- Baltic Briefing Bunker Forum: 21 March
The Baltic Exchange will be holding its first briefing forum of 2019 on 21 March. Chaired by Philip Bacon, Icthus Marine, the event will address the issues, developments and pitfalls surrounding bunkers and bunker markets, with a more specific focus on the marine side of the bunker lifecycle through the three segments; buy, receive and use.
Experts from purchasing and Lloyds Register, will bring clarity to specs, the issues and assumptions that cause frustrated contracts when taking delivery. On consumption and performance, the StormGeo shipping team will give their insights into charter party warrants and all presentations will be set against a backdrop of how counterparts scrutinise operational performance and add certainty to what can be an uncertain element of shipping business.
The Briefing will be followed by a Wine Tasting of Italy (£25 per head) hosted by the Baltic Wine Society. Those interested are invited to join wine enthusiast, David Hughes in the Members Bar who will steer tasters through a journey from the wine terraces of the snowy Tyrolean Alps to the southern soaked isles of Italy. Attendees will be able to enjoy exciting new and sophisticated old varieties that are reshaping the world of wine as we know it. Accompanied by Mediterranean nibbles, all members and their guests are welcome.
The Forum commences from 5.30pm, with the wine tasting at 6.45pm. For further details, click here.
- BWS: wines of Italy tasting
Following the bunker briefing on 21 March, The Baltic Wine Society (BWS) will be holding an Italian wine tasting in the Baltic bar.
Wine Enthusiast, David Hughes, will steer tasters through a journey from the wine terraces of the snowy Tyrolean Alps to the southern soaked isles of Italy, trying exciting new and sophisticated old varieties of grape, all of which at varying stages have helped shape the modern day world of wine.
Accompanied by Mediterranean nibbles, all employees of member companies and their guests are welcome. Tickets cost £25 which includes seven wines and tapas.
For more details and to register, click here.
- Baltic Academy to launch at Singapore Maritime Week
As part of Singapore Maritime Week (8-12 April 2019), the Baltic Exchange will be launching the first of its new Baltic Academy shipping courses.
Focussing on the challenges faced by today’s shipping professionals, these one-day courses take a practical approach and deliver what you need to know. Led by experienced industry practitioner, Mikal Boe, the courses are designed to be instructive and interactive and to engage participants in real-life scenarios.
The courses to be launched are:
Counterparty Risk Management for Shipping
Thursday 11 April 2019 | SGX Centre 1, Singapore Counterparty Risk Management for Shipping
Suitable for anyone interested in and potentially affected by credit default risk in today’s shipping markets.
Indexation and the Creative use of Baltic indices in Risk Management for Shipping
Friday 12 April 2019 | SGX Centre 1, Singapore
Suitable for anyone responsible for the commercial management of ships, freight and risk exposure.
Each course is priced at S$2,200, which includes lunch and course materials.
To find out more, click here.
- Baltic ICS lecture series: 27 March
The next edition in the current series of Baltic ICS lectures will take place on 27 March. Presented in Athens, London, Shanghai and Singapore the lecture will focus on financial tools, specifically ship finance and Forward Freight Agreements (FFAs).
Singapore | 27 March | 13.00
Shanghai | 27 March | 13.00
Dr. Zhao Jin Song
Lawyer & Arbitrator
Athens | 27 March | 18.30
AMN Bulk Carriers Inc
London | 27 March | 13.00
Philippe van den Abeele
Consortium Maritime Trading
The lectures are free to Baltic and ICS member companies.
For more information on the lecture or to register your attendance, click here.
- Freight and Commodities Forum, Singapore: 12 April
The Baltic Exchange will be holding its annual Freight and Commodities Forum in Singapore on 12 April at the SGX Centre.
Aimed at the physical, dry bulk, freight, and FFA sectors, the forum will include insights from analysts and industry leaders on how they expect markets to react to shifting cargo flows and the changing regulatory environment. The forum showcases freight options, hedging rates in FFAs and how the Baltic is supporting market participants with new services and benchmarks.
