Here is the Press Release in PDF Format:
Very Interesting & Informative Video:
A Brief by Watson Farley & Williams:
A Report by Platts – S&P GLOBAL – Shipping:
Attached is the full briefing of this legal case in PDF format:
Our Thanks to Watson Farley & Williams – March 2017
All-in-all it was a pretty quiet week. This means there really is not much to talk.
Trade has slowed down in the Supramax/Ultramax segment of the North Atlantic this week. Players report very limited cargo offer for late March-early April. The number of vessels open for spot/prompt dates significantly exceeds demand for fleet. The costs of cargo transportation from the regional ports have sagged. This week, prompt rates for a Supramax vessel chartered for grain shipment bss dely USG redel Spore-Japan are voiced by brokers at $17k daily, those for Ultramax carriers – at $18-19k daily. Earlier this week, the contracts for Supramax transportation of petcoke bss dely USG redel India were concluded at $19-20k daily, while the relevant rates now amount to $18-19k daily. Brokers have not reported any voyage-basis deals for shipments of US grain this week, as the difference in ideas has grown significantly. The charterers are confidently lowering the rates, voicing the ideas of $34.5-35/t for transportation of a Supramax-lot of agricultural products from the Gulf of Mexico ports to northern China, while such shipment is quoted by brokers at $36-37/t.
Transatlantic market has also softened amid sharpening imbalance of cargo offer and tonnage supply. Thus, the charterers are ready to pay only $12-13k daily for a Supramax carrier chartered for petcoke shipment bss dely USG redel EMed with prompt laycan dates and about $11-12k daily bss dely USG redel ECSA. The time-charter for Supramax fleet bss dely USG redel Skaw-Passero is quoted by brokers at $13.5-14.5k daily, that for Ultramax vessels – at $14.5-15.5k daily. The situation remains unfavorable for Handysize owners in the region. Given limited number of relevant cargo offers, they have to make concessions. The deals for Handysize fleet bss dely USG redel Skaw-Passero are negotiated at $9.5-11k daily on average. A Handysize vessel can be chartered at $8.5-9k daily bss dely USG redel ECCA. The time-charter for such carriers bss dely USG redel WCCA/WCSA is quoted at about $12k daily.
By contrast, trade is generally brisk in the South America, though the owners of fleet are not able to raise the rates for fronthaul cargo transportation. Given a balance of cargo offer and tonnage supply, the rates are generally stable. The owners of fleet still want to get $13k daily + $300k bb for a Supramax vessel bss dely ECSA redel Spore-Japan and $14-14.5k daily + $400-450k bb for an Ultramax carrier. However, Supramax fronthaul shipments are quoted by brokers at $12k daily + $200k bb, Ultramax ones – at $13k daily + $300k bb. According to sources, prompt deal for an Ultramax ship bss dely ECSA redel Spore-Japan is negotiated at $12.8k daily + $280k bb. Similar contract is negotiated at $13.25k daily + $325k bb. A Supramax vessel has been chartered at $12.25k daily + $225k bb bss dely ECSA redel Spore-Japan.
The time-charter for Supramax fleet bss dely ECSA redel Skaw-Passero is quoted by brokers at $12-13.5k daily, that for Ultramax carriers – at $14-14.5k daily. The deal for an Ultramax ship bss dely ECSA redel Skaw-Passero has been signed at $14k daily. The time-charter for Supramax carrier bss dely ECSA redel Med is negotiated at $12.5-13k daily. The contract for a similar vessel bss dely ECSA redel Continent has been concluded at $12k daily. A Supramax carrier has been chartered at $12.5k daily bss dely ECSA redel WMed. The rates for a 57,000-dwt ship bss dely ECSA redel Med are negotiated at $14-14.5k daily. Closer to the end of the week, Supramax owners have started to raise their ideas for transatlantic shipments to $15-16k daily bss dely ECSA redel Med and sometimes even managed to reach such level for spot dates. Thus, the deal for a Supramax vessel bss dely ECSA redel Med with late March laycan dates has been signed at $15k daily. Trade has slowed down slightly in the Handysize segment this week, while the relevant rates have largely stabilized after last week’s increase. According to brokers, the time-charter for Handysize fleet bss dely ECSA redel Skaw-Passero is quoted at $10.5-12k daily on average. Such vessel can be chartered at $10-11k daily for cargo transportation within the South American ports. The rates for Handysize carriers bss dely ECSA redel WCSA amount to $14-14.5k daily.
