5% 54.0 63.7 73.0150k dwt 5 year old 53.00 50.00 6.0% 40.0 49.2 62.0150k dwt 10 year old 37.00 35.00 5.7% 25.0 33.5 44.5150k dwt 15 year old 21.00 19.00 10.5% 15.0 19.2 23.0Aframax110k dwt Resale 56.00 53.00 5.7% 43.5 50.0 57.0110k dwt 5 year old 41.00 38.00 7.9% 29.5 36.7 47.5105k dwt 10 year old 27.50 24.50 12.2% 18.0 24.0 33.0105k dwt 15 year old 14.50 12.50 16.0% 11.0 13.8 20.0MR52k dwt Resale 40.00 39.00 2.6% 33.0 36.4 40.052k dwt 5 year old 30.00 30.00 0.0% 23.0 26.6 31.045k dwt 10 year old 19.00 19.00 0.0% 14.5 17.7 21.045k dwt 15 year old 11.00 10.00 10.0% 9.0 10.8 13.5

last 5 years

7


Size Name Dwt Built Shipbuilder M/E Coating Price Buyers Comments

VLCC POWER D 319,012 2003 HYUNDAI SAMHO,

S. KoreaB&W $ 32.0m Greek - NGM

MR LINCOLN 51,319 2004 STX CHINHAE, S.

KoreaMAN-B&W

EPOXY

PHEN$ 11.0m

MR REGENT 51,319 2004 STX CHINHAE, S.

KoreaMAN-B&W

EPOXY

PHEN$ 11.0m

MR BUTTERFLY 47,326 2005 ONOMICHI, Japan MAN-B&W EPOXY $ 11.2m Greek

MR OCEAN QUEST 47,221 1999 ONOMICHI, Japan B&W EPOXY $ 6.5m Middle Eastern SS/DD due Oct '19

MR DURANGO 47,131 2000 ONOMICHI, Japan B&W EPOXY N/A undisclosed

MR RELIANCE II 46,108 2006 STX, S. Korea MAN-B&W EPOXY $ 14.3m

MR ADVANCE II 46,101 2006 STX CHINHAE, S.

KoreaMAN-B&W EPOXY $ 14.3m

MR PORT STEWART 38,875 2003

GUANGZHOU

INTERNATIONA,

China

MAN-B&W EPOXY $ 6.6m Middle Eastern

MR RITA MAERSK 35,199 2004

GUANGZHOU

INTERNATIONA,

China

B&W EPOXY $ 8.2mSeven Islands

ShippingSS/DD due Nov '19

MR KINGFISHER 34,583 2005 DALIAN, China MAN-B&W EPOXY $ 7.0m undisclosed SS/DD due Mar '20

