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Tag Archives: Tops

Panama Canal Drought Issues Improved, But Not Eradicated

The Panama Canal, one the world’s largest shipping gateways is plagued by drought issues, adding another factor in the shipping market’s freight rate equation. In its latest weekly report, shipbroker Gibson said that “the Panama Canal stands as one of the world’s most vital intercontinental waterways, playing an important role in facilitating global trade, particularly along the routes connecting the Americas and Asia. However, in recent years, a combination of climate change and structural factors have posed significant challenges to the maritime trade passing through this essential artery”. According to ...

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Dry Bulk Market: Capesizes Keep Momentum High

Capesize The week started with a modest increase on the BCI 5TC, accompanied by steady activity in the Pacific and relatively calm conditions in the Atlantic. As the days progressed, the Pacific market saw increased activity and rising rates, particularly highlighted by a significant surge mid-week, driven by strong cargo demand. There were reports of more than 10 vessels fixed from West Australia to China, resulting in the C5 index rising by $1.075 to $12.160. In the Atlantic there was an influx of new cargo for both trans-Atlantic and fronthaul ...

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Is your guarantee a guarantee? Note to shipowners

The law of guarantees is not always obvious or easy to understand without proper guidance. This article clarifies the difference between a guarantee and an indemnity, why it matters, and what steps can be taken to protect the shipowner’s position. Ships are typically shipowners’ largest assets and they are often considered a security for any claims that the charterers may have against the owners. However, in some instances, the charterers may insist on additional security by way of a guarantee, especially where the shipowner is a special purpose vehicle with ...

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Dry Bulk Market Benefiting From Higher Brazilian Iron Ore Exports

Brazil’s iron ore exports grew by 7.9% in 2023, favoring higher ton-mile demand for dry bulk carriers. In its latest weekly report, shipbroker Banchero Costa discussed the global iron ore trade and Brazil’s exports in particular. According to the report, “2023 was a very positive year for global iron ore trade. In Jan-Dec 2023, global loadings of iron ore increased by +5.1% y-o-y to 1,631.9 mln tonnes, from 1,552.2 in the same period of 2022, based on AXS Marine vessel tracking data. It is also just above the 1,594.3 mln ...

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‘Sky’s the limit’ for shipping derivatives

The sky’s the limit” for the use of derivatives in the shipping industry, according to finance expert and academic Professor Nikos Nomikos. Speaking at a jointly hosted Baltic Exchange and Institute of Chartered Shipbrokers’ webinar, Nomikos, a professor of Shipping Finance and Risk Management at The Business School (formerly CASS), City University, said there is more to Forward Freight Agreements (FFAs) than pure risk management. He sees shipping as a new derivatives asset class to invest in. “Right now, outside investors are looking at ways to diversify their investment opportunities ...

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XSI® records biggest increase in 18 months as US shippers and ocean freight carriers head into contract negotiations

The Xeneta Shipping Index (XSI®) has posted its biggest global increase in 18 months – just days before many US shippers begin negotiations over new long term contracts. The global XSI®, which calls upon Xeneta’s crowdsourced data to measure the average of all long term rates in the ocean freight shipping market, hit 154.4 points in February, the largest rise since June 2022. This is largely due to surcharges related to diversions in the Red Sea being added to existing long term contracts, particularly on trades between Asia and Europe. ...

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Tanker Newbuilding Orders Going Strong

Tanker ordering activity has continued to dominate newbuilding contracts over the past week. In its latest weekly report, shipbroker Intermodal said that “this week saw more tanker orders as low orderbooks and high freight rates encourage owners to order more vessels. Greeks were present in the market with Evalend Shipping ordering two 300kdwt tankers from Hanwa Ocean for delivery in 2026. The scrubber-equipped duo cost $128.1m. Similarly, Greece’s Dynacom ordered two 155k dwt tankers from China’s New Times, costing $83m each and due to be on the water in 2027. ...

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BIMCO: Tanker Market strengthens despite slowing oil demand growth

Supply/demand balance For crude tankers, we forecast that the supply/demand balance will tighten further during both 2024 and 2025. Low fleet growth, along with increasing sailing distances, create the foundation for the improvement despite a slowing of growth in oil demand. The product tanker supply/demand balance is also expected to tighten in 2024 but weaken in 2025. Like the crude tanker market, longer sailing distances support demand growth despite slowing oil demand. However, an increase in contracting of new ships during 2023 will drive fleet growth in 2025 higher than ...

