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Weekly Market Report

Week 8/2019 (18 February – 22 February)

Comment: Recent dry bulk commodity risk events

index

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chartering

dry cargo “ 3

tankers “ 6

containers “ 8

sale & purchase

newbuildings / finance “ 9

secondhand / demolition “ 10

commodities

news “ 11

prices “ 13

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2 market report - week 8/2019

Iron Ore

• Following the devastating dam collapse in Brazil at the end of January, Vale originally reported that 40 million tonnes of annual iron ore production would be impacted as they decommissioned all remaining dams. In early February, a court order suspended another 30 million tonnes of annual production at the Brucutu mine, and just last week, Vale’s Fabrica and Vargem Grande complexes were suspended. While the supply disruptions are expected to be offset by increased production from S11D, lower supplies from Brazil is still expected to put significant pressure on tonne mile demand and freight rates, due to the sheer distance of Brazil to top buyer China.

• While there were initially expectations that Australian ores could make up for some of the lost supplies, Vale’s rivals BHP and FMG have said they will not be able to ramp up production to cover the shortfall.

• To add to this, Chinese steel mills have been suffering from low steel margins since 4Q 2018. The current surge in iron ore import prices following the dam disaster in Brazil is expected to exert even more pressure on steel mills, potentially discouraging them from ramping up output and restocking materials. With lower profit margins, steel mills have also been increasing consumption of lower-grade ores in place of the more expensive medium to higher grade ores – which is bad news for higher quality imports from Australia and Brazil.

Coal

• There has been reports of China slowing down customs clearance of Australian coal imports, with delays of at least 40 days reported across all Chinese ports, compared to around 20 days previously. Dalian has also imposed a coal import quota of 12 million tonnes for this year – similarly speculated to be targeting Australian coal shipments. The moves have been attributed to escalating tensions between China and Australia over a range of issues including cyber security, China’s influence in the South China Sea, and Australia’s decision to restrict investments by Huawei.

• However, if China’s singling out of Australian coal is true, it may be difficult for China to maintain this for long, especially as the premium low-volatile hard coking coal from Australia are not easily replaceable by domestic production or other sources. Restricting such supplies could thus result in shortages at their steel mills and a surge in domestic coal prices – situations which China may wish to avoid amid already slowing economic growth.

• In a separate event, operations were suspended at Anglo American's Moranbah North coking coal mine in Australia last week, following an incident that left one dead and several injured. This could result in some supply disruption if the suspension is prolonged, as Anglo American has not provided a timeline on the reopening of the mine. According to AME Group, the mine produced about 7.68 million tonnes of coking coal last year.

Soybeans

• Due to the protracted trade war between China and the U.S., Chinese soybean imports from the U.S. fell a sharp 49.3 percent to 16.6 million tonnes last year as shipments failed to pick up in 4Q 2018. U.S. volumes to China in 4Q 2018 only totalled 0.14 million tonnes, compared to 12.2 million tonnes during the same period a year ago.

• The good news is that recent trade talks appear to be progressing constructively, which may lay the groundwork for resolution between the two countries, and allow typical U.S.-China soybean trade volumes to resume.

Bauxite

• Malaysia’s bauxite mining ban will not be extended after it expires on March 31, according to their environmental minister, due to strong demand for the ingredient used to make aluminium. Bauxite mining has been banned in Malaysia since early 2016 after significant pollution from unregulated mining. Malaysia was once the largest bauxite supplier to China, with shipments peaking at nearly 3.5 million tonnes a month in end 2015.

• The extent to which Malaysia is able to resume export volumes is currently unclear, as restrictions will likely be put in place to prevent a repeat of environmental damage. However, a significant resumption of Malaysian bauxite exports could eat into volumes from Guinea, which would significantly reducing tonne-mile demand for Capesizes due to the short distance of Malaysia to China.

Recent dry bulk commodity risk events

Unit 22-Feb 15-Feb W-o-W Y-o-Y

BPI TC Avg. usd/day 5,370 5,029 +6.8% -53.4%

BPI 82 TC Avg. usd/day 6,834 6,531 +4.6% -47.5%

P1 Transatlantic r/v usd/day 2,658 2,463 +7.9% -78.5%

P2 Skaw-Gib Trip East usd/day 10,927 10,632 +2.8% -40.1%

P3 Pacific r/v usd/day 6,423 5,813 +10.5% -40.0%

1 Yr TC Period Panamax usd/day 9,500 9,500 +0.0% -26.9%

1 Yr TC Period Kamsarmax usd/day 11,000 11,000 +0.0% -22.8%


BCI TC Avg. usd/day 5,873 7,308 -19.6% -56.5%

C8 Transatlantic r/v usd/day 6,315 8,010 -21.2% -46.5%

C14 China-Brazil r/v usd/day 5,909 7,091 -16.7% -58.9%

C10 Pacific r/v usd/day 4,854 6,421 -24.4% -67.9%

1 Year TC Period usd/day 12,000 13,000 -7.7% -39.2%

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The Capesize market recorded another depressing week with rates softening in all basins. The Tubarao/Qingdao route started the week with a rate in the lows $13’s/mt before dropping to the highs $12's/mt for mid-March dates. On the standard route West Australia/Qingdao, freight levels went from the mid $5's/mt to $5/mt basis early March lay/can. Some activity on the Saldanha Bay/China was agreed in the lows $9's/mt. In the Atlantic, the Bolivar/Rotterdam route remained in the mids $6's/mt and front hauls dropped down to around $17,500/d.

