- 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.
- Singapore Maritime Week: British High Commissioner drinks reception
The British High Commissioner, Scott Wightham, and Baltic Exchange CEO, Mark Jackson, invite guests to a drinks reception at the British High Commissioner’s Residence.
The event will be held on 11 April from 6pm. Attendance requires completion of a pre-registration form which can be completed here.
Those attending are reminded that the British High Commission operates a strict security policy. Please bring your invitation and a valid photo identity with you. The British High Commissions reserves the right to search guests & belongings. Please restrict the size of bags, as there are no facilities for storing personal items. Haversacks and / or shoulder bags (except small bags measuring less than 30 cm by 40 cm) & laptops will not be permitted.
- The Chairman’s Cocktail Party
One of the standout events of the Baltic calendar, the Chairman’s Cocktail Party, will take place this year on Wednesday 15 May.
Attended by 600 guests, this historic event originally celebrated the end of a Baltic chairman’s two year tenure, held on the floor of the old Baltic Exchange. Now held at Christ Church Spitalfields in London, it brings Baltic members from across the globe together for a unique annual networking and social event, which is also attended by politicians, industry leaders and journalists amongst others.
Baltic Exchange Chairman, Duncan Dunn, will undertake the customary speech, presenting the David Bradley Cup to the 2018 winners, The Baltic Exchange, as well as reviewing another eventful year.
For those interested in attending, we suggest securing your tickets early by following this link to ensure you don’t miss this great occasion.
For pictures from last years event, click here.
- Baltic training courses: New York, April 2019
The Baltic Exchange will be holding its Freight Derivatives & Shipping Risk and Advanced Freight Modelling and Trading training course in New York during April. More details below:
Freight Derivatives & Shipping Risk Management (New York: 8-9 April)
Delivered over two days by experts in the areas of shipping and commodity risk management, the Shipping Risk Management course aims to raise market awareness of risks involved in shipping businesses and how various physical and derivatives instruments can be used to control such risks efficiently and effectively. Participants will learn how to analyse and measure the impact of financial risks involved in shipping investment and operations, and how to select and execute effective strategies to minimise or eliminate such risks, stabilise their cash flow and maximise the return on investment more efficiently.
Advanced Freight Modelling and Trading (New York: 10-11 April)
This advanced two day module focuses on modelling freight rate dynamics and pricing options on freight. It discusses issues which are relevant to shipping market practitioners such as constructing forward curves on freight, modelling freight rate volatility as well as hedging and trading strategies using freight options. The course aims to provide delegates with both a theoretical foundation as well as practical hands-on experience.
The courses will be led by Professor Nikos Nomikos and Professor Amir Alizadeh, both lecturers at the renowned Centre for Shipping, Trade & Finance at London’s Cass Business School.
- Member update: 3 April
The following individuals have applied for membership of an existing member company:
Company Individual AS Klaveness Chartering Mr H Wahn Clarksons Platou
Mr A D Jessop
Hopp Worldwide Private Limited
Miss W Khan Marubeni Logistics Corporation
Mr A Kikuchi Mr A Kuramoto
The following individual has applied for Retired Membership:
Mr G Wramfelt
Any comments should be passed to Karen Karanicholas by 10 April 2019.
- Ending the trade war: an April Fool?
Could an end finally be in sight for the trade war that has dominated discussions on economics since last year? This week (beginning 1 April), Chinese President Xi Jinping’s chief trade negotiator, Vice-Premier Liu He, will head to US federal capital Washington, D.C. for a round of discussions with the objective of halting the trade war being waged between the US and China. On 1 April, President Xi stated that he desires collaboration between the two superpower nations to help stabilise, and decrease uncertainty in, world affairs.
“As big countries, our relationship with each other can have great impact on global strategic stability and we all shoulder special responsibilities [to the world],” President Xi said, adding that his country is prepared to take on its share of international responsibilities.
Light at the end of the tunnel?
Evidence points to a thawing of relations between the US and China. At the tail end of March, Reuters reported that a commodities prices and investment rebound is poised to extend in future months, with commodities set to feel the benefit of an anticipated trade agreement between the two nations. It added that a commodities rise has been partially driven by hopes for a deal to stop the dispute, helping to spur over $2bn of flows into commodity index funds and exchange-traded funds in 2019, according to data compiled by investment bank and financial services corporation Citi.
Within a proposed trade agreement, China is reported to have offered to make big-ticket purchases from the US to help narrow down a record trade gap, with US President Donald Trump’s team saying that these would have a value stretching past the trillion-dollar mark over around six years. According to Citi analyst Aakash Doshi, agricultural exports to China might hit $30bn or more annually (compared with almost $20bn in 2017).