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Aframax dirty tonne days from Med/UK Continent to the Baltic / Black Sea

The Aframax dirty tonne days experienced a significant surge in growth starting from mid-January, particularly in the route from the Mediterranean to the Baltic/Black Sea. By the end of February, the freight market sentiment once again showed weakness in the VLCC MEG-China route, despite hopes for an upturn. Concurrently, the number of vessels in Ras Tanura recorded increased levels above the annual average. It appears that the VLCC market is striving to strike a stronger balance between supply and demand in favor of demand, yet the abundance of supply continues ...

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Ship Recycling Prices Moving Higher, as Lack of Tonnage Still Evident

Ship recycling prices have reached higher grounds, as a result of persistent lack of vessels on offer. In its latest weekly report, Best Oasis (www.best-oasis.com), among the leading cash buyers of ships, said that “over the past week, the ship recycling markets across various destinations have exhibited diverse trends. In India, the market has seen a slight uptick, marked by a modest increase in demand for vessels, signaling a positive shift in market conditions. Conversely, Bangladesh’s market has maintained stability, with no significant changes from the previous week. The demand ...

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A decreasing trend in the number of ballasters to ECSA with a recent peak in the daily volume loaded

At the end of the month, there’s a notable upturn in the Capesize Brazil to N China route, with rates reaching new highs since the year’s outset. However, it remains uncertain whether this firmness will persist into March. Interestingly, despite signs of a stronger freight market sentiment, there’s a decrease in the growth of tonne days, particularly notable in the Handysize segment. Additionally, there’s a decrease in the number of ballasters for large vessel size categories, following several weeks of peaks lasting over a month. In the Panamax segment, there’s ...

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Beyond the Houthis’ attacks on shipping: The absurdity of the India-Middle East Corridor

Will the India-Middle East Corridor (IMEC) replace a large chunk of the Suez Canal traffic to Europe? Nope! At most, a few crumbs. Dry canals cannot compete with ‘wet’ canals! And that is why there is no truly dry canal in the world. The heaviest rail traffic in the world goes from the American ports on the West Coast to cities in the Midwest, such as Chicago, Detroit or St Louis. In fact, the West-Midwest corridor has always been the Panama Canal’s main competitor, overtaking the Canal’s traffic. However, this ...

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Tanker Newbuilding Prices Up 50% Since 2020

Tanker newbuilding have gone up by about 50% on average, since 2020. In its latest weekly report, shipbroker Xclusiv said that “following the previous week’s analysis on dry bulk values, we now focus on analysing the tanker price evolution over the past years. Since late 2020, NB prices have performed a stable upward trend, with VLCC, Suezmax, Aframax/LR2 and Panamax/LR1 having increased by around 50% each, while MR2s are about 39% up during that period. Tanker NB prices have climbed to the highest levels of the past 15 years, with ...

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Greece maintains top 3 position as world maritime leader with fleet worth USD 169 billion

VesselsValue unveils this year’s top 10 shipowning nations, reviewing the total asset values for vessels by beneficial owner country. From Japan’s resolute leadership in the top position with a USD 206.3 billion fleet to the emergence of Hong Kong at USD 44.7 billion, asset values and ownership strategies have changed considerably over the last 12 months. 1. Japan Japan continues to lead, taking number one spot owning the highest valued fleet and, holding a total of approximately USD 206.3 billion in assets. This is an increase of c. 5% since ...

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Cargo volumes in Red Sea area drop 21% due to attacks on ships

During the first seven weeks of 2024, cargo volumes to and from ports in the Gulf of Aden and Red Sea declined 21% y/y. The number of ships arriving in these ports significantly declined as merchant shipping increasingly avoided transiting through the region due to concerns over attacks on ships by the Houthis. Since November 2023, Houthi forces have attacked ships in the Red Sea and Gulf of Aden. In December, most container and gas carriers started avoiding the region and by January, a significant reduction in transits was seen ...

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