- 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.
- Photos: FFABA Tanker Freight Derivatives Forum
Photos from the FFABA Tanker Freight Derivatives Forum on 25 February are now available to view here.
- Member update: 27 February
The following company has applied for Corporate Membership:
Company Individual Caledonia Maritime Services Pte Ltd Mr R K Denholm
The following individuals have applied for membership of an existing member company:
Company Individual Braemar ACM Shipbroking Ltd Mr J Smithson Bunge SA
Mr C M Jensen Mr J H Thompson Thurlestone Shipping Lt
Mr A Westen
Any comments should be passed to Karen Karanicholas by 6 March 2019.
- SGX London Forum – 7 March
SGX will be holding a London Forum focusing on securities, derivatives and commodities on 7 March. Titled Asian Multi Asset Opportunities and Challenges – The Way Forward, the Forum will be opened by SGX Chief Executive Loh Boon Chye and the Singapore High Commissioner to the UK Foo Chi Hsia and takes place at the Rosewood London Hotel.
The commodities session will feature presentations on the iron ore markets followed by a panel discussion on the dry bulk markets.
Panel Discussion Topics
- Impact of the ongoing trade wars on global demand and supply patterns
- Structural drivers of Chinese quality growth and demand patterns
- Iron Ore supply/demand dynamics
- IMO2020 – Volatility in the freight markets
- Advanced Risk Management in the Dry Bulk Markets
Mark Jackson, Chief Executive Officer, Baltic Exchange
Colin Hamilton, Managing Director – Commodities Research, BMO Capital Markets
Jyothish George, Head of Iron Ore, Glencore International
Marcus Garvey, Commodities Strategy, ICBC Standard Bank
For full details and booking please visit www.sgxlondonforum.com
- 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.
- FFA training courses: London & New York
There are still places available on the Baltic’s upcoming FFA training courses in London and New York.
Freight Derivatives & Shipping Risk Management
– The practicalities of FFA trading
– Freight rate options
– Bunker risk management
– Interest rate risk management
– Ship price risk management and portfolio theory
– Value at Risk in shipping
– Measuring credit risk
London 11-12 March
New York 8-9 April
Advanced Freight Modelling & Trading
– Spot price dynamics
– Forward curve construction
– Technical analysis & freight trading
– Risk management using options
– Volatility models
– Pricing freight options
– Real options in shipping
– Risk management of options positions
London 13-14 March
New York 10-11 April
Click here for full details, including booking.
- Job opportunity: Assessor – Freight Market Benchmark Administration
Assessor – Freight Market Benchmark Administration
Competitive Salary + Benefits Package
The ongoing development of the Baltic Exchange, and a forthcoming retirement, has created an opportunity for an Assessor to join our London based Freight Market and Benchmark Administration team.
Working as part of a small team, the successful applicant will work closely with shipbrokers, owners and charterers collecting, analysing, verifying and recording fixtures and market information. They will ensure the accuracy and reliability of the benchmarks and the integrity of the process used to determine them. They will monitor market trends enabling robust periodic assessment and auditing of the Baltic Contributors, challenging and seeking clarification when anomalies are identified.
We are keen to find someone from a trading/broking background with experience of the Tanker, LNG and LPG markets who are able to demonstrate a solid understanding of the market and good networks. A working knowledge of voyage estimate calculators and the ability to interpret time charter equivalents is key together with commercial experience of working with indices and market benchmarks.
The applicant will be expected to demonstrate an analytical and disciplined approach to their scrutiny and decision-making processes.
The role requires a confident communicator, able to build positive business relationships using their significant experience and profile within shipping. They also need to demonstrate a solid understanding of all aspects of physical and paper trading.
A keen eye for detail is paramount with the ability to create data and written market reports within required deadlines whilst complying with quality and integrity standards.
The role will suit a self-motivated, proactive individual with good presentation and interpersonal skills, enabling the post holder to be an effective representative of the Baltic (and SGX) to the shipping community.
Applications would be welcome from candidates who have the following;
• Minimum 8-10 years’ shipping experience, preferably as both Principal and Broker in the Tanker market with additional experience of LNG or LPG being an advantage.
• Good working knowledge of voyage estimate calculators and ability to interpret Time Charter equivalents.
• An understanding of the Baltic ethos, solid commercial experience of working with indices and benchmarks and a familiarity of the derivatives market.
• Strong communication and written skills with an attention to detail, excellent English language and a confident user of the Microsoft Office suite, in particular Excel providing a significant advantage.
Interested candidates, are invited to send a CV and covering letter to Sharon O’Ryan at email@example.com.
- Job opportunity: Escrow Sales & Business Development
Escrow Sales and Business Development
Competitive Salary + Benefits Package
As part of its exciting growth plans, the Baltic Exchange has launched an Escrow service providing members with an independent facility to hold deposits for ship sale transactions. This service allows Baltic members to take advantage of the Exchange’s trusted position in the marketplace, high standards of compliance and understanding of the complexities of the sale and purchase of vessels.
The Escrow Service is run by the Baltic Exchange’s Asia office in Singapore and is subject to the Singapore Exchange’s (SGX) detailed compliance and money laundering procedures.
We are looking for a seasoned maritime professional with hands on experience in Sale and Purchase to join the Baltic Sales team based in Singapore. The successful applicant will work closely with the Baltic London based marketing team to promote and raise market awareness of the paid for Escrow service to all potential users within the sale and purchase community in the Asia Pacific region including shipowners, shipbrokers and investors.
Opportunities to gain market traction might be acquired through speaking at industry events and therefore the post holder must be a confident communicator with excellent interpersonal skills, an appropriate ambassador for the Baltic Exchange and an ability to make the ask in order to secure new business.
