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CONTENTSBulkcarrier Freight Market
Sale & Purchase Market
Demolition Market
Shipbuilding Market
Port Activity and Bunkers
Vessel Tracking
Commodities Markets
Weekly Commodity Updates
Broker's Meeting Point - Available Cargoes
LATEST COMMODITY NEWS
Iron Ore
PORT HEDLAND IRON ORE EXPORTS HIT 50 MILLION TONNES FOR THE SECOND TIME IN JUNE
WESTERN AUSTRALIA’S SHIPMENTS DOWN 7%
Coal
CHINA TO BUILD 600 M TONNES NATIONAL COAL RESERVE
SOUTH AFRICA’S RBCT RESUMES COAL SHIPMENTS AS CIVIL UNREST DISRUPT SUPPLY
Grains
FRANCE WHEAT 2021/2022 PRODUCTION FORECAST AT 37.1 MILLION TONNES UP 27% AS JUNE 2020/2021 SHIPMENTS FALL TO FOUR YEAR LOW
BRAZIL'S PARANAGUA SEES INCREASED THROUGPUT DESPITE LOWER SOYBEAN EXPORTS
DRY BULK WEEKLY
WEEK 28 | Monday, 19 July 2021
Weeks
Count of Ships Sold Count of Vessel Units
28272625
8241316
21
11113
Total 61 3 25
Week S&P Transactions Demolition Sales Newbuilding Orders
Top 5 Destination Countries of Ships in Ballast by Vessel Size(Week 27 Arrivals)
Size Group Capesize Handysize Panamax Supramax
© 2021 TomTom, © 2021 Microsoft Corporation© 2021 TomTom, © 2021 Microsoft Corporation
6M TC Hire Rate Average
10K
20K
30K
40K
Mar 2021 May 2021 Jul 2021
Size CAPESIZE PANAMAX
/
Sale & Purchase Market
Reported Ship Sales by Age and Size (Week 27)
0
1
2
3
Cou
nt o
f S
hips
Handysize Supramax Panamax Kamsarmax PostPanamax
Capesize
Age Group 10-15 years 15-20 years 5-10 years
Latest Transactions
Week Ships Sold Built DWT
ReportedPrice (US$)
Country/Region of
Buyer
Owner Notes
2828
28
28
28
2828
BULK DENMARKLOWLANDS GREEN
NAVIOS MARCOPOLONAVIOS AZALEA
BELFRI
GREAT RECOURCELUCKY LIFE
20102011
2011
2005
2007
20102013
181,36095,650
80,647
74,800
55,900
31,80028,000
$30,000,000$21,000,000
$22,000,000
$13,000,000
$15,000,000
$12,000,000$14,000,000
Greece
China
Greece
NISSEN KAIUNCLDN COBELFRETSINGAPORENISSEN KAIUN
NAVIOSSHIPMANAGEMENTLIGHTHOUSENAVIGATION
Week 28 has matched the previous softest week of the year in terms of buying activity. Owners seem to have shied away from the second-hand bulkcarrier market as only 8 deals were reported the past week. Attention was almost equally distributed among all sizes.
The small-class vessels sold were a total of 4 with 3 Handysize and 1 Supramax. On the other hand, only one sale was recorded for Panamax, Kamsarmax, Post Panamax and Capesize vessels. As to the age range, three out of the eight transactions were for ships 10-15 years old, four were 5-10 years old and the Panamax the only one above 15 years of age.
After weeks of intense activity, the S&P market seems to have stall with one of the lowest count of sales of 2021 recorded the past week. Still, the smaller segments led the week accounting for half of the sales reported as rates continue at impressive levels. On the other hand, despite the fluctuating Cape rates and the apparent turning point of the Panamax market, high earnings continue to spark interest for tonnage in those segments.
Sale of the week: The Japanese company Nissen Kaiun sold the 2010-built BULK DENMARK to Greek buyers for US$30 M. BULK DENMARK is a capesize vessel sailing under the flag of Panama. Built by Japanese Koyo Dockyard Co., Ltd., the vessel has a carrying capacity of 181,360 DWT. Her length overall (LOA) is 292 meters, and her width is 45 meters.
