The Full Report in PDF (October 2017): Global Mobility Report – Transport sector is “off track” to sustainability
A Comprehensive Study by McKinsey & Company, New York, The Worldwide Management Consulting Firm:
Here is the full Text of the Act: Jones Act
Fixtures List: Fixtures Report Week 40
Market Comments: As it became known at the beginning of this week, Turkey has introduced an asymmetrical measure complicating documentary procedure for importing wheat, corn and oilseeds in the country. Now Russian Exporters will have to apply for additional permissions for delivering their goods to Turkey, which can trigger protracted delays and cancellings of already fixed vessels in the short run, as well as a decrease in freight rates for voyages from the Azov Sea in the long run.
According to the latest information received from Traders, in other countries buying Russian wheat, grain prices has shown radically negative dynamic, as market participants have been trying to resell wheat intended for Turkey to other countries where possible.
Importers in the region are using the desperate position of Traders and have already started to knock down rates on new contracts, which leaves Ship Owners no hope for any extra freight premium and will lead to a decrease in rates.
Ship Owners, from their side, suppose that freight rates must keep at the current levels for some more time due to another new closure of the Kerch Straight (11-14/10), impacting directly the amount of tonnage in the region.
The chances are, by the moment of opening the Straight, most part of the fleet stuck on the Black Sea side can be cancelled for arriving late and due to Owners’ reluctance to move the laycan dates. In this case an extensive amount of free spot tonnage can appear at once.
The main beneficiary of the current situation, apart from non-Turkish Importers, is Charterers of non-grain and cheaper cargoes, who for the first time in so long have got an opportunity to regulate the freight market in the region.
Fixtures List: Glogos_Freight_Report_Week_37
|Low water levels are forecast in Azov sea ports due to the looming high offshore winds. There is a possibility that many vessels will face the difficulties on exit from the ports after loading, since the water level will allow to berth in ballast, but to start a voyage fully loaded will be impossible. Moreover, the draft limitations will affect not only Rostov and Azov, but deeper-water ports such as Yeisk. At the moment, the water level at Rostov/Azov varies from 3.7 to 3.9 m, in Yeisk – from 4.1 to 4.5 m, and according to forecasts, water can go further 1.5-2 m down.
We observed a similar situation this August, as some dry-cargo vessels spent several weeks idling in Rostov/Azov in anticipation of a proper water level that would allow them to sail out to sea.
Voyage delays lead to an accumulation of subsequent lots of cargo in the ports. As a result, the increase of freight rates in the Azov region will continue, especially for cargo orders ex shallow ports of Azov and Rostov.
In order to avoid idle time, a lot of Ship Owners are changing their preferences in favour of deep-water ports, Temryuk, Taganrog, Yeisk, and freight rates particularly in that ports will possibly decrease to some extent as a consequence of the tonnage supply increase.
As of the end of September, there is a deficit of open tonnage – most of the fleet will be opening in the first half of October. Since Ship Owners have enough time until the opening dates, they are not in a hurry to conclude fixtures, counting on further growth of the market. As a lot of vessels will be opening at about the same time, Charterers are expecting that the market will possibly go down.
Freight rates in the Azov region are fluctuating approximately within the same figures as a week ago and depend on the specifics of negotiations. Fleet demand still does not exceed the amount of available supply, but Charterers decisively refuse to improve their offers, explaining this by limitations set in sales contracts and by the existing opportunities to delay voyages.
According to operative information received from the port of Samsun, the problem of insufficient storage capacity has been resolved by enhanced cargo on-carriage from the port, which has allowed Charterers this week to actively offer short voyages to the Black Sea, so much sought by Ship Owners. Freight rates for Azov – Black Sea voyages have decreased a little since Ship Owners prefer them above all others.
Due to a severe lack of Russian-flagged tonnage, the situation has most severely affected Charterers (or Sub-Charterers) of project and general cargoes shipping in transit via Russian rivers. As a rule, budgets for such voyages are drawn up long before their realization, therefore, considering last year’s situation with shipments, a lot of market players were seriously wrong in their budget calculations for logistics, since such
On the eve of October, Ship Owners has already started to plan their fleet’s positions for wintering. Taking into account last year’s situation in the Caspian region, many Owners are trying to plan the closest voyages so as to employ their fleet on winter jobs in the Azov area. Therefore, transit voyages from the rivers and the Caspian Sea are expected to be possibly in big demand in the end of the navigation period.
Here is a report by LR, QinetiQ & The University of Southhampton:
With our thanks to our Colleagues at Cargo Chartering who have compiled this Presentation:
The PDF Study: Greece Shipping Survey
World chokepoints for maritime transit of oil are a critical part of global energy security. About 61% of the world’s petroleum and other liquids production moved on maritime routes in 2015. The Strait of Hormuz and the Strait of Malacca are the world’s most important strategic chokepoints by volume of oil transit.
Here is the Full Report in PDF Format (with our thanks to the EIA): wotc
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