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Weekly Market Report

Week 13/2019 (25 March – 29 March)

Comment: China’s Crude Oil Imports

index

comment page 2

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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comment

2 market report - week 13/2019

As recorded at the end of 2018, China’s crude oil imports still exceed previous year’s levels. In February 2019, supported by the risen demand of new private Chinese buyers and with new plants set to start commercial operations this year, crude oil imports rose 21.6 percent year-on-year to reach 39.2 mln tonnes, as per the General Administration of Chinese Customs data (GAC).

In February 2019, Saudi Arabia became China’s biggest crude oil supplier with 5.95 mln tonnes (+28.5 percent year-on-year), representing 15.2 percent of total imported volumes. The Kingdom surpassed Russia, the no. 1 source for Chinese demand on annual basis from 2016. Russian exports to China, accounting for 5.75 mln tonnes last month, recorded a 18 percent decrease on January 2019 but still 13.7 percent growth compared to February 2018. The increases in imports from Saudi Arabia reflect not only the still strong Chinese crude oil thirst, but also the Kingdom’s commitment to consolidate its position into the Chinese energy market share and its new marketing strategy towards Chinese private entities. In February, Saudi Aramco – the national petroleum and gas company — actually boosted its investments in private Chinese refiners by signing agreements to acquire a 9% stake in Zhejiang Petrochemical’s 800,000 bpd refinery in Zhoushan and to form the Huajin Aramco Petrochemical Co., a 10 billion USD worth joint venture with NORINCO Group and Panjin Sincen in order to develop a 300,000 b/d refining and petrochemical complex in Panjin, according to the company website.

China saw its crude oil imports from the two OPEC countries sanctioned by the U.S. and supplier of heavy crude oil grades, Iran and Venezuela, rise in February 2019. Imports from Iran, on which China was granted a waiver of 360,000 bpd due to expire early May, grew 22.1 percent month-on-month to 1.95 mln tonnes (+7.4 year-on-year), while volumes from Venezuela, on which sanctions concern only flows to the U.S., increased 17 percent on previous month and have almost doubled as compared to those in February 2018. According to Bloomberg calculations, both Venezuela and Iran crude oil shipments to China averaged their lower prices since late 2017, thus China is likely building strategic heavy crude oil reserves ahead of a potential price rise.

While Chinese crude oil imports from the U.S. were null in December 2018 and January 2019 amid the Sino-American trade war, in February China imported 85,541 tonnes from the States, according to GAC, meaning around one-tenth of February 2018 volumes.

China’s Crude Oil Imports

Saudi Arabia15.2%

Russia14.6%

Angola11.3%

Iraq9.5%

Brazil10.2%

Oman5.3%

UAE1.6%

Kuwait3.5%

Venezuela5.2%

Iran5.0%

Others18.7%

China - Crude Oil Imports by Source - Feb 2019(source: GAC ; in % of import volume)

20.0

25.0

30.0

35.0

40.0

45.0

50.0

02/2016 08/2016 02/2017 08/2017 02/2018 08/2018 02/2019

mill

ion

to

nn

es

China - Monthly Crude Oil Imports - last 3 years(source: GAC ; in mln tonnes per month)

Monthly Crude Imports

15

20

25

30

35

40

45

50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

mill

ion

to

nn

es

China - Monthly Crude Oil Imports - Seasonality(source: GAC ; in million tonnes)

2014 2015 2016 2017 2018 2019

0

5

10

15

20

25

30

Russia SaudiArabia

Angola Brazil Iraq Oman Venezuela Iran Others

mill

ion

to

nn

es

China - Jan-Feb Crude Oil Imports by Sources - last 3 years(source: GAC ; in million tonnes)

2017(Jan-Feb) 2018(Jan-Feb) 2019(Jan-Feb)

Unit 29-Mar 22-Mar W-o-W Y-o-Y

BPI TC Avg. usd/day 8,813 8,241 +6.9% -26.6%

BPI 82 TC Avg. usd/day 10,512 10,038 +4.7% -22.8%

P1 Transatlantic r/v usd/day 9,495 7,401 +28.3% -18.7%

P2 Skaw-Gib Trip East usd/day 15,918 14,805 +7.5% -15.0%

P3 Pacific r/v usd/day 7,322 8,128 -9.9% -40.9%

1 Yr TC Period Panamax usd/day 10,500 10,250 +2.4% -16.0%

1 Yr TC Period Kamsarmax usd/day 11,750 11,750 +0.0% -17.5%


BCI TC Avg. usd/day 3,796 4,180 -9.2% -54.5%

C8 Transatlantic r/v usd/day 3,195 4,400 -27.4% -29.9%

C14 China-Brazil r/v usd/day 5,182 5,073 +2.1% -49.0%

C10 Pacific r/v usd/day 4,146 4,571 -9.3% -59.9%

1 Year TC Period usd/day 12,750 11,000 +15.9% -32.9%

dry cargo chartering

Capesize market recorded another heavy week, mostly due the Veronica cyclone in Australia that stopped miners for the most part of the week. The standard route Tubarao/Qingdao had a unexpected shy recovery and reached very highs $11’s/mt level for first half April dates. The West Australia/Qingdao was totally inactive from Monday to Wednesday and, with Rio Tinto declaring force majeure, rates further softened and reached $4.60/mt bss mid-April dates. On the route from Saldanha Bay to Qingdao some deals were concluded in the high $8's/mt bss first-half of April. In the Atlantic, front hauls recovered a bit reaching around $13,000/d on Friday, while back hauls fixed on voyage basis had a TCE showing a very low -$7,700/d. A sudden rise in the FFA levels on Monday and Tuesday created new interest in the short period with some Capesize vessels fixed at around $11,000/d for 4/6 months basis delivery China and $13,000/d bss delivery India.

