Baltic Exchange Dry Index 3874 DOWN 155
BCI Baltic Exchange Capesize Index 7441 DOWN 468
BPI Baltic Exchange Panamax Index 3021 DOWN 47
BSI Baltic Exchange Supramax Index 1757 DOWN 1
BHSI Baltic Exchange Handysize Index 774 DOWN 3
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23/6 2009 16:35 fcras 0
14108 Tuesday, 23 June 2009
Commodity-shipping lines are "through the worst" after last year's market collapse hurt companies' finances, Nordea Bank AB said.
The Baltic Dry Index, a measure of shipping costs for commodities, plunged a record 92 percent last year as steel demand and the global economy slumped.
That cut vessel values and prompted companies including Hellenic Carriers Ltd. to get waivers on loan rules, or covenants.
At least five shippers including Armada (Singapore) Pte have sought bankruptcy protection because of the market's plunge.
"There has been a lot of renegotiations and restructuring of many loan facilities," Carl Steen, head of the shipping, oil services and international division at Nordea Bank Norge ASA, said in an interview at a TradeWinds conference in Oslo today.
"We have been through the worst period."
Steen told the conference he "would not be surprised" if more than 30 percent of the new ships on order were canceled over the next three years.
That would affect commodity ships "to a great extent" and tankers "to a limited extent," he said.
Cancellations across all fleets are currently in the mid- 20 percent, Steen added.
The world's fleet of dry-bulk vessels will expand 42 percent this year and next, according to estimates from London- based Drewry Shipping Consultants Ltd.
The figure from Drewry's May monthly report is based on current order books and doesn't include scrapping, delays and cancellations.
Equity over debt
Shipping companies will have to finance new vessel deliveries by selling equity rather than taking on debt "because there is not sufficient banking capacity in the market," Steen said.
Credit has been tougher to get since Lehman Brothers Holdings Inc. failed last September, sparking a financial sector crisis and forcing governments around the world to inject funds and take over banks.
Lloyds Banking Group, Britain's biggest mortgage lender, is now 43 percent state-owned.
DryShips Inc. raised US$475 million last month from a share sale and yesterday announced an agreement with a Deutsche Bank AG-led syndicate to waive terms on a US$1.125 billion credit line.
Operators of tankers carrying loads such as crude oil may face a "difficult period" this year and in early 2010 but on "long-term it is not looking that bad," Steen said.
Tankers with one layer of steel separating their cargoes from the ocean will be outlawed under international rules coming into force next year and taking full effect five years later.
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=52948&Itemid=79
Source: Bloomberg
23/6 2009 22:59 fcras 014124 A handsome profit of $35,000 a day has been made by Cosco on reletting a capesize bulk carrier back to the company it chartered the vessel from just a day earlier.
Capesizes
Cargill has fixed the 170,000-dwt Alpha Millennium (built 2000) as a Cosbulk relet for a transatlantic round trip out of Europe at $92,000 a day.
But Cosbulk had only just hired the Alpha Tankers & Freighters owned vessel as a Cargill relet at $57,000 a day although for an 11 to 13 month charter.
The Alpha Millennium was fixed by SK Shipping in mid May for a transatlantic round trip at $32,000 a day which is a measure of the volatility currently in evidence.
Panamaxes
There was no such excitement in the panamax market although GMI paid $25,000 a day for the 76,000-dwt Anna S (built 2001) to make Middle East- South America – Far East voyage.
NYK took a couple of vessels at $22,000 a day for Far East – Japan voyages. Orion Bulkers 74,000-dwt Boreal (built 2002) is start in China and voyage via Indonesia while Iolcos Hellenic’s 70,000-dwt Themis P (built 1994) starts from India and also makes an Indonesia call.
Glencore fixed Klaveness’ 70,000-dwt Trans Emirates (built 1993) at $21,000 a day for an India – South America – Far East run
Toepfer took Kee-Yeh Maritime’s 74,000-dwt Elly (built 1999) for a China – North Pacific round trip at $19,500 a day.
Supramaxes
Norden fixed the 46,000-dwt Ince Denizcilik controlled Ince Atlantic (built 2001) for four to five months trading at $20,000 a day.
Blue Planet’s 54,000-dwt Lorentzos (built 2005) was hired at $29,000 a day by ED&F Man for a Gulf of Mexico – Europe voyage.
Seawin chartered China Shipping Development’s 57,000-dwt Jia Yong Shan (built 2005) for a China – South East Asia round trip at $16,000 a day.
Jinhui’s 57,000-dwt Jin Gang is to make a maiden voyage from a Shanghai building berth to Australia and then on to India for Daiichi for $15,300 a day.
Norden fixed Evripos’ 46,000-dwt Maria Th (built 1996) for a China – Indonesia round trip at $15,000 a day.
By Jim Mulrenan in London
Published: 14:12 GMT, 23 Jun 2009 | last updated: 14:15 GMT, 23 Jun 2009
