India will monitor the quality of coal.

India’s Central Institute of Mining and Fuel Research (CIMFR) has signed an agreement with state-run coal producers Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL) and power utilities to monitor the quality of coal. The aim of the initiative is to ensure power utilities receive top quality coal and to help coal consumers in the country by giving them cheaper more affordable power in the future.

Malaysia’s Sapangar Bay Port gets more funds

The Malaysian government has increased funding for the Sapangar Bay Container Port expansion project by 42% to MYR1.13bn ($279m). Federal Government had approved an additional sum of MYR333.5m for the expansion program. The additional funding is to cover the cost of the expansion.

The Oakland City Council voted in favour of a ban on the handling and storage of coal at any of the terminals at the Port of Oakland.

The Oakland City Council voted in favour of a ban on the handling and storage of coal at any of the terminals at the Port of Oakland. The vote is a blow to the Oakland Bulk and Oversized Terminal, a proposed dry bulk logistics terminal at the Port of Oakland. The project is expected to handle 9.5 million tonnes of agriculture and mineral commodities, with half of that capacity expected to come from coal.

Cosco joins with two post-panamax bulkers into Baumarine pool

China’s Cosco has put two post-panamax vessels into the Baumarine pool, run by Norwegian shipowner Klaveness. Klaveness operates two pools, namely the Bulkhandling pool for handymax, supramax and ultramax vessels and the Baumarine pool for panamax, post-panamax and kamsarmax vessels.

Panama President opens the expanded Panama Canal

More than 20,000 spectators, international delegations, Canal customers, shipowners and liner ceos watched the 9,478 teu-Marshall Islands-flagged Cosco Shipping Panama slowly transiting the Pacific Cocoli locks while President Juan Carlos Varela formally declared inaugurated the expanded Panama Canal. The lock chambers are 427 m long, 55 m wide and 18.3 m deep. Compared with the original Panama Canal, these new locks are 40% longer and 60% wider, improved by a system of water-saving basins that will use 7% less water than the original locks and save 60% per lockage.

Egypt rejected several wheat cargoes

Egypt, which rejected several wheat cargoes this year for fungus contamination, is set to instruct officials to follow international standards that permit a small amount of the fungus known as ergot in imports. The clarification is important because Egypt, the world’s top wheat buyer, has been hamstrung this year by a debate over whether to allow cargoes containing a tiny amount of the naturally occurring fungus. Earlier this year, the country turned away vessels of Canadian and Polish wheat because of traces of ergot, which can be toxic to humans in high amounts.

Indonesia, Malaysia, Philippines to set up transit corridor

Indonesia, Malaysia and the Philippines have agreed to designate a transit corridor for commercial vessels crossing a maritime zone hit by a spate of hijackings by Islamist militants in the southern Philippines. Nearly 20 Indonesian and Malaysian tugboat crew have been kidnapped by the Abu Sayyaf militants this year, with Jakarta airing fears that the problem could reach levels seen off the coast of Somalia.

Eagle Bulk will open EU office

Eagle Bulk Europe will open this August in Hamburg. The new offices will be helmed by Jan-Philipp Rauno, who served most recently as a partner with Mosvold Bulk Shipping.

Japan is going to build 46 new coal-fired generation plants

Japan’s renewed love affair with coal is the result of the government revising its energy policy after the 2011 Tohoku earthquake and tsunami—a disaster that has led to the suspension of almost all Japan’s nuclear power plants. To create a stable energy supply and one less vulnerable to international turmoil, the government has reassessed its energy mix to include coal as a base source of energy. Consequently, power suppliers are currently building, planning or proposing to build 46 new coal-fired generation plants over the next several years.

Hyundai Heavy Industries plans to lay off a total of 4,000 workers this year

Hyundai Heavy Industries plans to lay off a total of 4,000 workers this year. The company will cut 2,000 workers through voluntary resignations and 1,000 workers through retirement, under the age limit. The company will also relocate 994 employees.

Cosco Shipping Bulk Co has been officially established in China

The bulk shipping arm of conglomerate Coscocs, Cosco Shipping Bulk Co has been officially established in Guangzhou, China. The new Chinese bulk shipping company integrates the dry bulk shipping assets of the two state-owned shipping groups, creating the world’s largest bulk fleet owner with 382 vessels of 34.58m dwt. Cosco Shipping Bulk also plans to scrap 53 elderly vessels with a total capacity of 2.89m dwt within the next two years.

Eagle Bulk Shipping sues Navig8

Eagle Bulk Shipping has filed a pair of federal lawsuits asking to seize $1.42m in a dispute over distributions from the Navig8 Bulk Pool. Lawyer Thomas Tisdale, who is representing the New York-listed supramax owner in the Connecticut case, alleges that the Navig8 pool failed to distribute $1.13m to the shipowners. New York-listed Eagle Bulk also is aiming to recover legal and other costs. In Connecticut, the Eagle Bulk affiliates are seeking to garnish up to $1.42m Navig8 funds believed to be held by charterers Glencore, Castleton Commodities, Noble Chartering, Louis Dreyfus and Trafigura.

Police investigation finds BHP-Vale Brazilian venture at fault for dam collapse

Brazil's federal police have formally accused iron ore miner Samarco, a joint venture between Vale and BHP Billiton, of deliberate misconduct in relation to a catastrophic dam failure that killed 19 people and polluted hundreds of miles of rivers last November. The official police seven-month investigation concluded that, for years, Samarco ignored clear signs the dam was at risk of failing, including cracks and drainage problems at the Fundão tailings dam that collapsed Nov. 5. The seven-month investigation concluded that, for years, Samarco ignored clear signs the dam was at risk of failing, including cracks and drainage problems. Officials also accused Vale — because it deposited its own mining waste into the dam — and VogBR, the service company that checked the safety of the dam, of wilful misconduct. Eight executives were also accused, although the police did not disclose their names. The case will now be passed to prosecutors to decide whether to press charges.

New port in Timor-Leste in operation within three years

Timor-Leste (East Timor) within the next three years will have a modern port in Tibar bay, 12 kilometres from the capital, Dili, according to a contract signed this week with Bolloré Ports. The port, which involves an investment of US$490 million, will have a dock 630 metres long and 15 metres deep, a container storage area covering 27 hectares and modern equipment including two ship-to-shore cranes and five cranes with rubber wheels.

Japan’s K Line contract to transport steaming coal for Malaysia’s Tenaga Nasional.

Japan’s K Line has secured a long term contract to transport steaming coal for Malaysia’s Tenaga Nasional. The job will be carried out by a joint venture company owning Malaysian-flagged panamax vessel with Halim Mazmin Group (HMG), K Line announced. HMG has businesses including ship owning, flight training academy and tourism. Panamax vessel will transport 1.5m tonnes of steaming coal a year from Indonesia or South Africa or Australia to Malaysia for 10 years starting from September 2016.

Greek Prime minister Alexis Tsipras opened Posidonia 2016

Greek Prime minister Alexis Tsipras opened Posidonia 2016 on 6 June in the presence heads of states, European Union officials, Greek cabinet members, foreign maritime ministers, board members of the Union of Greek Shipowners, chairmen of international organisations, as well as some 1,500 exhibitors and delegates from around the world.

Safe Bulkers first quarter loss $17.8m.

Safe Bulkers reported a first quarter loss of $17.8m. The US-listed bulker company posted revenue of $24.7m for the quarter, a 23% year-on-year decline on the $32.1m seen in 2015.

Glencore shut down Australia’s Tahmoor mine

Glencore will close its Tahmoor coal mine in Australia by early 2019 as a continued slump in the price for the fossil fuel has made the operation unsustainable. The company has told its approx. 350 employees that the mine, which had been in operation since 1979 and which generated 2.1 million tonnes of metallurgical coal last year, will be closed early in 2019 rather than have its life extended.

Korea Shipyards are in the negative financial results

South Korea’s shipbuilding and shipping segments are in complete meltdown amid debt restructuring efforts and negative financial results, and the real threat of bankruptcy. Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, have all implemented self-rescue restructuring plans as urged by their creditors. The austerity measures include massive staff lay-offs, executive pay cuts, and disposing of non-core assets and subsidiary businesses. Apart from Korea’s big three, other small to medium sized yards such as Hanjin Heavy Industries & Construction, Sungdong Shipbuilding & Marine Engineering, Dae Sun Shipbuilding & Engineering are also going through restructuring, while STX Offshore & Shipbuilding has filed for a court-led restructuring.