Capesize Market

Rates

Panamax Market

Rates

The Panamax market remained quite similar to week 7. The Pacific basin recorded good levels of activity and rates increased due to decent amounts of fresh cargoes either from Indonesia or from Australia to India or China/Korea, while in the North Pacific basin, a fair share of vessels was employed on grain trades from WC Canada. On the other hand, North Atlantic was still a very difficult area as, amid very few quoted cargoes, Charterers were still fixing on ''aps'' basis with no ballast bonus or with ballast bonus not sufficient to cover the costs at all. Low levels of activity were recorded from USG either with grain or coal and very few fresh cargoes were seen in the Baltic region back to Cont. The ECSAM market kept steady levels and saw only few Kamsarmaxes with good described consumptions achieving slightly better rates. Some vessels were reported fixed for period but at undisclosed levels.

3

0

7,000

14,000

21,000

28,000

35,000

22/2/18 22/6/18 22/10/18 22/2/19

BCI TC and Capesize 1-YR Period (usd/day)

1-YR TC BCI TC

0

4,000

8,000

12,000

16,000

20,000

22/2/18 22/6/18 22/10/18 22/2/19

BPI TC and Panamax 1-YR Period (usd/day)

1-YR TC BPI TC

market report - week 8/2019

dry cargo chartering banchero costa

Activity in the USG slowed down slightly with a longer position list. Supramax lost some $500/1,000/d and were then fixing around $11,000/d for TCT in Atlantic and in the mid/high teens for India/FEastern destinations. Ultramax maintained a $2,000/d premium. Handies remained stable and 32/35,000 dwt tonnage were getting $7/8,000/d and 37/39,000 dwt around $9,000s/d. ECSAm market maintained a positive trend on all sizes and on all routes. T/A trips on Handies increased by $8/900/d from $5,700/6,000/d TO $6,600/6,700/d for 28,000 dwt tonnage and from $7,700/d to $8,900/9,000/d for 38,000 dwt. Trips to FEast increased around $11/12,000/d. Supramax trips to Cont/Med increased around $1,000/d and Ultramax around $1,200/d to $7,750/d. The trips to F East were done a tick above $11,000/d + 110,000 bb on Supra and $12,000/d + 220,000 bb on Ultra; some owners were awaiting to see $12,500/d + 250,000 bb before fixing: some further improvements are expected.

Supramax & Handysize Market

Ind

ia

S A

fric

a

Stable market in Cont, but there were no significant signs of any improvement. Both Handies and Supramax were reported at similar rates around $6,000/d basis dely Cont and redely EMed for nice/eco tonnage. On Handies activity was particularly strong from Cont to US with steels at levels around $5,000/d basis redely USG and $8,000/d redely USEC on eco 35,000 dwt, the gap was due to to the lack of cargoes from USEC. In BSea and EMed there were no major changes, but some general, positive feeling is increasing among owners and rates are slightly improving both for Handies and Supra. There was a sudden shortage of larger vessels in EMed which led to some fixtures above market level: a 63,000 dwt was fixed at $17,000/d with grains to F East. Supramax Med business via BSea basis dely Cannakkale was around $7,000/d. Handies were quiet with 32/35,000 dwt fixing around $5/6,000/d for InterMed and trips to Cont.

The market in MEG steadily improved during the week. A spot 56,000 dwt was fixed at mid $7,000/d for inter MEG business. A 61,000 dwt was fixed at low $11,000/d basis dely aps Salalah for a trip with minerals to ECI. From WCI early in the week a Dolphin57 was fixed for a trip to China at low $7,000s/d basis dely dop, towards the end of the week a Kawasaki 58 was reported at $9,000/d basis dely dop WCI for trip to Chittagong. From ECI a 60,000 dwt fixed at low/mid $6,000/d basis dely dop for a trip to China followed by a 56,000 dwt fixing dop Chittagong for a trip within ECI at $7,500/d. From SAfr the market was a mixed bag with a 55,000 dwt fixed for Richards Bay-Pakistan/WCI at $10,100/d + 110,000 bb and a 63,000 dwt getting similar levels. Stronger numbers were done on a 61,000 dwt fixed at $11,500/d + 150,000 bb for a trip to MEG/WCI and a 57,000 dwt getting $11,750/d + 175,000 bb for a trip to China basis dely aps Port Elizabeth.

Far

East

P

acif

ic

Shortage of open tonnage and an increase of demand are pushing rates higher and faster than expected. A tess52 was fixed from Spore for a trip via Australia to Spore/Japan range at $10,600/d. Grain trades from NoPac to Spore/Japan range showed a 57,000 size fixed at $9,250/d from North China and a large Ultramax was fixed at $10,250/d basis dely Japan. On Indonesia-China trades rates kept improving starting from a 63,000 dwt fixed at $10,500/d with dely near the loading port and a Dolphin-type later agreed at the same rate with delivery Spore. On Indonesia-India an Ultramax got $8,000/d basis dely Shanghai and redely full India, then a Dolphin-type with dely Kosichang was done at $9,000/d basis WCI redely. Trades to MEG showed a Tess58 booked from N China with clinkers to Bangladesh at $11,000/ and a 51,000 dwt fixed at $5,800/d from Japan to MEG. From Japan range Dolphin-types were heard to fix around $5/6,000/d for trips to SE Asia and a similar unit was fixed from S Korea to Cont/Med at $4,000/d for 65 days and $11,000/d balance.

