- Job opportunity: Container Business and Development Manager
The Baltic Exchange is seeking an experienced Container Business and Development Manager at its central London offices on St Mary Axe.
Reporting to the Chief Commercial Officer, the successful applicant will be responsible for developing the Freightos Baltic Container Indices (FBX) and related products, in addition to ensuring that it is recognised as a premium container freight index in the market. The ability to engage with key players in the physical container market is a fundamental requirement for this role and therefore having a comprehensive network of contacts within the container market will be a significant advantage.
The successful applicant will work to identify new opportunities for the FBX, new users of the indices and deliver a successful marketing plan to secure new business in the container market.
Applications would be welcome from candidates who meet the following essential requirements:
- Comprehensive knowledge of the maritime industry, and, in particular, of the container market and the key players within it.
- Minimum 10-15 years of experience at a mid/senior level of new product development, and marketing with a proven track record in sales.
- Credibility to interface and collaborate with senior management and stakeholders.
- Excellent contacts in the container market and proven social and interpersonal skills with the ability to speak and present effectively at high profile market events.
- Strong organisational skills and the ability to create and present compelling sales propositions.
- Knowledge of the FFA/derivatives market would also be an advantage.
If you are interested in this exciting opportunity and meet the above criteria you are invited to send your application to Sharon O’Ryan.
- Baltic Exchange Freight and Commodities Forum, Copenhagen
On 27 September 2018, the Baltic Exchange will be holding its Freight and Commodities Forum in Copenhagen.
The event will open with a networking lunch followed by sessions on:
- Commercial Impact of the 2020 Sulphur Cap
- Dry Market Outlook
- Bulk Commodity Trends
- Dry Benchmark Revisions
- Freight Risk Management
The forum is open to member companies and invited guests only.
The event will commence with a networking lunch at 1 pm.
To view the full programme, click here.
To register, click here.
- Baltic Tanker Market Session, Copenhagen
On the morning of 27 September, the Baltic Tanker Market Session will bring together clients and brokers from across the European wet markets to hear freight and commodity output forecasts from leading analyst as well as updates on benchmark revisions and proposals. This will be followed by a networking lunch for all market participants.
Part of the Baltic Exchange Freight & Commodities Forum
The session will take place between 11.30 am – 1 pm.
To view the full programme, click here.
To register, click here.
- Member update: 05 September
The following company has applied for Corporate Membership:
Company Individual Hoa Phat Trading International Pte Ltd Mr M T Nguyen
The following individuals have applied for Membership under an existing member company:
Individual Company Mr M Benetar BACA – The Baltic Air Charter Association Mr K Hess Braemar ACM Shipbroking Ltd Mr A H D Gaidon Dampskibsselskabet Norden A/S
Any comments should be passed to Karen Karanicholas by 12 September 2018.
- Cooling outlook for coal
At a time of increasing focus on the renewables market as the world seeks to clean up its act to prevent climate change, what is the outlook like for coal? If an August report from Stratistics Market Research Consulting (Stratistics MRC) is anything to go by, the answer to that question appears to be, ‘not as bad as one might fear’.
The report, Coal Industry – Global Market Outlook (2017-2026), forecasts the global coal market to grow at a compound annual growth rate of 12.5% from 2017 to 2026 — and hit $34.65m by the latter year. An enlarging manufacturing base, rising economic growth and increasing electricity demand are some of the key factors propelling the growth, according to the study, though the report did claim that price instability is restricting market enlargement. Furthermore, the world coal market accounted for $11.93m last year. Based on geography, growth in the market during 2017-2026 is anticipated for the Asia-Pacific region —several nations in the area, such as China and Japan, lack energy resources and are therefore importing to meet requirements.
The world of the product
However, this positive picture stands somewhat alone. At the end of August, it was reported that a push to lessen the development of coal mines, as well as growing investor pressure to divest from fossil fuels, is generating a mining industry division between businesses leaving the sector and companies vowing to stay in it. Banks that have reportedly brought lending for new coal mines to a halt include Deutsche Bank and the Royal Bank of Scotland, while new project spending has dropped 80%, from $10bn in 2012 to $2.2bn this year. This trend, along with a government-led campaign in China to cut supply of domestic coal to reduce pollution, has made the coal price almost double over the last three years — to trade at $113 a tonne.
But some companies are staying in the industry or enlarging their presence. For the world’s biggest miner, BHP, there is confidence in coal’s staying power.
The world coal market accounted for $11.93m last year
“The world, rightly or wrongly, is going to be using a lot of thermal coal,” claimed Peter Beaven, BHP’s chief financial officer, referring to the kind of coal used in power stations. The company has no plans to sell its coal assets — and neither does the biggest producer of seaborne coal for export globally, Glencore. In fact, Glencore is in expansion mode. This year, it purchased a 49% share in a Yancoal-operated thermal coal project in New South Wales in Australia and bought Rio Tinto’s Hail Creek coal mine in Queensland, also in Australia, for $1.7bn. The company reportedly made $2bn from its coal division in H1 2018, with the business estimating that at current prices, coal will be its largest earnings driver for the full year. Macquarie Group analysts describes the organisation as “slowly stepping into the breach, quietly consolidating its position in an unpopular sub-sector of the mining industry”.