The programme for the forum is as follows:
11:15 Registration coffee
11:30 FFABA Options Workshop
12:30 Forum Registration & Lunch
13:30 Baltic Exchange Update, Mark Jackson – CEO, Baltic Exchange
13:50 The Macro Outlook On Global Trade; Chinese growth, iron ore and coal – Rahul Kapoor – Senior Analyst, Asia Transportation, Bloomberg Intelligence
14:30 FFAs and Options Panel, Chaired by Andy James – Swire Bulk / China Navigation Company
15:20 Dry Bulk Freight Markets; The supply demand outlook – Daejin Lee, Principal Consultant | Maritime & Trade, IHS Markit
16:00 Freight Market Panel: Market cycles and events;
Covering; cargo flows and new markets, benchmark changes, iron ore market outlook, LNG benchmarks, IMO 2020 Sulphur Cap
For more information, or to register, click here.
- Member meeting and ASBA Baltic reception: CMA
The Association of Ship Brokers and Agents (USA) (ASBA) and the Baltic Exchange will be holding a drinks reception on the sidelines of CMA 2019 at the Dinosaur Bar-B-Que.
The event commences at 6.30pm on Tuesday 2 April. Those interested in attending are invited to RSVP by 25 March here.
Ahead of the drinks reception, the Baltic Exchange will be holding a meeting for members at Serendipity Labs, 700 Canal Street, Stamford, CT 06902.
The meeting starts at 4pm, with all members welcome to attend. Those attending will have the opportunity to hear about recent and proposed developments on the benchmark indices and to also discuss other relevant matters including data policy and the IMO 2020 Sulphur Cap.
Those interested in attending are invited to register here.
- Member update: 13 March
The following company has applied for Corporate Membership:
Company Individual Fastfreight Pte Ltd
Mr K Annabathina Mr M Kumaran Mr B Philemonraj
The following individuals have applied for membership of an existing member company:
Company Individual CSC Nanjing Tanker Corp Mr H Xu Eiger Shipping SA
Mr L Wogan Ifchor S.A.
Mr A Larson Mr C Pittaluga
Any comments should be passed to Karen Karanicholas by 20 March 2019.
- Vive la same on grain
Continuity is the order of the day when it comes to the outlook for grains, which can be seen as positive in comparison with the tariff-induced fluctuations for steel and the cuts for coal. The latest Grain Market Report from the International Grains Council (IGC) reveals that total grain trade for 2018–2019 is forecast to be the same as the estimate for 2017–2018. The report, released towards the end of February, puts the 2018–2019 trade estimate at 367m tons, unchanged from the 2017–2018 prediction.
“This report incorporates adjustments to supply and demand to reflect previously-announced revisions to official production estimates for China, with the biggest changes for maize,” says the report. “For total grains (wheat and coarse grains), forecasts for world production, consumption and stocks are all higher month-on-month, but trends in global supply and demand are broadly the same as described in recent Grain Market Reports. Non-China-related changes for 2018–19 include lower maize production in the US, cuts for wheat exports by the US and the EU and increased wheat shipments by Russia.”
According to the IGC, global total grains production is anticipated to drop by 20m tons in 2018–19 to a three-year low of 2.121bn tons — because greater maize output is outweighed by declines for other crops, especially wheat. Furthermore, with consumption expected to hit a new peak, world stocks are expected to contract for the second year in a row, to their lowest in four seasons, 593m tons (a loss of 53m year-on-year). The stocks-to-use ratio of 27.3% (30% the year before) would be the tightest since 2014–15, the report says, adding that trade lies unchanged year-over-year due to larger maize imports being offset by decreases for wheat, barley and sorghum.
Looking at the February estimates, wheat trade for 2018–19 is forecast to be 170m tons, a drop of 5m tons from the prediction for 2017–2018. With regards to maize (or corn), the 2018–19 trade estimate is 160m tons, an increase of 8m tons on the 2017–2018 estimate. Anticipated 2018–19 soybean trade is the same as the 2017–2018 prediction, at 153m tons. The figures are similarly unchanged when it comes to rice: the trade forecast for both 2018–19 and 2017–2018 is 47m tons.