US

Atl

anti

c

Sou

th A

mer

ica

4

0

4,000

8,000

12,000

16,000

22/2/18 22/6/18 22/10/18 22/2/19

BSI TC and Supramax 1-YR Period (usd/day)

1-YR TC BSI TC

0

3,000

6,000

9,000

12,000

22/2/18 22/6/18 22/10/18 22/2/19

BHSI TC and Handysize 1-YR Period (usd/day)

1-YR TC BHSI TC



BSI TC Avg. usd/day 7,933 6,529 +21.5% -20.7%

S4A 58 USG-Skaw/Pass usd/day 11,128 11,344 -1.9% -38.4%

S9 58 WAF-ECSA-Med usd/day 4,254 3,111 +36.7% -53.8%

S1B 58 Canakkale-FEast usd/day 12,929 11,103 +16.4% -25.9%

S11 58 Pacific r/v usd/day 8,269 6,363 +30.0% -4.8%

1 Year TC Period usd/day 10,000 10,000 +0.0% -7.4%

BHSI TC Avg. usd/day 5,206 4,544 +14.6% -32.9%

1 Year TC Period usd/day 9,000 8,750 +2.9% -2.7%

Sup

ram

axH

and

y

Rates

N E

uro

pe

M

ed

ite

rran

ean

Unit 22-Feb 15-Feb W-o-WPremium/

Discount

Feb (19) usd/day 7,233 7,717 -6.3% +23.2%

Mar (19) usd/day 6,625 7,475 -11.4% +12.8%

Apr (19) usd/day 7,108 8,067 -11.9% +21.0%

Q2 (19) usd/day 8,072 8,619 -6.3% +37.4%

Q3 (19) usd/day 11,833 11,908 -0.6% +101.5%

Q4 (19) usd/day 15,325 14,950 +2.5% +160.9%

Cal 20 usd/day 12,383 12,142 +2.0% +110.8%

Cal 21 usd/day 11,558 11,213 +3.1% +96.8%

Cal 22 usd/day 12,225 12,000 +1.9% +108.2%

Feb (19) usd/day 5,088 5,133 -0.9% -5.3%

Mar (19) usd/day 7,154 7,117 +0.5% +33.2%

Apr (19) usd/day 8,871 8,579 +3.4% +65.2%

Q2 (19) usd/day 9,365 9,135 +2.5% +74.4%

Q3 (19) usd/day 10,438 10,329 +1.1% +94.4%

Q4 (19) usd/day 11,363 11,113 +2.2% +111.6%

Cal 20 usd/day 9,725 9,117 +6.7% +81.1%

Cal 21 usd/day 9,146 8,642 +5.8% +70.3%

Cal 22 usd/day 8,642 8,442 +2.4% +60.9%

Feb (19) usd/day 6,267 6,100 +2.7% -21.0%

Mar (19) usd/day 8,958 8,492 +5.5% +12.9%

Apr (19) usd/day 9,967 9,900 +0.7% +25.6%

Q2 (19) usd/day 10,297 10,175 +1.2% +29.8%

Q3 (19) usd/day 10,733 10,867 -1.2% +35.3%

Q4 (19) usd/day 11,308 11,292 +0.1% +42.5%

Cal 20 usd/day 10,033 9,654 +3.9% +26.5%

Cal 21 usd/day 9,379 9,129 +2.7% +18.2%

Cal 22 usd/day 9,217 8,996 +2.5% +16.2%

Feb (19) usd/day 5,138 5,338 -3.7% -1.3%

Mar (19) usd/day 7,088 7,025 +0.9% +36.2%

Apr (19) usd/day 7,838 7,775 +0.8% +50.6%

Q2 (19) usd/day 8,054 7,992 +0.8% +54.7%

Q3 (19) usd/day 8,200 8,175 +0.3% +57.5%

Q4 (19) usd/day 9,138 9,100 +0.4% +75.5%

Cal 20 usd/day 8,500 8,456 +0.5% +63.3%

Cal 21 usd/day 8,413 8,406 +0.1% +61.6%

Cal 22 usd/day 8,381 8,375 +0.1% +61.0%

Han

dys

ize

Cap

esi

zeP

anam

axSu

pra

max

0

3,000

6,000

9,000

12,000

Feb-18 Feb-19 Feb-20 Feb-21

Handysize Forward Curve (usd/day)

0

4,000

8,000

12,000

16,000


Supramax Forward Curve (usd/day)

0

8,000

16,000

24,000

32,000


Capesize Forward Curve (usd/day)

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Dry Bulk FFAs (Baltic Forward Assessments)

5

0

4,000

8,000

12,000

16,000


Panamax Forward Curve (usd/day)



