Tuesday, October 27, 2020

Baltic Exchange News

Saudi Attacks, High Demand Leaves U.S. Short on Oil Tankers

© Carabay / Adobe Stock

A disruption in global oil flows following attacks on Saudi Arabian facilities has left U.S. crude exporters without enough tankers to cover rising demand for cargoes, traders and shipping sources said.Missile attacks last Saturday temporarily cut Saudi oil production by more than 5 million barrels per day, or about half the country's output.That set off a scramble for alternative cargoes of crude, particularly in the United States…

Survival of Fittest for 2016 Commodity Shippers

A FedNav Bulk carrier (credit: the Great Lakes Seaway Partnership)

Downturn in dry freight market started in 2008; more ships expected to hit the water next year. Shipping companies that transport commodities such as coal, iron ore and grain face a painful year ahead, with only the strongest expected to weather a deepening crisis caused by tepid demand and a surplus of vessels for hire. The predicament facing firms that ship commodities in large unpackaged amounts - known as dry bulk…

VLCC Earnings Set for Strong Growth

photo courtesy MSI

London, December 15, 2015. The latest Tanker Freight Forecaster from Maritime Strategies International predicts further upside volatility in the crude tanker market in 2016 as a result of OPEC’s decision to effectively maintain oil output levels. Average VLCC spot earnings for the Baltic Exchange’s ME-Japan voyage (TD3) have exceeded $100,000/day in the first half of December. Over the six-month horizon of the latest report…

Brent Oil Hits Lowest Since August; Dollar Dips

Brent crude oil prices hit their lowest since late August on Wednesday on worries about growing U.S. stockpiles, while the U.S. dollar took a breather from recent gains. U.S. stocks were mostly lower in choppy trading, with the drop in oil prices weighing on energy shares. European shares ended up 0.7 percent. Copper prices traded higher after nearing a six-year low on mixed Chinese data which showed growth in the world's second-biggest economy was still in low gear.

Baltic Exchange Eyes Move into Commodities

Baltex reaches breakeven level since start of 2015; Baltic previously faced broker opposition over platform. London's Baltic Exchange is studying a potential foray into commodities and is open to proposals on tie-ups as other exchanges attempt to boost volumes, its chief executive said. Baltex, the Baltic's digital shipping platform, was launched in 2011 as the first central electronic marketplace for freight forward agreements (FFAs), which allow investors to take positions on freight rates at a point in the future.

Copenship Files for Bankruptcy

Privately-owned shipping company Copenship has filed for bankruptcy in Copenhagen after losses in the dry bulk market, its Chief Executive Michael Fenger told Reuters. Copenship had been operating over 50 chartered small-sized dry-bulk vessels carrying goods such as grain, iron ore and timber. "We have done what we could to raise the funds to save the company, but we have reached a point where there is not more to do," Michael Fenger wrote in a text message to Reuters on Wednesday.

Baltic Dry Index Rose, Due to Larger Ship Freight Rise

Baltic Exchange Dry bulk freight index rose on Friday, due to the larger ship freight to rise. Dry bulk freight index rose 73 points, or 7.75 percent, to close at 1,015 points. The index is a measure of shipping costs for iron ore, cement, grain, coal and fertilizer, and other resources. The Baltic's capesize index surged 269 points, or 14.29 percent, to 2,151 points. Average daily profit rose $ 1,884 to $ 15,561. Typically this type of ship's carrying capacity is 150,000 tons, carrying cargo such as iron ore or coal.

Long Range Product Tanker Rates Keep Gains

Long-range clean tanker rates remained firm this week although a likely slowdown in bookings was expected to cap the pace of gains in coming days. Larger Long-Range 2 or LR2, 75,000 tonne shipments on the Middle East Gulf to Japan route were at W114.72 or $20,445 a day on Thursday, the latest Baltic Exchange data showed. That compared with W114.72 or $20,012 a day on Wednesday and W114.95 or $20,386 a day last Thursday.

Med Tanker Market Pins Freight Rate Hopes on Libya Oil Export Push

Rising oil exports from Libya after months of disruption helped push Mediterranean tanker rates to the highest levels in nearly six months on Wednesday, and shipping players expected more gains in earnings as shipments from the OPEC member step up. Aframax tankers on the Mediterranean route, which transport the majority of Libya's crude oil, normally carry loads of up to 600,000-700,000 barrels. Rates have been depressed in recent months due in part to slower exports from Libya.

Long-Range Clean Tanker Rates Hit 8-Month High

Long-range clean tanker rates stayed firm on Monday extending a recent rally with firmer cargo demand bolstering sentiment further. Long Range 1 tankers, carrying 55,000 tonne loads from the Middle East Gulf (MEG) to Japan, reached W117.50 in the Worldscale measure, or $11,453 a day when translated into average earnings, the highest since mid September last year. That compared with W116.14 or $11,156 a day on Friday and W107.45 or $8,112 a day last Monday.

Trans Atlantic Tanker Rates Higher

Clean tanker rates on the transatlantic route edged higher on Monday helped by light bookings although the market continued to struggle with a glut of vessels. Rates for medium-range (MR) tankers for 37,000 tonne cargoes on the TC2 route from Rotterdam to New York were at W124.38 in the Worldscale measure, or $8,306 a day when translated into average earnings. That compared with W122.50 or $8,048 a day on Friday and W129.17 or $9,368 last Monday. "Rates on the Europe - U.S.