• 2008 July 21 06:44

    Dry bulk rates to drop further as China closes mills

    The gradual downward trend of dry bulk freight rates is expected to continue as China, the world’s biggest iron ore importer, will cut import of the commodity with the completion of the Olympics projects. Also, steel mills in Beijing have been asked to halt operations for 60 days starting yesterday to reduce pollution during the games next month. OSK Research in a recent report said: “While Beijing has a small percentage of the nation’s steel mills, factories in the neighbouring provinces of Hebei, Shanxi and Shandong make up some 30% of China’s total steel production.
    “Even partial closure of these factories to reduce pollution could have a serious impact on iron ore demand and therefore the demand for dry bulk shipping.”
    In mid-June, Chinese ports were ordered to clear excess iron ore stocks that had clogged operations, due to concerns that the excess cargo might flood the domestic market and hurt freight rates.
    The Baltic Dry Index (BDI), after reaching a peak of 11,793 points on May 20, had slumped by 23.2% to 9,059 points on July 17. It was 6,462 points on Jan 18.
    The BDI, managed by the Baltic Exchange in London, reflects the dry bulk shipping rates. It is an assessment of the price of moving the major raw materials by sea.
    The index covers Supramax, Panamax, and Capesize dry bulk carriers carrying a range of commodities, including coal, iron ore and grain.
    Last year, the BDI climbed gradually by 161.6% from 4,219 points on Feb 1 to 11,039 points on Nov 13.
    From early last year to mid-July this year, the BDI seemed to have gone through a cycle.
    If it is cyclical, following the gradual decrease since May, the BDI should be picking up in the fourth quarter.
    OSK Research Sdn Bhd associate director Chris Eng expected the BDI to trend down gradually before rising again in October.
    “Then again, it has remained very resilient at 9,000 points while we had earlier expected a fall to 7,000 points.
    “The resolution of iron ore price negotiations could also mean that more iron ore is bought (by China) from Australia compared with Brazil leading to lower tonne-mile demand (therefore cheaper rates).
    “In any case, the BDI usually takes a break in May or June and surges again in September. We feel that the BDI will stabilise but will not slump. Even if the BDI falls to 6,000 points, that is still a very profitable level for dry bulk ship owners.”
    He said Malaysian Bulk Carriers Bhd (Maybulk), a premier dry bulk vessel owner, should see increased profits if rates stabilised.
    “But, given its strong net cash position, a drop in rates will likely lead to a drop in ship prices, which means the ideal time to expand for Maybulk,” he said.
    A relatively new player in the market, Hubline Bhd is currently enjoying good returns from its dry bulk segment.
    For the six months ended March 31, the group’s net profit hit RM35.1mil, an increase of RM20.4mil from the previous corresponding period.

2024 July 21

11:32 KBR secures advisory role for Kuwait’s renewables and hydrogen project
09:57 WSF selects ABB as propulsion single source vendor for five new hybrid ferries

2024 July 20

16:11 First hybrid ship launched at Kanellos Shipyards in Perama
14:21 DOF Group awarded multiple contracts in Brazil
12:18 HD Hyundai Heavy Industries union initiates strike procedures
10:06 Asyad Group looks to buy or operate ports in southeast Asia

2024 July 19

18:00 Global Centre for Maritime Decarbonisation concludes biofuels supply chain trials
17:10 Four Greek ports receive €10 million in CEF funds
16:47 Rauma shipyard launches the second passenger-car ferry ordered for Tasmania
16:25 MOL to invest in Carnot, a developer of technology for highly efficient engines
15:48 ABS and KRISO to advance SMR-powered vessels and floating power generation platforms
15:31 Ports of Indiana, Port of Antwerp-Bruges sign MoU
14:59 Fratelli Cosulich holds a steel cutting ceremony for the new vessel "Marta Cosulich" at Taizhou Maple Leaf Shipbuilding
14:13 Suez Canal reports 23.4% drop in annual revenue due to Red Sea crisis
13:42 Dual fuel standby vessels begin operations in Hong Kong
13:08 Bluferries, C.T.E. Perdikaris Engineering, Architectural & Technical Services and RINA announce the launch of a hybrid Ro-Ro passenger ship
12:30 DP World and Evyap Group forge new logistics hub to boost Turkish trade
12:11 Sempra Infrastructure announces EPC contract with Bechtel for Port Arthur LNG Phase 2
11:40 Two oil tankers on fire off Singapore, crew rescued
11:20 World Bank Group releases report on offshore wind development scenarios for Brazil based on analysis by DNV
10:42 FPSO Bacalhau receives AiP for abate notation from classification society DNV
10:19 Port Houston approved for cold treatment
09:55 Fujairah’s fuel oil inventories rise 5% this month

