CAPE Capesize business opened the week very quietly. Rates trended sideways in quiet trading for the Atlantic market but details of concluded business from the Atlantic was hard to come by. A 2012-built 179,000 dwt veseel was fixed for May 12-21 delivery Drummond for a trip with to China at $22,000  daily plus a $950,000 ballast bonus. In the east, the Key West Australia/China route was  at  $7.65/7.70  but  the market was positional, with some better numbers seen.

In early April VLCC owners were enjoying the highest level of spot returns in over a year, with tce earnings for Middle East - Japan (TD3) rising to $45,000/day on a round voyage basis at design  speed. However, more recently VLCC rates have gone through a major downward correction, which might have suggested that the “party”  is over and that both rates and earnings are on the way back to the depressed levels witnessed last year. But, yet again, this week the VLCC market started to firm again, as the factors that were behind the pick-up in rates in early April are still largely at play. 

We register 17 newbuildings worldwide over the past week with main focus on MR tankers and Car carriers. We expect new orders for car carriers to grow in the near future. In the dry bulk secondhand market, the SPP H1057 (81 000 - 2012) bulk carrier is under negotiation to be sold to Greek buyers for USD 27 million.

CAPE The week opened with the Atlantic very active. Modern tonnage fixed Sines/Far East business via Colombia at $27,000 daily, whereas $27,500 daily plus a ballast bonus of $200,000 for another LME type giving delivery in the Black sea for a fronthaul trip. On voyage $21.60 was agreed for Tubarao/Qingdao with an option P.Bolivar/Danjin at $29. On the contrary it was a quiet start to the week in the east. Rates were once again under pressure, with the Key West Australia/Qingdao run being talked in the $7.75-$7.80 range, but ore cargoes continued to dominate as charterers were trying to beat the oncoming ore export ban from Indonesia.

This week the 100 day countdown to the opening ceremony of the London 2012 Olympic games got underway. Perhaps an event receiving less exposure, but nevertheless extremely important to the shipping industry, is that we are just 102 days away from the creation of the North American ECA. The latest sulphur emissions control area, the third and largest ECA to date, will extend 200 nautical miles off the US coast and take in Canada and several island territories including the Hawaiian islands. The implementation of the ECA means that ships entering the designated area will need to burn ultra low sulphur fuel or use an exhaust gas scrubber for the duration of their voyage that is within that area.

Activity slowing down this week, with 4 ships and 4 bunker barges reported. LNG contracts continue to tick in on regular basis, and it looks like this trend will continue, as there are several LNG newbuilding tenders out in the market. Prices remain stable at low level, causing concern for the small and medium sized yards.

Some activity during the Easter. 10 ships reported, most of which are bulkers. However, still some activity in the LPG and LNG sector. Price seems to remain at current level, despite the lower steel prices. Most notably, Wisdom Marine placed an order with Tsuneishi Zhouhsan for three bulk carriers (45400 dwt) at USD 27.5 million.

CAPE The week opened extremely quietly. The activity was limited and details of concluded business scarce. Business concluded in Atlantic was in short supply. Saldanha/Qingdao was done at $13.75 for mid-April loading. Sinochart paid $20.50 for a mid-April cargo of ore from Pepel, Sierra Leone to Qingdao. The trans-Atlantic market continued to see very low numbers, with $2,200 daily paid. The Pacific saw an uptick in activity as charterers jumped back into the market. Several vessels were rumored fixed for west Australia to China between $7.40 and $7.50. For period business in the east a 2007-built 174,000 dwt vessel was fixed or 8-12 months trading at $11,000 daily.

Without doubt it is apparent that there is presently greater oil demand than at any time since the economic crash in the autumn of 2008. Oil prices have been rising with the concerns of ‘potential’ shortages with the threatened loss of Iranian crude as well as the production shortfalls from less influential producers adding to rush to secure supplies. Amongst the Opec producers who have stepped up to the  mark  are Angola, Iraq and Libya, increasing production and replacing lost barrels and perhaps more importantly adding ton-miles.

We are reporting 15 vessels contracted over the past week, whereas 8 of these vessels are LPG carriers in the size range 4,500 - 6,500 cbm. Japanese yards have in the past dominated construction of small LPG carriers. However, due to the strong yen the Japanese yards are now facing tough competition from China and South Korea also in this segment. We do expect to see more LPG orders in the time to come also for larger Midsize and VLGC tonnage.