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Archive for January, 2012

Dollar loses ground. Currency report Jan 30

By • Jan 31st, 2012 • Category: Currency

The Coracle Online Currency podcast for Jan 30, 2012 in association with Crossbar fx

Significant items this week:

Mon 30th Jan US – Personal consumption, expenditure, Personal income.

Tues 31st Jan UK – Consumer confidence, Mortgage approvals

Wed 1st Feb US – ISM manufacturing

Thurs 2nd Feb EU – German Retail sales

Fri 3rd Feb US – Non Farm payrolls, ISM Non Manufacturing



Struggling to find many positive comments this week on Dry Cargo Shipping.. Jan 27

By • Jan 27th, 2012 • Category: Dry Cargo

Capesize sector: A week of marking time, as Lunar New Year holidays and a cyclone disrupted shipments from West Australia combine to curb trade. High bunker costs continued to weigh heavily on the market. Hopes were then pinned on a full return to work stimulating demand and a resumption of shipments from Australia and Brazil, but rates drifted over the week with West Australia/China hovering around $7.75 and Tubarao/China agreed mid week at $19.10. The backhaul rate was in negative territory and although voyage business was done, it showed the owner a negative return.

The Atlantic market generally remained inactive, with demand from utilities and steel mills in western Europe negligible. Transatlantic rounds were barely holding around $5,000 daily and trips to the East paying no more than the high teens.

PANAMAXES: The market collapsed this week as Atlantic rates dropped sharply and owners struggled to find timecharter business on a DOP basis. Charterers were able to secure tonnage on a voyage basis at numbers showing very poor returns, with one cargo allegedly equating to zero basis Cape Passero for a US East Coast coal round. Most agreed that an owner would be fortunate to see $6,000 daily for a transatlantic round. Fronthaul business was limited and rates slipped…

Holidays severely reduced trading in the East. Tonnage was still plentiful and cargoes scarce. Round voyage rates were barely $5,000 to $6,000 daily and backhaul went into negative territory. Some owners continued to ballast towards the US Gulf and east coast South America. One 74,000-tonner fixed from Singapore for East Coast South America at $9,000 daily, but with redelivery southeast Asia. The collapse of the Atlantic market sidelined period traders and rates dropped sharply. Charterers were prepared to pay $9,000 to $10,000 daily for four to six months trading with few takers so far.

SUPRA/HANDYMAXES: This was a week when things went from bad to worse for the supras. A nice 56,000 dwt vessel in ballast from Morrisville was reported to have been booked APS North Coast South America for a trip to the Continent with grain at just $12,000 daily. In the US Gulf a 53,000 dwt Diamond type was reported to have been fixed for a trip to the Far East at about $18,000 daily, a significantly softer level.

Handysizes also came under pressure, although South America was at least showing more activity. A modern 28,000 tonner in ballast from West Africa fixed from the Plate to north Africa at $11,250 daily.

In the East, the Indonesian coal market provided some sort of support as reports emerged of a 57,000 dwt vessel, spot in Singapore, being booked for a trip from Indonesia with redelivery China -India range at just under $9,000 daily. Short period rates however took a hit as European interests fixed a 2004 built 52,400 unit delivery Lianyungang for 3/5 months at an easier $6,000 daily. Owners of handysizes had to graft hard to find employment: a number of holidays including the China New Year having an impact. There were reports that a newbuilding 35,000 dwt went for a year in the mid $8,000’s



The EU ban on Iranian oil imports and more tanker market news. Jan 26

By • Jan 26th, 2012 • Category: Tankers

The Coracle tanker market podcast for Jan 19, 2012 in association with Braemar-Seascope

To learn more about the tanker markets, why not take Coracle’s Tanker Chartering course?