Capesize Market

Rates

Panamax Market

Rates

Atlantic rates showed an increase in levels with Kamsarmaxes achieving $11,000/d bss Gibraltar on NCSAm/Cont while for front hauls via ECSAm on the same size were rumored fixed at $18,350/d bss Gibraltar. From Cont a 82k dwt was reported fixed bss Rotterdam for trip via USEC to Jorf redely at $11,000/d bss dop while from same dely a Kamsarmax was fixed at $15,450/d bss dop for trip via USG to Singapore/Japan range redely. A 75k dwt fixed bss Barcelona dely at $10,000/d for trip via Norfolk to BlSea with redely Passero. ECSAm orders were covered with Kamsarmaxes achieving around $15,000/d + $550,000 bb bss aps, while for same trips with India dely vessels of similar size were achieving around $12,000/d bss dop. From S Africa a 82k dwt was agreed in the highs $12,000/d + $275,000 bb for trip with India redely, while levels for S Africa to China around the lows $13,000’s/d + $325,000 bb. In FEast a 75k dwt was reported fixed bss Japan dely for mids $8,000’s/d for RV within FEast, while on Nopac rounds a Panamax was reported done bss NChina dely for trip via Nopac to Iraq with redely passing Muscat at $10,000/d bss dop. For trips via Australia a Kamsarmax vessel was reported bss CJK dely with redely India in the mids/highs $8,000’s/d. On short period, rates for 75k dwt were still in the mid $10,000/d bss China dely for 4/6 months while Kamsarmax for 1 year were around $11,500/12,000/d bss China dely.

3

0

7,000

14,000

21,000

28,000

35,000

29/3/18 29/7/18 29/11/18 29/3/19

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

29/3/18 29/7/18 29/11/18 29/3/19

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

1-YR TC BPI TC

market report - week 13/2019


USG activity slowed down last week but, despite this, Supramax rates didn’t lose ground and were between mid/high teens for India/East, with Ultramaxes’ in the very high teens. On the other side, in Atlantic Supramaxes were fixing in the low teens and Ultramax in the mid teens. Handysizes remained stable: the 32/35,000 dwt were seeing $8/9,000/d while the 37/39,000 dwt were closer/in the $10,000's/d. ECSAm market saw another bullish week while waiting for the usual seasonal improvements. Handysizes on T/A trips were fixing at $14,500/d and at $18,000/d for trips FEast. For trips via ECSAm to Cont/Med, Supramaxes and Ultramaxes rates were at $15,500/d and $16,500/17,000/d respectively, while Owners were asking much stronger numbers for the second-half of April loadings. For trips to FEast numbers were in the $13,500/d + $350,000 bb mark on Tess58 and at $14,250/d + $425,000 bb on Ultramaxes.

Supramax & Handysize Market

Ind

ia

S A

fric

a

Cont market was stable both on Handy/Supramaxes. On handysize, a modern 35,000 dwt was rumored fixed at $11.50/mt with coal from Baltic to ARA range, showing a TCE around $5,000/d basis dely passing Skaw, while at the end of the week a 32,000 dwt was reported fixed at $12.50/mt from NSpain to WMed, showing a TCE of around $13,000/d basis dely aps. No fixtures were reported on Handysizes/Supramax from Cont to Med, but levels on modern 35,000 dwt and modern 58,000 were around $9,000/d and $10,000/d respectively. On Ultramaxes, a modern 63,000 dwt was rumored to have fixed basis dely dop Antwerp at around $16,000/d for 1 TCT with fertilizers basis redely Singapore/Japan range with intention China. Another bad week for Owners in BlSea: both Supramaxes/Handysizes rates for front hauls were rumored around $10,000/d, with Ultramaxes from Morocco apparently fixed at $15,000/d for trip to India and shorter trips within EMed or to Cont on Handies fixed in the $3/4,000/d for both directions. Owners seem reluctant to fix their units on period as rates ranged between $7/9,000/d for 3/5 months within the Atlantic.

Market started to pull down, with a 63,000 dwt fixed bss dely Mina Saqr for trip to ECIndia at $11,500/d and another 63,000 heard fixed on Friday on similar levels bss dely Fujairah for full India. From WCIndia a 58,000 dwt was fixed dop WCIndia port for trip to UAE at $7,000/d levels while to FEast a 56,000 dwt was fixed in the mids $9,000/d for salt cargo with China redely and a 58,000 was done at aps loadport Pak/WCIndia for trip to Chittagong at mid $10,000/d levels. In ECIndia market was comparatively lower than last week, as a 56,000 dwt was fixed on voy bss for ECIndia/China with returns equating to lows $6,000’s/d dop. In S Africa, an Ultramax was heard fixed close to mids $12,000’s/d + mids $200,000’s bb for trip via SAfrica to FEast.

Far

East

P

acif

ic

The smaller volume of the spot chartering enquiry affected rates on the transpacific trades, but Supra/Ultramaxes booked for inter-FEast trading or trips to MEast easily managed to get week 12’s levels or even a little more. An Ultramax delivering Indonesia got $11.500/d for a trip to WCIndia and, on a similar employment, a Dolphin57 was paid $7,500/d with delivery dop Thailand. SEAsia to China showed a 66,000 dwt fixed at $12,000/d aps SemarAng to Shanghai area, while a slightly smaller one delivering at SChina went to load nickel ore at Philipines to China at $11,000/d and a Dolphin type taken with similar delivery to load coal from Indonesia to China got $7,750/d. Limited demand for inter-SEAasia trading reported a 53,000 dwt fixed from Singapore to Thailand via Indonesia at $8,750/d. A 61,000 dwt delivered at Japan got $ 9,500/d for a trip via NPacific back to FEast and a 50,000 dwt performing back haul business from NChina to Atl Europe was paid $6,750/ for first 60 days and $10,557d thereafter. Even with no reported fixtures, Handysizes appeared to carry on at unchanged levels on all trades.