However, not all coal miners have had such good fortune. In March, Rio Tinto sold its last coal mine to EMR Capital and Adaro Energy for $2.25bn, while South32 plans on selling its South African thermal coal assets to local investors later in 2018. South32 chief executive Graham Kerr has reportedly argued that thermal coal is increasingly becoming a focus of meetings with investors.
“Every six months, they tell you they can’t invest in you,” he noted.
What’s more, coal could soon find itself eclipsed by renewables. Fitch Solutions said at the end of August that renewable energy will play an increasingly important role in powering mining operations across the globe over the coming years, while Alexa Capital co-founder Gerard Reid has said that because wind and solar power have already become less expensive than coal-fired power in many parts of the world, a renewables move could happen faster than many believe.
The mixed messages mirror the division among investors and analysts over coal: while both the Church of England Pensions Board and BMO Global Asset Management have both turned away from supporting coal, Norway’s $1tr sovereign wealth fund (which owns Glencore shares), has said it would only exclude companies “which themselves, or through entities they control, derive 30% or more of their income from thermal coal”.
Yet, Stratistics MRC’s prediction of Asia-Pacific coal market growth resonates with other indicators for the field. BP predicted that coal would likely stay the dominant energy source in Asia as late as 2040, while the Australian Bureau of Statistics said that Australia’s coal mining industry increased capital expenditure by 20% in 2017-18 to $3.5bn. However, analysts are split on how fast the planet’s largest coal consumer, China, will move away from the commodity. According to official figures, its coal consumption went up just 0.4% last year.
However, BHP, despite feeling that coal is set to “progressively lose competitiveness to renewables on a newbuild basis in the developed world and in China”, predicts that the crossover point will not be reached until the end of the next decade and says that coal power “is expected to retain competitiveness in India and other populous emerging markets for a much-longer time”.
As for the US, it was reported at the end of last month that US President Donald Trump was pushing forward with his endeavours to revive the US coal mining sector and that the Environmental Protection Agency claimed it was planning to repeal previous president Barack Obama’s Clean Power Plan, relaxing coal-fired power plant regulation. US coal miners like Peabody will no doubt be pleased by this shift in emphasis — its shares are up by 7% in the year to date, having reportedly been boosted by President Trump’s coal-supporting efforts.
- Baltic Exchange Golf Society: Company Cup
The Baltic Exchange Golf Society (BEGS) Company Cup will take place on Thursday 13 September at The Shire London, the UK’s only Seve Ballesteros designed course.
The Company Cup is open to all shipbroking golfers, with the format below:
- Two-person teams, competing in four balls over one round on the Seve Ballesteros Master’s course.
- Stableford scoring system, with the combined score counting to each two-person team.
- Each team does NOT have to consist of employees from the same company, clients/visitors are welcomed.
- Teams can be two principals from the same company or different offices, a principal and a broker or two brokers.
- There is no limit on the number of teams any one company wishes to enter, the more the merrier.
- There will be additional prizes for nearest to the pin, longest drive in the rough and longest drive on the fairway.
- Baltic Exchange is looking for a sponsor for a hole in one competition on one Par 3, with a car as the prize.
- Official handicap certificates are not required, but anyone playing off 24 or higher that does not have an official club handicap cannot score more than 30pts.
- This event can contribute as one of the sports for the overall David Bradley Cup winner.
Running times are as follows:
08:30 – Arrival time, bacon roll & coffee
09:15 – Tee off for morning 9 holes (front 9)
12:45 – Sit down lunch
14:00 – Tee off for 18 holes
19:00 – Drinks/prize giving
(All times are approximate & subject to change.)
Availability is on a first come first served basis.
Anyone interested in registering should contact James Pendered.
- Baltic FC Vs Danish (DRFB) and Spanish Brokers
The Baltic FC will join Danish brokers heading to Madrid for a three-way tournament against Spanish Brokers from 14-16 September. Anybody interested in joining in, either on the field or for socialising off the field, please contact 1st XI: Nat Twiggs (firstname.lastname@example.org) / Vets XI: Alan De Rosa or Tony McDonald (email@example.com).
Photos from the last round in Copenhagen can be found here.
- OSCAR Dragon Boat Race 2018
The annual OSCAR Dragon Boat race takes place on Friday 14 September in Canary Wharf to raise money for Great Ormond Street Hospital through the OSCAR Campaign.
Competing against other companies in two heats of 250m races, the top six teams will battle it out in a final. No rowing experience necessary, there will be a safety briefing and demo before you begin. Each team is comprised of 11 participants: 10 rowers and one drummer. Please do invite spectators along to cheer you on, GOSH will encourage them to make a donation on arrival.
For more information or to register your interest, please email Sian Simpson at firstname.lastname@example.org or phone her on 020 3841 3135.
- Baltic Wine Society: Spanish Tasting
On Wednesday 5 September the Baltic Exchange Wine Society welcomes back wine expert David Hughes to host a celebration of the emerging wine regions of Spain.
Guests will be welcomed with a glass of Reserva Cava followed by a further six wines of varied styles of grape, accompanied by a selection of tapas.
The event is priced at £15 for members, £20 for non-members (prices exclude VAT) which includes all seven wines and tapas.
Seats are limited so those interested in attending should register their interest in good time by emailing email@example.com
To view the flyer, click here.