TD1 MEG-USG ws 29.14 22.93 +27.1% +60.6%

TD1 MEG-USG usd/day 2,065 -5,317 +138.8% +118.0%

TD2 MEG-Spore ws 59.33 52.13 +13.8% +54.8%

TD3C MEG-China ws 58.29 51.13 +14.0% +52.9%

TD3C MEG-China usd/day 29,118 21,842 +33.3% +380.7%

TD15 WAF-China ws 57.71 52.33 +10.3% +39.1%

Avg. VLCC TCE usd/day 15,592 8,263 +88.7% +677.7%

1 Year TC Period usd/day 36,000 36,000 +0.0% +44.0%

TD6 BSea-Med ws 83.00 86.06 -3.6% +22.4%

TD6 BSea-Med usd/day 14,747 17,526 -15.9% +827.5%

TD20 WAF-Cont ws 67.32 70.77 -4.9% +28.3%

MEG-EAST ws 70.00 75.00 -6.7% +20.7%

MEG-WEST ws 34.00 37.00 -8.1% +54.5%

Avg. Suezmax TCE usd/day 13,792 16,349 -15.6% +503.6%


TD7 NSea-Cont ws 114.69 100.00 +14.7% +28.2%

TD7 NSea-Cont usd/day 20,328 11,548 +76.0% +538.7%

TD17 Baltic-UKC ws 105.28 94.17 +11.8% +51.0%

TD17 Baltic-UKC usd/day 29,487 23,425 +25.9% +1066.0%

TD19 Med-Med ws 88.61 90.00 -1.5% -3.2%

TD19 Med-Med usd/day 7,174 8,328 -14% +51.4%

TD8 Kuwait-China ws 89.44 90.00 -0.6% +3.8%

TD8 Kuwait-China usd/day 5,812 6,032 -3.6% +53.6%

TD9 Caribs-USG ws 151.94 146.67 +3.6% +42.1%

TD9 Caribs-USG usd/day 20,328 17,962 +13.2% +186.9%

Avg. Aframax TCE usd/day 14,489 11,941 +21.3% +344.3%


VLC

CSu

ezm

axA

fram

ax

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VLCCs activity remained at decent levels in the Middle East Gulf, particularly during the first half of the week, and rates reached the highs WS50’s for East and just shy of WS30 for West discharge. Rates were improving off West Africa as well, even if more gently than in MEG. By Friday, the W Afr/East route reached WS57.5. Demand remained strong in the Caribs for yet another week and rates to Singapore kept steady levels just above $6 mln. With a limited amount of fresh cargoes been quoted and a position list getting longer and longer, Suezmax’ Owners couldn't keep the momentum going in their favor, and rates for W Afr/UKC softened to WS67.5. Lower rates were recorded also in Med, where Black Sea/Med slowly softened to the lows WS80’s. No big changes were recorded in Med for the Aframax market, where we've seen enough activity to maintain rates pretty much stable around WS90 for CrossMed voyages. Another rather busy week in the North Sea and rates still moving in Owners' favor, as CrossCont routes settled at WS115 and WS105 was the rate achieved off Baltic. In the Caribs, the increased number of vessels coming in ballast combined with a pretty slow week, pushed rates for Caribs/USG down to the very lows WS150’s.

Crude Oil Tanker Market

6

Rates


-10,000

5,000

20,000

35,000

50,000

65,000

22/2/18 22/6/18 22/10/18 22/2/19

VLCC MEG-Far East (usd/day)

-5,0005,000

15,00025,00035,00045,00055,00065,00075,000

22/2/18 22/6/18 22/10/18 22/2/19

TD6 Suexmax BSea-Med (usd/day)

-15,000-5,0005,000

15,00025,00035,00045,00055,000

22/2/18 22/6/18 22/10/18 22/2/19

TD19 Aframax Med-Med (usd/day)

10,00015,00020,00025,00030,00035,00040,00045,000

Feb-18 May-18 Aug-18 Nov-18 Feb-19

1 YR TC Period (usd/day)

VLCC Suezmax Aframax

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Feb-18 May-18 Aug-18 Nov-18 Feb-19

1 YR TC Period (usd/day)

LR2 MR2

0

5,000

10,000

15,000

20,000

25,000

22/2/18 22/6/18 22/10/18 22/2/19

MR Pacific Basket (usd/day)

05,000

10,00015,00020,00025,00030,00035,000

22/2/18 22/6/18 22/10/18 22/2/19

MR Atlantic Basket (usd/day)

05,000

10,00015,00020,00025,00030,00035,000

22/2/18 22/6/18 22/10/18 22/2/19

TC1 LR2 MEG-Japan (usd/day)

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Product Tanker Market

Delays at Turkish Straits for Daylight Restricted Vessels

East of Suez, the LR marker saw LR2 experiencing another depressing week, as rates lost around 20 points and went to WS120 for MEG/Japan voyages (around $16,000/d TCE), with MEG/UKC trades at $2 mln while LR1 with settled at WS107.5 (around 8,750/d TCE) for East. West of Suez, LR2 and LR1 on the UKC/Japan route remained overall steady, and closed on Friday at $2.1 mln and $1.8 mln respectively. Clean Handysize vessels recorded a positive week in Med: CrossMed routes reached WS170 while freight rates from Black Sea achieved WS200 level. In Cont, Baltic/UKC trades ended the week at WS150 level while CrossCont followed at WS130. The Clean MR2 market saw rates on the UKC/ TransAtlantic route achieving WS135 basis 37,000 mt, and the back hauls kept steady levels at WS120 basis 38,000 mt. The Dirty market for Handysize and MR2 vessels recorded very low levels of activity and rates falling, both in Med and UKC. In Med, as the position list kept building up, rates lost ground every day: by Friday, rates for CrossMed trades fell to WS155 level basis 30,000 mt (Handysize) and WS120 basis 45,000 mt (MR2). The Dirty Handysizes market in Cont, because of a lack of cargoes, needs to be tested but could be assessed at WS235 level. The Dirty Panamax rates remained stable at WS110/115 level basis 55,000 mt for the TransAtlantic route