US

Atl

anti

c

Sou

th A

mer

ica

4

0

4,000

8,000

12,000

16,000

29/3/18 29/7/18 29/11/18 29/3/19

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

1-YR TC BSI TC

0

3,000

6,000

9,000

12,000

29/3/18 29/7/18 29/11/18 29/3/19

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

1-YR TC BHSI TC



BSI TC Avg. usd/day 9,094 9,199 -1.1% -24.4%

S4A 58 USG-Skaw/Pass usd/day 14,100 13,688 +3.0% -17.4%

S9 58 WAF-ECSA-Med usd/day 9,611 8,757 +9.8% -16.0%

S1B 58 Canakkale-FEast usd/day 12,950 13,171 -1.7% -31.0%

S11 58 Pacific r/v usd/day 8,144 8,519 -4.4% -29.1%


BHSI TC Avg. usd/day 6,893 6,723 +2.5% -28.0%


Sup

ram

axH

and

y

Rates

N E

uro

pe

M

ed

ite

rran

ean

Unit 29-Mar 22-Mar W-o-WPremium/

Discount

Apr (19) usd/day 5,188 4,850 +7.0% +36.7%

May (19) usd/day 7,167 8,758 -18.2% +88.8%

Jun (19) usd/day 9,279 10,150 -8.6% +144.4%

Q3 (19) usd/day 12,775 14,033 -9.0% +236.5%

Q4 (19) usd/day 16,288 17,167 -5.1% +329.1%

Q1 (20) usd/day 12,121 12,775 -5.1% +219.3%

Cal 20 usd/day 13,234 13,900 -4.8% +248.6%

Cal 21 usd/day 12,558 12,825 -2.1% +230.8%

Cal 22 usd/day 12,542 12,650 -0.9% +230.4%

Apr (19) usd/day 8,767 8,954 -2.1% -0.5%

May (19) usd/day 9,058 9,150 -1.0% +2.8%

Jun (19) usd/day 9,350 9,417 -0.7% +6.1%

Q3 (19) usd/day 10,042 10,175 -1.3% +13.9%

Q4 (19) usd/day 10,683 11,021 -3.1% +21.2%

Q1 (20) usd/day 8,850 8,913 -0.7% +0.4%

Cal 20 usd/day 9,192 9,296 -1.1% +4.3%

Cal 21 usd/day 8,788 8,821 -0.4% -0.3%

Cal 22 usd/day 8,425 8,429 -0.0% -4.4%

Apr (19) usd/day 8,850 9,533 -7.2% -2.7%

May (19) usd/day 9,313 9,929 -6.2% +2.4%

Jun (19) usd/day 9,296 10,100 -8.0% +2.2%

Q3 (19) usd/day 10,029 10,508 -4.6% +10.3%

Q4 (19) usd/day 10,600 11,108 -4.6% +16.6%

Q1 (20) usd/day 8,671 9,058 -4.3% -4.7%

Cal 20 usd/day 9,488 9,733 -2.5% +4.3%

Cal 21 usd/day 9,088 9,108 -0.2% -0.1%

Cal 22 usd/day 8,525 8,508 +0.2% -6.3%

Apr (19) usd/day 7,613 7,600 +0.2% +10.4%

May (19) usd/day 7,938 7,963 -0.3% +15.2%

Jun (19) usd/day 8,125 8,163 -0.5% +17.9%

Q3 (19) usd/day 8,250 8,275 -0.3% +19.7%

Q4 (19) usd/day 9,100 9,063 +0.4% +32.0%

Q1 (20) usd/day 8,075 8,100 -0.3% +17.1%

Cal 20 usd/day 8,500 8,519 -0.2% +23.3%

Cal 21 usd/day 8,400 8,406 -0.1% +21.9%

Cal 22 usd/day 8,263 8,275 -0.1% +19.9%

Han

dys

ize

Cap

esi

zeP

anam

axSu

pra

max

0

3,000

6,000

9,000

12,000

Mar-18 Mar-19 Mar-20 Mar-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)