Risk pendulum swings to ON in fx markets. Report Jan 23

By • Jan 23rd, 2012 • Category: Currency

The Coracle Online Currency podcast for Jan 16, 2012 in association with Crossbar fx

Significant items this week:

Tues 24th Jan UK – Public sector borrowing

Wed 25th Jan UK – Q4 GDP
US – FOMC Interest rate decision

Thurs 26th Jan UK – CBI retailers surveycrossbarfx.jpg



Dry cargo shipping rates continue to slide across the board. Jan 20 report

By • Jan 20th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Jan 13, 2012 in association with The Baltic Exchange

To learn more about the dry cargo chartering market, why not take Coracle’s Dry Cargo Chartering course?



A salutary tale of VLCC ownership highlighted by S&P activity, and other tanker market news Jan 19

By • Jan 20th, 2012 • Category: Tankers

The Coracle tanker market podcast for Jan 19, 2012 in association with Braemar-Seascope

To learn more about the tanker markets, why not take Coracle’s Tanker Chartering course?



US Dollar once again the safe haven currency as Eurozone woes mount. FX report Jan 16

By • Jan 16th, 2012 • Category: Currency

The Coracle Online Currency podcast for Jan 16, 2012 in association with Crossbar fx



Container market shipping market exhibits lack of confidence. Jan 13

By • Jan 15th, 2012 • Category: Containers

The Coracle Container market podcast for Jan 13, 2012 in association with GFI

To learn more about the liner markets, why not take Coracle’s Liner Trades course?



Almost speechless about the @ChathamHouse report on Piracy

By • Jan 13th, 2012 • Category: Piracy

I have to admit to being almost speechless about the Chatham House report on piracy (January 2012)

I understand that it is written from an economists point of view, however, the lack of discussion and consideration to our seafarers in the report is frankly disgusting.

I did a quick search to find how many times certain words were used:

Seafarer – 0
Mariner – 0
Crew – 4
: 3 refer to the crew on the pirate vessels and 1 refers to the victims. The reference is:

“As the piracy business is based on ransoming the crew, hostages are treated reasonably well”

You can read the report here and you might also like to see the BBC story on the report

In the summary points, the report states,

“The positive economic impacts of piracy are spread widely and a military strategy to eradicate it could seriously undermine local development.”

Wow! The implications of that statement are immense!

The first thing that most people tend to focus on with piracy is the financial cost. Some estimates put this burdon as high as $12bn a year. That’s a lot! But hang on, what about the human cost? These hostages are real people. And they’re moving goods for our consumption. Surely there is some possible way to encourage and nurture development of Somalia as a country and to improve the lives of its poor, deprived people that doesn’t revolve around ruining innocent seafarers lives…

In the summary of the analysis of their data the report writer states,

“The data analysis indicates pirate incomes have widespread and significant positive impacts on the Somali economy….. There are clear trickle-down effects for casual labourers and pastoralists because of higher cattle prices.

Although there are concerns about data quality, analysis of the exchange rate changes used to establish the impact of piracy money on the local economy correlates with traditional intelligence sources.”

Concerns about data quality? Is that the authors real concern? [Takes deep breath]

In the final conclusions the author notes:

“The conclusion that a large group of people can be expected to benefit from piracy should not discourage the international community from seeking a land-based solution. The total cost of piracy off the Horn of Africa (including the counter-piracy measures) was estimated to be in the region of US$7–12 billion for 2010, while ransoms were said to be in the region of US$250 million.

Even if Somali communities received all of the ransom money, replacing this source of income (for example with a combination of a foreign-funded security forces and development aid) would be considerably cheaper than continuing with the status quo.

A negotiated solution to the piracy problem should aim to exploit local disappointment among coastal communities regarding the economic benefits from piracy and offer them an alternative that brings them far greater benefits than hosting pirates does. A military crack-down on the other hand would deprive one of the world’s poorest nations of an important source of income and aggravate poverty. ”

What do you think of this report? Please leave your comments or tweet me @jtweed



January proves a black month for Dry Cargo shipping markets… Report Jan 13

By • Jan 13th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Jan 13, 2012 in association with The Baltic Exchange

To learn more about the dry cargo chartering market, why not take Coracle’s Dry Cargo Chartering course?