In the short term, negative trends may be preserved in the North Atlantic amid a shortage of new spot/prompt requests. Brokers also report gradually growing number of vessels competing for April shipments; thus, the rates may come under strong pressure unless the corresponding cargo traffic perks up.
Supramax/Ultramax rates may go up in the South Atlantic if the relevant cargo offer grows. Handysize market is also likely to strengthen. Given limited number of vessels open in West Africa, the Shipowners will most likely manage to raise the rates.
Excel Document of Various Fixtures/Freight Rates Attached herewith: ATLANTIC
(*) Our thanks to our Colleagues CCShipbrokers
Four bids are expected to be tabled this week for the 67 percent stake in Thessaloniki Port Authority.
The deadline of the tender – which has been going on since the summer of 2014 – is this Friday at 7 p.m. and the binding bids will be tabled at Morgan Stanley in London.
The offers will come from the consortium comprising Deutsche Invest Equity Partners, Terminal Link (a subsidiary of CMA CGM) and Russian-Greek investor Ivan Savvidis’s group, as well as from Dubai Ports World, Japan’s Mitsui & Co, and Philippines-based International Container Terminal Services.
The preferred bidder will have to implement investments of at least 180 million euros within seven years.
Talk of ties between any of the above candidates and the Cosco group, which has acquired Piraeus Port Authority, is refuted. Sources close to Cosco noted to Kathimerini that “the Chinese group is examining the form of its reaction to the discrimination that took place [at its expense] as in Piraeus Port only 51 percent was sold with another 16 percent due under certain conditions, while in Thessaloniki Port 67 percent is conceded with far fewer commitments.”
A new terminal near completion in Latin America’s largest port in Santos, Brazil, is expected to add an extra 20 percent to its grains and sugar capacity, boosting shipping services just as the country produces bumper crops.
The 2.2 billion reais ($694 million) Tiplam terminal started operations at a new berth in January and will ramp-up loadings with a second berth at the end of March or early April for a total capacity of 5 million tonnes of grains and 4.5 million tonnes of sugar a year.
The timing could hardly be better as Brazil faces its largest ever crop of soybeans, sugar and corn amid problems with a key road to northern terminals that has forced companies to divert up to 700,000 tonnes of soybeans to southern ports.
Tiplam is managed by logistics operator VLI, a company owned by Brazilian miner Vale SA, Canada’s Brookfield Asset Management Inc, Japan’s Mitsui & Co Ltd and local investment fund FI-FGTS.
“The first new berth is already full and we expect the second one to be full as well very quickly,” Alessandro Gama, Tiplam’s general manager, told Reuters during a tour of the facilities.
Santos shipped around 26.8 million tonnes of soybeans, soybean meal and corn, and 18.4 million tonnes of sugar last year.
Brazil, the world’s largest soybean exporter, is expected to ship a record 59 million tonnes this season, plus 24 million tonnes of corn. The world’s No.1 sugar producer is projected to ship an all-time high of 27.8 million tonnes of the sweetener this year.
All grain and sugar arriving at Tiplam comes by rail, which is unusual in Brazil where more than 75 percent of cargo is transported by truck.
VLI built two transshipment points in Uberaba in Minas Gerais state for grains, and Guará in São Paulo state for sugar, where trucks discharge their cargos into wagons.
Global commodities traders such as Bunge Ltd, Cargill Inc, Louis Dreyfus and Archer Daniels Midland Co already operate terminals in Santos. But Gama is unconcerned by the competition.
“At first we thought our project would be used mainly by traders lacking a physical position in Santos. But surprisingly we are receiving orders from everybody,” he said, adding that large traders were using the new facility to boost their volumes beyond their own terminals.
March 14, 2017 (Reuters)