SMALL KAPPA SEA 6,308 2012

CHONGQING

DONGFENG SHI,

China

MaK EPOXY $ 5.2m

SMALL ARMONIA 6,295 2012

CHONGQING

DONGFENG SHI,

China

MaK EPOXY $ 5.2m

SMALL AMAZONA 6,283 2012

CHONGQING

DONGFENG SHI,

China

MaK EPOXY $ 5.2m

Size Name Dwt Built Shipbuilder M/E Gear Price Buyers Comments

PMAX GENCO RAPTOR 76,499 2007 JIANGNAN

GROUP, ChinaMAN-B&W $ 10.2m Greek

SMAXFORTUNE

SYMPHONY57,809 2016

TSUNEISHI

SHBLDG - FKY,

Japan

MAN-B&W4 X 30t

CRANES$ 20.5m Japanese

SMAX BULK JULIANA 52,510 2001 KANASASHI HEAVY

TOYOHA, JapanMitsubishi

4 X 30,5t

CRANES$ 6.5m Far Eastern

HANDY THURGAU 32,790 2011

UNIVERSE

SHIPBUILDING,

China

MAN-B&W4 X 30,5t

CRANES$ 6.6m Greek

Tankers

Bulk Carriers

undisclosedSS/DD passed, BWTS

installed, TC attached

undisclosed

Chinese

8


Type Name Dwt Built Shipbuilder M/E Gear Price Buyers Comments

General

CargoKINGCUP 28,261 2011 HUANGHAI, China MAN-B&W

2 X 120t

CRANES,1

X 45t

$ 13.5m Chinese heavylift

General

CargoOCEAN FRIEND 13,030 2006 KEGOYA, Japan MAN-B&W

2 X 30t

CRANES,1

X 30t

$ 4.4m Malaysian

General

CargoLISANNA 12,782 2004 JIANGDONG, China MaK

2 X 120t

CRANES$ 4.5m undisclosed

Ro-

Ro/Gen

eral

GENCO STAR 9,736 2002 HIGAKI, Japan B&W

2 X 20t

DERRICKS

, 1 X 30t

N/A undisclosed

Size Name TEU Built Shipbuilder M/E Gear Price Buyers Comments

FEEDER SKOGAFOSS 698 2007 SAINTY SHBLDG

YIZHENG, ChinaMaK

2 X 45t

CRANESN/A German - Ernst Russ

Type Name Pax Built Shipbuilder M/E LOA(m) Price Buyers CommentsRo-

Ro/Ferr

y

RUNGHOLT 1,190 1992

HUSUMER

KROEGER,

Germany

MaK 67.9 N/A Greek

Gen. Cargo

Containers

Ferries

9

The current healthy freight market levels and the persistence of

scrapyards to retain relatively unattractive offered prices levels have

resulted in a very quiet demolition market over the past week. Sub-

dued activity was further chipped away by the Diwali celebrations. In

Bangladesh, the market remains the most competitive compared to

the rest of the Indian Sub-Continent, but a slow-down has been not-

ed recently here as well. In fact, local fundamentals have deteriorat-

ed with steel price falling significantly. Meanwhile, low offered prices

in India have limited sellers’ interest as of late. Local steel prices have

slumped further this past week, while volatility in the Indian Rupee is

adding to the uncertainty that has been shaped the Indian market for

some time now. Given the poor fundamentals in India, Pakistan has

had an opportunity to return with a more competitive position, with

some breakers now showing signs of improving their offered price

levels. However, with limited concluded activity noted thus far, it

looks as if things are not expected to change relatively soon.


Reported Transactions

150200250300350400450500

Bangladesh India Pakistan China Turkey

US$/ldt

150200250300350400450500

Bangladesh India Pakistan China Turkey

US$/ldt

Indicative Wet Prices ($/ldt) last 5 years

25 Oct 18 Oct ±% Min Avg Max

Indian Sub Continent

Bangladesh 380 380 0.0% 245 396 490

India 360 360 0.0% 250 395 510

Pakistan 370 370 0.0% 245 394 500

Far East Asia

China - - 120 230 350

Mediterranean

Turkey 230 230 0.0% 150 258 355

Indicative Dry Prices ($/ldt) last 5 years

25 Oct 18 Oct ±% Min Avg Max

Indian Sub Continent

Bangladesh 370 370 0.0% 220 378 475

India 350 350 0.0% 225 377 500

Pakistan 360 360 0.0% 220 376 475

Far East Asia

China - - 110 214 340

Mediterranean

Turkey 220 220 0.0% 145 248 355

Type Vessel's Name Dwt Built Country Built Ldt US$/ldt Buyer Sale Comments

Bulker ORE BAYOVAR 179,302 1998 S. Korea 22,165 $ 375/Ldt Bangladeshi HKC required, 418 tons IFO & 38 tons MGO ROB

Offsh SUCCESS TOTAL XXXI 47,059 1992 S. Korea 8,785 $ 335/Ldt undisclosed "As is" Indonesia, about 2000 tons slps/sludge ROB

Cont MSC REUNION 31,829 1992 S. Korea 8,309 $ 390/Ldt Indian 150 tons bunkers ROB

Tanker GS GRAND 13,946 1991 Japan 3,846 N/A Indian

Tanker DELIGHT 8,614 1992 Japan 2,855 $ 518/Ldt undisclosed "As is" Colombo, about 522 tons of Stainless steel

Dredger JIN HANG JUN 109 7,187 1975 Japan - N/A Chinese

Tanker EASTERN GLORY 5,288 1986 China - N/A Bangladeshi

10

25

35

45

55

65

75

85


US Dollar per Euro Yen per US Dollar

Iron Ore (TSI) Coal Price Index

Yuan per US Dollar US Dollar INDEX

Oil WTI $ Oil Brent $

DHT Holding's fourth quarter guidance suggests good things for the

rest of the tanker market, analysts say.

The New York-listed VLCC said after the close Wednesday that its

ships were earning an average rate of $61,500 per day with 49% of

spot days booked so far in the fourth quarter.

"This is the first real read-through (beyond daily reported rates from

the Baltic Exchange and shipbrokers) on what Q4 tanker rates and

earnings might look like, and they are going to look good!" wrote BTIG

analyst Gregory Lewis.