Fearnleys Dry Bulk Market Report

Capesize The Cape market have continued its positive trend from the past few weeks. Freight rates have found support and keeps firm, mainly due to a healthy volume of cargoes out of west coast Australia, supported by stronger than expected iron ore prices. East coast Australia coal cargoes have also made a reappearance and helped support the Far East freight levels. West Aussie to China freight rates have stabilized in the low/mid USD 4 pmt level. The Atlantic market have limited activity, but rated to remain stable, with Brazil/China freight rates at low USD 8 pmt level. In general, it is a slightly more positive atmosphere out there and the expectations are carefully optimistic. Panamax It has been a slow start to the week and we see rates sliding in both hemispheres. TA's are now paying ard 5k depending on trade and duration while we do see some more Fhauls in the market with grains and fertilizer paying ard 9500 with a grainclean premium prized in. In the Pacific we see the same tendency as for the smaller Supramaxes. Less cargo into WCI since now entering the monsoon season and regular NoPac rounds paying low 5k. The period market is also slow but some short period fixtures for Kmaxes has been reported in the low 5k region. Supramax It was a quiet start to the week with holidayus in the UK and USA. May ended with no major change in either hemispheres. There are rumours in the market of more grain stems out of ECSA for 22nd half June which again can put pressure on the rates in the Atlantic. While the Pacific have seen less stems for WCI with the upcoming monsoon season it is still a good amount of Indonesian coal to China paying around mid 5k del Singapore for a good standard Smax. A bit more activity in the period market with larger good spec units now getting bids closer to 6k.

John Fredriksen's bought two panamax bulker

Norwegian shipowner John Fredriksen has secured two ice-class panamax bulker newbuildings at a bargain price which have been paid just $13 million each. The 74,000-dwt ships, due for delivery from Pipavav Defence & Offshore Engineering before the end of this year.

Navios Holdings take legal measures to Vale

Navios Maritime Holdings will take legal measures to enforce a contract with Brazilian miner Vale for an iron ore terminal. Vale has advised Navios Holdings that it will not perform a 20-year take-or-pay contract service contract for an iron ore terminal being built in Nueva Palmira, Uruguay. Navios Holdings also several COAs and time charters with Vale.

BHP Billiton's Spence mine on strike

BHP Biliton's Spence mine in northern Chile went on a 24-strike due to a contractual dispute. Workers there previously went on a 24-hour strike earlier in May, as the union demanded improvements in labor conditions and to protest alleged contract breaches. Mine produced 175,600 tonnes of copper in 2015.

India is spending $500M to develop a port in Iran

Indian Prime Minister Narendra Modi announced $500 million to invest in the development of the strategic southern Iranian port of Chabahar. The objective is to develop a sea-land access route to central Asia while bypassing neighbor Pakistan which India’s historically had thorny relations. The announcement was part of a number of agreements to boost economic ties with Iran that Modi signed with President Hassan Rouhani, during an official state visit. Based on the agreements, India would build and operate two terminals and five berths with cargo handling in the Chabahar port. The development of the corridor through Chabahar will open two-way access between allies India and land-locked Afghanistan.

Navios Maritime Holdings reported a first quarter loss

Navios Maritime Holdings reported a first quarter loss that was better than estimates thanks to lower operating and depreciation expenses. The New York-listed company reported a first quarter net loss of $5.4m compared with a year earlier loss of $26.5m. The loss per share of $0.11 was better than estimates calling for a $0.37 per share loss.

Fearnleys Dry Bulk Market Report

Capesize The market is again under pressure with lack of fresh requirements in both Pacific as well as in Atlantic. The daily tc rate for a trip in pacific is around is USD 5,000 and the Atlantic below USD 8,000, The overall sentiment is depressed but there is a hope we are at the bottom and there will be more demand, although it seems more like a hope than reality right now. Panamax Atlantic hemisphere softening and rates slipping from last week due to little fresh cargoes including less grain from ECSA / to feast. Atlantic rounds paying arnd low 5000 USD depending delivery and duration. Typical fronthaul grain now paying low/mid usd 7000 + 200+ k bb to the far east. With uncertain prospects for ECSA cargoes more owners showing interest and competing for indonesian rounds. It s simply still too many vessel”s and too few cargoes leading to the poor rate conditions. Pacific market pending between 4500 for Aussie/ India while Aussie / China paying mid 5000. Very few period deals reported but a standard Panamax can obtain 5200/ 5400 for a year while a decent Kamsarmax get 5850 for ... Supramax It has been a week with both stronger and stable rates in the Supramax market. We see a firming market in WCI/AG rge where an owner got USD 6k DOP WCI for trip via AG to Japan. The ECSA market is refreshing with more 2nd half June cgos entering the mrkt. Wheras in the Feast we still see the big gap between bid/ask and more or less unchanged ratewise at mid/high 4k depending on trade. The Atlantic mrkt is coming up with more pressure in the North for both scrap cgos to Med and USEC cgos back to Continent. The period market has been quiet but mid week we see an Umax getting fixed at 10k for short period bss delivery Atlantic.

Fearnleys Dry Bulk Market Report

Capesize It has been a big jump in the freight rates for Capesize this week. All of the Australian iron ore miners have been very active, which has pushed up the freight on west Aussie/China route from around USD 3.50 pmt to USD 4.50 pmt. It does seem that the Australian miners are trying to sell as much as possible of the iron ore while the iron ore prices are good. Presently iron ore prices are around USD 55 pmt, but all the miners expect the iron ore prices to drop to considerable lower levels in months to come. The Atlantic market has not seen the same increase in activity, but also here the freight rates have pushed up. The average of the 5 TC routes have gone from mid USD 5000 to high USD 7000. Panamax Following some early week holidays, the week got to a slow start coming from a sideways moving market. However, overall the tendency is slightly positive with fixtures reported somewhat above last done in both hemispheres. In the Atlantic, some Chrtrs have had to pay up considerably to cover their requirements, and fixtures are done both in the stronger 6k’s and 7k’s on T/C. Voyage rates are not firming up to the same extent though. ECSA grains are still active with 7400 + 240k done on LME basis APS. Business in the Pacific is repeatedly done well into the 5k range, either for NOPAC, Aussie or Indo rounds. Short period in the mid 5k’s and even fair 6250 now done on a Kamsarmax for a year, del Singapore. Supramax It was a slow start to the week with holidays in most European countries out for holiday. We see trips from the Med to the US fixing in region of USD 4500 and the return leg into Med at around USD 10k. In the Pacific, we see the same stand off as last week with big gaps between bid/ask. Singapore/China being fixed at around 5k and destination India at 6.5k. Period market been quiet except for some shorter periods concluded end last week in the 6’s.

Wheat exports from Romania continued to increase

Wheat exports from Romania continued to increase and were the second largest for this month equaling 407.6 KMT (395.7 KMT in previous month; 304.5 KMT in February of 2014/15). During the eight months of 2015/16 (July-February) Romania exported 3079.2 KMT of wheat against 4118.5 KMT during the same period of last season. Export gained pace due to the demand of Ethiopia which has already bought 309 KMT of Romanian wheat since the beginning of the season (98.2 KMT over the whole 2014/15 season). Jordan also continues to import high volumes -562.6 KMT over July – February of the current season (654.7 KMT over the whole previous season). Over the reporting period Egypt purchased only 750.6 KMT.

DryShips stopped paying interest on loans

DryShips stopped paying interest on loans for which it had already halted principal payments. George Economou appears to make complete the debt payment freeze. DryShips announced two months ago that it missed balloon payments on two bank facilities that matured and then suspended principal payments on the rest. The company's shares plunged 16.4% in after-hours trading on the Nasdaq after today's announcement.

Chinese coal imports expected to remain flat

Chinese seabourne coking coal imports are expected to remain largely flat over the next five years. China’s coking coal imports peaked in 2012 and have been falling since. Last year China’s imports of coking coal fell to 48m tonnes, a drop of 23% on 2014 import volumes.

China’s newbuilding orders rise

China’s shipyards have continued to see newbuilding orders rise over the first four months of this year compared to year-ago level, but the new deals are virtually all concentrated in just 51 yards from among a few hundred in operation. New shipbuilding orders received by Chinese shipyards came up to 13.8m dwt during January to April 2016, representing a jump of 108% compared to the same period of 2015, according to figures from China Association of the National Shipbuilding Industry (Cansi).

Rio Tinto submitted feasibility studies about Simandou iron ore project

Rio Tinto submitted feasibility studies to the Guinea government for its massive Simandou iron ore project, considered the world’s biggest untapped iron ore deposit. The real cost of the project which could have a major impact on Guinea’s flagging economy has not revealed but it is tipped to reach $20 billion.

Argentina wheat exports doubled in the first quarter

Argentina wheat exports doubled in the first quarter as farmers rushed to sell stockpiles ahead of an expected jump in plantings spurred by the open-market policies of new President Mauricio Macri. Macri ditched trade and currency controls as part of his plan to reset the economy. Growers wasted no time selling stocks that had piled up after years of interventionist policies under the previous government. Argentina shipped 3.13 million tonnes of the grain in the first three months of 2016 versus 1.53 million in the same 2015 period.

Cirebon Coal Power Plant has been disrupted by Greenpeace activists

The Cirebon Coal Power Plant has been disrupted by Greenpeace activists as part of a global protest against fossil fuels on Sunday. They climbed the cranes of two grab-type ship unloaders, blocking the supply of coal for the Cirebon Coal Power Plant. The protest is demanding governments keep coal, oil and gas in the ground.