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 21.52 24.36 -11.7% +1.4%

TD1 MEG-USG usd/day -6,724 -3,684 -82.5% +23.3%

TD2 MEG-Spore ws 47.00 57.67 -18.5% -1.6%

TD3C MEG-China ws 46.08 57.04 -19.2% -1.9%

TD3C MEG-China usd/day 16,816 27,835 -39.6% +24.7%

TD15 WAF-China ws 44.25 53.75 -17.7% -2.0%

Avg. VLCC TCE usd/day 5,046 12,076 -58.2% +114.2%

1 Year TC Period usd/day 32,000 32,000 +0.0% +45.5%

TD6 BSea-Med ws 65.50 68.22 -4.0% -15.5%

TD6 BSea-Med usd/day 3,252 4,486 -27.5% -51.9%

TD20 WAF-Cont ws 51.48 48.16 +6.9% -9.0%

MEG-EAST ws 70.00 75.00 -6.7% +12.9%

TD23 MEG-Med ws 42.17 43.92 -4.0% +62.2%

Avg. Suezmax TCE usd/day 4,032 3,532 +14.2% -25.9%


TD7 NSea-Cont ws 90.56 94.17 -3.8% -0.6%

TD7 NSea-Cont usd/day 4,355 6,516 -33.2% +180.4%

TD17 Baltic-UKC ws 65.00 75.56 -14.0% -12.4%

TD17 Baltic-UKC usd/day 4,721 11,045 -57.3% +28.6%

TD19 Med-Med ws 86.94 96.39 -9.8% +4.7%

TD19 Med-Med usd/day 6,775 10,299 -34% +578.2%

TD8 Kuwait-China ws 105.94 109.89 -3.6% +28.9%

TD8 Kuwait-China usd/day 11,391 12,392 -8.1% +363.0%

TD9 Caribs-USG ws 95.31 95.00 +0.3% -2.8%

TD9 Caribs-USG usd/day 7,023 6,588 +6.6% +86.9%

Avg. Aframax TCE usd/day 7,961 10,171 -21.7% +317.0%


VLC

CSu

ezm

axA

fram

ax

tanker chartering

Vlcc activity remained scarce and rates went below WS50 for MEG or W Africa/East and below $ 5.5 mln for USG to China runs. MEG/USG route sit in the very low twenties whilst $ 5.4 mln was done early in the week for Hound Point/Korea. West of Suez, Suezmax market remained quiet before bottoming around WS65 on BlSea/Med routes and around WS50 for W Africa/Europe. Rates form the Americas to Europe remained pretty much stable. East of Suez, a couple of Basrah/Med cargoes were worked at the end of the week, with Charterers aiming WS40 and Owners trying to push for better numbers. Aframax market slowed down in Med, with any CrossMed voyages done below WS90. Turkish Straits delays for daylight restricted tankers averaged around 3 days both north and south bound. Rates softened in Cont as well, with voyages straight to Med paying as low as WS65 on 80,000 mt ex NSea and WS55 basis 100,000 mt from Baltic. Market kept stable levels in the Caribs/ECMex/USG area despite the congestion at the Houston Channel. It’s interesting to notice that the delta between Caribs/USG and USG/TA rates became very thin. East of suez, Aframaxes’ rates hovering on the low hundreds, while lumpsum rates for Kozmino to NChina remained above the $600,000 mark.

Crude Oil Tanker Market

6

Rates


-10,000

5,000

20,000

35,000

50,000

65,000

29/3/18 29/7/18 29/11/18 29/3/19

VLCC MEG-Far East (usd/day)

-5,0005,000

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

29/3/18 29/7/18 29/11/18 29/3/19

TD6 Suexmax BSea-Med (usd/day)

-15,000-5,0005,000

15,00025,00035,00045,00055,000

29/3/18 29/7/18 29/11/18 29/3/19

TD19 Aframax Med-Med (usd/day)

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

Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

1 YR TC Period (usd/day)

VLCC Suezmax Aframax

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

1 YR TC Period (usd/day)

LR2 MR2

0

5,000

10,000

15,000

20,000

25,000

29/3/18 29/7/18 29/11/18 29/3/19

MR Pacific Basket (usd/day)

05,000

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

29/3/18 29/7/18 29/11/18 29/3/19

MR Atlantic Basket (usd/day)

05,000

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

29/3/18 29/7/18 29/11/18 29/3/19

TC1 LR2 MEG-Japan (usd/day)

tanker chartering

Product Tanker Market

Delays at Turkish Straits for Daylight Restricted Vessels

East of Suez, LR2 rates on MEG/Japan routes increased and reached WS102.5while MEG/UKC voyages went up at $ 2.075 mln and LR1 going East fell to WS110. West of Suez, LR2 and LR1 trading UKC/Japan slightly increased at $2.075 mln and $1.675 mln respectively. Clean Handysizes in Med recorded a steep rise in CrossMed rates that, helped by a very tight list of available units, jumped from week 12’s WS175 to WS265 on Friday. In Cont, Baltic/UKC rates on Handysize vessels moved up at WS207.5 with CrossCont following at around WS187.5. Clean MR rates fixed from Cont to US with 37,000 mt climbed at WS200 in the first half of the week before bouncing back at WS175 thereafter, while back hauls remained steady at WS95 basis 38,000 mt. The dirty market recorded again another quiet week both in Med and Cont for Handysize vessels. Rates went down to WS125 for CrossMed and to WS135 from BlSea due to a slow activity and a still long position list. Moreover, as a result of the booming clean market rates, some Owners are considering to clean up their Handysizes, and this might affect both markets in the next future. On the other side, MRs rates remained stable in Med, as CrossMed and BlSea/Med settled at WS110 and WS115 respectively. In Cont, Handysizes’ rate softened to WS135 due to a very little activity. Panamaxes’ rates remained stable at WS107.5 from both Med and Cont.



