“It’s the steel production, stupid!”
BIMCO's Peter Sand, in a new report, weighs in on the implications for the Dry Bulk sectors.Chinese imports of iron ore keep falling, while its crude steel production keeps growing. China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Capesize ships are impacted by this, way beyond the temporary iron ore export disruptions in Brazil and Australia.Chinese steel production grew by a massive 12.6 million tonnes (+9.2%) in the first two months on 2019 as estimated by China Iron and Steel Association (CISA).
Port Authority: 'A strong start to 2019'
Tonnage on river increases 60 percent from 2018Through the first two months of 2019, the Port of Little Rock and its stevedorer, LSI, have seen a year-to-year increase of 33 barges, a 62% increase in activity. Additionally, tonnage is up 49,000 tons year-to-year (60%) with a total of 130,400 tons. Commodities handled during the month included aluminum ingots and tee bars, bauxite, nepheline syenite, rock and sand, scrap, steel coils, wetcake and wire rod coils. LSI expects barge…
China Busts Gangs Smuggling Scrap Steel
Customs in China's southeastern Fujian province broke up five gangs smuggling scrap steel in a late-night operation on Monday, the official Xinhua news agency reported.A total of 28 criminal suspects were held in Xiamen, Quanzhou and other cities in the coordinated operation, in which 3,237 tonnes of scrap steel was seized.The gangs had been buying the scrap in China, the world's biggest steel producer, since 2017 and sending it to Southeast Asian countries, Xinhua said.Amount of scrap smuggled was put at around 50,000 tonnes, worth some 78 million yuan ($12.2 million), as gangs sought to cash
Oil Tanker Scrapping to Hit Multi-year High
The shipping industry will this year scrap the largest number of oil tankers in over half-a-decade, driven by weak earnings, firm prices for scrap steel and the need to prepare fleets for strict new environmental regulations.The surge in scrapping underscores how the sector is grappling with one of its worst-ever crises, hit hard after rates for transporting oil plunged to multi-year lows in the wake of excess tanker supply and tepid demand as OPEC production cuts bite."The tanker markets are definitely in a trough at the moment…
Barge Shipping Steady at Port of Little Rock
The Port of Little Rock had a busy month in March with increased activity across both docks, according to the Little Rock Port Authority. March activity started slowly but increased during the second half of the month. Logistic Services Inc. (LSI), the Port of Little Rock’s stevedoring partner, worked 32 barges with more than 47,000 net tons of cargo during the month. 17 barges were handled at the main river dock, carrying 26,000 net tons of cargo; 15 barges were handled at the slackwater dock, carrying 21,000 net tons of cargo.
Little Rock Port Cargo Steady in February
February activity at the Port of Little Rock remained steady and continued the momentum from January. Logistic Services Inc., the port’s stevedoring partner, handled a total of 30 barges, amounting to over 45,000 net tons of cargo. Commodities handled included aluminum ingots and sows, DAP, nepheline syenite, potash, sand, scrap, steel coils, urea, wetcake and wire rod coils. Across all operations, LSI handled just under 50,000 net tons of cargo. Total tonnage on the MKARNS for the month of February was 1,216,000 tons.
Dry Bulk Shipping: Improved Frieght Rates Despite Continues Fleet Growth
On 10 February 2016, the Baltic Dry Index (BDI) hit 290. At that point, a bulk carrier regardless of its size, age and fuel-efficient qualities earned a time charter average of USD 2,417-2,776 per day. Whereas the three smaller segments have seen higher earnings since then, capesize earnings lost ground up until the end of March. By mid-April, the gap closed and capesizes are back on par with the pack. Despite the fact that earnings have doubled in those two months, they remain below OPEX levels for the largest part of the fleet.
Dry Bulk Outlook Remains Bleak: BIMCO
With 12 weeks of 2016 behind us, the dry bulk market is still looking bleak. As the current low demand for transportation of commodities continues, the market is doing what it can by scrapping old ships and restraining from ordering new ones. With only four newbuilding orders registered in the first 12 weeks of 2016, dry bulk contracting is merely a fraction of previous year’s activity. New contracts for dry bulk ships have been on a path of decline in the last year and a half. Currently culminating at a level that resembles a standstill.