161,000-dwt New Mykonos (built 1997) has sunk in Madagascar

161,000-dwt New Mykonos (built 1997) has sunk months after grounding off the southern tip of Madagascar. It broke in two last month and became almost totally submerged last week, with just its wheelhouse and smokestack visible above the water. It has 160,000 tons of coal on board, although a small portion has spilled into the sea. The vessel is now lying in 25 metres of water. The capesize bulker was carrying a cargo of coal from Richards Bay, South Africa, to Visakhapatnam, India.

Rosario grains export hub plans to start a strike

Workers at the Rosario grains export hub in Argentina will go ahead with plans to start a strike on Friday to demand higher salaries. The country’s labor ministry asking workers at the port, the largest in one of the world’s top grains producers, to call off the strike. Rosario handles about 80 percent of Argentina’s grains exports. San Lorenzo covers the northern districts of the Rosario hub where multinational companies like Bunge Ltd, Cargill and Louis Dreyfus Commodities BV have crushing plants and ports.

DVB Bank widens provisions

DVB Bank has widened its provisions for bad debt on shipping and offshore loans. In its first quarter results DVB Bank said that “in line with projections” it had increased had increased its allowance for credit losses from shipping to EUR36.3m from EUR13.4m previously. “The increase was largely required for legacy exposures in the shipping finance portfolio, and for financings in the offshore finance portfolio, which is burdened by the slump in oil prices,” the bank said.

Fearnleys Dry Bulk Market Report

Capesize An overall negative sentiment with rates under pressure in the Pacific as well as in the Atlantic. Although west Australia round voyage found a floor in the mid 3's pmt, general demand in the pacific is low and activity weak. Same goes for the backhaul, transatlantic and fronthaul routes, where index seems to be lagging behind actual rates. Period activity is unchanged from last week. Panamax Sliding in Atlantic, flat and uninspiring in Pacific, or is it vice versa? In general the market is moving sideways without any clear direction in lack of a fresh injection. Depending on vessel size, spec’s and trade, fixtures are close to last done +/-.TA rounds are in the 5.000 range and fronthaul, although limited from the North Atlantic is abt 8.500. ECSA grain is still alive, at abt 7.250 + 225 APS. Activity stable and rates in the eastern hemisphere hovering in the 4.500-5.500 range, with many Owners aiming at long ECSA runs if relevant.The forward curve is flat at the mid 5 mark for the next 2 years, and although period takers seems few, regular LME’s achieve low/mid 5’s for the typical 4-7 months or 1 yr. Supramax It has been a week with mixed signals in both hemispheres. The levels in the north Atlantic has been fairly stable at ard 6,500 for TA's. We do however see that the pressure out of ECSA and Safr is coming off and this could again put pressure on the north. In the Pacific we basically see the same levels as last week, but sentiment is coming off. Smaxes are still being fixed at USD 5k dely Spore for trip China and USD 6k for India direction. There are still some NoPac cargoes in the market but the activity is drastically down. We do believe we will see softening rates going forward short term. Period activity has been scarce this week.

Protesters Blockade Newcastle Coal Terminal

At least 57 people were arrested in protests Sunday at the eastern Australia port of Newcastle. The action, attended by 1,500 to 2,000 people, reportedly shut down operations at the world's largest coal port for part of the day. In a tactic seen often during protests of Shell's arctic drilling campaign in 2015, activists in kayaks blocked the harbor entrance, while others blocked a railroad bridge. Unlike past actions at Newcastle, there were no reports of commercial vessel traffic attempting to pass through the blockade.

Genco start weak Q1 loss

Genco Shipping and Trading has started the new financial year with a loss. The Peter Georgiopoulos's bulker owner reported a net loss of $54.4m, but this was an improvement on a year ago when it lost $79.1m. Genco’s revenue decreased over 40% year-on-year to $20.1m, while operating costs also declined by 37% to $67.9m.

$5.3 billion underground expansion of Oyu Tolgoi mine from Rio Tinto

Rio Tinto’s $5.3 billion underground expansion of Oyu Tolgoi mine in Mongolia will increase its output in about four years time when the copper market is in deficit. Work on the project will begin from the middle of this year and first production from the underground mine is expected in 2020. When the operation is fully ramped up in 2027, Oyu Tolgoi is expected to produce more than 500,000 metric tons of copper a year.

China soybean imports set April record

Chinese soybean imports surged 33 percent higher in April from a year ago, setting a monthly record, amid strong demand for soymeal and soyoil. China imported 7.07 million tonnes of soybeans in April, up 15.9 percent compared to the previous month.

DryShips bulker has collided with a fishing vessel

A DryShips bulker 74,400-dwt Catalina (built 2015) has reportedly collided with a fishing vessel in the East China Sea, leading to a search for 17 missing people. The Chinese fishing boat Lu Rong Yu 58398 had 19 people on board when it sank after the collision. Two of its crew were rescued by passing vessels but they later died.

Cosco Corp (Singapore) Ltd. hit by a loss in the first quarter of 2016

Cosco Corp (Singapore) Ltd. hit by a loss in the first quarter of 2016 as against a profit in the year-ago period due mainly to the poor shipbuilding and dry bulk shipping businesses. Net loss for the quarter ended 31 March 2016 was registered at SGD14.39m ($10.59m) as against the gain of SGD766,000 in the previous corresponding period. Revenue fell by 27% year-on-year to SGD722.29m owing to lower contributions from shipbuilding and dry bulk shipping, partially offset by higher revenue from ship repair.

Fearnleys Dry Bulk Market Report

Capesize With various holidays around the world, the last week’s positive trend in the Cape market came to an end. West Australia rates are again sub USD 4 and time charter rates are approaching USD 5000 levels. Activity in the Atlantic is cooling off as well, and period activity is consequently scarce. Panamax With bank holidays beginning week, Golden Week in Japan and upcoming holidays in Europe the mrkt has been very quiet this week. Rates continue to slide and the pressure for North Atlantic is no longer there. The recent week’s main driver; grains ex ECSA is coming off. We see fewer stems for May and what is left is being swallowed by the ballasters, most recently at USD 7k+190kGBB. We do not see any immediate signs for recovery either and believe this sliding tendency will continue short term. In the Eastern hemisphere we see the same tendency with rates coming off. Aussie rv being fixed in the high 4k for index type while the bigger kmax can fetch mid 5k. Short periods are being fixed at 5,750 while 1 year at 5k. Supramax The Supra market in the East, as here in the Atlantic, is affected by the upcoming long weekend. Charterers in general have been trying to use the lack of action to draw the numbers down, but largely without success. The most lively market has still been the Continent which has continued to draw tonnage out of the Mediterranean. Also the Handy’s continue to see good numbers with East Med delivery for loading off the Continent back to the East Med at very healthy numbers considering this is a full round trip. On the period front, an Ultra has concluded short period off West Africa, with WW redelivery at upper USD 9000’s which can be considered healthy.

Scorpio Bulkers first quarter losses widen

Scorpio Bulkers net loss widened in Q1 to $58.2m vastly outstripping revenues. The once rapidly expanding US-listed dry bulk player saw its first quarter loss widen to $58.2m compared to $52.1m a year earlier. The losses also far outstripped revenues, which fell to $10.2m in Q1 2016 against $12.3m in the same period a year earlier.

Norden into the red in first quarter

Denmark’s shipowner Norden has been hit by a first quarter net loss. Net loss for the quarter ended 31 March 2016 was recorded at $5.3m, as against the profit of $27.2m in the same period of 2015. The quarterly revenue decreased by 35% year-on-year to $296.2m.

UK shipping agent to build new London terminal

UK shipping agent Liverpool-based Armitt Group has revealed plans to build a multimodal terminal at London Thamesport, looking to attract vessels carrying steel products. The UK shipping agent said it has signed a heads of terms agreement with the port’s owner Hutchison Port Holdings, for the construction of a 120,000-square-feet terminal. With construction works set to start this month, the first freight could start moving through the new facility as early as autumn.

Brazil’s Vale seeing improved iron ore demand in China

The global iron ore market is in better condition than expected, with Chinese demand improving, the chief executive of Brazil’s Vale SA said. Murilo Ferreira told investors on a conference call that he had been positively surprised by the health of the Chinese market during a visit to the world’s largest consumer of iron ore in March.

Four terminal operators pre-qualify for $500m Panama port

APM Terminals, Terminal Link, PSA International and Terminal Investment Limited have all pre-qualified for the future tender for the construction and operation of a $500m container transhipment port in Corozal, Panama.

The grain harvest season in South America is the cause for the blip

The rising trend in the Baltic Dry Index has failed to enthuse Indian shipping companies because most see it as a blip that does not reflect the trade situation. The Index is at 690, up 70 per cent month on month and 95 per cent in the last three months. The grain harvest season in South America is the cause for the blip because freight rates from the region to China have improved.