It is corn that is the real standout star
Over at the Foreign Agricultural Service (FAS) at the United States Department of Agriculture (USDA), its latest report puts global trade year imports of wheat at 176.4m tonnes for 2018–19. Exports for the same period are 179.5m tonnes. These figures are against 2017–2018 figures of 178.4m tonnes for imports and 182.6m tonnes for exports.
“Global wheat production is lower this month, mainly on smaller crops in Iraq and Kazakhstan,” the report explains. “Global consumption is reduced, mainly in India. Global trade is nearly unchanged amid a plethora of offsetting changes to importers. Exports are raised for the EU but lowered for the US.”
However, James Webster, senior analyst for AHDB Cereals & Oilseeds, noted in a briefing: “Over the past month, the global market has been inundated with data. We’ve had multiple wheat tenders, some long-awaited USDA data and some basic payments data. The bulk of the global data has continued to present a bearish picture for both new and old crop markets. Although there is still a long way to go until harvest and the picture could very much change, we look set for a large 2019–2020 wheat crop. This has added pressure to futures prices, which have fallen considerably over the past month. Russia’s return to the gas party caused markets to move considerably lower in the last tender.”
Away from wheat
For milled rice, according to the FAS report, global trade year imports for 2018–19 stand at 44.8m tonnes, whereas for exports, the figure is 47.8m tonnes. For 2017–2018, the figures are 45.4m tonnes and 47.6m tonnes respectively. However, it is corn that is the real standout star: total global trade year imports have gone up from 149.6m tonnes in 2017–2018 to 161.1m tonnes in 2018–19, and exports have increased from 150.7m tonnes in 2017–2018 to 164.6m tonnes in 2018–19.
Offering an overview for 2018–19, the FAS says: “Global corn production is up this month, with larger crops for the EU, India and Russia more than offsetting reductions for Paraguay and South Africa. Global trade changes are minimal, with offsetting revisions mainly among exporters. Exports for Argentina, Brazil and Ukraine are higher, while lower for the US. Imports for the EU are larger.”
As for rice for 2018–19, it says: “Global rice production is raised as larger crops in India and Pakistan are only partially offset by the continuation of a lower expected crop in Brazil. Global consumption and ending stocks are forecast higher. Imports are up for the Philippines but lowered for Sri Lanka and Iran. Lower exports for Pakistan and Brazil are partially offset by higher exports for Ecuador and Kazakhstan.”
Overall, the different figures put forward regarding the outlook for grains don’t appear to offer much change from previously. But maintaining the status quo can be seen as a positive in an economy in a state of flux.
The Baltic Exchange will hold its next Shipping Economics & Investment course on June 10 and 11 in London in the UK. More information can be found here.
- Annual BEGS dinner photos
Photos from the annual Baltic Exchange Golf Society dinner on 7 March are now available to view on the Baltic Flickr page, here.
- BESA: Warwick Cup
This year’s Baltic Exchange Sailing Association (BESA) Warwick Cup will take place on the 18-19 May at Seaview, Isle of Wight.
There are no stipulations on who may helm each boat and after every race there will be a chance to rotate crews. So teams/squads can be as large as you like, giving everyone a chance to have a go on the water. There will also be opportunities for those not racing to witness the action close up and take photos from one of the Yacht Club’s fast tenders or just to go for a spin.
The tentative schedule is as follows:
- Friday PM: Arrive Seaview
- Saturday: Racing Seaview Mermaids http://www.seaviewmermaids.co.uk
- Saturday Evening: Three course dinner at the Sea View Yacht Club with late bar/tombola/prize giving
- Sunday AM: Racing Seaview Mermaids before lunch/prize-giving. Should be away by 1400 ish
This event counts towards the David Bradley Memorial Trophy
Entrance forms can be found here, these forms and fees, which includes the three course dinner, as well as Baltic Exchange membership must be submitted by 28 April 2019. Full rules can be viewed here.
For any further information, contact on the details below.
Eggar Forrester Shipbrokers – CW Kellock & Co Ltd
Fifth Floor, 2 London Wall Buildings, London Wall, London, EC2M 5PP