- The Baltic Exchange Irish Society Dinner
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, firstname.lastname@example.org / 02071993497 / 07794 274 885.
- 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 13 May.
Attended by 600 guests, this historic event was originally held on the floor of the old Baltic Exchange and celebrated the end of a Baltic Chairman’s two-year tenure. Now held at Christ Church Spitalfields in London, it brings Baltic Members and invited guests from across the globe together for a unique annual networking and social event.
Tickets are available here.
We anticipate this to be a sell-out event. Therefore we suggest securing your tickets early to avoid disappointment.
Pictures from last year’s event are available to view here.
- Tanker Derivatives Lunch
Join the Baltic on 4 March at the Tanker Derivatives Lunch for a meeting with the FFA Brokers Association and an in-depth analysis of the physical freight, tanker, LNG and FFA markets.
Registration and further details here.
- FFABA Tanker Freight Risk Forum
In a year where markets were resolutely focused on the long-anticipated IMO 2020 regulation, 2019 turned out to be one of the most volatile years on record for tanker freight. The extraordinary run of major incidents and vacillating geopolitical relations sent shock waves through the market causing the Baltic’s flagship TD3C route to peak at an unprecedented $300,000 per day in Q3.
Alongside increased safety risks and decision complexity for owners trading through the Gulf, freight risk exposure became an increasingly significant concern for commodity markets as traders ploughed volume into freight derivatives in a bid to mitigate risk and capitalise on rate volatility.
The Tanker Freight Risk Forum, hosted by the Baltic Exchange, supported by the FFA Brokers Association, is the annual market gathering for freight and oil traders globally. Taking place during IP week, attendees will hear from leading commentators including John Kemp from Reuters and Tim Smith from MSI as they share insights on tanker demand, supply and the outlook for both markets in 2020.
Alongside an update from the Baltic, traders and brokers will openly discuss market benchmark development alongside evolving trade patterns and other major industry issues impacting trade in both physical and FFA markets.
13:00 – Lunch Registration
14:00 – Market Developments and the Baltic Exchange: Mark Jackson, Chief Executive Officer, The Baltic Exchange
14:20 – Oil Markets: Fundamentals and outlook by John Kemp, Senior Market Analyst, Commodities and Energy, Reuters News
15:00 – Tanker Market Keynote: Tim Smith, Senior Analyst, Maritime -Maritime Strategies International
15:35 – Coffee break
15:50 – Market Issues Panel Session
- Chair: Adrian Wooldridge;Chair – Baltic Exchange Advisory Council – Wet
- Tom Stockton; Chair – FFA Brokers Association and Clarkson Platou Futures
- Vivek Srivastava; Shipping Industry Economist & Strategist
- Tim Smith, Senior Analyst; Maritime Strategies International
- Mark Jackson; CEO – Baltic Exchange
- James Pendered; Senior Freight Market Reporter – Baltic Exchange
16:30 – Drinks reception at The Clarence, Dover Street
Registration and further details here.
- BEGS annual dinner
The Baltic Exchange Golfing Society (BEGS) annual dinner will take place on Thursday 5 March at the Honourable Artillery Company (HAC) in Moorgate.
The dress code is black tie, with both golfers and non-golfers welcome to attend.
Pictures from last year’s dinner can be viewed here.
- Member Update: 12 February
The following company has applied for corporate membership:
Company Individual Anglo Int’l Shipping Operation Ltd
Mr A Alalekan Mr S Davies Mr S Halstead Mr G Pyrinis
The following individuals have applied for membership of an existing member company:
Company Individual BHP Billiton Freight Singapore Pte Ltd
Mr P Ralli Mrs M Sanga Cargill International SA Mr T Abeln Mr G Arutyanyan Mr A Birkett Mr B Cottrell Mr S Dal Mr M Helm Mr W Olde Kalter Ms Y Y Lim Mr F McKeown Mr D Minko Mrs N Ozen Mr O Prince Mr G F Roberts China COSCO Shipping Corporation Limited
Mr Y Zhao Clipper Bulk A/S Mr S Faartoft Galbraith’s Ltd Miss A Zania Poten & Partners Pte Ltd
Mr J M Herrero Ms S J Teo
RWE Supply & Trading GmbH Ltd
Mr A Bizon Mrs E Edwards Mr S Holl Miss A Selvarajah
Any comments should be passed to Karen Karanicholas by 19 February 2020.
- Baltic Academy: FFA training courses this March and April
There are still limited places available on the Baltic’s freight derivatives training courses in London (9-12 March) and New York (27-30 April).
Freight Derivatives & Shipping Risk Management
An overview of risk in the shipping business. Topics covered include freight rate risk management, derivative instruments, freight rate options, bunker and financial risk management, ship price risk management, Value at Risk and credit risk.