Annual Volume of SalesSize Group 2019
2020
2021
HandysizeSupramaxPanamaxKamsarmaxUltramaxCapesizeHandymaxPost PanamaxVLBC
1191258635442526158
12812556524653129
19
119122615662496177
Total 482 500 498
Weekly Volume of SalesSize 26
27
28
Total
SupramaxHandysizePanamaxCapesizeUltramaxKamsarmaxPost PanamaxHandymax
4631
102324111
1311 11
1511744221
Total 14 24 8 46
/
Demolition Market
Demolition Prices (US$/LDT)
300
400
500
600
Val
ue (
US
D/L
DT
)
2018 2019 2020 2021
3 Year HIgh
Market
Bangladesh
India
Pakistan
Demolition Prices for Bulkcarriers- WeekAverage (USD/LDT)
Market PLVw LVw CVw WoW%w
Bangladesh
India
Pakistan
Turkey
569
529
571
280
573
527
574
280
580
540
570
280
1.2%
2.5%
-0.7%
0.0%
Location of Delivery - No. Vessels 2021
21
4
Pakistan 4
Bangladesh
Other
Scrap prices continued to rally in the past week rising to new heights with only a matter of time before prices hit USD600/LDT mark. Bangladesh prices were USD580/LDT up 1.2% from last week as Chittagong buyers continued to maintain leadership of the demolition market.
Pakistan prices were down 0.7% to USD570/LDT, India prices were up 2.5% to USD540 the biggest increase this week. Despite improving LDT prices, the demolition market has been plagued with a dearth of tonnage in this year with a strong dry bulk freight market and booming second market keeps shipowners away from engaging scrap buyers.
The coming Eid festivities and the ever-evolving situation of the pandemic in the sub-continent means there would continue to be a sluggish demolition activity in the weeks to come. Although Bangladesh lift restrictions for the coming Eid celebrations, they would be re-instated for another 2 weeks from the 23 of July.
Demolition Age (years) of Vessels in 2021(%)
23
Over 30
24
25
27 26
28
29
21
Less t…
19%
19%
13%
13%
10% 6%
6%
6%
3%
3%
Latest Transactions
Week
Vessel Vessel Age Location of Delivery USD / LDT LDT (MT) Sale Price
Demolition Activity in the Last 3 Months
10K
20K
30K
LDT
(M
T)
Jun 2021 Jul 2021
3-month Average
Market Wk 26 Wk 27 Wk 28 WoW%
/
Shipbuilding Market
Newbuilding Market Price by Size (Week 28)Year
Average of HP Average of UP Average of PP Average of KP Average of CP
202120202019
$27,000,000$23,000,000$26,000,000
$30,000,000$26,000,000$32,000,000
$31,000,000$27,000,000$33,000,000
$33,000,000$28,000,000$34,000,000
$59,000,000$48,000,000$53,000,000
Monaco based Safe Bulkers has struck a deal to acquire a Kamsarmax with an undisclosed Japanese shipbuilder. The company has embarked on a fleet renewal programme which has seen recent investments in 3 Post-Panamax newbuild. This acquisition further expands the company’s orderbook to 3 Kamsarmax all being built in Japan. The vessels will be designed to meet EEDI, Phase 3 and NOx-Tier III requirements while delivery is set for 2023.
Kamsarmax remains the red-hot segment for new builds. So far there are 38 Kamsarmax deliveries schedule for 2023, while 35 have been pencilled in for 2022 another 17 for 2022/2023. There are also strong figures for Ultramax with 42 vessels on cue to be delivered in 2022 but just 9 scheduled for 2023. VLBC have also been having a firm showing with 23 expected to leave shipyards in 2022 and 30 in 2023 with a further 2 in 2022/2023.
Latest OrdersWeek Size Units
Delivery Buyer Shipbuilder
28 KAMSARMAX 1 2023 Safe Bulkers Japanese
Year Handysize Ultramax Panamax Kamsarmax Capesize
Orders by Country of Buyer - 2021
0 20 40Units
China
Japan
UK
Greece
Singapore
S. Korea
Bangladesh
Indonesia
Spain
Taiwan
Turkey
Hong Kong
Size GroupCapesize
Handymax
Handysize
Kamsarmax
Panamax
Supramax
Ultramax
VLBC
Delivery Year by SizeSize Group 2022
2022/2023
2023
2023/2024
2024
Total
HandymaxPanamax
Post PanamaxCapesizeSupramax
VLBCUltramaxHandysize
Kamsarmax
34341223424435
2 517
1 41473091138
8
1
447181955596190
Total 170 24 114 8 1 317
Units Ordered by Year and Size Group
0
100
200
300
2018 2020
3-year Average
Size GroupCapesize
Handymax
Handysize
Kamsarmax
Panamax
Post Pana…
Supramax
Ultramax
VLBC
/
Weekly Commodity Update
IRON ORE
PORT HEDLAND IRON ORE EXPORTS HIT 50 mn t FOR THE SECOND TIME IN JUNE
Iron ore exports from Port Hedland in Western Australia (WA) in June exceeded 50mn t for only the second time, with volumes boosted by the third highest shipment to China from the port. Shipments from Port Dampier were impacted by maintenance at one of the port's berths during June, the latest port data showed. Iron ore shipments from Port Hedland rose to 50.38mn t in June from 48.05mn t in May and below the record set in June 2020 of 51.7mn t, according to June data from the Pilbara Ports Authority (PPA). Shipments to China from the port increased to 42.02mn t last month from 40.19mn t in May and below the record 46.19mn t shipped in June 2020 and below the 43.18mn t shipped in May 2020, the PPA data showed.