TC1 MEG-Japan ( 7 5 k ) ws 112.81 128.75 -12.4% +23.3%

TC1 MEG-Japan ( 7 5 k ) usd/day 16,135 20,887 -22.8% +103.9%

TC8 MEG-UKC ( 6 5 k ) usd/mt 25.59 26.05 -1.8% +32.5%

TC5 MEG-Japan ( 5 5 k ) ws 109.72 112.78 -2.7% -0.8%

TC5 MEG-Japan ( 5 5 k ) usd/day 10,138 10,817 -6.3% +18.1%

TC2 Cont-USAC ( 3 7 k ) ws 131.67 138.33 -4.8% -6.3%

TC2 Cont-USAC ( 3 7 k ) usd/day 9,242 10,763 -14.1% +15.5%

TC14 USG-Cont ( 3 8 k ) ws 120.00 119.06 +0.8% +24.7%

TC14 USG-Cont ( 3 8 k ) usd/day 7,592 7,727 -1.7% +297.5%

TC9 Baltic-UKC ( 2 2 k ) ws 150.71 161.21 -6.5% -30.8%

TC6 Med-Med ( 3 0 k ) ws 171.88 150.94 +13.9% +13.5%

TC7 Spore-ECAu ( 3 0 k ) ws 177.06 183.67 -3.6% +7.5%

TC7 Spore-ECAu ( 3 0 k ) usd/day 14,431 15,446 -6.6% +37.9%

TC11 SK-Spore ( 4 0 k ) usd/mt 10.79 10.94 -1.4% +26.2%

MR Pacific Basket usd/day 11,170 11,020 +1.4% +20.7%

MR Atlantic Basket usd/day 17,310 18,239 -5.1% +58.3%

LR2 1 Year TC Period usd/day 19,000 19,000 +0.0% +35.7%

MR2 1 Year TC Period usd/day 14,500 14,500 +0.0% +0.0%

TD12 Cont-USG ( 5 5 k ) ws 120.94 122.81 -1.5% +16.9%

TD18 Baltic-UKC ( 3 0 K) ws 236.67 272.50 -13.1% +44.2%

BSea-Med ( 3 0 k ) ws 165.0 207.5 -20.5% -8.3%

Med-Med ( 3 0 k ) ws 155.0 200.0 -22.5% -6.1%

Cle

anD

irty

Rates


Northbound days 14.0 16.0 -12.5% +180.0%

Southbound days 14.0 14.0 +0.0% +180.0%

600

700

800

900

1,000

22/2/18 22/6/18 22/10/18 22/2/19

Shanghai Container Freight Index

5,000

7,000

9,000

11,000

13,000

21/2/18 21/6/18 21/10/18 21/2/19

Geared - 1 YR TC Period (usd/day)

2500 1700 1100

6,000

8,000

10,000

12,000

14,000

21/2/18 21/6/18 21/10/18 21/2/19

Gearless - 1 YR TC Period (usd/day)

4250 3500 2700


ConTex index 386 386 +0.0% -11.9%

4250 teu (1Y, g’less) usd/day 8,862 8,879 -0.2% -3.5%

3500 teu (1Y, g’less) usd/day 8,787 8,758 +0.3% -6.2%

2700 teu (1Y, g’less) usd/day 8,745 8,744 +0.0% -7.2%

2500 teu (1Y, geared) usd/day 9,080 9,036 +0.5% -4.2%



Last week the Container market recorded healthy levels of demand in the Atlantic basin, while the Far East market remained weak. The charter market activity picked up also thanks to many spot requirements for extra loaders. The New ConTex remained stable at 386 points.

banchero costa containers

VHSS Containership Timecharter Assessment (source: Hamburg Shipbrokers’ Association)

Containership Market

Shanghai Containerized Freight Index (source: Shanghai Shipping Exchange)

8


Comprehensive Index index 848 888 -4.6% -0.8%

Services:

Shanghai - North Europe usd/teu 831 906 -8.3% -9.3%

Shanghai - Mediterranean usd/teu 857 920 -6.8% +7.5%

Shanghai - WC USA usd/feu 1,720 1,834 -6.2% +21.8%

Shanghai - EC USA usd/feu 2,837 2,968 -4.4% +4.8%

Shanghai - Dubai usd/teu 690 703 -1.8% +20.8%

Shanghai - Santos usd/teu 1,290 1,304 -1.1% -49.2%

Shanghai - Singapore usd/teu 148 153 -3.3% -7.5%


Recent Fixtures

Vessel Name Built TEUs TEU@14 Gear Fixture Period Rates

Seamax New Haven 2005 8,463 6,900 no fixed to Msc 11/13 m $19,500/d

Wide India 2015 5,466 3,739 no extended to Hmm 40/90 d $14,800/d

Rhl Conscientia 2012 4,620 3,620 no extended to Gsl 75/90 d $13,800/d

Gottfried Schulte 2006 3,534 2,413 no extended to Msc 12 m $8,500/d

Fiona 1998 1,730 1,148 yes extended to Cma Cgm 4/7 m $7,000/d

Analena 2006 862 595 yes extended to Cma Cgm 5/7 m $6,100/d

Type Size Built Yard Buyers Price Comment

LNG 174,000 cum 10 2021/11

2022 Samsung Undisclosed 193.5 each 4 units

Chem 9,000 dwt 2020/2021 Tizhou Kouan Eres/Rubis 21 each 2 units

Bulk 85,000 dwt 2H 2020 Chengxi Shipyard Foremost Marine 29 each 2 units

100

105

110

115

120

22/2/18 22/6/18 22/10/18 22/2/19

Yen/USD Exchange

1.10

1.15

1.20

1.25

1.30

22/2/18 22/6/18 22/10/18 22/2/19

USD/Euro Exchange

20

30

40

50

Feb-17 Aug-17 Feb-18 Aug-18 Feb-19

Newbuilding Prices (usd mln)

Ultramax LR2 MR2

3 yrs 5 yrs 7 yrs 10 yrs 15 yrs 20 yrs

USD 2.56 2.55 2.59 2.68 2.79 2.82

Euro -0.06 0.13 0.35 0.65 1.01 1.18

Libor USD Libor Euro Euribor Euro

6 Months 2.71 -0.29 -0.23

12 Months 2.89 -0.16 -0.11

banchero costa

In the gas sector, a US based Owner has reported to have signed four LNG units (around 174,000 cum) at Samsung with delivery between October 2021 and November 2022. Price reported: $193.5 mln each. In the tanker segment, Maran Tankers exercised an option for a third Suezmax (one still remaining) with Daehan Shipyard. All vessels to be fitted with scrubbers. Furthermore, in the chemical sector Eres/Rubis placed an order at Tizhou Kouan for two chemical tankers (around 9,000 dwt) with delivery during between the end of 2020 and the beginning 2021 at $21 mln each. In the bulk market, Chengxi Shipyard received an order from Foremost Marine for two 85,000 dwt Kamsarmax units with delivery during mid-end 2021. Price reported was around $29 mln each. Vessels to be Tier III and scrubber fitted. Always in China, three Handysize vessels around 39,000 dwt were ordered at Jiangmen Nanyang.

