• 2019 February 9 14:25

    Trade war cease-fire is good news for the dry bulk sector, BIMCO says

    The USDA reported that in the first four weeks of 2019 754,609 tonnes of soya beans were ready to be shipped in China, up from only 25,347 tonnes in December, BIMCO said in its recent press release.

    In addition to the ready shipments, on 5 and 6 February, the USDA reported sales totalling 3.2 million tonnes of soya beans to China, the majority of which is to be delivered between now and 1 September 2019, the start of the next marketing year.

    At the beginning of December 2018, the US and China agreed to delay planned tariff hikes to allow for a period of negotiation with the aim of ending the trade war. As part of this China allegedly promised to resume its purchases of US soya beans, and during the latest round of talks, China offered to buy 5 million tonnes.

    “Political promises are beginning to materialise in a trade that has faced huge uncertainty since the start of the trade war. This is good news for the struggling dry bulk market as it generates a much-needed increase in tonne-mile demand.

    The ongoing negotiations between the US and China are now approaching the 2 March deadline at which point either some tariffs will rise, the ceasefire will be prolonged, or tariffs will be removed. Only the last option would allow US soya beans to be able to compete with the Brazilian soya beans expected to arrive in the market in a few weeks,” says Peter Sand, BIMCO’s Chief Shipping Analyst.

    “In a politically unstable environment, uncertainty for the future of this trade remains high and US farmers therefore face difficult decisions as to what to plant for next season,” he says.

    Chinese imports of US soya beans had all but ground to a halt in Q4 2018 following the implementation of 25% tariffs on soya bean imports from the US in July 2018. The US exported 98.2% fewer soya beans to China in the first seventeen weeks of the 2018/2019 marketing season, which started on 1 September 2018, compared to the same period of the last season.

    Normal seasonality disrupted by trade tensions
    As of 31 January 2019, the USDA reported inspections of 21.5 million tonnes of soya beans for export in the 2018/19 marketing year, down from 34.7 million tonnes in the same period of the last marketing year. This represents a loss of 13.3 million tonnes, or 177 Panamax loads (75,000 tonnes), and shows how important the Chinese market is for US soya bean exporters.

    Total Chinese imports of soya beans in 2018 were down 7.9% from 2017. Reduced soy meal content in pig feed and using previously built up stocks, as well as increasing imports from other countries, allowed China to avoid US soya beans and the 25% tariffs.

    Brazil is the largest exporter of soya beans to China and in 2018 met much of the extra Chinese demand for non-US soya beans. Its total exports to China were 28.4% higher than those in 2017. Much of this came from an increase in exports in Q4 2018. The last three months of the year are usually peak time for US soya bean exports, with lower exports from Brazil as its exporting season runs from February to August. In Q4 2018 Brazil exported 13.9 million tonnes of soya beans to China, over two times as much as the 6.1 million tonnes in Q4 2017.

    “We expect to see soya beans from Brazil on the market earlier than usual this year, beginning in the second half of February. These soya beans will compete with those from the US, with sellers likely to continue exporting through their off-season,” Peter Sand says.




2019 February 16

14:42 Höegh’s RoRo solution chosen for 112MT Transformer shipment
13:28 Torqeedo wins Innovation Award at Miami International Boat Show for powerful new inboard electric propulsion system
12:13 Telford Offshore beefs up its fleet
10:26 Chevron inks new LNG agreement with GS Caltex

