Tag Archives: Iron ore shipping vessels

A Lot of Action but Does It Mean the Market Is Improving?

15 Monday Jun 2015

Posted by in Dry bulk shipping

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It is too soon to know for sure if we have turned the corner on the gloom period, but there are many interesting benchmarks from the first quarter of 2015 to give cause for a little optimism.

Growing Market

Crude Oil

Let’s look at the American crude oil situation, for example. In spite of predictions of a weakening or flattening market, US crude oil output actually rose in May to a level not seen in 43 years. Output reached 9.6m b/d. End-user demands, such as from US refineries is pushing this surge, as is evidenced by the fact that more than 1m b/d of oil is being consumed than supplied from imports and domestic producers. These positive indicators have caused a slight uptick in the futures market, but it is yet to be borne out if this is warranted, as inventory remains flush.

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Are There Too Many Ships in the Sea?

16 Thursday Apr 2015

Posted by in Baltic Dry Index

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Dry bulk shipping industry’s negative performance is cause for alarm

One of the most watched commodities these days is the Baltic Dry Index. The Index has fallen by 90% since reaching a high in 2008, and in February 2015 we saw the worse performance in three decades.Many ships and yachts in the Phuket harbor.

In 2008, shipping vessels were earning around $200,000 daily. Today, shipping companies are earning less than half the total amount of their costs. Consider this: capesize rates equate to approximately $4,300 per day, while the daily operating costs are averaging at $6,500. Once all the additional operating costs are included, owners are spending $13,000 each day. Just four months into the year, eight shipping companies have filed for bankruptcy and under present circumstances, more could follow. The question is: why and will things turn around?

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Capesize iron ore freight rates falling due to decreased cargo

23 Thursday Jan 2014

Posted by in Dry bulk shipping

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Iron ore shipping vessels are feeling a pinch as cargo has diminished over the early winter season. Capesize iron ore freight rates in the Pacific and Atlantic have taken a corresponding tumble. Some iron ore shipping vessels are finding themselves without any cargo. It is reported that as many as 30 shipping vessels were in the Pacific seeking iron ore cargo.

The primary cause appears to be a slowdown in iron ore cargo coming out from Brazil and West Australia, which precipitated lower priced fixtures out of South Africa. Vale, a Brazilian miner, contributes their slowdown to weather, noting that the wet season significantly affected cargo activity. Continue reading →