China Cosco vessel will be first to transit the expanded Panama Canal

China Cosco Shipping has won the lottery for the first transit through the Panama Canal’s third lane during the waterway’s inauguration on Sunday, 26 June. The shipping line’s 9,400 teu-container vessel Andronikos will be making the inaugural transit. The draw took place Friday morning at the Panama Canal Administration Building, in which a Notary Public served as witness, among invited attendees. The Norwegian/Swedish shipping line Wallenius Wilhemsen Lines (WWL) and the Chinese shipping line China Cosco Shipping were the only shipping lines participating in the lottery.

Quadra Commodities fixes kamsarmax bulker for 10 to 15 months.

The Onassis group's Olympic Shipping & Management put a kamsarmax bulker into a period charter for 10 to 15 months. Quadra Commodities chartered the 84,100-dwt Olympic Glory (built 2011) for $6,050 per day. The deal could bring in a total of $1.8m to $2.72m.

Fearnleys Dry Bulk Market Report

Capesize A bit of a slower week. Activity level have dropped, though the rates do still remain firm. After a few weeks with steadily increasing rates and activity, it now seems the market have stabilized at present level. Some of the vessels that been idle have now started trading again due to more acceptable freight levels. This will have an impact on the market, but for now it seems to keep up well. Owners are a bit more encouraged and some are testing the market for 1 year period asking closer to the 10k mark again. A level we have not seen more a long time. Presently no takers at that level, but it shows there are a bit more optimism in the market. Panamax Northern Atlantic is still quite firm for early ships. Charterers still have to pay arnd 8 for t T/A rounds, but will it continue.? We feel the week has been fairly active with new orders in the market in both hemispheres. Nopac, Aussie and Indo rounds in the mid 5’s average, good vessel's get mid 6 but seems toppish mid week. Furthermore, ECSA grain charterers are still active, taking ships for front haul at healthy levels USD 7300 + 230-240 k level. The question is whether this grain driven trend will continue or keep or cease within 1-2 weeks. Some short periods concluded in the low/mid 5’s and good Kamsarmaxes get 5750 for 1 year now. Supramax There are several different Supra markets this week. The Continent is commanding premiums with vessel ballasting out of the Med towards the Continent. The East coast of South America is faltering on the near end of the curve, and the USG is driven by petcoke. The far east is still flattish despite reasonable volume. Period levels in the Atlantic are significantly higher than in the Pacific, but volume is thin. In general the forward curve is falling.

China to import more Russian wheat

Chinese food safety experts have given their approval to the quality of imported Russian wheat. The Deputy Chief for Food Safety Supervision Ren Zhengxiao says it could lead to more imports. Russia wants to get approval for other grain exports to China this year. The countries signed protocols on the food safety regulations for imports of Russian agricultural products including wheat, corn, rice, soy and rapeseed in December. Beijing is allowing imports of wheat grown in the Altai, Krasnoyarsk, Novosibirsk and Omsk regions.

Violent attacks worsen in West Africa seas

As piracy on the world’s seas continues to fall, new figures from the International Chamber of Commerce (ICC) International Maritime Bureau (IMB) highlight growing violence off the coast of West Africa, where 44 seafarers have been captured so far this year. Worldwide, IMB recorded 37 piracy and armed robbery incidents in the first quarter of 2016, down from 54 in the same period last year. Three vessels were hijacked and 29 boarded, with 26 crew kidnapped for ransom and a further 28 held hostage.

Kawasaki Kisen Kaisha (K Line) reported a $457m loss

Kawasaki Kisen Kaisha (K Line) reported a $457m loss for the financial year ended 31 March 2016, and expects the coming year to be unprofitable as well. The JPY51.5bn ($457m) loss for FY2015 compared to a profit of JPY26.8bn profit in FY2014. Revenues in FY2015 also fell to JPY1.24trn against JPY1.35trn in the previous year. The loss resulted from the restructuring of K Line’s dry bulk business with the company accelerating the rationalisation of its dry bulk fleet focusing on the smaller-to-medium sizes.

Mitsui OSK Lines massive $1.51bn full year loss

Mitsui OSK Lines (MOL) a $1.51bn loss of the financial year ended 31 March 2016, hit the costs of restructuring its dry bulk and container shipping businesses. The JPY170.4bn ($1.51bn) loss in for FY2015 compared to a JPY42.3bn profit in the previous year. Revenues saw a decrease in FY2015 to JPY1.71trn compared to JPY1.82trn in the previous year. The huge loss resulted from a previously announced JPY179.3bn loss taken in the fourth quarter of the related to the restructuring of its dry bulk and container shipping businesses, which includes the closing down of its MOLBC business in Singapore.

Maersk Starts Direct Service to Cuba

Maersk Line marked the introduction of its first direct service from Northern Europe to Cuba on Friday April 22 when a 2,556 TEU container vessel arrived in the Port of Mariel, located 50 kilometers (30 miles) from the country’s capital, Havana. The Cuba call is part of Maersk Line’s CRX – Southbound service from Northern Europe to Manzanillo, Panama, providing customers the fastest transit times in the market from North European ports in Germany (Bremerhaven), United Kingdom (Tilbury), Netherlands (Rotterdam) and Ireland (Cork). A weekly feeder service further connects to Santiago in the Southeastern area of Cuba.

Australia Releases New Antarctic Action Plan

A new era of Antarctic engagement has been announced by Australia’s Environment Minister Greg Hunt with the launch of the Australian Antarctic Strategy and 20 Year Action Plan. The Turnbull Government is providing A$255 million ($170 million) in funding over the next ten years to enhance Australia’s Antarctic logistics and science capabilities. This includes $55 million for infrastructure and $200 million for sustainable ongoing funding for the Australian Antarctic program.

Suez Canal underground tunnels digging to start in June

The actual dredging of underground tunnels at the Suez Canal will start in early June 2016 and to be completed in 18 months. The dredger was exclusively manufactured for the Egyptian tunnels with special specifications and diameters (inner diameter 11.4 meters and external 12.6 meters). At present, 94 welders are working at the site but 94 more are needed. Four giant dredgers will dig four large tunnels under the Suez Canal at the same time.

Pirate attacks down in Q1

The number of pirate attacks worldwide continued to fall in the first quarter of 2016 but the International Maritime Bureau (IMB) warns of increasing violence in West African incidents. In its first quarter report the IMB said that its Piracy Reporting Centre had reported 37 incidents piracy and armed robbery the first the three months of 2016 compared to 54 in the same period in 2015.

Indonesian President invites Dutch firms to invest in maritime projects

On his European trip Indonesian President Joko Widodo has invited the Netherlands to invest in Indonesian infrastructure projects, particularly those that support his maritime sector development programme. Widodo noted that several Dutch companies had previously invested in maritime infrastructure projects, such as the seaport projects in Kuala Tanjung and Tanjung Priok. He invited the Netherlands to participate in maritime infrastructure projects in Indonesia, namely Sorong deep sea port and Makassar deep seaport.

Panama Canal to hold draw to select first vessel to transit

The Panama Canal Authority (ACP) will hold a draw on Friday, 29 April, to select the first vessel which will transit through the expanded Canal. The proposed vessel is required not to surpass a maximum beam of 49 m and a maximum overall length of 366 m. In addition, the maximum draught or point of immersion for the inaugural transit will be 12.5 m. For security purposes, gas carriers will not be considered for the inaugural transit.

Vale backs out of Navios terminal

Brazilian mining giant Vale will not fulfill a contract to use a terminal being built by Navios’ South American subsidiary. The agreement, signed in 2013, called for Vale to store and tranship between 4 million and 5 million tonnes annually of iron ore from the facility. The 20-year contract included an option to increase the facility's capacity to 6 million tonnes. Navios may have only spent some $29.5m to date on the project But the long-lead times for some construction materials may leave Navios on the hook for additional costs if it terminates the project. Also the value of Navios’ stake in the logistics business by over half, from $244m to $110m.

High level of ship demolition continues despite low scrap prices

Demolition prices remain unattractively low but many owners, particularly of the non-operating kind, have decided that with charter rates falling they are better off recouping some residual value from their assets from the scrap market.

CSSC Shipping financing $245m for six bulkers

CSSC (HK) Shipping Co Ltd (CSSCL) has clinched a $245m ten-year club senior secured loan for the construction of six newcastlemax bulk carriers. The loan for CSSCL, the shipowning and leasing arm of China State Shipbuilding Corp (CSSC), was advised by law firm Watson Farley & Williams (WFW) and led by Standard Chartered Bank and Bank of America, joined by Societe Generale. The six bulk carriers were ordered in 2014, with two already delivered and the remainig four currently under construction.

Herman Billung leaves leading position at Golden Ocean

Herman Billung has left Golden Ocean after serving as the company’s chief executive for 11 years. The John Fredriksen-controlled owner said current chief financial officer (CFO) Birgitte Ringstad Vartdal will replace Billung. Golden Ocean did not explain the reasons for this change in its top management.

