Market Watch

Star Bulk Announces Acquisition Closing Of 6 Dry Bulk Vessels From Eneti Inc.

Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes announced that it has taken delivery of six dry bulk vessels pursuant to the previously announced transaction with ENETI INC. (formerly known as SCORPIO BULKERS INC.), says a press release published by Star Bulk.

Vessel delivery

The seventh vessel of the transaction, SBI PEGASUS, is expected to be delivered to the Company within early second quarter of this year.

Common shares

The Company issued...

https://mfame.guru/star-bulk-announces-acquisition-closing-of-6-dry-bulk-vessels-from-eneti-inc/

Freight Rates Surge Up To 700% As Global Economies Commence Again

The transportation cost of containerised cargo across the world, including Pakistan, has increased by up to 700% due to an abnormal growth in imports following the reopening of global economies from partial lockdown amid the Covid-19 pandemic, reports Tribune.

Freight rates surge

The surge in international freight charges for sea, rail and air routes has offset the positive impact of incentives provided by the government for some imports during the pandemic and may lead to imported inflation in...

https://mfame.guru/freight-rates-surge-up-to-700-with-global-economies-commence-again/

Super Tankers Doesn’t Seem So Super As Pandemic Fades

Profits of oil tanker owners went from their highest to lowest ever in the course of a year as a historic glut reversed, but the industry’s fundamentals are set to improve, says an article published in The Wall Street Journal.

Crude demand during pandemic

A year ago, this industry’s ship came in. Then it just sat there.

As the world went into lockdown with planes grounded and cars parked in driveways, demand for crude oil plunged even as it kept bubbling up out of the ground. That was devastating...

https://mfame.guru/super-tankers-doesnt-seem-so-super-as-pandemic-fades/

Earnings for Non-Eco Tonnage Drop Into Negative Territory

According to Cleaves Securities’ latest Shipping Weekly, VLCC owners saw average earnings for non-eco tonnage drop into negative territory for the first time since its records began in 1990, reports Riviera.

What Data Suggests

Although similar reports were voiced earlier this year, Cleaves qualified the injuries being taken in the VLCC sector. It notes that the VLCC base rate of negative US$886 per day is for a generic non-eco, non-scrubber 2010-built VLCC.

This is no longer representative, noted...

https://mfame.guru/earnings-for-non-eco-tonnage-drop-into-negative-territory/

Key Factors Expected to Weigh on Asian Middle Distillates This Week

Sluggish regional demand, unviable East-West arbitrage economics and concerns over ballooning supply were the key factors expected to weigh on the Asian middle distillates complex in the week starting March 15, market participants said, reports S&P Global Platts.

Jet fuel/kerosene Data

The balance month March-April jet fuel/kerosene timespread was pegged at minus 42 cents/b at 11 am Singapore time (0300 GMT) March 15, widening from minus 38 cents/b at the 0830 GMT Asian close March 12.

The FOB...

https://mfame.guru/key-factors-expected-to-weigh-on-asian-middle-distillates-this-week/

Firm Vessel Rates Push Baltic Index Up By 23 Points

The Baltic Exchange’s main sea freight index rose to 5-month peak, reports Yahoo Finance.

Firm vessel rates

The Baltic Exchange’s main sea freight index rose to its highest in more than five months on Monday, as rates across vessel segments strengthened.

Baltic dry index gain

The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, rose 23 points, or 1.2%, to 1,983, its highest since Oct. 7, 2020.

Capesize index

The capesize index gained 37...

https://mfame.guru/firm-vessel-rates-push-baltic-index-up-by-23-points/

Supertanker Market Rates Go Below Zero

  • In ocean shipping, the dial can swing in the opposite direction. Reported freight rates are sometimes below zero.
  • Is this just a measurement mirage, à la Tufnel’s amp? Or do rates actually go negative, with shipowners effectively paying to move someone else’s cargo?
  • Average TCE rates for very large crude carriers (VLCCs; tankers that carry 2 million barrels of crude) sank to -$7,400 per day on the Middle East-Asia route.
  • Multiplied by a voyage duration of around 50 days, that’s a net cost of...

https://mfame.guru/supertanker-market-rates-go-below-zero/

CMA CGM Catches Strong Shipping Market Continuing In First Half

Container shipping group CMA CGM said that it expected activity to remain strong in the first half of this year after brisk demand for consumer goods boosted its profits at the end of last year, says an article published in Reuters.

CMA CGM Net profit earnings

France-based CMA CGM said its fourth-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) reached $2.23 billion, compared with $1.01 billion in the year-earlier period.

Quarterly group net profit came to $1.0...

https://mfame.guru/cma-cgm-catches-strong-shipping-market-continuing-in-first-half/

Asian Crude Market Amid Bullish H2 2021 Outlooks

Asia’s crude oil market remained resolute at the start of the week beginning March 15 amid bullish sentiment fueled by improved second-half 2021 outlooks, including OPEC’s revised forecast for H2 2021 oil demand, reports Platts.

Middle East Crude
  • Trade activity in the week ahead will focus on buy and sell tenders by Asian refiners and Middle East producers, following the issuance of official selling prices last week.
  • Qatar Petroleum issued its Al-Shaheen sell tender, which closes March 15 with...

https://mfame.guru/asian-crude-market-amid-bullish-h2-2021-outlooks/

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