The successful candidate will be responsible for building relationships with interested parties, onboard them and ensure a smooth timely release of funds. An important aspect of the service is ensuring compliance with anti-money laundering (AML) regulations which includes completion of Know your Customer (KYC) checks and therefore applicants who have a working knowledge of KYC verification would be at an advantage.
Applications would therefore be welcome from candidates who have the following;
• Proven track record and good reputation in the sale and purchase market.
• Good broad knowledge of the maritime industry and an excellent network of contacts in Asia Pacific.
• An understanding of AML regulations and the importance of KYC.
• An understanding of the Baltic ethos, its products and its services.
• Strong communication and written skills with an attention to detail, excellent English language and a confident user of the Microsoft Office suite.
• A proven ability in developing business with a persuasive sales technique.
• Comfortable working as part of a team.
• A confident presenter and communicator.
Interested candidates, are invited to send a CV and covering letter to Sharon O’Ryan at firstname.lastname@example.org.
- Economic growth concerns
The market will likely witness a decline in economic growth, particularly in the advanced economies, leading up to 2022: that was one of the takeaways from a BIMCO webinar last week featuring the association’s chief shipping analyst, Peter Sand.
The prediction is based in part on downward revisions for world growth from the International Monetary Fund (IMF), predicting growth to be 3.5% and 3.6% in 2019 and 2020 respectively. Growth in 2018 is estimated to be 3.7%. The slowdown will impact both advanced and emerging economies, BIMCO comments.
Specifically on advanced economies, the projection for growth is expected to stay stable at 1.7%, however growth this year has been revised down to 2% due to lower-than-anticipated euro area growth and the expectation that US growth will decline. As for emerging economies, forecast growth in 2019 has been revised down to 4.5% from 4.7%. BIMCO also claims that trade tensions will hit China plus its neighbours, with lower growth as a result.
“The shipping industry feels the impact of this trade war, especially in the dry bulk market,” BIMCO states.
When you have indications like this, it’s more hardship that you should be preparing yourself for
During the webinar, Mr Sand said after looking at the Baltic Dry Index that “it’s more hardship that you should be preparing yourself for”. He added that emerging markets constitute “a better place to be if you focus only on headline figures of economic growth”. According to him, “that seems to be flat: around 4.5%, 4.4%”.
In the analyst’s eyes, the real escalation of trade tensions occurred when grain product was brought into the trade war, mainly impacting soybean exports from the US to China. For September and October, Brazil brought its normal soybean amount into China, but as November and December came around, Brazilian stocks were emptied, and China completely halted their imports from the US, leading to “an absolute lack of cargoes going into the market”.
“The most-recent update — still rumour-based — is that we have seen the Chinese back at the US ordering more soybeans … but rest assured, they will not be shipped tomorrow,” Mr Sand noted. “They will be shipped somewhere between now and the coming four to five months. So this is not a quick fix, but it is certainly positive. It delivers the long distance and at least provides some easing of the trade tensions.” BIMCO anticipates 2019 to be “on par” with last year when it comes to dry bulk, but Mr Sand advised stakeholders to “be aware of the downside risks, because there are many more to be found than on the upside”.
In terms of boxes
Turning to the container sector, BIMCO envisages “many pitfalls that will decide the fate of the year”, with Mr Sand noting that currently, everybody is talking about carriers’ ability to pass on the additional costs that are likely to be incurred from January 1, 2020, when the IMO’s sulphur limit enters into force. BIMCO, according to him, has been outspoken on the view that if the sector can’t pass on the extra cost, it will be “massively loss-making to the industry”, with bankruptcies likely to follow.
Mr Sand questioned whether there is now saturated demand for containerised products in the West, pointing out that in Europe, saturated consumer demand has restricted growth to “the very-low single-digit growth rates”. Transpacific and American consumers remain “in a better mood”, with the US enjoying record-low unemployment levels, and, despite the headwinds, higher economic GDP growth. But weakness in the West may well “knock on to” freight rates in the East. Additionally, swing factors of more idling or a reduction of idling will deliver short-term impacts where fleet growth may be higher or lower than average nominal terms.
With the Baltic Dry Index bouncing along at a sub-650 level, news of future pain on the horizon will not be music to anyone’s ears.
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.
- 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.
- Baltic Irish Night: 14 March
With over 400 attendees from across the globe, the Baltic Exchange Irish Society dinner is one of the best attended shipbroker events of the year.
The night opens with a drinks reception in the Porter Tun Room, before dinner in the Grand Hall. Toasts and speeches follow from the Chairman and guest speaker, before the traditional sing-along.
The event will take place at The Brewery (EC1Y 4SD) from 6pm on 12 March 2020. Tickets are now available at £95pp. For further details or to purchase tickets, please contact Irish Society Treasurer, John Ollett, email@example.com / 02071993497 / 07794 274 885.
- Book your tickets now for the annual BEGS dinner
Tickets can now be purchased for the annual Baltic Exchange Golf Society (BEGS) dinner on Thursday 7 March. This black-tie event is open to all and provides an informal and enjoyable opportunity to network with different brokers and principles.
As usual, the event will be held at the Honourable Artillery Company (HAC) in Moorgate, with tickets costing £85 per head.
To purchase tickets, contact Duncan Brown:
Tel 0207 337 7063 / Mob 07831 428 046
Or James Pendered:
Tel 0207 369 1672 / Mob 07802 965552
There will also be a wine list circulated in advance to will allow tables to reserve the bottles they want ahead of time.
Pictures from last years event can be viewed here.