“Both the fundamentals and technicals are supportive, so if we can get some concrete news that a trade deal has been successful, these things could really fly,” Robin Bhar, head of metals research at financial services firm Société Générale, said.
Mr Doshi listed corn and soybeans as products that could see a meaningful increase in Chinese purchases under a trade agreement between the US and China. In January, exports to China of US soybeans hit their highest monthly total since March last year (the time the trade war kicked off in earnest). In a report, Peter Sand, BIMCO’s chief shipping analyst, noted that this rise is largely thanks to goodwill purchases by Chinese buyers to try and advance trade discussions.
“Although volumes remain considerably lower than what would be expected in a normal season, the increased exports to China bring hope for the US that Chinese buyers will return once trade tensions are resolved,” Mr Sand said. “Higher US exports, combined with the start of the Brazilian exporting season, is good news for panamax and supramax vessels catering to these trades.”
Last year, China was still the biggest purchaser of US soybeans. However, in H2 2018, just 3.4% of US soybean exports went to the East Asian nation, indicating the ramifications of the trade war between the US and China.
“All the largest destinations for soybean exports in the second part of 2018 are short-haul destinations when compared to the China trade,” Mr Sand noted. “In shipping, the sailing distance is often more important than the transported volumes.”
Obstacles in place
But not everyone necessarily wants the US and China to draw a line under their trade conflict.
Late March, the chief executives of US steelmakers ArcelorMittal, Nucor, the United States Steel Corporation and Commercial Metals Company, at a time when work by the US Senate to limit President Trump’s tariff powers are gaining ground, reportedly called on lawmakers to keep robust US tariffs on steel in place. The leaders told the Congressional Steel Caucus that the Section 232 Tariffs were just beginning to let the domestic steel sector recover from damage from years of dumped imports and that they needed to stay put long-term. According to the executives, little has been done to lower excess steel production capacity in China (which US producers blame for most of the steel industry’s troubles), and not having the levies would mean that unfairly traded imports would flood back into the US market.
Furthermore, the two camps continue to be split on topics like the protection of intellectual property rights in China, market access and an enforcement mechanism. White House economic adviser Larry Kudlow claimed in the South China Morning Post that the Trump administration is willing to let trade talks with China rumble on for “months” and is in no hurry to put an end to the trade conflict.
This week’s meetings could be pivotal for trade relations between the two superpowers and with the World Trade Organization having just announced that growth in the trade of goods by volume is anticipated to slow to 2.6% in 2019 (from 3% in 2018), it’s surely a bond worth nurturing.
- Fehr Cup: 26 June
This year’s Fehr Cup will be held on Wednesday 26 June at Surbiton Rackets and Fitness Club.
Tennis, Pimms, summer lunch with strawberries and cream, this fantastic networking opportunity for tennis players of all levels is a must in the shipping social calendar. Taking place on the grass courts of Surbiton and including lunch and tea in the clubhouse. The tournament is split into two parts, after an initial stage, more social players can enjoy an afternoon of relaxed open competition in the American Tournament, while the pros peel off to dual for the ‘Fehr Cup’ prize.
Any firm represented on the Baltic Exchange is eligible to enter one or more pairs. However, both players must be from the same member company, but the people do not have to be Baltic members themselves. Any player may be substituted but still needs to work for the same company.
Both male and female players are welcome, and the pairs can be in any combination. The matches will be the best of three sets in the main draw with a tie break at six-all in each set.
The games will be on grass (weather permitting) with play commencing at 10am sharp. The Club asks that players do not wear trainers or running shoes in order to protect the grass for the season.
The entry fee is £75 per pair, payable in advance. This fee includes the courts, coffee, lunch and afternoon tea for all players, as well as prizes for the placed teams in both tournaments. Catering for non-players is priced at £15 per head, but this also needs to be booked in advance.
The Tournament will be refereed by Perry Perera, with the American format arranged by Costas Mamarides, who will umpire the main final.
The points gained in this Tournament will go towards the David Bradley Cup. Pictures from last year’s event can be found here.
Useful information for those taking part
Address: Berrylands, Surbiton KT5 8JT tel 020 8399 1594
If you are coming by car, the parking is only on the Club side of the road in Berrylands or on the adjacent roads.
If you are coming by train, Surbiton Station has a faster, more frequent, service from Waterloo and is slightly nearer than Berrylands. It is a five-minute taxi ride or a 10-minute walk.
Further contact details
Tel: 07563 790273 or 020 8399 0398
Tel: 020 8391 0351
- 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