The spot market for capesize bulkers dropped again

The spot market for capesize bulkers dropped again on Wednesday, having reached $8,000 per day on Tuesday — or up $2,500 per day from last week. It has been pointed out that operators such as SwissMarine, Cargill and Oldendorff Carriers are understood to have booked cargoes with companies such as Vale before the market dropped — and are now able to relet at a profit.

Elmar sells last bulker and exits market after 21 years

Greece’s Elmar Shipping has become the latest victim of the poor dry bulk market, closing its central Athens offices and selling its last remaining ship — ending a continuous presence of two decades in the shipping market. Greek buyers are said to have splashed out $3.2m for the 27,900-dwt Lion (built 2000), which cost Elmar $25m in 2010.

Potential Discrimination on the Great Lakes

Stephen Brooks, President of the Chamber of Marine Commerce in Canada, believes ballast water management rules that are unachievable, impractical and discriminatory are being imposed by the U.S. EPA and the IMO on Canadian short sea ships that never leave the bi-national waters of the Great Lakes and the St. Lawrence Waterway and thus cannot introduce new aquatic invasive species. The U.S. Coast Guard is responsible for the approval of ballast water treatment technology for ships discharging ballast water in the U.S., and to date, has not approved any technology. However, the U.S. Coast Guard has acknowledged the unavailability of technology by issuing over 4,000 extensions to their ballast water rules. The EPA has not. “It’s quite unfortunate that Canadian shipowners had to seek and obtain a ‘stay’ on the EPA’s rules in U.S. court in order to be able to continue serving the bi-national Great Lakes St. Lawrence Waterway economy, the third largest economy in the world if it was a separate country, which relies heavily on safe, efficient, environmentally smart short-sea shipping,” says Brooks.

Master underestimated storm in fatal sinking

German cement carrier was lost with all eight crew after the captain ploughed straight into a severe storm. The fully-laden 2,327-dwt Cemfjord (built 1984) capsized on 2 January, 2015, in the Pentland Firth, Scotland, and later sank. Seven Poles and a Filipino died.

China cuts working hours for coal miners

China will reduce the number of statutory working days for its coal miners to 276 a year from 330 as it bids to tackle a chronic supply glut that has sapped prices. With demand on the wane and mining firms facing widespread losses, China plans to shut down 500 million tonnes of coal production capacity over the next three to five years as part of its efforts to cut a surplus estimated at more than 2 billion tonnes a year.

Russian Wheat Harvest Rising to 8 Year High as Weather Aids Crop

Russia is set to harvest the most wheat in eight years after the warmest winter on record protected crops and as planting conditions remain favorable for spring grains. The world’s biggest wheat exporter will collect 62.5 million metric tons of wheat in 2016.

Australia iron ore exports up 9% in February

The country’s iron ore export volumes increased during the month of February this year. The Australian iron ore exports totaled 62.926 million tons during the month. This is nearly 8.92% higher when compared with the exports during the month before. The country had exported 57.772 million tons of iron ore during January 2016. The average export price during the month rebounded by over 5.8% to $38.50 per ton when matched with $36.40 per ton during the previous month.

BIMCO Anti-Corruption Clause

The purpose of the new anti-corruption clause is to remove corruption from the shipping industry by providing a contractual platform to avoid corrupt actions. It attempts to balance the interests of owners and charterers, assisting them in working together when facing and resisting demands for illegal payments. Under the clause, if an official demands a facilitation payment from the Master or owner the charterers are to be notified as soon as possible. If the request is not withdrawn, despite taking reasonable steps to refuse the facilitation payment, the Master can issue a letter of protest to the charterers. It will be assumed that any delay to the vessel will be as a result of resisting the demand of payment and time lost will count as laytime/demurrage. A typical dispute our Members are therefore likely to face is charterers refusing to acknowledge that laytime continues to run whilst their vessel is being delayed due to the Master’s refusal to comply with a demand for a facilitation payment. It is important to note that owners will not be able to rely on the clause unless a letter of protest has been issued and therefore it is advisable to issue one as soon as it becomes evident that the illegal demand is not being withdrawn. The Master should ensure that any letter of protest is either addressed or copied to the charterers in order to be protected under the clause. The clause also applies where the Master is faced with a demand for gifts in kind, such as alcohol or cigarettes which are common in certain jurisdictions. For example, port authorities in certain areas of the world are known for making demands of say 50 cartons of cigarettes and 20 cases of beer in order to receive the necessary clearance. Although these demands may appear “minor”, under the anti-corruption clause the Master must refuse to comply with such a demand and, if it is not withdrawn, issue a letter of protest to the charterers in order to ensure that laytime continues to run.

South Africa Imports First U.S. White Corn Since 2004

South Africa imported the white variety from the U.S. for the first time in 12 years as the worst drought in more than a century hurt local output. The country imported 1,330 metric tons of the white type from the U.S. in the week ended April 15, Pretoria-based South African Grain Information Service said in a statement on its website Tuesday. It last brought in U.S. corn in the season ended April 2004, when it imported 32,937 tons.

Ocean Alliance

CMA CGM, Cosco Container Lines, Evergreen Line and Orient Overseas Container Lines (OOCL) sign a agreement to form the “Ocean Alliance”. The proposed new alliance follows the merger of Cosco and China Shipping’s container lines and CMA CGM’s move to buy Neptune Orient Lines (NOL), where it plans to pull container line APL out from the G6 Alliance. The four lines signed a Memorandum of Understanding (MoU) for the alliance will cover the Asia-Europe, Asia-Mediterranean, Asia-Red Sea, Asia-Middle East, transpacific, Asia-North America East Coast, and transatlantic trades. The alliance will cover some 350 containerships and initially more than 40 shipping services, mainly connected to Asia, including 20 services to Europe and the US.

Panama Canal begins to take transit reservations for expanded canal

The Panama Canal began accepting transit reservations for neo-Panamax vessels for commercial transits through the expanded canal starting on 27 June 2016. The Panama Canal will offer four additional slots per day for neo-Panamax vessels, in addition to the existing 25 slots of the current Canal. Once the first period of competition closed, 25 neo-Panamax vessels had reserved transit through the new locks. This initial phase of transit reservations corresponds to transit dates between 27 June 2016 and 30 September 2016.

Rio Tinto reports mixed iron ore export figures

Rio Tinto has reported an 11% year-on-year growth in iron ore shipments, but the figure was 12% down on the fourth quarter. The Australian mining giant exported a total of 80.8mt in the January to March period. The increase was attributed to the completion of some brownfield developments and expanded infrastructure capacity in the Pilbara region.

India to stop thermal coal imports

India plans to completely stop thermal coal imports in 2-3 years that would result in annual savings of Rs.40,000 crore. “I have no hesitation in saying that Indian companies used to import a lot of thermal coal. We want to completely stop the import of thermal coal in the next two to three years. We have already reduced imports by Rs.28,000 crore. We will save Rs.40,000 crore,” Union minister Piyush Goyal on Friday said.

Brazil political crisis hits grains trade

Brazil’s forward sales of commodities such as grains and sugar have nearly ground to a halt as producers, trading companies and consultants assess the impact of the possible impeachment of President Dilma Rousseff. After a year-long boom in sugar and corn exports, commodity merchants and farmers are bracing for continued strengthening of the real if Rousseff is ousted, reducing the price advantage of Brazilian commodities and possibly curbing foreign sales. The Brazilian currency has rallied in recent weeks, despite a deep economic crisis, amid investors’ hopes the left-leaning Rousseff will be replaced by a more business-friendly administration.

Panama Canal's third draught restriction

The Panama Canal Authority (ACP) has announced a third draught restriction for the Canal due to drought caused by the El Niño phenomenon. Effective 9 May, the maximum authorised transit draught will be set at 11.59m (38.0 feet) Tropical Fresh Water. Vessels loaded to draughts over 11.59 meters (38.0ft) on or before 11 April 2016, will have this draught restriction waived for transit, subject to safety considerations. Vessels loaded after 11 April 2016, have to comply with the draught restriction.

Golden Ocean delays newbuilding

John Fredriksen-controlled Golden Ocean has delayed a pair of capesize newbuildings by several months. They had been originally been scheduled for delivery in February and March of 2016. The bulker owner did not identify the ships, but the company's orderbook data show that they are likely at China's Shanghai Waigaoqiao Shipbuilding (SWS) or compatriot New Times Shipbuilding.

