DRY BULK

    Panama canal says will slash booking slots due to drought The Panama Canal, one of the world's main maritime trade routes, will further reduce daily ship crossings in the coming months due to a severe drought, the authorities managing the canal said late on Monday, increasing shipping costs. Booking slots will be cut to 25 per day starting Nov. 3 from an already reduced 31 per day, the Panama Canal Authority (ACP) said in a client advisory, and will be gradually reduced further over the next three months to 18 slots from Feb. 1.

    The canal’s administrators will whittle the number of transits from 31 down to just 18 in the coming three months, a figure that will stay until further notice.

    At this point, slots for the newer, larger neopanamax locks with be down to eight per day, which will mostly be taken up by container vessels with the occasional gas carrier.

    “Large oil tankers will not feature in this trade anymore. They will not be able to schedule in advance like container ships do and they can likely not compete for the auction slots,” a new report from New York-based tanker brokers Poten & Partners suggested, noting how a recent auction was won by a VLGC for a record $2.85m.

    “The stark reduction in slots will push many of the tramp vessels (including tankers and dry cargo ships) away from the Canal. This will lead to more ton-mile demand and possibly changes in segment utilization as longer hauls may stimulate the use of larger vessels,” Poten predicted.

    Prospect of no large tankers and gas carriers transiting the Panama Canal from next year - Splash247
    There’s a real prospect no large tankers could be transiting the Panama Canal from the start of next year, with VLGCs also likely to be pushed out from the…
    splash247.com

    Bulker execs confirm new route
    “Particularly for grain cargoes out of the U.S. Gulf to China and Asia, [the Panama Canal route] is the typical trade historically,” said Gary Vogel, CEO of Eagle Bulk (NYSE: EGLE), during a conference call last Friday. “We’re now routing our ships through the Suez, which adds about 10 days and is slightly more expensive in terms of canal dues.”

    Peter Allen, CFO of Genco Shipping & Trading (NYSE: GNK), said during a conference call Thursday, “We are getting some help from the Panama Canal situation. Instead of going through the Panama Canal, ships are going through the Suez, which is extending ton-miles.” (Ton-miles is shipping demand measured in volume multiplied by distance.) https://www.freightwaves.com/news/panama-ca…ur-through-suez

    According to Fearnleys, preliminary estimates for Q3 2023 shipment volumes were 282 million
    tonnes, an all-time high again, after 275 million tonnes in the preceding quarter. The highest
    growth (quarter-on-quarter) was seen in minor bulks (7 per cent), coal (7 per cent) and grains (4 per
    cent). Iron Ore (-15 per cent), breakbulk cargoes (-11 per cent) and steel products (-7 per cent)
    contributed negatively. Fertilizer shipments were up slightly in volume, by two per cent.
    Importantly, overall volumes continue to grow and show that the demand side is stable and
    resilient despite the turmoil in financial markets and concerns over inflation and interest rates.
    Port congestion, as measured by the average waiting time in port for ships to discharge, continued
    to reduce during the third quarter. Coupled with shorter, albeit marginal, average voyage
    durations – this contributed to slightly less favourable supply-side fundamentals. Average sailing
    speeds remain relatively unchanged. Current levels of port congestion are now at pre-Covid
    normalised levels. As we have highlighted before, changes in port congestion, voyage duration
    and/or vessel speeds affect the overall vessel efficiency in the dry bulk market on a short-term
    basis more than a change in the number of newbuildings in the orderbook.
    39 Supra/Ultramax vessels were delivered in Q3 2023, compared to 33 vessels in the previous
    quarter, according to Fearnleys. In October, only seven vessels were delivered, and 19 remain on
    schedule to be delivered before year-end.
    Year-on-year, the fleet grew by 3.5 per cent in the third quarter, about the same rate as in the
    second quarter. According to Fearnleys, fleet growth is likely to remain around this level for the
    next year. The number of ships delivered per quarter compares to an existing fleet of
    Supra/Ultramax vessels on the water today of about 4 100 in total. With an orderbook-to-fleet of
    about 7-8 per cent, we are approaching the lowest rate of supply growth in 30 years.
    Relatively low newbuilding activity for dry bulk continues as the lack of conviction and alternatives
    for fuel and propulsion systems appear to restrain new orders. Higher input costs as well as full
    orderbooks and continued high demand for other vessel segments dictate the position with
    shipyards. Available delivery positions with reputable shipyards remain distant, at least two and a
    half years ahead. For the premier Japanese shipyards, available delivery positions are even later –
    more than 3 years from now.

    In our recent Weekly Dry Bulk Reports, we have been stating that global dry bulk rates were likely to stabilize soon, and this has occurred. However, arguably the bigger and much less followed development is what is occurring in the Chinese coastal market. Chinese coastal coal freight rates have jumped 32% this week due to much stronger demand. Thermal coal prices falling to relatively low levels, and the government advising utilities to ensure supplies before the winter, have resulted in a surge in bargain hunting and buying…

    2+2=4

    Platts, part of S&P Global Commodity Insights, has launched the first new dry bulk composite index in more than three decades to be priced in dollars per day, reflecting the freight paid for hauling various commodities across 35 major routes where capesize, panamax, kamsarmax, ultramax and supramax ships ply. With the new Platts Dry Index, freight market participants and financial investors with exposure to daily changes in dry bulk shipping prices now have the option of trading a basket of routes incorporating all vessel segments.

    The weighting for the individual indexes is determined by the volume of capesize, kamsarmax, ultramax and supramax vessel movements observed between the trading regions over the last three years from Platts’ trade flow system Commodities At Sea (CAS).

    The Platts Dry Index is calculated in ton-miles and is arrived at by multiplying the volume of cargo moved in metric tons by distance traveled in miles.

    Peter Norfolk, global head of freight pricing at S&P Global Commodity Insights, said, “Following the disruption of global trade flows caused by the Russia-Ukraine conflict and the re-mapping of supply chains due to the covid-19 pandemic, the freight market is in dire need of an index that reflects the current reality. In addition, dry bulk is the largest sector in the maritime industry that impacts almost every aspect of the economy.”

    New dry bulk index launches - Splash247
    Platts, part of S&P Global Commodity Insights, has launched the first new dry bulk composite index in more than three decades to be priced in dollars per day,…
    splash247.com

    Predviđanja Clarksona za slijedeću godinu su da se, zbog povećanja odlaska brodova u rezalište, smanjenja brzine plovidbe brodova i povećanja naknadnog opremanja brodova (zbog stupanja na snagu novih pravila o zaštiti okoliša), očekuje povećanje najamnina na tržištu brodova za prijevoz rasutih tereta.                                                                                                                                                                                                                                                 

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    China is planning to allocate at least 1 trillion yuan ($137 billion) in low-cost financing to support the nation’s urban village renovation and affordable housing programs. The move is aimed at bolstering the struggling property market, which has been impacted by a significant downturn. The funds will be injected in phases through policy banks, ultimately benefiting households looking to purchase homes.

    China to Inject 1 Trillion Yuan into Urban Village Renovation and Affordable Housing Programs
    China to Inject 1 Trillion Yuan into Urban Village Renovation and Affordable Housing Programs - Off Plan Property Exchange
    offplanpropertyexchange.com

    Supramax index up 294 to 13,250$/day. Second highest Smx rate for this time of the year since 2011!

    Panamax index +672 to 16,868$/day. Second highest Pmx rate for this time of the year since 2010!

    Edited once, last by jasko: Merged a post created by jasko into this post. (November 17, 2023 at 2:28 PM).