Advanced Freight Modelling & Trading
A focus on pricing freight options, modelling freight rate dynamics, constructing forward curves, modelling freight rate volatility as well as hedging and trading strategies.
For full details please visit www.balticexchange.com/other-services/training-2
- Unexpected consequences of Covid-19
Attempts to contain Covid-19 – the new World Health Organization designation for coronavirus – have been drastic and in many cases effective. However, those very same measures of containment and restriction are having unintended and severe consequences on shipping.
One stems from the industry’s reliance on paper documents. As Hubei province remains on virtual lockdown, travel restrictions are thwarting efforts to move original bills of lading and letters of indemnity around, leaving cargoes in limbo.
While delivery specialist Fedex is continuing to operate inbound and outbound flights to/from China on a regularly scheduled basis, it has confirmed that work and travel restrictions are affecting packages inbound and outbound to/from Wuhan and other impacted cities within Hubei province, as well as deliveries moving within those cities.
Speaking to Bloomberg, an unnamed trader said that he has had difficulty getting shipping documents needed for a cargo transfer for a ship travelling via river in mainland China. DHL’s pick-up, delivery and warehousing services in Hubei province were still suspended as of Monday, a spokesperson told Bloomberg.
A second consequence on shipping concerns the closure of car plants in China. The majority of the major car manufacturers with a presence in China shut their doors on January 24 for the start of the Lunar New Year holidays and have yet to re-open them.
Volkswagen, General Motors and Toyota are just three of the big names that have shuttered Chinese car plants citing travel restrictions and a lack of ‘supply chain readiness’ as a result of Covid-19.
The cascade effect is also a rising concern. Plants outside of China are now starting to feel the heat, with Hyundai shutting its assembly plants in South Korea because it cannot keep its plants operating without Chinese parts. Nissan’s plant in Kyushu, Japan said it is dealing with “production adjustments” due to a shortage of Chinese parts, while Renault has gone a step further and suspended production at a plant in Busan, South Korea, due to disruptions in supplies of Chinese parts, according to reports. And the problems are not restricted to Asia: Fiat Chrysler has confirmed that it has one European plant at risk from the lack of Chinese parts.
The obvious impacts on the global car carrying trade do not need labouring. But the knock-on effects on containerised movements of car parts are just as crippling to shipping businesses. Worldwide, car manufacturers depend on parts from China. According to UN data, China is a major supplier of parts to auto plants around the world, shipping nearly $35bn of parts in 2018.
In a third consequence, Citigroup analysts warn that the global commodity markets are underestimating the virus. Analyst Maximilian Layton and his team warned in a briefing note that commodity markets are barely reflecting the inevitable disruptions to supply chains.
The seven worst impacted Chinese provinces – by the level of confirmed cases – contribute 7% to 26% of China’s metal production. “Even if production is cut as much as consumption, those metals in which China is a major net importer will see major increases in inventories ex-China over the coming weeks,” said the analyst. Citi expects iron ore prices to drop further to $70 per ton, copper to $5,300 a ton, palladium to $2,100 an ounce and Brent oil to $47 a barrel in the near term.
Those falling commodity prices are a risk for emerging economies that rely on the production of raw materials, and investors in these markets should “be a little bit cautious,” Mubadala deputy CEO Waleed Al Mokarrab Al Muhairi told Bloomberg.
“Commodities are going to be impacted,” he added. “You see that in aluminium, you see that in iron ore, you see that in oil.” Manufacturers are already shifting some operations and supply chains away from China, he said.
A fourth hidden consequence is the impact that travel restrictions are having on crews. A number of countries have now placed quarantine-type restrictions on ships that have called at mainland China ports. Australia, the US and Singapore are just a handful that have issued directions to all ships that have called at or transited through mainland China that 14 days must have passed before they can dock. While in some cases ships can enter harbour limits before the 14 days have passed, crews are being issued with Not to Land status by immigration authorities.
For crew that have passaged for weeks, or in some cases months, without stepping foot off the ship, this restriction will be a blow to morale. There are further complications if crew members are due to sign on or off vessels at an international port after calling at China.
Add to this the lack of labour available at Chinese ports because of the enforced extension of the Lunar New Year holidays, according to GAC China, and concerns about availability of low sulphur fuel oil in Chinese ports with inventories reportedly running low. GAC China advises that “confirmation with local fuel oil suppliers and application to local regulatory authorities in advance is highly recommended”.
GAC’s dedicated coronavirus update page is a sobering reminder of the business impact an incident in one country can have on the global business such as shipping, and there is still some way to go before we can expect a return to normality.