Fearnleys Dry Bulk Market Report

Capesize Its has been a positive freight market for the past few weeks, however this week the market is taking a small breather. The activity level has dropped and freight rates followed. The main driver of the latest market increase has been the high activity from the west Australian mining companies. This week the activity on this route have slowed down, and the wc Aussie/China freight level have dropped rom around usd 4 pmt to usd 3,70 pmt. Though the Atlantic market is also showing more positive tendencies, with higher activity and increased freight rates. Despite a small dip down again now in the Cape market, it is for the first time this year a bit more optimism in the market. Panamax The Panamax market continues to firm in both hemispheres this week. The grain season out of ECSA is the main driver, and has again put pressure on the North Atlantic. It was rumored mid week a Kmax had fixed 11k APS SW Pass for a tct to Continent. Another Kmax fixed USD 6,650 retro Spore for ECSA/Feast while NoPac rounds are being fixed in the low/mid 4k. The lack of early ships force charterers to fix ballasters and if we take into consideration the number of ships that are tied up in the long duration of ECSA/Feast, we do believe in a firm couple of weeks ahead of us. The period market is back into play and a kmax fixed at USD 6,300 for abt 11/15 mos. Supramax Supra numbers have improved across the board. Notably grains from East Coast South America are commanding high numbers. Also positions on the continent are getting big numbers for scrap cargo. The USG market which was lagging has now turned the corner and now paying improved numbers albeit the cargos are mainly petcoke. The short period market is still relatively active and good units now can expect to achieve something starting with a USD 6 in front. The transaction volume in the East is slowing leading players to believe we may have reached a temporary top.

U.S. Secretary of Defense Ash Carter met with Indian Prime Minister Narendra Modi

U.S. Secretary of Defense Ash Carter met with Indian Prime Minister Narendra Modi and reaffirmed the strategic importance of the U.S.-India defense relationship. The leaders agreed to strengthen cooperation in the area of maritime security. In this context, they reaffirmed their desire to expeditiously conclude a “white shipping” technical arrangement to improve data sharing on commercial shipping traffic. The leaders reaffirmed the importance of safeguarding maritime security and ensuring freedom of navigation and over flight throughout the region, including in the South China Sea.

India is keen to develop the Pyara port

India is keen to develop the Pyara port in Patuakhali district of Bangladesh. The external affairs ministries of both countries have already held a preliminary round of talks in this aspect. Since the government came to power, India has started focusing a lot on the port sector.

BDI is slowly but steadily improving

The BDI is slowly but steadily improving the past 3 weeks, it managed to break through the 500 barrier mid-week and today is standing at 539 points. As charter rates have improved, the light breeze of optimism created a buying frenzy with numerous transactions concluded and hundreds of pre-purchase inspections taking place.

Tax Evasion Fine for HHI

Hyundai Heavy Industries, already under financial pressure from a severe downturn in shipbuilding, faces a fine of $100 million for tax evasion. It has reportedly appealed the National Tax Service's decision on grounds that it cannot afford to pay, given significant headwinds in a poor business environment.

New bulk terminal starts operation in Mariveles port

The Seasia Nectar Port Services, Inc.’s (SNPSI) Mariveles Dry Bulk Terminal officially has started commercial operation, opening more opportunities to the locators of the Freeport Area of Bataan (FAB) and Bataan. 180 meters of berth available. Bulk cargo in barges would be handled by material handlers. The dry bulk terminal is designed to handle shipment of coal, clinker, silica sand and other cement raw materials, steel, fertilizer and other dry bulk cargo. It is also set to build facilities for warehousing, stevedoring, lightering and towing of cargo.

Panama Canal announces second draught restriction

The Panama Canal Authority (ACP) announced a second draught restriction for the Canal due to drought caused by the El Niño phenomenon. Effective 29 April the maximum authorised transit draught will be set at 11.74 m (38.5 ft) tropical fresh water. Vessels loaded to draughts over 11.74 m (38.5 ft) on or before April 1, 2016, will have this draught restriction waived for transit, subject to safety considerations. Vessels loaded after 1 April 2016 will have to comply with the draught restriction. Draught restrictions will be implemented in 15 cm (six-inch) decrements at a time, with each restriction announced at least four weeks in advance.

Yara is investing $275m in a Brazilian plant.

Oslo-listed fertiliser and shipping company Yara is investing $275m in a Brazilian plant. The cash will go towards expanding and modernising its Rio Grande facility. The work is set for completion in 2020.

Turkish company is ready to build a new grain terminal in the Ukrainian sea port

The company Molino (Turkey) proposed to investors to construct a modern grain transshipment complex with high-speed loading of vessels in the Odessa sea port or any other seaport of Ukraine. Molino proposed a project for construction of a grain terminal with capacity for simultaneous loading of two Panamax-class vessels and reception (unloading) of grains from trucks, railcars, and vessels (in the case of imports). The equipment allows both dry-cargo ships to be loaded at an intensity of 1200 tonnes per hour, a total of 2400 tonnes per hour.

China Cosco Shipping gets Piraeus port majority stake

China Cosco Shipping got its hands on Greece’s largest port, Piraeus, 8 April when it signed a share purchase agreement with the Hellenic Republic Asset Development Fund (HRADF) to acquire a 67% stake in the Piraeus Port Authority (PPA). The EUR368.5m ($413m) investment is the first cross-border M&A transaction signed by China Cosco Shipping.

Chinese group becomes the third to confirm long-term deal

China's ICBC Leasing has signed a 27-year iron ore transport deal with Brazilian miner Vale that will see it order 10 huge new bulkers. The charter agreement on Friday will see its VLOCs carry about 16m tonnes of cargo per year from the first half of 2018. The deal follows similar ones between Vale and Chinese state owners Coscocs and CMES in recent weeks. The 10 ICBC vessels could be worth $850m.

Fearnleys Dry Bulk Market Report

Capesize With a great volume out of west Australia, rates were finally moving to upper 3’s, and stabilizing towards the middle of the week in the mid 3’s. Tubarao/Qingdao was approaching upper USD 6’s, being a considerable improvement from mid USD 5’s only a couple of weeks ago. Period rates are finally improving as well, with present one-year rates for nice ships slowly approaching Opex levels. Panamax We have experienced a week with rates firming in both hemispheres. The levels are still low, but the TA market is up about 37.5% in one week. The reason behind the increase is mainly caused by the grain season in ECSA. Ballasters are snapping up the cargoes, but this again leads to pressure on the rates for north Atlantic trades. Baltic Index is mid-week showing USD 9275 for fronthaul basis Continent delivery. We are however in the belief that owners will not sail out for under 10k. In the Pacific, we see Aussie /India cargos being fixed in the mid 4’s. Some short period fixtures have been reported in region of USD 5500 delivery Far East. Supramax It has been a mixed week. With the exception of the USG, all routes have improved. Despite China being off on Monday, there was a significant push early in the week, but this now seems to be running out of steam. Rate wise we are seeing USD 6000’s for Singapore to India, and USD 5000’s for Pacific rounds. Short period is trading around USD 5000 for Supras. Volume in both the basins is still healthy but the pressure is off the rates.

Panama Canal second draft restriction

The Panama Canal Authority has issued a second draft restriction to take effect at the end of April, which will reduce the maximum tropical freshwater draft of transiting vessels to 38.5 feet, down from the standard 39.5 feet. The Authority says that the draft restrictions are due to unusually dry conditions caused by a strong El Niño.

Food logistics giant Archer Daniels Midland plans to boost Santos port by next year.

Archer Daniels Midland said it started a project to expand capacity at its Brazilian grain export terminal by one-third. The Santos terminal will be expanded to handle 8 million tonnes per annum (mtpa), from 6 mtpa currently. The expansion should be done by mid-2017.

BDI hits highest point in 2016

The Baltic Dry Index (BDI) climbed to exactly 500 points today, having remained stubbornly below that figure since 15 December. Improving sentiment in the capesize and panamax classes has helped boost the market but the jury is out as to how long the rally will run. Firmer steel prices in China and higher grain exports out of South America are presently aiding the market.

The Singapore port authority will grant a 10% concession on port

The Singapore port authority will grant a 10% concession on port dues for dry bulk carriers starting from 15 April 2016, in view of the severe downturn in the shipping sector. The Maritime and Port Authority of Singapore (MPA) said the concession will be applicable to vessels carrying out cargo works with a port stay of not more than five days, and the concession will be in place for one year.

Scorpio Bulkers has secured a period contract with Cargill

Scorpio Bulkers has secured a period contract with Cargill for one of its ships. The trader has fixed the 84,900-dwt SBI Capoeira (built 2005) on a four to six month contract. A rate of $5,750 per day is placed on the charter, compared with the $4,497 available in the spot market right now.

Coal miner Peabody Energy to cut jobs in Powder River Basin

Peabody Energy Corp, the largest U.S. coal producer, it would lay off about 235 employees at a mine in the Powder River basin, two weeks after the company flagged bankruptcy risk. After the reductions, Peabody’s Powder River basin operations will employ about 1,500 workers, of which about 1,150 will be at North Antelope.

Taiwanese owner China Steel Express sells vintage capesize.

Taiwan's China Steel Express has sold its last vintage capesize for demolition. The 154,000-dwt China Steel Trader (built 1997) has been sold as is in Taiwan for $269 per ldt, or $6.1m. The sale means at least 37 capesize or larger bulkers are sold for scrap this year, against 96 in the whole of 2015.

