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BDI WEEK 25
Baltic Dry Index 2501 -193 (-7,16%)
Baltic Capesize 2717 -417 (-13,31%)
Baltic Panamax 3045 +65 (+2,18%)
Baltic Supramax 2122 -110 (-4,93%)
Baltic Handysize 1182 -65 (-5,21%)
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WEEKLY MARKET REPORT
June 25th, 2010 / Week 25
Most indices continued their correction although the panamax showed signs of improvement ending the week positively with a 2% gain. The capesize was hardest hit once again as this market segment is really struggling to find direction.
Despite the negative trend of the indices positive news abound on the trading side prompting buyers to continue their search for bulkers, mainly on the handysize and handy/supramax sectors. News that the demand of China for foreign corn is expected to increase substantially, is positive for the operators of the smaller size tonnage.
At the same time Coal shipments from Australia's Newcastle port, the world's biggest export harbor for the fuel used in power stations rose 23% last week while the number of vessels waiting to load increased. The volume exported in the week ending 21st of June increased up to 2.04 million metric tons from 1.66 million tons in the preceding period (as reported by Newcastle's Port). Furthermore, the queue of Vessels waiting to berth at the anchorage has climbed to 51 ships, up from 48 a week earlier.
So whilst the market's direction is negative deals are being concluded at prices which seems unaffected which suggests that there is a lot of confidence in the market. It is evident that the activity is stronger in the smaller sectors but this week it emerged that the panamax MV "BEILUN SEAL" (69,614 dwt / blt 1997 Japan) has been sold for US$ 28.80 million which is a firm price for this size/age vessel. A firm price is also emerging on the MV "CMB ITALIA" (76,620 dwt / blt 2005 Japan) having been committed to Greeks for US$ 40.60 million. Cido shipping has sold its handy MV "GREAT CHANCE" (28,701 dwt / blt 2004 Japan) for US$ 26 million basis charter free June-October 2010.
We are also seeing some movement in the tanker market with one mid 90's VLCC being sold to Embirikos whilst the aframax MT "MARE SALERNUM" (110,673 dwt / blt 2003 Japan) has achieved a very firm price of US$ 43 million to Egyptian Tankers, well up on last done which was the sale of the aframax "Livia" also built 2003 which was sold for US$ 38 million during April 2010.
Demolition remains somewhat active but Bangladesh remains inactive so India is getting the lion's share of the deals. Prices remain mostly unchanged although we are seeing strong numbers being paid for reefers in the 360's. Tankers have managed to keep their levels at around 400 but with Bangladesh out of the race we do not foresee any significant increase.
The news of the week is that Genco today announced that it has entered into an agreement with Bourbon SA to acquire 16 supramax vessels, including two newbuildings, from Setaf SAS, a wholly owned subsidiary of Bourbon SA, for an aggregate purchase price of US$ 545 million. Genco's fleet will consist of 53 drybulk vessels with a total carrying capacity of approximately 3,813,000 dwt and an average age of approximately 6.4 years.
- more here:
http://download.hellenicshippingnews.com/pdf/weberseas/WeberSeas%20Weekly%20Report%20June%2025-10.pdf
