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DRY BULK SECOND HAND VESSELS ON HIGH DEMAND.

Clients of Sinokor have dominated the capesize market last week with the reported purchases of 2 x VLOCs namely the M/V WARRIOR (243,850 dwt 1990 blt I.H.I.) at US$ 12m and the M/V GENERAL (238,818 dwt 1992 blt Hitachi Zosen) from Chinese owners HOSCO for US$ 12.5m, and the M/V RUBIN HOPE (170,409 dwt 1999 blt I.H.I) from clients of Mitsui O.S.K. for region US$ 15m. The "WARRIOR" and "GENERAL' were both acquired by the owners as VLCCs in 2007 and converted in January 2008 to ore carriers.

The handymax M/V NEW EMERALD (45,554 dwt 1996 blt Samsung) is concluded at around US$ 7.5m to Greek buyers while the older M/V KS GRACE (41,090 dwt 1985 blt Oshima) is reportedly sold to Chinese buyers for US$ 3.1m. In the handies Chinese buyers have agreed to pay US$ 6.5m for M/V NEW ALLIANCE (27,904 dwt 1996 blt Hakodate) while the M/V KOPER (22,150 dwt 1993 blt Saiki) reported sold at US$ 4.5m to Far Eastern buyers.

PETROBRAS LEASES 2 LNG TRANSPORT, STORAGE SHIPS FROM EXCELERATE

Brazil's state-led oil company Petrobras said in a statement that it leased two liquefied natural gas (LNG) ships from Excelerate Energy to transport and store the fuel and to help boost its role in the world LNG market. The ships, the Excelsior and Excalibur, can each carry 138,000 cubic meters (4.87 million cubic feet) of LNG, or 82.8 million cubic meters of natural gas cooled to a negative 162 degrees Celsius (negative 260 Fahrenheit) and 1/600 of its original volume. Together, the ships will allow Petrobras to transport 165.6 million cubic meters (5.85 billion cubic feet) of natural gas to Brazil, the statement said. That's enough to supply all of Brazil's needs for about 2.5 days or nearly a third of the 582.8 million cubic meters of natural gas imported as LNG in 2011, according to Brazil's Ministry of Energy and Mines.

Woodlands, Texas-based Excelerate Energy operates 10 LNG ships. Excelerate Energy is one of 12 companies in the U.S. and three in Canada preparing LNG facilities to export growing quantities of U.S. and Canadian natural gas to foreign markets.

NO TERMS OF THE LEASE CONTRACT WERE GIVEN.

So far this year, Petrobras has imported LNG from Nigeria, the United States, Qatar and Belgium at an average price of why $14.04 per million British thermal units (MBTU), the ministry said.

NEW CONTAINER TO IMPROVE ECONOMICS OF INTERCONTINENTAL FLOWS

CHEP Automotive Solutions introduce the IcoQube, a container specifically designed to improve shipping capacity while withstanding extreme conditions inside sea containers.

The IcoQube is sturdy and robust, ensuring the best possible protection for the goods within. It is also stackable, which results in improved shipping capacity of 8 to 10 percent, compared to conventional disposable packaging. Simply put - manufacturers will be able to put more goods into a sea container since the IcoQube completely fills out either a 40 foot high or standard sea container depending on sizes chosen. The IcoQube comes in 4 different sizes designed to meet customer needs. And like all CHEP containers, the IcoQube is reusable, which significantly reduces the waste associated with traditional packaging. The IcoQube is the latest offering from CHEP and provides a cost-effective and environmentally friendly solution to the problems automotive manufacturers and suppliers face with intercontinental shipping. Inside sea vessels, shipping containers are subject to extreme climate conditions and high levels of humidity.

When crossing the equator, for example, temperatures rapidly rise more than 140 degrees Fahrenheit.

And on the high seas, containers must withstand forces of up to 2g. Cardboard boxes often collapse under these extreme conditions, resulting in damage to the components being transported. "The auto industry is global in nature," said Pierre-Luc Mathieu, Vice President, General Manager, CHEP Automotive Americas. "Automakers and suppliers are expected to get their products from Point A to Point B in record time and in mint condition, but these two points could be on opposite sides of the globe. The IcoQube provides the most effective way to achieve this. It's the latest example of how CHEP is setting the standard in container management."

BALTIC INDEX FALLS AS PANAMAX RATES PROBE NEW LOWS

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell for the fourth straight day last Thursday amid record weak rates for small panamax vessels. The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 8 points or 1.06 percent to 744 points. The panamax index fell 1.9 percent to 418 points, with average daily earnings down $63 to $3,336, the lowest recorded since 1998. Panamaxes typically transport 60,000-70,000 tonne cargos of coal or grains. The Baltic's capesize index fell 1 point to 1,548 points. Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were down $82 at $7,210. Iron ore shipments account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.

Baoshan Iron and Steel Co (Baosteel), China's biggest listed steelmaker, said it has suspended production at a loss-making plant in Shanghai, in a sign of the intense pressure on the sector as steel prices trade near three-year lows. "While we have heard of sporadic other production cuts, the Baosteel announcement shows that even the biggest mills are under pressure," Arctic Securities analyst Erik Nikolai Stavseth said in a note.
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Publication:Pakistan & Gulf Economist
Date:Oct 7, 2012
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