Newbuilding Market

Newbuilding Reported Orders

Indicative Newbuilding Prices (China)

sale & purchase

Interest Rates

Interest Rate Swaps

9

Unit 01-Feb-19 M-o-M Y-o-Y

Capesize usd mln 49.0 +0.1% +8.1%

Ultramax usd mln 26.3 -0.1% +6.1%

Supramax usd mln 23.2 -0.0% +5.5%

VLCC usd mln 83.9 +0.5% +6.8%

LR2 Coated usd mln 46.8 +0.2% +7.4%

MR2 Coated usd mln 33.8 +0.1% +2.5%

22-Feb 15-Feb W-o-W Y-o-Y

USD/Euro 1.13 1.13 +0.6% -7.7%

Yen/USD 110.7 110.5 +0.2% +3.7%

SK Won/USD 1,125 1,129 -0.3% +3.8%

Exchange Rates


TYPE VESSEL NAME DWT BLT YARD BUYERS PRICE NOTE

Bulk SBI Samba 84,000 2015 Imabari Undisclosed 21.4 BBC for 5 yrs with p/o

from 3rd year

Bulk Calhoun 76,801 2006 Sasebo Ukranian Buyers 10.60

Bulk African Loon 61,255 2016 Tadotsu Greek buyers 22.60

Bulk Navios Meridian 50,316 2002 Mitsui Chinese buyers 7.10

Bulk Nord Mumbai 36,612 2012 Hyundai Vinashin C.of Graanul Invest 12.50

Prod Chitern 44,999 1999 Halla Undisclosed 6.9

Prod Lavela 40,000 2009 SLS C.of Socomar 14.6

Prod Port Stewart 38,000 2003 Guangzhou Undisclosed 6.8

350

400

450

500

25/2/18 25/6/18 25/10/18 25/2/19

SubCon Demo Assessment (usd/ldt)

Dirty Tnk Clean Tnk Dry Bulk

15

20

25

30

35

25/2/18 25/6/18 25/10/18 25/2/19

Secondhand Values (usd mln)

Panamax Aframax MR


Dry Bulk usd/ldt 421.8 416.9 +1.2% -7.3%

Dirty Tanker usd/ldt 426.1 422.4 +0.9% -4.1%

Clean Tanker usd/ldt 423.2 420.5 +0.6% -5.1%

sale & purchase banchero costa

Secondhand Market

Baltic Secondhand Assessments

Baltic Demolition Assessment (Subcontinent)

10


Capesize usd mln 36.4 36.5 -0.3% +8.6%

Panamax usd mln 21.6 21.7 -0.3% +1.4%

Supramax usd mln 18.1 18.1 -0.4% +2.1%

VLCC usd mln 66.8 66.8 +0.1% +8.9%

Aframax usd mln 33.0 32.9 +0.0% +10.9%

MR Product usd mln 27.3 27.3 +0.0% +11.9%


In the Dry bulk sector, the Post-Panamax "Tender Salute" 95,700 dwt 2011 built Imabari was sold to Cobelfret at $17 mln. Dubai based buyers Aswan Trading were behind the purchase of the "Glovis Donghae" 97,000 dwt 2004 built Oshima basis SS/DD due in May this year. It is worth noting she was sold to current Owners 2 years ago at just $6.2 mln. The "Calhoun" 76,800 dwt 2006 built Sasebo failed and was apparently fixed to East European buyers at region $10.6 mln. Two modern Ultramax, "Loch Ness" 61,200 dwt 2016 built Shin Kurushima and "African Loon" 61,250 dwt 2016 were sold at $23 mln and $22.6 mln respectively to Greek buyers. The older Supramax "Navios Meridian" 50,300 dwt 2002 built was sold to Chinese buyers at $7.1 mln. Canadian buyers took over the “Paradise Bay” Handymax with Ice class 1C 46,200 dwt 2003 built Oshima for conversion to self-discharger. Price reportedly in the region of high $9 mil. Graanul Shipping of Estonia has doubled its Handysize fleet by purchasing a sister ship from same Owners, "Nord Mumbai" 36,600 dwt 2012 Hyundai Vinashin. In the tanker segment, the older LR1 "Genmar Compatriot" 72,700 dwt 2004 built Dalian with SS/DD immediately due was sold for $6.75 mln to undisclosed Greek buyers. In the MR2 segment, “Isola Bianca” 50,900 dwt 2008 built SPP achieved in the region of $15.4 mln, whilst "High Strength" 46,500 dwt 2009 built Naikai was reported sold to c. of either Cape Shipping, Greece or Transocean, Monaco MC for $16.4 mln basis T/C attached until 4Q19 at mid/high $15,000/d. The older "Chiltern" 45,000 dwt 1999 built Halla was sold to undisclosed buyers for $6.9 mln. In the MR1 segment, the "Lavela" finally found buyers in Socomar, Monaco at a price of $14.6 mln whilst the older "Port Stewart" 38,800 dwt 2003 built GSI was sold to undisclosed interests for $6.8 mln.