Eagle Bulk reaches deal with creditors

Cash-strapped Eagle Bulk has finally reached a deal to re-capitalize its balance sheet. After months of negotiations Eagle Bulk has reached agreement with its lenders and roughly 75% of holders of equity in the firm in a transaction that provides $105m in incremental liquidity. It also includes a new second lien facility of $60m in new capital from both existing shareholders and new capital providers.

Mitsui OSK Lines (MOL) is shutting down its Singapore dry bulk shipping unit

Mitsui OSK Lines (MOL) is shutting down its Singapore dry bulk shipping unit. Restructuring of its dry bulk and container shipping businesses on which MOL is taking a JPY179.3bn loss in the fourth quarter ended 31 March 2016. It would closing down Singapore-based bulker operation MOLBC. The company deemed it necessary to conduct an urgent review of its business models due to the prolonged sluggish dry bulker market, and decided to implement a major scale-down of the fleet to minimize its market exposure by free vessels, dissolve MOLBC, and transfer its business operations from Singapore to Tokyo.

Houston Ship Channel closed due to fog

The Houston Ship Channel closed at 2:05 pm CST (20:05 GMT) Tuesday due to fog. Currently eight vessels have applied to sail inbound Tuesday, with another nine vessels on the list for Wednesday, while six ships are lined up to proceed outbound for both days so far. The suspension of ship movements in the Houston Ship Channel impacts the delivery and loading schedules of crude oil, petroleum and petrochemical products. The 52-mile ship channel provides access from the Gulf of Mexico through Galveston Bay to ports in Houston and other cities in the area that have many industrial facilities, including refineries, petrochemical plants, and steel and metal facilities.

Fearnleys Dry Bulk Market Report

Capesize Another uneventful week with fixtures concluded at last done levels, C5 levels remain around the USD 3 mark, whilst C3 is still just short of USD 6. A couple of stronger fixtures has been concluded in the Atlantic, mainly explained by ice conditions at load port. Panamax The Atlantic activity has been reasonable taken the Easter days into account. Rates in Northern Atlantic keep steady and Pmaxes obtain low 4k while Kmax being fixed mid 4k for t/a rounds. Some charterers utilizing the favourable “low” rates locking in coa’s these days. Grain houses active booking ships. S.American grain absorbing tonnage and rates firmer for trips to Feast. Good Kmaxes fixed at high 6 and 7k+200bb to Feast. Pacific little slower after Easter and nopac round covered in the low/mid 4. Aussie/India also in the low 4k. Some medium periods typical 6-8 months covered at low 6k while 1-year Pmaxes obtain 4.8-4.9k now. Still expectations for the grain ECSA on short term. Supramax It is still decent activity out of the ECSA and rates are pushing up. Owners with Ultramaxes are asking USD 10k+USD 100k GBB for trip Feast whereas for Continent destination asking around USD 9k. It is not the same push out of the NCSA and owners are ballasting towards USG for cargo coverage. In the Pacific, we see some negative signs with owners fixing below 5k bss Spore for trips to full India. This is below last done but for the longer duration trips via NoPac owners are asking 5.5-6k DOP Feast rates whereas charterers are back to rating APS at lower levels. The period market in the Pacific is back above the 5k mark and owners fixing out on period in the Atlantic are closer to 6k.

Economou gives DryShips $60m in additional credit

George Economou provided another $60m in credit to DryShips and sold a chunk of preferred shares back to the company. The New York-listed shipowner's chief executive increased a revolving credit facility to $70m from $10m. The credit facility amendment extends the debt's maturity by a year to October 2019. It also cancels Economou's option to convert it into stock.

Navig8 slashes dry bulk staff

Navig8 has sacked nearly half of its dry-bulk staff this week as the company begins to implement a shift in its approach to the struggling sector. Navig8 commercial director Jason Klopfer revealed on the sidelines of the Connecticut Maritime Association conference that the company is weighing acquisition opportunities while moving away from pool operations in dry.

Pan Ocean COA 20-year iron ore with Vale

Pan Ocean has entered into a long term contract of affreightment (COA) with Brazil’s state mining giant Vale to ship iron ore from Brazil to the Asian region including China and Malaysia. The duration of the contract is for 20 years starting from the fourth quarter of 2016 to the fourth quarter of 2036, shipping a total of 32m tonnes of iron ore.

Panama Canal announces draught restrictions

The Panama Canal Authority (ACP) has issued a ‘circular to shipping’ establishing certain temporary restrictions on vessel draught. This temporary and preventive action is taken due to the effects of El Nino, which results in the periodic warming of ocean waters in the tropical Pacific. The circular states that the maximum allowed draught of 11.89 metres (39 feet) in tropical freshwater will be effective from 18 April 2016. Vessels with a greater draught to 11.89 metres before or on 21 March will not have to follow the draught restriction, subject to security considerations. Vessels loaded after 21 March must comply with the measure.

Iron ore extended a gain toward $60 a metric ton

Iron ore extended a gain toward $60 a metric ton as further signs of a recovery in China’s property market. Ore with 62 percent content in Qingdao rose for a fourth day, increasing 2.3 percent to $58.82 a dry ton. Investment in real-estate development in China has improved and prices have stabilized. Demand for steel and iron ore is expected to rise.

Bulk Carrier Sparna Goes Aground in Columbia River

620-foot Panamanian-flagged bulk carrier Sparna went aground in a narrow stretch of the Columbia River near Cathlamet, Washington. The Sparna is laden with 200,000 gallons of high sulfur fuel and 40,000 gallons of diesel. Two tug boats – the PJ Brix and Pacific Escort – are on scene to keep the Sparna stabilized. The Coast Guard has not closed the navigable channel of the river. The Panama-flagged Sparna is owned by Santoku Senpaku of Japan, an operator of about 120 vessels of various classes, including bulkers, container ships, ro/ros, wood-chip bulkers, reefers and chemical tankers.

Former Vale boss Roger Agnelli has died in a plane crash in Brazil

Former Vale boss Roger Agnelli has died in a plane crash in Brazil, aged 56. Agnelli, his wife and two children were killed when his monoplane hit two houses in northern Sao Paulo on Saturday. The executive was appointed to the top job at Vale in 2001 and left in 2011 as the first of the bulkers were being delivered.

Coscocs agreed 27-year Vale contract

China Cosco Shipping Corporation (Coscocs) has clinched a 27-year contract to carry iron ore for Brazilian miner Vale. The bulker unit of the newly created state shipowner will transport 16m tons per year.

Fearnleys Dry Bulk Market Report

Capesize There are challenging days with rates more or less unchanged from last week; West Australia to China still below USD 3 pmt, and Tubarao to China in the upper 5s. In the Atlantic, the need for more cargoes is desperate. Panamax The Panamax market seems to be a bit toppish this week. The latest increase in rates has been led by elevated volumes and levels from the coming ECSA grain season. A good portion of the fleet is in ballast towards the grain ports, but charterers are holding back on 2nd half April stem to supress the recent rise. FFA’s have dropped below 5k for the remainder of the year, which in turn will put pressure on the period market. On another note, we see bunker prices increasing and this will most likely lead to higher USD/mt rates. TA’s are now paying excess 3.5k and still a nice premium for breach of INL cargo in Baltic at USD 4.5-5k. In the Pacific, rounds are being fixed at mid/high 4k. Supramax Supra rates have improved somewhat. Vessels are achieving USD 5000’s for trips with delivery in South East Asia. In the Atlantic, the rates from South America are firmer, with cargo to Europe commanding about USD 7000 for the leg. Front haul candidates achieve about USD 8000 with a 70-80k ballast bonus. Grain from the USG is about on par with South America, but petcoke cargos have to pay up a bit. All of these rates are for spot cargos, all forward business is heavily discounted, and we are not aware why this is, but it shows a lack of confidence in the market. Period is generally inactive as the availability of spot tonnage does not justify paying a premium to secure period cover.

Shanghai coal imports increase in first two months

Imports of coal and lignite through Shanghai in January and February were up 150 percent year on year. Shanghai imported 1.94 million tons of coal and lignite in the first two months. The average price for a tonne of coal stood at 316 yuan ($49), down 6.2 percent year on year. During the period, coal imports from Australia more than doubled year on year to 566,000 tons, encouraged by tax cuts due to a China-Australia free trade agreement that took effect in December.

BW Group wades into drybulk market

BW Group has established a new venture in drybulk, BW Dry Cargo, targeting vessels between 50,000 dwt and 90,000 dwt. The company will be headed up by former Nordic Bulk Carriers ceo Christian Bonfils.

China Merchants Group makes bid to buy Baltic Exchange

China Merchants Group has expressed its interest to buy London’s Baltic Exchange. Baltic Exchange was approach by the group’s subsidiary China Merchants Securities. The rationale behind the Chinese conglomerate’s bid is to give China ownership of the industry benchmark indices and potentially wider access to the multi-billion dollar freight derivatives market.

d’Amico launching a new dry pool

d’Amico Group is considering forming a new dry pool for panamaxes and kamsarmaxes in Singapore in the second half of 2016. The company said it would look to attract Japanese owners to the pool, which follows the creation of a similar supramax operation last year.