Australian mining firms BHP, Fortescue, Roy Hill, Atlas Iron and Mineral Resources all export iron ore through Port Hedland. Shipments from Port Dampier, which is also in the Pilbara region of WA, dropped to a 16-month low in June to 9.26mn t from 10.68mn t in May and down from 12.08mn t in June 2020 and was the lowest monthly shipment since the 7.93mn t shipped in February 2020, the PPA data showed. UK-Australian iron ore producer Rio Tinto is the only iron ore producer to ship through Port Dampier and reported earlier today that its April-June iron ore exports were impacted by the five weeks of maintenance at its 45mn t/yr East Intercourse Island berths at Port Dampier. Rio also has the 110mn t/yr Parker Point berths at Port Dampier.
Sources: Argus Media
WESTERN AUSTRALIA’S SHIPMENTS DOWN 7%
Export data for Western Australia’s largest miners shows Rio Tinto, BHP, Fortescue Metals and Roy Hill — loaded vessels with a combined 15.77mn deadweight tonnes (dwt) of capacity in the latest week, down from 17.97mn dwt in the week to 3 July and 7pc below average. BHP's shipments returned to average weekly levels, while Rio Tinto, Fortescue and Roy Hill were 10-16pc below average. Rio Tinto loaded vessels with 5.95mn dwt capacity in the week to 10 July, down from 6.76mn dwt in the previous week and 10pc below its weekly rolling average of 6.59mn dwt. Only four vessels departed EII in the latest week, with only eight having left since shipping restarted on 26 June following five weeks of maintenance, implying that the berth is still operating at below-usual rates.
Fortescue's shipments fell to their lowest level since mid-March, having already eased in the previous week from a strong run in May-June ahead of the end of its financial year on 30 June. It shipped 3.07mn dwt, down from 3.3mn dwt a week earlier and 13pc below its weekly average of 3.54mn dwt. Roy Hill shipped 960,000 dwt, down from 1.39mn dwt in the week to 3 July and 16pc below its rolling average of 1.14mn dwt. The firm had its last maintenance shutdown in mid-May, so it is unlikely that this is the beginning of another one, as they usually occur once a quarter. BHP shipped 1pc above average in the most recent week, at 5.8mn dwt, down from 6.52mn dwt in the previous week.
The slowdown in shipments from Fortescue, Roy Hill and BHP may be related to a dredging programme that began at Port Hedland on 6 July, although the port authority believes this should have little impact on shipping. All three companies use Port Hedland, while Rio Tinto operates its own export facilities at Dampier and Port Walcott. China was listed as the destination for 77pc of shipments in the latest week, up from 76pc a week earlier. After including shipments with unconfirmed destinations — most of which are probably headed to China — the percentage was 82pc, up from 80pc a week earlier and in line with the average of around 82pc. Argus last assessed ICX iron ore on 15 July at $220.80/dmt cfr Qingdao on a 62pc Fe basis, up by $2/t from $218.80/t on 14 July, but down from the record $235.55/dmt on 12 May.
Sources: Argus Media
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Weekly Commodity Update
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COAL
CHINA TO BUILD 600mn t NATIONAL COAL RESERVE
China is planning to build a national coal reserve with around 600mn t of capacity, equivalent to about 15pc of annual consumption, top economic planning agency the NDRC said Friday. The government has allocated about 1bn yuan/yr ($155mn/yr) from its central budget to support the construction of the reserves, the NDRC said. At least 200mn of the stocks should be available for direct dispatch by central and local governments, with the remaining 400mn t held by companies. Over 100mn t will be built in the first step, the NDRC said, without giving any details of timelines. China has already built around 100mn t of dispatchable reserve capacity and coal storage bases, mainly at production, distribution, and consumption centres, as well as major railway hubs and ports, the NDRC said. The agency said in April that it planned to build buffer reserves of 120mn t this year. The national stockpile plan and other measures are designed to increase coal supply, stabilise prices and meet urgent demand, it said Friday.
Chinese authorities have stepped up their interventions in commodity markets in recent months, after a surge in prices earlier this year. The NDRC said this week it would release at least 10mn t of coal stocks to alleviate a supply crunch in the high-demand summer season. The National Food and Strategic Reserves Administration earlier this month auctioned some of its stocks of copper, aluminium, and zinc, in its first such sale in over 10 years. The government is also planning to build pork reserves to ensure hog supplies. The NDRC set out an action plan for commodity price reform in May, including plans to build reserves, as part of efforts to stabilise commodity supply and prices. The government has also attempted to cap domestic coal prices — with limited success — and tightened regulation of crude oil imports. Producer price inflation eased in June, leading the government to claim success in its efforts to curb commodity prices.