Secondhand Reported Sales

news banchero costa

Brazil bans upstream mining dams after deadly Vale disaster Brazil's government last week banned new upstream mining dams and ordered the decommissioning of all such dams by 2021, targeting the type of structure that burst last month in the town of Brumadinho, killing hundreds of people. Those dams, which hold mining byproducts, are cheaper to build but present higher security risks because their walls are constructed over a base of muddy mining waste rather than on solid ground. Brazil regulator suspends operations at two Vale mine complexes Brazil's mining regulator has ordered Vale SA to suspend activity at its Fabrica and Vargem Grande complexes, the iron ore miner said last Wednesday, as authorities crack down after last month's fatal dam break. In a statement, Vale said the ANM mining regulator ordered the suspension in light of the possible failure of five dams at the mining sites in the interior state of Minas Gerais. Chinese traders freeze Australian coal orders amid 40-day customs delays - sources Chinese coal traders have stopped ordering Australian coal as clearing times through China's customs have doubled to at least 40 days, according to major buyers in China and international coal merchants, resulting in a sharp fall in Australian prices. The traders and a broker said only cargoes from Australia, the biggest supplier of the fuel to the world's top consumer, were affected. Anglo American suspends operations at Australian coal mine after fatality Anglo American said on Thursday it has suspended operations at its Moranbah North coking coal mine in Australia after one worker died and several were injured on Wednesday. The London-listed miner said an investigation was underway into the underground accident between a personnel carrier and a grader. India's thermal coal imports could rise 10 pct this year -Adani exec India's thermal coal imports could rise by about 10 percent in 2019 due to rail transport problems and other logistical bottlenecks, an executive at the country's largest coal trader Adani Enterprises said. Thermal coal imports rose in 2018 after two years of decline, despite moves by Prime Minister Narendra Modi’s government to cut the country's imports in a bid to reduce the trade deficit. Brazil soy export forecast revised down as trade war could cool -Agroconsult Brazil is expected to export 70.2 million tonnes of soy in 2019, consultancy Agroconsult said, cutting its previous forecast of 73 million tonnes as a trade war between China and the United States will be less favorable to Brazil this year. China agreed to restart some purchases of U.S. soy as part of a 90-day truce with the United States as the two sides attempt to negotiate a deal to end the trade war before a Mar. 1 deadline. European Union corn imports from Ukraine up 112.5% at 8.8 million mt: EU European Union corn imports from Ukraine were up 112.5% year on year from the start of the marketing year on July 1, 2018 to February 17 at 8.78 million mt, data from the EU Crops Market Observatory showed. Market participants expect the EU to import 22 million mt, up 5 million mt on the year as prolonged heat and drought through months in Q2 and Q3 2018 led to feed wheat supply fears and lower corn yields. However, as stocks build each week, the EU is gradually slowing its rate of imports from Ukraine. Asian millers turn to Argentina for wheat as drought hits Australian output Asian wheat millers are snapping up cargoes of the grain from Argentina to arrive in the first-half of the year, typically peak-export season for traditional supplier Australia where a second year of drought is hitting production. Large volumes of exports to Asia from Argentina could further chip away at Australia's dominance of the region's wheat supply, which has already been eroded by growing Black Sea shipments over the past few years. Iraq yet to approve Russian wheat imports -trade minister Major Middle East grain buyer Iraq does not yet consider Russian wheat acceptable for imports, the Iraqi trade minister said on Wednesday, citing quality issues. Traditionally reliant on the United States as a source for the grain, Iraq is one of the few remaining Middle East markets not dominated by Russian and Black Sea wheat, though it sent a delegation to Russia in December to discuss the possibility. Malaysia lifts bauxite mining moratorium after 3-year ban - minister Malaysia will not extend a moratorium imposed on bauxite mining on environmental grounds that expires on March 31 due to strong demand for the ingredient used to make aluminium, the country's water, land and natural resources minister said. Malaysia was once the biggest bauxite supplier to top buyer China, with shipments peaking at nearly 3.5 million tonnes a month at end-2015. Source: Thomson Reuters/ Platts

