- Freightos Baltic Global Container Index now available
The Freightos Baltic Global Container Index (FBX) is now available to all members and subscribers. Published weekly on Sundays, FBX represents ocean freight prices, including all ocean surcharges (BAF, CAF, SCS, PCS, PSS, WRS).
Prices used in the index are rolling short term Freight All Kind (FAK) spot tariffs between carriers, freight forwarders and high-volume shippers.
Index values are calculated by taking the median price for all prices on active lanes with weighting by carrier. 50 to 70 million price points are collected every month.
FBX is based on aggregated and anonymised real-time data from global carriers, forwarders and shippers that offer services on Freightos.com or use the Freightos AcceleRate freight rate management platform and have consented to this usage.
- Fehr Tennis Cup
On 27 June the Baltic Exchange will be holding the annual Fehr Cup at Surbiton Racket & 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 which gives, more social players an afternoon of relaxed open competition in the American Tournament, while the pros peel off to dual for the big ‘Fehr Cup’ prize.
Entry, including lunch and refreshments, is £70 per pair.
For more details, please email:
Catharine Bacon – firstname.lastname@example.org
Perry Perera – email@example.com
- Book signing at the Baltic Exchange
Baltic member Jian Jun Wang is looking to raise funds for the Sailors Society through the sale of his book “Ship Market Trends.” The book looks at the dry bulk, tanker and container markets.
Currently director of shipping management and advisory at Commonwealth Bank of Australia, Mr Wang is supporting the Sailor’s Society which this year celebrates its 200th anniversary.
A book signing session takes place at the Baltic on 28 June from 6 pm until 8 pm, Baltic Exchange members are invited to attend a drinks reception.
If you would like to attend, please email firstname.lastname@example.org.
Copies of the book can be ordered online via www.amazon.com/gp/offer-listing/9881445078
If you would like to keep updated on Mr Wang’s fundraising efforts, or, if you would like to donate separately to the purchase of the book, visit: https://www.justgiving.com/fundraising/shipmarkettrend
- Consolidating bulk opinions
If there’s one thing that seems to be going hand in hand with shipping right now, it’s consolidation. In a presentation at a recent shipping event, Andrew Penfold, global maritime director at consultant WSP, identified consolidation as one of the major market trends for shipping. He noted that mergers and acquisitions activity has concentrated the purchasing power of ship owners and operators and that there are larger and stronger customers. Further, a joint report by specialist insurer TT Club and consultant McKinsey published this month identified consolidation and integration as possible sources of value creation for the next quarter of a century for shipping.
This month’s TradeWinds Shipowners Forum 2018, held at Posidonia, offered further opportunity for discussion of consolidation with specific relevance to the dry bulk sector.
Kicking off discussions, Milena Pappas, commercial director at Star Bulk, saw many benefits in consolidation: “You get economies of scale, you get cost minimisation, you have more bargaining power and access to more clients, you can serve your clients better because you have more vessels available,” she said. Star Bulk is paying more than lip service to consolidation with its purchase of Songa Bulk in a cash and share deal worth $327.95m, announced in May.
She criticised the fragmented nature of the dry bulk sector, with 11,000-plus vessels, making it very difficult to get “critical mass in dry bulk”. This is in contrast to the container sector where a critical mass has allowed for more economies of scale, easier access to financing and better financing terms. Ms Pappas said that there is “a real premium” on consolidation when it comes to getting better bank terms.
There is a trend towards consolidation, but if we lose the independent entrepreneur, the independent shipowner, who have new ideas, it’s going to be a loss for the market
Fellow panellist, BIMCO president Anastasios Papagiannopoulos saw a trend towards consolidation, but threw out a word of caution against the move: “If we lose the independent entrepreneur, the independent shipowner, who have new ideas, it’s going to be a loss for the market.”
Cargill president Jan Dieleman advised the dry bulk industry to “embrace some more consolidation”, describing bigger owners are “normally healthier”, which can also mean safety and labour conditions are taken more seriously. “We definitely welcome some more consolidation, although I’m not saying here that we’re going to have to go down the container route — I don’t think so — but I think some more consolidation would be healthy for the industry.”
However, Mr Papagiannopoulos claimed that consolidation’s end point could be “very big companies which will push out a lot of conservative and reasonably-operated operators and shipowners”. He believed that although consolidation will go ahead, great care will be required. “At the extreme, we may have very bad results,” he said.
Into the pool
The concept of pooling was also discussed at the Forum. Asked how he justifies pooling to possible new entrants, chairman and chief executive of Goodbulk and C Transport Maritime (CTM) John Michael Radziwill, whose company CTM was a founder business of capesize pool CCL, said: “We’re all in this together, right? A better market is better for all of us. We want a better market, and by putting more ships together, that’s the best way forward to get a better market.”
Peter Weernink, SwissMarine Bermuda director, added that he competes with the CCL pool and that he believed that its existence “is beneficial for the market”.
“It’s very simple: the big trend, particularly in the capesize market, is more and more direct business, is more and more offmarket business,” he commented on the pool. “To access that business and to be able to see what’s actually happening, you need scale. CCL is one way to get there. If you run around with 15, 20, 30 capes today, you don’t see the market. The only way you can access that is working in bigger groupings.”
Ismini Panayiotides, founder and chief executive of Pavimar Shipping, offered comment on the changes in financing options for dry bulk from her perspective: “The financing market is obviously different to what it used to be five or 10 years ago and a lot of players have exited, we have seen new sources of funding coming in.”
Pavimar Shipping, as an owner of 12–13 vessels, has not faced difficulties in tapping finance, as long as requests are conservative. “If you want a 50%, 60% leverage, it’s something easily doable if you’re not asking for extreme terms,” she said. “You have you look at the view of the banks; with all the new regulations that they have to abide by, their terms have become a bit stricter.
“If you’re not out there trying to squeeze and get the most out of it, you’re conservative enough, and you want to keep a balance of not overleveraging, I think it’s perfectly fine accessing straightforward bank financing,” she concluded.
- Member update: 20 June
The following company has applied for Corporate Membership:
Company Individual Clipper Bulk A/S Mr A Bruun Mr M Groenvald Mr L L Lyngstrand Mr P Nordborg Mr T Jarde Mr B H Jensen Mr J T Kragh
The following individuals have applied for Membership of an existing member company:
Company Individual Clarksons Platou Mr L Keen Mr T W Ford
Any comments should be passed to Karen Karanicholas by 27 June 2018.
- Member company office space to let: Grosvenor Gardens, LondonBaltic Exchange member company AM Nomikos has 1,066 sq ft of office space for rent in Grosvenor Gardens, LondonThis modern office space is located within a Grade ll listed Victorian building situated next to AM Nomikos’ London offices at the heart of Belgravia, within the Grosvenor Gardens Conservation Area and just a two minute walk from Victoria Station.Having undergone a substantial transformation, the area provides many world-class amenities and transport connections. Elizabeth Street provides a range of boutique shopping and high-end dining and lifestyle opportunities.£71,955 per annum (Assuming £67.50 pst)Est. Service Charge: Approx £11-12,000 per annumEst. Business Rates: £18.70 Per sq ftEst. Insurance premium: Approx £1,500-2,000 per annum24 hour security / Passenger lift / Suspended ceilings / Air conditioning / Kitchenette / Toilets / EPC / Motion sensitive lighting / UnfurnishedContact details:Annette Canbas: email@example.com / 020 7591 1813Katerina Raniou: firstname.lastname@example.org / 020 7591 1800