Source: Argus Media
SOUTH AFRICA’S RBCT RESUMES COAL SHIPMENTS AS CIVIL UNREST DISRUPT SUPPLY
Shipments from South Africa's Richards Bay Coal Terminal (RBCT) in KwaZulu-Natal province resumed Wednesday, RBCT chief executive Alan Waller has told Argus. Port services resumed on 14 July and there are three vessels awaiting berthing, according to RBCT. Coal stocks at the terminal currently stand at around 3.7mn t. State-owned logistics group Transnet suspended shipments on Tuesday in response to widespread civil unrest linked to former president Jacob Zuma's imprisonment. Transnet said service levels at Durban and Richards Bay were impacted "as the entire supply chain is closed", including roads into and out of the ports. "We are monitoring the situation and where possible, and as and when required, we are able to collaborate with our stakeholders to provide limited service in both the ports," Transnet said. Despite the disruptions, RBCT has continued to receive trains throughout this period, general manager of human resources Nontuthuko Mgabhi said.
Transnet has also declared force majeure on the key Natcor rail line that links Gauteng to the coast. The unrestand subsequent closure of roads has meant employees are not able to report for duty, Transnet said. "We continue to work on solutions to mitigate the current challenges to ensure that we are able to deliver goods into and out of the country," it said. Civil unrest started in Zuma's home province of KwaZulu-Natal following his jailing. But it has since spread to other regions, including Gauteng, the country's most populous province, and Johannesburg, its economic hub. Dozens of people have been arrested after shops were ransacked and offices set on fire.
Source: Argus Media
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Weekly Commodity Update
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GRAINS
FRANCE WHEAT 2021/2022 PRODUCTION FORECAST AT 37.1 MILLION TONNES UP 27% AS JUNE 2020/2021 SHIPMENTS FALL TO FOUR YEAR LOW
France’s soft wheat production is anticipated to bounce back leading to a rise in exports and stocks of the commodity, Reuters reported citing FranceAgriMer. Soft wheat exports to destinations outside of the EU are forecast to jump 40% to 10.5 million tonnes in the 2021-22 marketing year while exports within the EU are expected to total 7.3 million tonnes, a 22% increase compared to the previous year.
Increasing sea freight costs could boost France’s soft wheat exports to nearby destinations while at the same time hamper the country’s export opportunities to China, Marc Zribi, head of FranceAgriMer’s crop unit told Reuters. “Freight is really becoming a factor of competitiveness in the price of exported grain,” Zribi said. Concerns were raised during early harvesting due to heavy rain, but a forecast of drier warmer weather has lessened worries of crop damage. France is expected to produce 37.1 million tonnes of soft, up 27% compared to the previous year. France’s soft wheat stocks for the 2021-22 marketing year are anticipated to increase one million tonnes to 3.7 million tonnes, Reuters said.
Meanwhile French soft wheat shipments outside the European Union finished the 2020/21 season with the lowest monthly volume in at least a decade, while overall 2020/21 exports hit a four-year low, Refinitiv data showed. Soft wheat exports by sea to destinations outside the EU and Britain totalled 122,000 tonnes in June, an initial estimate based on Refinitiv loading data showed. That was the smallest volume for any month on record going back to the 2009/10 season, with only five ships carrying French soft wheat over the course of the month. Last month’s exports took the amount of soft wheat shipped by sea outside the EU and Britain in the 2020/21 July-June season to 7.03 million tonnes, the lowest annual volume since 2016/17
Source:Reuters, World Grain
BRAZIL'S PARANAGUA SEES INCREASED THROUGPUT DESPITE LOWER SOYBEAN EXPORTS
Cargo handling in Brazil's southern port of Paranagua rose by 8pc to 4.7mn metric tonnes (t) in June, as trade in sugar, soy meal and fertilizers offset lower soybean exports. The monthly year-over-year gain contributed to a record first half for the port, handling 29.1mn t through the first six months of 2021, up by 3pc compared with the same period last year. Exports last month totaled 2.7mn t, down by 11pc from a year earlier, as soybean shipments from the Parana state port fell by 39pc to 810,388t. Sugar exports rose by 14pc to 472,347t and soy meal exports rose by 44pc to 610,727t.
Imports in June rose from a year earlier by 51pc to 2mn t, with fertilizer arrivals up by 55pc to 1mn t. Compared with May, cargo handling at Paranagua fell by 22pc amid a delayed harvest of the second corn crop. In the year through June, soybean exports fell by 17pc to 7.7mn t while corn exports jumped by 99pc to 591,538t. Imports of fertilizers through June rose by 17pc to 5.2mn t. The port of Paranagua also moves other commodities such as fuel, wheat, and vegetable oils, as well as industrial goods.
Source: Argus Media