Rio Tinto Appoints Copper Chief Jacques as CEO

Rio Tinto Group, the world’s second-biggest mining company, said Jean-Sebastien Jacques will be appointed Chief Executive Officer in July, replacing Sam Walsh. Jacques, currently the head of the producer’s copper and coal division, will join its board. Walsh will retire from the company, it said.

Plan to restructure Alexandria Port

The Port of Singapore is expected to complete its plan to restructure the Alexandria Port’s administration during the first quarter (Q1) of 2016. The Port of Singapore is developing a comprehensive plan to reform Egypt’s ports. Cooperation between Egypt and Singapore aims to reduce port operations expenditures. There are currently more than 4,000 workers employed at Alexandria Port. Al-Geioushy contended that the number of employees can be reduced to 500 workers.

Ukraine sea ports increased grain cargoes shipment in January and February

Ukrainian sea ports processed 5.06 mln tonnes of grain cargoes (including 4.96 mln tonnes of grains), an increase of 2.3% (up 2.1%) compared with the same period of 2015. In addition, Sea Commercial Port of Yuzhnyi processed 1.32 mln tonnes of grain cargoes, down 6.9% compared with the same index in 2015. lso, Odessa Sea Commercial Port transshipped 1.22 mln tonnes of grain cargoes (up 4.8%), Sea Commercial Port of Illichivsk – 1.19 mln tonnes (up 36.9%), Mykolaiv Sea Trade Port – 875.79 thsd tonnes (down 18.7%), Oktiabrsk Port – 192.89 thsd tonnes (down 36.1%), Kherson Port – 101.78 thsd tonnes (down 14.8%), Berdiansk Port – 85.8 thsd tonnes (down 21.1%), Mariupol Port – 50.42 thsd tonnes (up 4%), Reni Port – 7.35 thsd tonnes (down 86.5%), Izmail Port – 6 thsd tonnes (up 1.5%).

Sinotrans Shipping has reported a bigger net loss

Sinotrans Shipping has reported a bigger net loss for the full financial year 2015. The state-run Chinese company logged an annual deficit of $81.5m, compared to $12.7m in 2014. Its red bottom line came while revenue fell below the $1bn mark to $999.8m, down from $1.2bn.

HSH Nordbank has been granted “physical control” over the four-bulker fleet of Belgium's Sobelmar

HSH Nordbank has been granted “physical control” over the four-bulker fleet of Belgium's Sobelmar. US Bankruptcy Judge Ann Nevis issued the order, effectively giving HSH management of the vessels, amid the bitter denouement of the shipowner's Chapter 11 restructuring in Connecticut. She also ordered the bank to pay unpaid crew wages as well as to repatriate and replace the seafarers.

Capesize bulker New Mykonos run aground

A New Shipping bulker has run aground off the coast of Madagascar in the second casualty for the Greek shipowner this week. Smit Salvage has been tapped to respond to the incident, which involves the company's 161,000-dwt New Mykonos (built 1997). The capesize bulker was carrying a cargo of coal from Richards Bay, South Africa to Visakhapatnam, India.

Paragon sells all ships

Paragon Shipping said it will sell its six operational vessels in order to settle its outstanding debt. The ships were mortgaged as part of a $160m refinancing deal with a Nordea-led syndicate of Banks. Paragon had $206m of total debt outstanding as of September 2015. Paragon also will defer delivery of three kamsarmax newbuildings to be delivered from Jiangsu Yangzijiang Shipbuilding towards the end of 2016, subject to certain conditions, at no extra cost to the company.

Fearnleys Dry Bulk Market Report

Capesize Increased iron ore prices created a positive sentiment across the market beginning of the week. Along with higher bunker prices, rates as well as activity were improving. However, as so often in recent times, it did not take long before things calmed down. The West Australia to China route has so far this week been fixed in the range of USD 2.95 to USD 3.05. Demand out of Brazil to China has picked up but rates are still relatively low, presently in the mid 5s pmt. The oversupply of tonnage is apparent. Panamax The market have proven signs of being alive. Propelled by ECSA activity and elevated levels up to average 6500+150 GBB APS both fronthaul and the Far East have come up substantially. As owners in India-Spore range now also able to secure 5k DOP for long grains hauls via ECSA, Aussie and Indo rounds naturally move up as well. NOPAC and Pacific rounds well into the 5k range accordingly. All above, gently assisted by a push on the forward curve, fuelling period interest in the eastern hemisphere with short period at mid 5k and 1-year done at low 5k. The Atlantic is more active although not to the same extent, giving Owners an improved 3k on TC. Fronthaul from Atlantic paying close to 7k. Supramax There is a marked improvement in the supra market. Early South America loaders have dried up and there is a premium to be had for the moment. Also in the Indian Ocean vessels are now commanding numbers which equate into the high USD 4000’s basis delivery East Coast India. In the Pacific, volumes have been good and numbers are on the increase. The Atlantic trade from the East Med to the USG which was a “bunkers only” market, is now up at USD 1500 daily. The Continent has also picked up, but front hauls from this area are still in the USD 7000 level, whereas from the USG the numbers are in the USD 8000’s. Most of the recent upward movement is attributable to the grain market.

DryShips reported a major loss

The New York-listed bulker and offshore vessel owner saw a quarterly net loss of $527.6m, or $0.79 per share, compared to a $23.9m loss in the year-earlier period. For the full-year of 2015, DryShips reported a $2.8bn loss.

Suez bulker refloated

A Greek bulker that grounded in the Suez Canal last month has been refloated. 170,000-dwt New Katerina (built 1997) being pulled free by tugs on Monday, following a lightering operation. The ship ran aground on 25 February, suffering a hole in its hull and water ingress. AIS data showed the vessel moored in the canal early on Wednesday morning. It is bound for Qingdao, China. The vessel is listed as owned by New Shipping of Greece.

Eagle Bulk Shipping share price more than double

Eagle Bulk Shipping saw its share price more than double Monday as dry-bulk equities led another day of sharp rises for the shipping sector. The New York bulk owner’s shares jumped 121% to reach $2.85 in early-afternoon trading on the Nasdaq.

Torm looks to UK to US listing

Torm is taking a stride towards a planned dual-listing in New York by setting up a new holding company in the UK. Torm, which already trades in Copenhagen, believes the re-domiciliation to the UK will make it more marketable to investors.

Oregon becomes first US state to ban coal-fired power

Citizens of Oregon will no longer derive their energy from coal, putting the environmentally-conscious state at the front of the line of U.S. jurisdictions that are turning their backs on the widely-derided fossil fuel. The Clean Energy and Coal Transition Act commits to eliminating the use of coal-fired power by 2035 and to double the amount of renewable energy by 2040. It will also require its two largest utilities to increase their share of clean energy such as solar and wind to 50 percent by 2040.

Philippines detains North Korean vessel

Philippines authorities detained a blacklisted general cargoship that they described as North Korean shortly after the UN tightened sanctions on the country. The government impounded the 6,830-dwt Jin Teng (built 1997) at Subic Bay, according to the official Philippines News Agency. The ship had been inspected on Thursday, just as new sanctions went live. The vessel's crew will be deported to North Korea. The ship is carrying a cargo of palm kernels.

China Navigation fined for failing to switch to low-sulphur fuel

A China Navigation Co (CNCo) general cargoship has been penalised in the US for failing to switch engines to low-sulphur fuel from heavy diesel when close to the Californian coast. The California Air Resources Board (ARB) said the Hong Kong owner will pay $129,500 for its 25,600–dwt Chenan (built 1992). The incident dates back to 2012, when an ARB inspector found that the ship was operating within 24 miles of the shoreline on non-compliant heavy fuel oil on 12 separate days involving four voyages between August and December from Los Angeles.

Bulk Invest filed for bankruptcy

Norwegian shipping firm Bulk Invest said it had filed for bankruptcy after failing to win backing for a financial restructuring needed to survive in difficult market conditions. Spot rates in the dry bulk shipping market are close to all-time-lows and far below breakeven rates after years of lower demand growth and a wave of new dry bulk vessels entering the market. Bulk Invest is the first European dry bulk shipping firm to go bankrupt this year.

Morocco's drought problem

Morocco’s drought has probably wiped out half of its wheat harvest — devastating a country where even the King has called on the nation to pray for rain. The driest start to winter in two decades in the center of the country has decimated crops in Africa’s second-biggest wheat grower, where just 15 percent of fields are irrigated. Imports may double to a record next season to account for the reduced harvest. Moroccan farmers had planted 3.2 million hectares of grains by early February for this year’s harvest, about 40 percent less than usual.

Monsanto's share price slid

Monsanto’s share price slid after the American seeds and agricultural chemicals company cut its earnings forecast for the year. Monsanto said profits were being weighed down by weak foreign currencies (notably the Argentine peso) and generic glyphosate (weedkiller) prices; and that falling commodity prices had trimmed farmers’ margins.

China aims to lay off five to six million state workers

China aims to lay off five to six million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution, