- 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.
- 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.
- 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.
- House of Lords publishes Bribery Act report
The UK’s House of Lords Select Committee on the Bribery Act 2010 published its report last week. The Bribery Act 2010 has been in force for nearly eight years, and this inquiry was launched to examine whether it is achieving its intended purposes. Baltic Exchange Chief Executive Mark Jackson gave evidence to the Committee, explaining that more practical guidance and specific case studies were needed to help smaller freight market players comply with the Act.
The Act has a far-reaching scope and means that shipping companies with a UK presence need to ensure that they implement firm-wide anti-corruption policies, which apply to the conduct of all their subsidiaries or agents, regardless of the different business culture in which those subsidiaries/agents operate.
Click here to download a full copy of the report.
- 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.
- 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 at Christ Church Spitalfields. More details to follow…
For pictures from last years event, click here.
- Member update: 20 March
The following company has applied for Corporate Membership:
Company Individual Bora Gemi Kiralama Hizmetleri Ltd Sti
Mr S Degistirici Mr B Dogan Mr K Ekemen Mr U Ekemen Mr F Guner Ms M Imer Mr O Rize Mr E Urcan Mr B Yildirim
The following individuals have applied for membership of an existing member company:
Company Individual Anglo Caribbean Shipping Co. Ltd Mrs E Yglesias Ruiz Barry Rogliano Salles
Mr T Limnios
Mr G Thomas Clarksons Platou
Ms L K Follis Koch Supply & Trading LP Mr A Vasiliev South32 Marketing Pte Ltd
Ms E L Cheok Mr W H Fong Mr G Gillespie Mr Z H Loh Mr G Mathews Miss P Ng Mr B Satija
The following individual has applied as a Sole Trader:
Mr J Tsatsas
Mr J TsatsasAny comments should be passed to Karen Karanicholas by 27 March 2019.
- 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.
- Primary aluminium needs are set to swell
It’s an uncertain time for aluminium, one of the products that has felt the impact of US President Donald Trump’s tariffs. However, according to world macro models and analyst expectations, aluminium is anticipated to trade at $1887.02/tonne by the end of this quarter. And a year from now, online information provider Trading Economics expects it to trade at $1785.92/tonne. In a webinar, International Aluminium Institute (IAI) deputy secretary general Chris Bayliss noted that primary aluminium production was 63m tonnes in 2018 and 64m tonnes in 2017 to meet aluminium demand for semi-fabricated products. Semi-fabricated product demand in 2017 was 95m tonnes. Additionally, recycled aluminium constituted 31m tonnes in 2017.
“Today, around a third of aluminium demand is met through recycling and around two-thirds from primary aluminium production, and that recycled component is about 50:50 old and new scrap, so post-consumer or pre-consumer scrap,” he said. “That means there’s a huge generation of waste material: the bauxite residue generated in 2017 is 160m tonnes of bauxite residue, so the largest waste stream we have.”
Under a baseline scenario for 2030 from the IAI, 90m tonnes of primary aluminium will be needed at that point in time. Demand for semi-fabricated products will be 140m tonnes, and recycled aluminium will sit at 50m tonnes.
“Demand for those semi-fabricated products is going to increase by around 50%,” Mr Bayliss said. “The recycled aluminium that will come through the process is limited, because these long lifetimes of products mean that then the material doesn’t come out of the use phase. It stays in use for a long time. … Now if we increased recovery of scrap to 100% — across the board, everywhere in the world, all products, 100% recovery of recycled aluminium — that 50m tonnes would increase to 60m tonnes. So it would increase, but it wouldn’t meet the 140m-tonne demand. There would still be a gap. Long lifetimes of products mean that the material is still in use.”
Under a baseline scenario for 2030 from the IAI, 90m tonnes of primary aluminium will be needed at that point in time
Discussing the primary aluminium requirement ramp-up under the 2030 baseline scenario, Mr Bayliss noted the negatives resulting from this development.
“[The next 11 years constitute] a very short timescale in which to put that extra capacity and that extra production in place, and it also brings with it some increased risks and challenges,” he says. “The bauxite required to meet that demand would have to increase from around 300m tonnes today to half a billion tonnes of bauxite every year. It’s likely to be met by areas such as Guinea in West Africa — certainly, there’s a lot of investment in Guinea at the moment in mining bauxite extraction.
“It brings with it its own risks in terms of security of supply and in terms of environmental and geopolitical risk as well. So there’s certainly some uncertainties there as we look out to 2030 in terms of raw material supply. We’ll continue to see Australia meet a fair old chunk of that demand. Brazil will continue to produce. You’ll see some new areas also opening up to meet that demand. But new areas of production bring with them new risks and new challenges as well. Bauxite residue-generation will increase to 300m tonnes.”
Mr Bayliss offered a number of conclusions. The IAI’s 2030 baseline scenario suggests around a 50% boost in demand for aluminium and heightening recycling rates only offer a limited potential because of the long life of products and because long-lifetime products already have very-high recycling or collection rates. This means that at least until the middle of this century, primary aluminium will keep meeting the bulk of metal demand, and if end-of-life recycling is maximised, the 90m tonnes of primary aluminium needed in the next 11 or 12 years will go down to 80m tonnes.
“With that growth comes risks in raw material-supply and waste management: 1bn tonnes of bauxite residue every three years by 2030, half a billion tonnes of bauxite required from areas with potential political, socioeconomic and environmental risk,” explained Mr Bayliss.
While the location of new primary capacity is uncertain, it will likely be from fossil fuel-intensive areas. Additionally, some firms are already marketing “‘low-impact’” aluminium in response to demands from customers. However, Mr Bayliss noted that the 90m-tonne demand remains.
“That 90m tonnes demand still stays there in 2030, even if some customers are asking for low-impact. The big driver is that 90m tonnes primary demand by 2030, although at the moment, it’s increasingly coal-fired,” he said.
The Baltic Exchange’s next Shipping Economics & Investment course will take place on June 10 and 11 in London in the UK. More information can be found 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