2019 February 15

18:05 Noble Corporation announces purchase of a second newbuild jackup rig from PaxOcean
16:57 Port of Goole powered by £1 million solar installation
16:26 ABP continues support of Felixstowe Volunteer Coast Patrol Rescue Service
15:30 Sea Cup 2019 preliminaries kick off in Kamchatka
15:04 CNIIMF authorized to confirm conformity of dangerous cargo containers
13:59 Nevsky Shipyard starts cutting metal for cargo-passenger ship of PV22 project
13:32 Murmansk Sea Fishing Port handled 5,500 tonnes fish in Jan’2019, down 48% Y-o-Y
13:08 Fincantieri and Princess Cruises celebrate three construction milestones of three “Royal” class ships at the Monfalcone shipyard
12:45 Dredging under Sea Port Sukhodol project to exceed 7 mln cbm – details to be covered at the Congress
12:08 Port of Oakland import volume increased 9 percent January 2019
11:46 8 vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on February 14-15
11:27 Okskaya Sudoverf lays down seventh dry cargo carrier of Project RSD32M
11:08 DNV GL and Metalships & Docks ink class agreement for luxury sailing vessel
10:53 Throughput of Ukraine’s seaports in Jan’19 grew by 3.4% Y-o-Y to 11.19 million tonnes
10:29 Brent Crude futures price is up 0.63% to $64.98, Light Sweet Crude – up 0.57% to $54.72
10:08 EFIP welcomes the adoption of the European Parliament resolution on NAIADES II
09:41 Bunker prices are going up at the port of Saint-Petersburg, Russia (graph)
09:16 Baltic Dry Index up down to 628 points
09:07 ICTSI inaugurates the expansion of its Batumi International Container Terminal
08:07 MAN Energy Solutions wins contract to supply the engines for a new harbour tug in Spain
07:41 Inmarsat announces new initiatives to support maritime, ports and logistics start-ups with Rainmaking and Bluetech

2019 February 14

18:03 Austal's LCS 20 completes acceptance trials
17:44 Royal Navy to discuss the future of unmanned and autonomous naval warfare at SMi's 3rd annual Unmanned Maritime Systems Technology 2019
17:22 Freight turnover of Neva-Metal (Saint-Petersburg) in January 2019 fell by 26% Y-o-Y to about 190,000 tonnes
17:03 MOL Techno-Trade takes part in marine environmental protection program
16:25 VTB acquires 100% of Novorossiysk Grain Terminal from NSCP Group
16:03 Port of Virginia container volume up 8.9% to 134,638 TEU in January 2019
16:03 Expert expects uncertainty on global fuel market next week
15:49 “K” Line’s LNGC makes maiden call from Ichthys LNG Project to Naoetsu LNG Terminal in Japan
15:40 BSTDB to finance construction of Lavna coal terminal under agreement with STLC
15:21 2nd Conference “Dangerous cargoes: new transportation requirements” to be held under the auspices of RF Chamber of Commerce and Industry
15:03 ONE renewes own loading record exceeding 19000TEUs
14:33 Maersk and PBF Logistics LP announce agreement for production and storage of 0.5% sulphur fuel on the U.S. East Coast
14:02 Port of Long Beach volumes decrease 0.1 percent to 657,286 TEU in Jan 2019
13:50 Multipurpose Transshipment Complex to be built in Primorsk
13:32 Port of Los Angeles volumes up 5.4 percent to 852,449 TEUs in January 2019
13:02 Port of Rotterdam throughput volume up to 469.0 million tonnes in 2018
12:46 Supply vessel OCEAN COOPER 2 sinks in Singapore waters
12:25 Baltic Sea Region cruise ports commit to reducing negative ecological impacts
11:27 Bunker prices are flat at the Far East ports of Russia (graph)
11:09 Port of Marseille-Fos to deliver the first phase of the subsea cable landing infrastructure by Q3 2019
10:31 9 vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on February 13-14
10:09 GTT receives an order from Samsung Heavy Industries for the tank design of a new LNG Carrier for Minerva Gas
09:44 Brent Crude futures price is up 0.66% to $64.03, Light Sweet Crude – up 0.58% to $54.21
09:25 Baltic Dry Index is up to 608 points
09:08 ABB to power Iceland’s first electric ferry ABB to power Iceland’s first electric ferry

2019 February 13

18:10 Shell and partners start deep-water production at Lula North in Brazil
17:46 OLT Offshore LNG Toscana Regasification Terminal works at almost full capacity
17:23 Excelerate’s Northeast Gateway Deepwater Terminal reached a peak send-out flow rate
16:58 Bunker sales at the port of Singapore in Jan’2019 fell by 8.9% Y-o-Y to 4.12 million tonnes
16:29 II HES and Dredging Forum to address deep-water routes to Sabetta and Novoportovsky terminal
15:57 Port of Singapore throughput in Jan’2019 fell by 2.4% Y-o-Y to 51.93 million tonnes
15:32 Throughput of Russian seaports in Jan'2019 grew by 5.6% Y-o-Y to 67.6 million tonnes of cargo (detalization)
15:05 Bank VTB acquired 50 percent minus one share in United Grain Company
15:04 NYK conducts crisis-response drill with ONE
14:56 DNV GL and Metalships & Docks ink class agreement for luxury sailing vessel