He added that ignoring the stretch in mid-October where VLCC rates

hit $200,000 per day, the Baltic VLCC rate averaged $65,000 per day,

near DHT's figures.

"DHT has done a great job of capturing the upmarket," Lewis wrote.

Source: Tradewinds

1.001.021.041.061.081.101.121.141.161.18

100.00

102.00

104.00

106.00

108.00

110.00

112.00

114.00

116.00

6.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

94.00

95.00

96.00

97.00

98.00

99.00

100.00

45.00

55.00

65.00

75.00

85.00

95.00

60.00

70.00

80.00

90.00

100.00

110.00

120.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00


Markets

10year US Bond 1.80 1.76 2.6% 0.00 2.34 3.23

S&P 500 3,022.6 2,992.1 1.0% 2,351 2,824 3,026

Nasdaq 8,243.1 8,117.7 1.5% 6,193 7,648 8,330

Dow Jones 26,958.1 26,935.1 0.1% 21,792 25,761 27,359

FTSE 100 7,324.5 7,344.9 -0.3% 0 7,169 7,687

FTSE All-Share UK 4,030.1 4,042.9 -0.3% 3,596 3,941 4,186

CAC40 5,722.2 5,690.8 0.6% 4,599 5,285 5,722

Xetra Dax 12,894.5 12,468.0 3.4% 10,382 11,746 12,895

Nikkei 22,799.8 22,079.1 3.3% 19,156 21,344 22,800

Hang Seng 26,667.4 26,435.7 0.9% 2,619 27,295 30,157

DJ US Maritime 266.3 264.2 0.8% 204.5 249.2 282.9

Currencies

$ per € 1.11 1.10 0.7% 1.09 1.12 1.15

$ per ₤ 1.28 1.25 2.6% 1.20 1.27 1.33

₤ per € 0.87 0.88 -1.8% 0.85 0.88 0.93

¥ per $ 108.6 107.9 0.6% 105.2 109.7 114.0

$ per Au$ 0.68 0.68 0.4% 0.67 0.70 0.74

$ per NoK 0.11 0.11 -1.7% 0.11 0.12 0.12

$ per SFr 0.99 0.99 0.1% 0.97 1.00 1.02

Yuan per $ 7.07 7.09 -0.3% 6.68 6.89 7.18

Won per $ 1,173.4 1,191.0 -1.5% 1,106.7 1,157.7 1,219.3

$ INDEX 97.8 98.5 -0.7% 95.2 97.2 99.4

Commoditites

Gold $ 1,503.1 1,505.3 -0.1% 1,196.3 1,344.2 1,542.6

Oil WTI $ 55.6 57.8 -3.8% 44.4 55.5 66.3

Oil Brent $ 60.9 64.1 -4.9% 52.5 63.2 76.6

Palm Oil - - - 562.0 562.0 562.0

Iron Ore 87.7 91.6 -4.3% 64.7 90.4 126.4

Coal Price Index 65.8 60.0 9.6% 55.0 74.5 98.8

White Sugar 341.8 326.3 4.8% 301.3 333.7 379.7

last 12 months

11

AERAKIS GEORGEMOBILE: +30 6946 04 57 37

BOLIS ILIASMOBILE: +30 6937 02 65 00

DASKALAKIS GEORGEMOBILE: +30 6932 24 80 07

DRAKOGIANNOPOULOS STAVROSMOBILE: +30 6932 20 15 65

DRAKOGIANNOPOULOS SAKISMOBILE: +30 6944 88 58 08

FRANGOS HARRISMOBILE: +30 6936 57 67 00

KLONIZAKIS JOHNMOBILE: +30 6948 50 55 81

KOSTOYANNIS JOHNMOBILE: +30 6932 43 39 99

MANOLAS NIKOLASMOBILE: +30 6940 63 22 56

MOISSOGLOU THEODOROSMOBILE: +30 6932 45 52 41

PAPAIOANNOU ANTONISMOBILE: +30 6936 54 80 22

PAPOUIS THASSOSMOBILE: +30 6944 29 49 89

PRACHALIAS ARGIRISMOBILE: +30 6947 62 82 62

STASSINAKIS JOHNMOBILE: +30 6972 60 92 09

TSALPATOUROS COSTISMOBILE: +30 6932 20 15 63

VARVAROS PLUTONMOBILE: +30 6937 25 15 15

Maritime Research & ValuationsCHASAPIS THOMAS

MOBILE: +30 6947 82 91 72LAZARIDIS GEORGE

MOBILE: +30 6946 95 69 40VAMVAKAS YIANNIS

MOBILE: +30 6942 94 71 87

Sale & Purchase

ALLIED SHIPBROKING INC. 48, Aigialeias Street, 4th Floor, Maroussi 151 25, Greece Tel: +30 210 45 24 500 Fax: +30 210 45 25 017/ 019 E-mail: [email protected]