Dry Bulk Commodities


news banchero costa

Oil & Gas

About 8% of bunkers consumed in 2020 likely to be scrubbed: MECL Despite recent announcements by some ports to ban wash water discharge from open-loop scrubbers in their waters, about 8% of total bunkers consumed in 2020 will be scrubbed to meet compliance with the International Maritime Organization's global sulfur limit rule for marine fuels, Robin Meech, MD at Marine and Energy Consulting Limited said. This is consistent with an estimate provided last year by Meech, who has been involved in the reduction of sulfur emissions from the marine sector for over three decades. Venezuela gets fuel from Russia, Europe but the bill soars Venezuela is paying heavy premiums for fuel imports from Russia and Europe, with fewer than a dozen sellers seeing the risk as worth the reward after flows from the United States dried up because of sanctions, trading sources said and data showed. The South American nation exports crude but its refineries are in poor condition - hence the need to import gasoline and diesel for petrol stations and power plants, as well as naphtha to dilute its heavy oil. Indian Oil signs first annual deal for U.S. oil Indian Oil Corp, the country's top refiner, has signed its first annual deal to buy U.S. oil, paying about $1.5 billion for 60,000 barrels a day in the year to March 2020 to diversify its crude sources, its chairman said. IOC is the first Indian state refiner to buy U.S. oil under an annual contract. S-Oil to supply $2.32 bln worth of oil products to Saudi Aramco's trading arm S-Oil Corp, South Korea's third-biggest refiner, said that it has signed a contract to sell a total of 2.61 trillion won ($2.32 billion) worth of refined oil products to Saudi Aramco's trading arm. S-Oil, whose top shareholder is Saudi Aramco, said in a regulatory filing that it will supply up to 17 million barrels of diesel, up to 13 million barrels of naphtha and up to 12 million barrels of jet fuel to Aramco Trading Singapore under the contract, valid between Jan. 1 and Dec. 31, 2019. Despite sanctions, Iran's oil exports rise in early 2019-sources Iran's exports of crude oil were higher than expected in January and are at least holding steady this month, according to tanker data and industry sources, as some customers have increased purchases due to waivers from U.S. sanctions. Shipments are averaging 1.25 million barrels per day (bpd) in February, Refinitiv Eikon data showed and a source at a company that tracks Iranian exports said. They were between 1.1 and 1.3 million bpd in January, higher than first thought. Saudi seaborne crude exports fall to 6.2 mln bpd in 1H Feb -Kpler Saudi seaborne crude exports fell in the first half of February with departures standing at 6.204 million barrels per day, a 1.341 million bpd decline on the previous month and 0.91 million bpd decline on the year, data intelligence firm Kpler said. Indian exports fell 144,000 bpd on the month to 784,000 bpd, exports to Thailand fell by 143,000 bpd to 70,000 bpd and South Korean exports fell 98,000 bpd to 730,000 bpd, Kpler said. Glencore traded oil volumes down 17 pct in 2018 Glencore's overall traded oil volumes fell 17 percent year-on-year in 2018 to 4.66 million barrels per day (bpd), according to the mining and trading firm's annual results. Crude saw the bigger decline of 22 percent to 2.58 million bpd, while refined products were down 11 percent at 2.08 million bpd year-on-year. Saudi agrees $10 bln China refinery deal as crown prince visits State-owned oil company Saudi Aramco signed a $10 billion deal to build a refining and petrochemical complex in China on Friday, as Saudi Crown Prince Mohammed bin Salman wrapped up a two-day trip to Beijing. The Saudi delegation, including top executives from Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20 billion in Pakistan and seek to make additional investments in India's refining industry. CNOOC keeps crude runs rate stable at Huizhou refinery after blast A blast at CNOOC's Huizhou refinery that killed one worker has not affected crude oil runs at the company's biggest refinery, a manager from the refinery told Reuters on Wednesday. The manager declined to be named due to the sensitivity of the issue. U.S. crude stocks extends build as output hits record 12 mln bpd U.S. crude oil stockpiles rose for a fifth straight week to the highest in more than a year, as production hit a record high and seasonal maintenance kept refining rates low last week, the Energy Information Administration said on Thursday. Crude inventories rose 3.7 million barrels in the week to Feb. 15, to 454.5 million barrels, the highest since October 2017. Analysts polled by Reuters had forecast an increase of 3.1 million barrels. Source: Thomson Reuters/ Platts

market report - week 8/2019 12

300

400

500

600

22/2/18 22/6/18 22/10/18 22/2/19

Wheat and Corn Prices (usd/t)

Corn Wheat

3,000

3,500

4,000

4,500

5,000

22/2/18 22/6/18 22/10/18 22/2/19

Steel Prices in China (rmb/t)

Rebar Plate

40

60

80

100

120

22/2/18 22/6/18 22/10/18 22/2/19

Iron Ore and Coal Prices (usd/t)

Steam Coal Iron Ore

40

50

60

70

80

90

22/2/18 22/6/18 22/10/18 22/2/19

Brent and WTI Oil Prices (usd/bbl)

Brent WTI

200

400

600

800

22/2/18 22/6/18 22/10/18 22/2/19

Bunker Prices @ Singapore (usd/t)

IFO 380 IFO 180 MGO


Wheat usd/t 486.0 504.3 -3.6% +6.0%

Corn usd/t 377.0 374.8 +0.6% +2.4%

Soybeans usd/t 917.5 907.5 +1.1% -12.0%

Palm Oil usd/t 555.0 556.4 -0.2% -12.8%


Iron Ore (Platts) usd/t 88.2 88.6 -0.5% +14.3%

Iron Ore China @Tangshan rmb/t 638.0 642.0 -0.6% +16.8%

Rebar in China rmb/t 3,869 3,907 -1.0% -5.5%

Plate in China rmb/t 4,121 4,120 +0.0% -4.9%

HR Coil in China rmb/t 3,909 3,911 -0.1% -8.2%

CR Sheet in China rmb/t 4,349 4,340 +0.2% -8.7%


Steam @ Richards Bay usd/t 83.0 82.6 +0.5% -15.6%

Steam @ Newcastle usd/t 93.6 95.0 -1.5% -13.5%

Coking Coal Australia usd/t 210.5 207.5 +1.4% -8.3%


Crude Oil Brent usd/bbl 66.9 66.5 +0.5% -0.6%

Crude Oil WTI usd/bbl 57.0 56.0 +1.9% -10.2%

Crude Oil Dubai usd/bbl 66.9 65.4 +2.2% +5.7%

Natural Gas Henry Hub usd/mmbtu 2.77 2.65 +4.5% +5.5%

Gasoline Nymex usd/gal 1.60 1.58 +1.3% -11.5%

ICE Gasoil usd/t 622.0 615.5 +1.1% +4.8%

Naphtha Tokyo usd/t 521.5 517.1 +0.9% -7.5%

Jet-Kerosene Asia usd/bbl 78.2 77.9 +0.3% -2.2%


Rotterdam usd/t 405.0 401.0 +1.0% +14.4%

Gibraltar usd/t 428.5 428.0 +0.1% +14.6%

Singapore usd/t 432.5 430.0 +0.6% +15.8%

Rotterdam usd/t 446.5 433.0 +3.1% +13.8%

Gibraltar usd/t 460.0 458.0 +0.4% +15.3%

Singapore usd/t 463.5 455.5 +1.8% +18.7%

Rotterdam usd/t 577.0 552.5 +4.4% +3.2%

Gibraltar usd/t 628.0 630.0 -0.3% +4.0%

Singapore usd/t 618.5 597.5 +3.5% +6.6%

IFO

38

0IF

O 1

80

MG

O

banchero costa commodities

Oil & Gas Prices

Coal Prices

Iron Ore and Steel Prices

Agricultural

Bunker Prices


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