Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Shipping - Oil & Gas Tankers, Dry cargo, LNG -- Ignore unavailable to you. Want to Upgrade?

To: Keith Feral who wrote (107)	5/19/2008 11:05:58 PM
From: Julius Wong	Respond to of 2669

In Louisville the last hot summer was in 1999. We have mild summers since year 2000. :-) **** Dry bulk rates surge towards $300,000 per day** Michelle Wiese Bockmann - Monday 19 May 2008 The Baltic Dry Index advanced to a record for the third consecutive day today, reaching 11,709 points. Capesize and handysize indices were also at a record, while panamax and supramax average time charter rates hit their highest levels this year. “Phenomenal” capesize rates are being paid for front haul voyages from Brazil to China, at nearly $281,000 per day, with fixtures jumping by an average of around $5,000 per day over the last week. “Every time you book a ship you break a record,” a leading London-based capesize broker told Lloyd’s List. “Owners can virtually name their price and it gets done, and then the next owner names their price, but only higher. These are massive numbers beyond anybody’s imagination, it’s absolutely incredible.” Market rumours reported by the Baltic Exchange on Friday of a $300,000 per day capesize fixture remained unconfirmed on Monday. But most brokers told Lloyd’s List the frenzied chartering action of the last few days meant these kinds of numbers could be seen in the next few days. Few capesize vessels were available for most of June as port congestion delayed ships in Brazil, China and Australia. Global Port Congestion Index figures indicate that nearly 100 capesizes from the 750-strong fleet are at anchor and delayed in Australia or Brazil. Panamax ships also face major delays of up to 11 days at the key soya- and grain- exporting ports, such as Rio Grande and Paranagua in Brazil. Strongest rates growth has been in the Pacific market, after rates spiked earlier this month in the Atlantic. Spot freight rates to carry iron ore from Western Australia to China have risen nearly 25% since May 12. Rates from Brazil to China have risen around 14% by comparison. “Capes are going crazy and that’s seen to be dragging all the others up with it,” said a Rio de Janeiro-based broker with a major European dry bulk company. Delays at Asian shipyards delivering new capesize vessels into a sizzling market has exacerbated tonnage shortfalls. China’s unprecedented demand for iron ore and coal, fuelled by rising steel prices, is cited for rising numbers of shipments, along with seasonal peaks in grain exports from the US and South America. Brokers from mining giant BHP Billiton “went ape” last week, hiring “as many ships as they could get their hands on”, after watching record-breaking exports from Brazil soak up tonnage over the last six weeks, one broker said. George Economou, chief executive of DryShips, one of the largest listed dry bulk companies, said the dry bulk market would remain buoyant for the rest of 2008. “We’re not surprised (by the rates), we could see it coming,” he told Lloyd’s List. “Sometimes you know when it’s coming and in this case it came a little later than we thought but it’s here now and we’re happy.” He said capesize rates could break the $300,000 per day barrier. “I think eventually it will, but my bullishness is not only for a week, it’s for the month ahead and the year to come. It will be a great market.” Rates have doubled in the last 12 months, peaking last November but then correcting sharply in January, before beginning to climb again to set new records last week. lloydslist.com