TC1 MEG-Japan ( 7 5 k ) ws 102.19 102.19 +0.0% +0.6%

TC1 MEG-Japan ( 7 5 k ) usd/day 13,235 13,020 +1.7% +29.1%

TC8 MEG-UKC ( 6 5 k ) usd/mt 27.40 28.68 -4.4% +22.1%

TC5 MEG-Japan ( 5 5 k ) ws 110.28 115.39 -4.4% -8.1%

TC5 MEG-Japan ( 5 5 k ) usd/day 10,447 11,382 -8.2% +2.8%

TC2 Cont-USAC ( 3 7 k ) ws 174.44 178.33 -2.2% +43.7%

TC2 Cont-USAC ( 3 7 k ) usd/day 17,001 17,501 -2.9% +278.1%

TC14 USG-Cont ( 3 8 k ) ws 96.79 96.07 +0.7% +21.0%

TC14 USG-Cont ( 3 8 k ) usd/day 3,588 3,233 +11.0% +449.4%

TC9 Baltic-UKC ( 2 2 k ) ws 207.50 196.43 +5.6% +30.3%

TC6 Med-Med ( 3 0 k ) ws 256.88 174.38 +47.3% +64.7%

TC7 Spore-ECAu ( 3 0 k ) ws 173.83 170.56 +1.9% -13.0%

TC7 Spore-ECAu ( 3 0 k ) usd/day 14,101 13,477 +4.6% -5.8%

TC11 SK-Spore ( 4 0 k ) usd/mt 11.82 12.04 -1.8% +5.4%

MR Pacific Basket usd/day 13,112 12,852 +2.0% -2.2%

MR Atlantic Basket usd/day 18,486 18,586 -0.5% +190.0%

LR2 1 Year TC Period usd/day 2,000 19,000 -89.5% -85.2%

MR2 1 Year TC Period usd/day 15,500 15,500 +0.0% +14.8%

TD12 Cont-USG ( 5 5 k ) ws 108.44 110.63 -2.0% +8.4%

TD18 Baltic-UKC ( 3 0 K) ws 136.67 148.75 -8.1% -24.1%

BSea-Med ( 3 0 k ) ws 135.0 140.0 -3.6% -15.6%

Med-Med ( 3 0 k ) ws 125.0 130.0 -3.8% -13.8%

Cle

anD

irty

Rates


Northbound days 3.0 6.0 -50.0% -40.0%

Southbound days 3.0 5.0 -40.0% -33.3%

600

700

800

900

1,000

29/3/18 29/7/18 29/11/18 29/3/19

Shanghai Container Freight Index

5,000

7,000

9,000

11,000

13,000

28/3/18 28/7/18 28/11/18 28/3/19

Geared - 1 YR TC Period (usd/day)

2500 1700 1100

6,000

8,000

10,000

12,000

14,000

28/3/18 28/7/18 28/11/18 28/3/19

Gearless - 1 YR TC Period (usd/day)

4250 3500 2700


ConTex index 392 390 +0.5% -18.0%

4250 teu (1Y, g’less) usd/day 8,642 8,619 +0.3% -14.4%



2500 teu (1Y, geared) usd/day 9,200 9,157 +0.5% -12.0%



Last week’s New ConTex Index picked up gained two index points on previous week. We recorded an increase in several segments, especially for the 1,700 TEUs but even for the 3,500 and 4,250 TEUs segments.

containers

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

Containership Market

Shanghai Containerized Freight Index (source: Shanghai Shipping Exchange)

8


Comprehensive Index index 793 728 +9.0% +20.5%

Services:

Shanghai - North Europe usd/teu 651 684 -4.8% +2.8%

Shanghai - Mediterranean usd/teu 725 732 -1.0% +17.9%

Shanghai - WC USA usd/feu 1,626 1,329 +22.3% +44.3%

Shanghai - EC USA usd/feu 2,634 2,338 +12.7% +22.6%

Shanghai - Dubai usd/teu 689 575 +19.8% +116.0%

Shanghai - Santos usd/teu 1,573 1,298 +21.2% -10.6%

Shanghai - Singapore usd/teu 148 148 +0.0% +4.2%


Recent Fixtures

Vessel Name Built TEUs TEU@14 Gear Fixture Period Rates

Cardiff 2014 6,612 4,975 no fixed to Maersk 12 m $21,500/d

Wieland 2014 4,957 3,739 no extended to Kmtc 2/3 m $15,650/d

Grouse Hunter 2006 4,130 2,946 no fixed to Cosco 4/6 m $8,500/d

Capt Thanasis 2005 2,826 2,020 no fixed to Mcc 4/6 m $8,500/d

Viona 2006 1,856 1,285 yes fixed to Pci 30/40 d $8,400/d

Hansa Drakenburg 2007 1,732 1,275 yes fixed to Cosco 1/2 m $7,850/d

Type Size Built Yard Buyers Price Comment

Prod 110,000 dwt n.a. New Times Eastern Pacific n.a. 2 units

Cont 15,000 TEUs n.a. Hudong- Zhonghua(5 units),

ASA + Jiangnan (5 units) CMA CGM n.a. 5+5 units

Cont 2,500 TEUs 2020-2021 Hundai Mipo KMTC 35.7 each 3 units

100

105

110

115

120

29/3/18 29/7/18 29/11/18 29/3/19

Yen/USD Exchange

1.10

1.15

1.20

1.25

1.30

29/3/18 29/7/18 29/11/18 29/3/19

USD/Euro Exchange

20

30

40

50

Apr-17 Oct-17 Apr-18 Oct-18 Apr-19

Newbuilding Prices (usd mln)

Ultramax LR2 MR2

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

USD 2.34 2.32 2.36 2.45 2.55 2.60

Euro -0.13 0.03 0.21 0.49 0.84 1.01

Libor USD Libor Euro Euribor Euro

6 Months 2.66 -0.31 -0.23

12 Months 2.71 -0.19 -0.11

It was a fairly quiet week in the NewBuilding market, with not much new to report for the conventional type of ships. Headlines were taken by the struggling situation and the production stop of Hanjin Subic Bay, with relevant concerns of Owners who placed orders there. In the Dry Bulk sector, more coastal business was done in Russia where a further order for 8 up to 11 vessels was placed with Krasnoye Sormovo for specific design; delivery between 2019 and November 2020. In the tanker sector, the only noticeable info regarded the order at New Times placed by Eastern Pacific for 2 x LR2; this is to replace the same order which was awarded to Hanjin Subic and then cancelled. On a different note, it was a busy week for new container business: CMA CGM firmed 5 + 5 x 15,000 TEUs in China with the first 5 units awarded to Hudong-Zhonghua and further 5 split between ASA and Jiangnan. Leasing structure may be arranged on this deal with CSSC Shipping Lease. Hundai Mipo got an order for smaller 3 x 2,500 TEUs size from local contractor KMTC for delivery end 2020 to January 2021, price reported region $35.7 mln each.

Newbuilding Market

Newbuilding Reported Orders

Indicative Newbuilding Prices (China)

sale & purchase

Interest Rates

Interest Rate Swaps

9

Unit 01-Apr-19 M-o-M Y-o-Y

Capesize usd mln 49.1 +0.2% +6.5%

Ultramax usd mln 26.2 -0.1% +3.3%

Supramax usd mln 23.2 +0.0% +3.3%

VLCC usd mln 84.3 +0.3% +5.2%

LR2 Coated usd mln 46.7 -0.0% +5.3%

MR2 Coated usd mln 33.7 -0.5% +1.3%

29-Mar 22-Mar W-o-W Y-o-Y

USD/Euro 1.12 1.13 -0.6% -8.8%

Yen/USD 110.9 109.9 +0.9% +4.2%

SK Won/USD 1,135 1,130 +0.4% +6.5%

Exchange Rates


TYPE VESSEL NAME DWT BLT YARD BUYERS PRICE NOTE

Bulk Alpine 37,300 2015 Nanjing Dongze Undisclosed

15 enbloc, price each. Seahorse 375. Ice

class 1C Bulk Summit 37,300 2015 Nanjing Dongze 15

Bulk Sunlight Lily 36,640 2012 Shin Kochi Greek buyers 12.35

Bulk Global Prosperity 33,700 2006 Shin Kochi Undisclosed 8.6

Crude Gardenia 112,000 2003 Hyundai Samho Indonesian buyers 13.25

Prod High Voyager 46,000 2014 Hyundai Mipo Japanese buyers 25.7 bbc for 10 yrs with

p. obligation

Prod Jinan 40,200 2003 Shin-A

European buyers

8

enbloc, price each

Prod Dukhan 40,200 2003 Shin-A 8

350

400

450

500

1/4/18 1/8/18 1/12/18 1/4/19

SubCon Demo Assessment (usd/ldt)

Dirty Tnk Clean Tnk Dry Bulk

15

20

25

30

35

1/4/18 1/8/18 1/12/18 1/4/19

Secondhand Values (usd mln)

Panamax Aframax MR

Unit 01-Apr 25-Mar W-o-W Y-o-Y

Dry Bulk usd/ldt 445.6 443.6 +0.5% -3.2%

Dirty Tanker usd/ldt 450.0 448.0 +0.4% -3.2%

Clean Tanker usd/ldt 446.5 445.5 +0.2% -4.2%

sale & purchase

Secondhand Market

Baltic Secondhand Assessments

Baltic Demolition Assessment (Subcontinent)

10

Unit 01-Apr 25-Mar W-o-W Y-o-Y

Capesize usd mln 36.0 36.1 -0.5% +6.3%

Panamax usd mln 21.3 21.3 -0.1% -0.9%

Supramax usd mln 17.8 17.9 -0.4% -0.5%

VLCC usd mln 67.2 67.1 +0.2% +9.3%

Aframax usd mln 33.3 33.4 -0.2% +12.1%

MR Product usd mln 27.7 27.7 -0.1% +11.8%


In the dry sector, with the big tonnage struggling to find buyers at Owners' prices, several Handysize vessels changed hands over the last week. Two seahorse 375 "ALPINE" and "SUMMIT" around 37,500 dwt 2015 built Nanjing Dongze (ice class 1C) were sold enbloc for $30 mln to undisclosed Buyers. Japanese owned "SUNLIGHT LILY" around 36,640 dwt 2012 built Shin Kochi achieved $12.35-12.50 mln range from a Greek buyer. Finally "GLOBAL PROSPERITY" around 33,700 dwt 2006 built Shin Kochi, after failing at $8.4 mln, was fixed at $8.6 mln. In the tanker sector, the Aframax "GARDENIA" around 112,000 dwt, bought as "DHT CATHY" in November 2018 at $11.9 mln, was sold to Indonesian Buyers for $13.25 mln. In the product segment, MR2 "ISOLA BIANCA" 50900 dwt 2008 SPP was sold for $15.5 mln to undisclosed buyers whilst older "PORT MOODY" 46,100 dwt 2002 STX DPP trader sold for $7.5 mln, which seems bit softer than last done "TORM AMAZON" 46,000 dwt 2002 Onomichi, which sold in excess $8 mil to Seven Islands, India. Finally two Qatari 40,000 dwt 'wide body' (31 m beam) MR1 "JINAN" and "DUKHAN" found buyers in Europe at region $8 mln each.

Secondhand Reported Sales

news banchero costa

Dry Bulk Commodities

Rio Tinto declares force majeure on some iron ore contracts after cyclone Rio Tinto on Friday issued force majeure notices to some iron ore customers due to damage from tropical cyclone Veronica, which hit Western Australia earlier last week. The company did not say which specific products were affected by the force majeure but the notice said Rio was "currently assessing the impact of the damage sustained at the Cape Lambert A port facility and is working with its customers to minimise any disruption in supplies." Rail and shipping operations at the Cape Lambert B terminal and the port of Dampier have resumed and are ramping up, it said. USCG works to begin allowing ships to leave closed Houston Ship Channel areas The US Coast Guard is working to set up a "locking system" in Houston Ship Channel areas where water was contaminated with significant amounts of benzene after a fire at the Intercontinental Terminals Co. tank farm and begin allowing ships out of Carpenters Bayou, the Old River and Jacinto Port, it said Friday. "There is still significant spillage in Jacinto Port, Carpenters Bayou and Old River," the USCG Port Coordination Team (PCT) said on a conference call Friday. "Those areas remain boomed and all vessel traffic from/to those areas is currently restricted.“ China buys more U.S. soybeans as trade talks kick off Chinese state-owned firms bought about 1.5 million tonnes of U.S. soybeans on Thursday for shipment in July and August, in their second major purchase of U.S. supplies this month, three traders with knowledge of the deals said. The purchases come as U.S. and Chinese officials meet in Beijing for negotiations aimed at ending a protracted trade war between the two economic giants that has slashed U.S. commodity exports to China, most notably soybeans. Baltic Exchange's IMO 2020 move could shake up dry bulk FFA market London-based Baltic Exchange Wednesday confirmed it would adapt its benchmark dry bulk freight indexes to upcoming marine fuel regulations of the IMO 2020 by continuing to use vessels not fitted with scrubbers in its underlying timecharter calculations. The Baltic Exchange's decision has been criticized by financial investors such as hedge funds who have FFA positions beyond January 1, 2020, and claim that not accounting for scrubber vessels will lower FFA prices and hurt millions of dollars in long derivative positions. More than 1 million acres of U.S. cropland ravaged by floods At least 1 million acres (405,000 hectares) of U.S. farmland were flooded after the "bomb cyclone" storm left wide swaths of nine major grain producing states under water this month, satellite data analyzed by Gro Intelligence for Reuters showed. Farms from the Dakotas to Missouri and beyond have been under water for a week or more, possibly impeding planting and damaging soil. The floods, which came just weeks before planting season starts in the Midwest, will likely reduce corn, wheat and soy production this year. Canada takes tougher line with China on canola ban, demands evidence Canada on Thursday took a notably tougher line with China over its ban on Canadian imports of canola seed, saying Beijing had provided no scientific evidence to justify the move and was hurting its own reputation. China, citing the discovery of pests, expanded its ban on canola seed imports on Tuesday to include shipments from a second major exporter, Viterra Inc. Brazil's Vale slashes iron ore sales estimate after dam burst Brazilian miner Vale SA on Thursday estimated selling up to 75 million tonnes less iron ore this year, after several mines were halted following its second deadly dam burst in less than four years. The estimate, which is 20 percent below its prior forecast, is the latest blow to Vale from the collapse at Brumadinho, which killed some 300 people and forced the world's largest iron ore exporter to fire its chief executive officer earlier this month. After sanctions lifted, Russia's Rusal boosts aluminium smelter capacity Russian aluminium giant Rusal has launched new production at its Boguchansk aluminium smelter in Siberia on Friday, doubling its capacity to 298,000 tonnes a year. The new line, part of a larger project, is being started two months after Rusal was removed from a U.S. sanctions list. The world's largest aluminium producer outside China is now seeking to restore sales contracts to pre-sanctions levels. China's Feb coking coal imports from Australia fall 21 pct China's coking coal imports from Australia in February slumped 21 percent from a year earlier as lengthy customs checks on Australian cargoes at several ports delayed their arrival into the country. Australian imports were at 1.16 million tonnes last month, according to data released by the General Administration of Customs on Monday, compared to 1.47 million tonnes in February 2018. Source: Refinitiv / Platts / Argus Media

market report - week 13/2019 11

news banchero costa

Oil & Gas

OPEC struggles to keep Russia on board with oil cut, may offer shorter extension Saudi Arabia is having a hard time convincing Russia to stay much longer in an OPEC-led pact cutting oil supply, and Moscow may agree only to a three-month extension, three sources familiar with the matter said. Russian Energy Minister Alexander Novak told his Saudi counterpart Khalid al-Falih when the two met in Baku this month that he cannot guarantee an extension to the end of 2019, the sources said. Iranian fuel oil cargo sits off Malaysia as U.S. urges sanctions compliance A tanker of Iranian fuel oil was sitting offshore Malaysia, ship tracking data on Refinitiv Eikon showed, as a top U.S. sanctions official visiting Singapore on Friday urged local governments to comply with oil trading restrictions on Iran. The U.S. government reintroduced sanctions against Iran's oil industry in November. While it still allows some buyers limited purchases of Iranian crude oil, petroleum products have not received official sanctions waivers. Japanese refiners halt Iran oil imports as waiver expiry looms Japanese refineries have put a halt on imports of Iranian oil after buying 15.3 million barrels between January and March ahead of the expiry of a temporary waiver on U.S. sanctions, according to industry sources and data on Refinitiv Eikon. The waiver, which allowed Japan to buy some Iranian oil for another 180 days, expires in early May. However, Japanese refiners want to ensure enough time for all cargoes already loaded to arrive in Japan and for payments to be completed. U.S. orders foreign firms to further cut down on oil trades with Venezuela The United States has instructed oil trading houses and refiners around the world to further cut dealings with Venezuela or face sanctions themselves, even if the trades are not prohibited by published U.S. sanctions, three sources familiar with the matter said. The move comes as Washington's efforts to oust President Nicolas Maduro in favour of opposition leader Juan Guaido have stalled, and is further evidence of how it is leaning on non-U.S. firms to achieve its foreign policy goals. Tanker bottleneck eases at Houston port as traffic resumes Four tankers on Thursday were preparing to offload or pick up cargoes in the busiest U.S. oil port, the first signs of an easing of the bottleneck that cut 1 million barrels per day of shipments, according to vessel tracking data. The Houston Ship Channel reopened this week with operating restrictions following a fire at Mitsui & Co Inc's Intercontinental Terminals Co (ITC) in Deer Park, Texas. That blaze sent fuel and chemicals into the waterway, which connects Houston to the Gulf of Mexico and is home to nine refineries. S.Korean refiners reject U.S. oil cargoes, but will keep trade going Two South Korean oil importers have recently turned back U.S. crude oil cargoes over quality issues, although that is not likely to sever the fast-growing trade link between the close political allies. Three South Korean refiners - SK Energy, GS Caltex and Hyundai Oilbank - typically buy American oil when wider discounts of U.S. oil make it relatively cheaper than Middle East grades. China revises export quotas to curb gasoline shipments China's commerce ministry (MoC) announced the changes after several state-controlled exporters applied for a rare quota swap between different energy products at the start of March. The changes, which apply to the first batch of export quotas this year issued under general trade terms, leave the total quota amount unchanged at 18.36mn t. China exported 555,000t of gasoline, 1.511mn t of diesel and 1.14mn t of jet fuel in February, customs data show. State-controlled firms used up 47pc of their gasoline, 36pc of diesel and 32pc of their jet fuel quotas in January-February after taking into account the latest quota changes.The timing and volume of the next batch of Chinese export quota remains unclear. But it may not be released soon, given the MoC has only just confirmed the changes to the first batch. Saudi Aramco to buy SABIC in $69 bln chemicals megadeal The world's largest oil producer Saudi Aramco has agreed to buy a 70 percent stake in Saudi Basic Industries Corp (SABIC) from the kingdom's wealth fund for $69.1 billion in one of the biggest deals in the global chemical industry. The agreement to help boost Aramco's downstream growth plans comes after months of talks between Aramco and the Public Investment Fund (PIF), which contributed to the delay of Aramco's planned multi-billion dollar initial public offering. "This is a win-win-win transaction and a transformational deal for three of Saudi Arabia's most important economic entities," said Yasir al-Rumayyan, managing director of the PIF. Source: Refinitiv / Argus Media