ALLIED CHARTERING S.A. 48, Aigialeias Street, 4th Floor, Maroussi 151 25, Greece Tel : +30 210 42 88 100 Fax: +30 210 45 24 201

E-mail: [email protected]

E-mail: [email protected]


ALEXOPOULOS PANOS MOBILE: +30 6944 34 66 15

ARGYRI MARINAMOBILE: +30 6983 11 32 98

FLOURIS DIMITRISMOBILE: +30 6937 81 32 39

KAILAS VAGGELISMOBILE: +30 6942 48 05 69

KANELLOS DIMITRIS MOBILE: +30 6945 07 47 85

KARAMANIS COSTASMOBILE: +30 6941 54 14 65

PATELIS DIMITRIS MOBILE: +30 6944 04 43 61

THEODOTOS ARISTOFANIS MOBILE: +30 6951 79 82 89

TSALPATOUROU ANASTASIAMOBILE: +30 6951 79 82 91

TSALPATOUROU MARGARITA MOBILE: +30 6934 74 22 16

Tanker CharteringFLOURIS JOHN

MOBILE: +30 6955 80 15 03 STERGIOPOULOS ALEXANDROS

MOBILE: +30 6951 79 82 91

Dry Cargo Chartering

mailto:[email protected]

12

Disclaimer

The information contained within this report has been provided by Allied Shipbroking Inc. and Allied Chartering S.A. for general information

purposes.

All the information is compiled through Allied Shipbroking Inc. and Allied Chartering S.A. databases, as well as from other market sources. De-

spite having taken reasonable care in the gathering, filtering and auditing of this information and believing that the information is accurate and

correct, it may still contain errors, as a lot of the views regarding market levels are partially derived from estimates and/or subject judgments

while the reported transaction activity is gathered from several sources and rumors, some of which are sometimes hard to validate in full their

accuracy and truthfulness. As such we advise that the information be taken cautiously, while advising that this information does not obviate the

need to also make further enquiries and seek further information in order to obtain a more accurate outlook. As we make no warranties of any

kind, both expressed or implied, as to the completeness, accuracy, reliability or completeness of the information herein, Allied Shipbroking Inc.

and its connected persons shall not be held liable to any loss or damage of any kind, including direct, indirect and/or consequential damages

caused by negligence of any kind on our part.

Any choice to rely on this information provided is strictly at the recipient’s own risk.

This report and its information is confidential and solely for the internal use of its recipients, while any re-production or re-distribution of the

report and its material is strictly prohibited without prior permission from Allied Shipbroking Inc.

If you wish to subscribe to this or any other report we produce, please contact us directly.

Appendix

Aggregate Price Index quoted on the first page for both Newbuilding and Secondhand relates to the current average prices levels compared to

where they stood at 1st January 2010 (i.e. index 100 = 01/01/2010)

Demolition market average price index refers to the combination of the average prices currently offered in the Indian Sub-Continent, Far East

and Mediterranean.

Period rates currently relate to Capesize of 180,000dwt, Panamax of 76,000dwt, Supramax of 56,000dwt and Handysize of 33,000dwt on the

Dry Bulk side and VLCC of 250,000dwt, Suezmax of 150,000dwt, Aframax of 115,000dwt and MR of 52,000dwt on the Tankers side respec-

tively.

In terms of Secondhand Asset Prices their levels are quoted based on following description:

All vessels built to European specifications by top Japanese shipbuilders, with dwt size based on the below table.


Resale 5 year old 10 year old 15 year old

Capesize 180,000dwt 180,000dwt 170,000dwt 150,000dwt

Panamax 82,000dwt 82,000dwt 76,000dwt 74,000dwt

Supramax 62,000dwt 58,000dwt 56,000dwt 52,000dwt

Handysize 37,000dwt 32,000dwt 32,000dwt 28,000dwt

VLCC 310,000dwt 310,000dwt 250,000dwt 250,000dwt

Suezmax 160,000dwt 150,000dwt 150,000dwt 150,000dwt

Aframax 110,000dwt 110,000dwt 105,000dwt 95,000dwt

MR 52,000dwt 45,000dwt 45,000dwt 45,000dwt

Allied Weekly Market Report - Hellenic Shipping News · 2019. 10. 29. · same time the windfall...

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