Market Watch

[Podcast]Current Market Conditions of Global Ship Lease in 2021

  • Value Investor’s Edge Live continues with this latest episode focused on the containership segment of the shipping industry.
  • They host the management team at Global Ship Lease on 12 November to discuss the soaring containership markets.
  • They review current market conditions and potential refinancing plans for GSL as we enter 2021.

As per the recent podcast in Seeking Alpha, authored by J Mintzmyer, GSL has surged throughout the past few months and has returned 52% since our exclusive interview...

https://mfame.guru/podcastcurrent-market-conditions-of-global-ship-lease-in-2021/

Elevated Dry Bulk Demand Pushes Baltic Index Up By 44 Points

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Tuesday to its highest level since mid-October last year, reports Reuters.

Gains extended

The Baltic Exchange’s main sea freight index, climbed on Tuesday to its highest level since mid-October last year as rates for capesize and panamax vessels extended gains.

Baltic sea freight index

The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels, added 44 points,...

https://mfame.guru/elevated-dry-bulk-demand-pushes-baltic-index-up-by-44-points/

Drewry Highlights the Impact of Congestion on Port Industry

Drewry has published a report to demystify the current situation of port congestions and explore its possible impact on the port sector valuation.

Supply chains generally tend to be well orchestrated for moving goods across global networks. Any short-term disruption can lead to bottlenecks as is the case with port congestion these days.

Port congestions are not new to the industry and have been handled in the past as well. Since ports are gateways for global trade, any bottleneck at ports will...

https://mfame.guru/drewry-highlights-the-impact-of-congestion-on-port-industry/

US Trade Deficit In Goods Widened 5.5% Y-O-Y

The US trade deficit in goods widened 5.5% year on year to a new record in November at $84.82 billion as a lack of containers available for exporters contributed to an unequal growth rate compared with import volumes, says an article published in S&P Global.

What Data Says

US goods exports were valued at $127.22 billion in November, up 0.8% from the previous month, but down 6.6% from November 2019, according to US Commerce Department data.

US goods imports in November totaled $212.04 billion as...

https://mfame.guru/us-trade-deficit-in-goods-widened-5-5-y-o-y/

Crude Oil Refinery Market in China & Japan at Stark Contrast

  • China’s crude throughput fell slightly in December due to some maintenance works toward the year-end.
  • The average run rate of the four state-owned oil majors, Sinopec, PetroChina, CNOOC and Sinochem, stood at around 78% to date in December, from an 80% average in November.
  • The reduction comes despite a rise in gasoline and gasoil sales since mid-November, as refineries try to clear product inventories ahead of year-end book closures, refiners.
  • PetroChina’s average utilization rate fell to 69%...

https://mfame.guru/crude-oil-refinery-market-in-china-and-japan-at-stark-contrast/

Spike in Spot Rates, Shippers Begin Early Negotiations in 2021

  • Container box shippers and forwarders could be in for historically high rates and contentious contract negotiations.
  • The negotiations are with carriers upon first quarter 2021 contract renewals and a shift from term to spot volumes.
  • This scenario is due to the market norms brought on by the coronavirus pandemic.

According to a recent news article published in Platts, written by David Lademan, Spring contract season may solidify container carriers’ newfound pricing power.

Early negotiations

With...

https://mfame.guru/spike-in-spot-rates-shippers-begin-early-negotiations-in-2021/

Financing of $15m for Two Bulk Carriers

Nasdaq-listed Greek owner Castor Maritime has announced that it has entered into a binding commitment letter with a European financial institution to obtain financing of $15m for two bulk carriers, says an article published in splash247.

The company expects the credit facility to close in January 2021.

Notification letter

In the meantime, the company received notification letter from the Nasdaq Stock Market granting the company an additional 180 day extension until June 28, 2021 to regain...

https://mfame.guru/financing-of-15m-for-two-bulk-carriers/

Bunker Prices To Reach $600/mt in 2021, Suggests Analysts

According to Ship & Bunker data, the bunker prices at major ports have doubled in the last nine months.

20 Ports VLSFO Average 

Specifically, Ship & Bunker’s Global 20 Ports Average for VLSFO hit a low of $210/mt on April 28, 2020.

On December 30, 2020 the VLSFO average was $422/mt.

Sharp rise in costs 

While the current cost is still much lower than the $700/mt+ it was at the start of the year, it nevertheless represents a sharp rise in fuel costs for owners and operators.

MGO

MGO has shown a similar...

https://mfame.guru/bunker-prices-to-reach-600-mt-in-2021-suggests-analysts/

US Bunker Supplier Acquires The Marine Lubricants Arm Of MMP

Veteran US bunker supplier John W Stone Oil Distributor has acquired the marine lubricants arm of Martin Midstream Partners (MMP), reports Ship&Bunker.

Sold Assets 

The sold assets, Mega Lubricants, cover “the business of blending manufacturing and delivering various marine application lubricants, sub-sea specialty fluids, and proprietary developed commercial and industrial products” according to a statement issued by MMP over the deal.

The deal

John W Stone’s general manager John Stone, said the...

https://mfame.guru/us-bunker-supplier-acquires-the-marine-lubricants-arm-of-mmp/

Sunny and Stormy Moments of Commercial Shipping Industry 2020

  • The coronavirus pandemic has shaken the global maritime transport.
  • The pandemic waves have disrupted supply chains and cargo flows across the world. Global oil demand was severely hit.
  • Tensions and disagreements regarding oil production between the OPEC and its allies exacerbated the oil supply-demand imbalance.
  • All of a sudden, the world was flooded with oil and was running out of place to put it leading to a spike in demand for tankers that served as floating storage.
  • While this sparked some...

https://mfame.guru/sunny-and-stormy-moments-of-commercial-shipping-industry-2020/

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