market report - week 13/2019 12

300

400

500

600

29/3/18 29/7/18 29/11/18 29/3/19

Wheat and Corn Prices (usd/t)

Corn Wheat

3,000

3,500

4,000

4,500

5,000

29/3/18 29/7/18 29/11/18 29/3/19

Steel Prices in China (rmb/t)

Rebar Plate

40

60

80

100

120

29/3/18 29/7/18 29/11/18 29/3/19

Iron Ore and Coal Prices (usd/t)

Steam Coal Iron Ore

40

50

60

70

80

90

29/3/18 29/7/18 29/11/18 29/3/19

Brent and WTI Oil Prices (usd/bbl)

Brent WTI

200

400

600

800

29/3/18 29/7/18 29/11/18 29/3/19

Bunker Prices @ Singapore (usd/t)

IFO 380 IFO 180 MGO


Wheat usd/t 459.5 465.8 -1.3% +2.4%

Corn usd/t 361.0 379.0 -4.7% -6.9%

Soybeans usd/t 889.8 907.3 -1.9% -14.4%

Palm Oil usd/t 516.2 532.4 -3.1% -17.7%


Iron Ore (Platts) usd/t 86.4 85.9 +0.6% +30.4%

Iron Ore China @Tangshan rmb/t 643.0 632.0 +1.7% +41.9%

Rebar in China rmb/t 3,953 4,004 -1.3% +6.0%

Plate in China rmb/t 4,162 4,172 -0.2% -1.3%

HR Coil in China rmb/t 4,001 4,010 -0.2% +0.3%

CR Sheet in China rmb/t 4,487 4,475 +0.3% -1.3%


Steam @ Richards Bay usd/t 73.3 77.8 -5.8% -17.7%

Steam @ Newcastle usd/t 87.2 93.5 -6.7% -5.5%

Coking Coal Australia usd/t 196.5 212.5 -7.5% +3.6%


Crude Oil Brent usd/bbl 68.4 67.0 +2.1% +0.9%

Crude Oil WTI usd/bbl 60.6 59.1 +2.6% -4.1%

Crude Oil Dubai usd/bbl 68.2 66.4 +2.8% +4.2%

Natural Gas Henry Hub usd/mmbtu 2.68 2.73 -1.8% +0.0%

Gasoline Nymex usd/gal 1.89 1.92 -1.6% -4.1%

ICE Gasoil usd/t 605.3 597.3 +1.3% -0.7%

Naphtha Tokyo usd/t 554.4 552.7 +0.3% -4.7%

Jet-Kerosene Asia usd/bbl 79.7 79.5 +0.2% -2.0%


Rotterdam usd/t 409.0 409.0 +0.0% +13.1%

Gibraltar usd/t 434.0 436.5 -0.6% +13.0%

Singapore usd/t 426.5 426.5 +0.0% +11.6%

Rotterdam usd/t 449.0 446.0 +0.7% +14.4%

Gibraltar usd/t 460.5 460.5 +0.0% +13.6%

Singapore usd/t 456.5 460.0 -0.8% +10.9%

Rotterdam usd/t 574.5 579.5 -0.9% -3.0%

Gibraltar usd/t 631.0 632.0 -0.2% -1.6%

Singapore usd/t 608.5 615.5 -1.1% -1.5%

IFO

38

0IF

O 1

80

MG

O

commodities

Oil & Gas Prices

Coal Prices

Iron Ore and Steel Prices

Agricultural

Bunker Prices


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Documents

BANCOSTA Weekly Market Report - Hellenic Shipping News...venture with NORINCO Group and Panjin Sincen in order to develop a 300,000 b/d refining and petrochemical complex in Panjin,