Plunging Scrap Steel Prices Hit Ship Recycling Revenues
The Chinese ship recyclers are feeling the heat as falling scrap steel prices have eaten into their revenues during the past one year, says a report in China Daily. The increasing costs of adopting "greener" vessel-breaking method also adds to the woes, says China National Ship-recycling Association. The latest figures show ship-recycling revenue dropped 15 percent to 3.4 billion yuan ($519 million) in China last year. According to senior industry officials, the Chinese ship recycling sector was badly impacted by the continued weakness in steel scrap prices.
Chinese, Greek Ship Owners Accounted for 40% of Global Recycling
According to Clarkson Research Services, the record pace of fleet growth over the last decade and weakening global demand outlook has left many of the major shipping segments facing severe oversupply. Demolition of older ships is one way of easing overcapacity and recycling volumes have been strong in recent years. The top ten owner countries typically account for the majority of recycling with Chinese and Greek owners leading the way. Last year a total of 860 ships of a combined 23m GT were reported sold for demolition. This is equivalent to 2% of the start year fleet.
Demolition Age Drops as the Dry Bulk Market Enters Another Challenging Year
The dry bulk market faced a lot of headwind in 2015 as dwindling demand and over-supply created very unfavourable market conditions, says BIMCO. 2016 has shown no improvements so far and prospects for the rest of the year are not looking promising. With poor earnings across the board the average scrapping age has dropped among all the dry bulk segments. The capsize segment especially has seen a big drop in the average scrapping age; dropping almost four years from an average age close to 25 in 2014 to less than 21 in 2015.
McDermott to Auction Fabrication Yard Assets
A joint venture of five industrial auction companies will sell the physical assets of the 300-acre McDermott fabrication facility in Amelia, La. McDermott continues to operate its other fabrication facilities at multiple locations worldwide. The auction of thousands of assets starts September 8, 2014 and will be conducted throughout the complex via a multiday onsite/online public auction sale. The auction will feature an extensive offering of unique offshore marine equipment, barges…
Obsolete US Ship Recycling Target Surpassed
U.S. Transportation Secretary visits Suisun Bay in Northern California to celebrate surpassing administration's goal for recycling. Ray LaHood, US Transportation Secretary visited Shuisun Bay for the occasion. In 2010, the Department’s Maritime Administration (MARAD) committed to removing 28 ships from the fleet by September 30, 2012. To date, MARAD has removed 36 ships, with three more vessels scheduled for removal by the end of the year. “Three years ago, the Department of Transportation promised to get rid of the ships that posed a threat to the environment…
Underwater Salvage Work on 'Rena' Starts Soon
A specialist team of divers from the United States, plus the RMG 280 crane barge due to arrive shortly, reports the wreck salvors. • The total combined weight of steel removed is now approximately 430 tonnes, which is more than 20 per cent of the total weight to be removed. • The RMG 280 crane barge is expected to arrive in port this evening (Friday, 14 September). • With the arrival of the barge and a specialised team of divers from the United States, underwater salvage operations are expected to commence next week.
Wrecked Container Ship 'Rena' Salvage & Cargo Recovery Update
The first steel fore sections cut & removed from 'Rena', with the Bell 214 heavy-lift helicopter completing 14 separate lifts to the barge Kapua. • The barge made its first landing in Tauranga with an estimated 40 tonnes of steel, which included deck equipment and pieces of winches from the fo’c’sle. • Work is continuing with the modifications to the helicopter landing platform, and pre-cutting of upper decks, fo’c’sle deck, and equipment. • Helicopter-to-barge transfers will continue next week.
Inland Salvage Completes Salvage of Sunken Barge
Inland Salvage Inc. Completes Lightering and Salvage Operations of Sunken Hopper Barge. Inland Salvage Inc.recently completed the removal of approximately 1000 tons of structural scrap steel from a sunken hopper barge and subsequent salvage of the barge which had been obstructing a loading dock on the Mississippi River near LaPlace, LA. Immediately upon being notified by the dock's owner that Inland Salvage Inc. (ISI) had been appointed as the salvor, ISI responded to the sinking of the 195' hopper barge laden with 1,000 tons of scrap metal when the barge sank.
Dry Bulk Scrapping Rises
According to Braemar, 2011 is already a record year for dry bulk carrier demolition. In Jan-May 2011, 13.6m Dwt of bulkers have been scrapped, including 7.1m Dwt of Capesize (over 120k Dwt) bulkers. If scrapping continues at this pace for the balance of 2011, it could reach 32.6m Dwt, more than three times the previous record set in 2009. Demolition has previously peaked in years of credit crunches: In 2009, 11.7m Dwt of bulkers were scrapped following the global credit crunch.