2024 July 18

18:00 South Korea slaps sanctions on Hong Kong shipping firm
17:31 IBIA seeks change to CII regulation for bunker vessels
17:06 Rem Offshore and VARD sign contract for CSOV
16:31 EU to invest record €7 billion in transport infrastructure
16:02 Port of Antwerp-Bruges throughput up 3% to 143.2 million tonnes in H1 2024
15:47 Port of Rotterdam posts cargo throughput of 220 million tonnes in first half 2024
15:30 Port of Oakland full imports rises 26.8% to 84,040 TEUs in June 2024
14:43 MSC increase own-operated service share
14:13 GTT receives an order from Dalian Shipbuilding for the tank design of two new LNG carriers
13:37 NYK acquires multiple segments of ENEOS Ocean’s shipping business
13:01 Bunker price trends in the world's four largest hubs, July 15-29 – MABUX
12:42 ITOCHU, Nihon Shipyard, ClassNK and MPA, signed MOU for joint study of ammonia fueled bulk carriers
12:12 KENC Engineering awarded with jacket seafastening scope
11:30 CMA CGM enters into a strategic partnership with Google
11:03 Port of Los Angeles container volume increases 10% to 827,757 TEU in June 2024
10:53 The Government of Canada invests in marine industry’s transition to green ship technology
10:13 Scottish Government to purchase seven new ferries
09:19 Damen signs four vessel contract with Toyota Tsusho for Angolan port development project

2024 July 17

18:05 Peninsula completes LNG bunkering for ‘K’ LINE in Gibraltar
17:36 Yangzijiang to invest $412 million in shipyard expansion
17:06 Singapore's non-oil domestic exports down 8.7% in June 2024
16:42 Damen starts steel cutting on new hybrid island class vessels for BC Ferries
16:23 Mabanaft submits permit-related approval documents for planned construction of ammonia import terminal in Hamburg
15:54 Helsinki, Tallinn ports get €15m EU funding
15:24 LNG carrier completes Arctic voyage to China in 18 days
14:45 Salvage team to start pumping fuel from grounded vessel on South African coast
14:23 Fertiglobe wins first H2Global pilot auction for renewable ammonia
13:54 Maersk says Red Sea shipping disruption having global effects
13:39 Average spot rates from the Far East to US East Coast increased by 3.7% - Xeneta
11:30 NYK completes world's first truck-to-ship ammonia bunkering of ammonia-fueled tugboat
10:52 CEVA Logistics, Almajdouie Logistics sign JV in Saudi Arabia 
10:24 Port of Long Beach container volume up up 15.3% to 835,412 TEUs in June 2024

2024 July 16

18:02 China extends visa-free transit policy to 37 ports
17:25 Works on schedule for the Ravenna regasifier, with the plant operational in the first quarter of 2025
17:05 STX Heavy Industries changes name to “HD Hyundai Marine Engine”
16:45 OOCL's revenue rises 14pc to US$2.2bln
16:20 Saltchuk acquires all of the outstanding shares of Overseas Shipholding Group
15:57 EU sets four conditions for the port of Piraeus inverstments
15:41 Serbia to open tender for Prahovo port overhaul in 2024
15:37 EIB lends €90 million for sustainable expansion of the Port of Livorno
15:34 Crew of capsized oil tanker off Oman still missing
15:14 Lomarlabs signs with Cargokite to develop a new ship class of micro ships
14:47 Greece extends naval drills that deter Russian oil transfers - Bloomberg
14:08 The Official Journal of the European Union publishes the first-ever EU regulation to reduce methane emissions
13:24 High cat fines found in the Amsterdam-Rotterdam-Antwerp region bunker fuel samples, alerts CTI-Maritec
12:58 Yangzijiang Shipbuilding works to acquire over 866,671 sqm of land for new clean energy ship manufacturing base
12:42 GTT entrusted by Samsung Heavy Industries with the tank design of a new FLNG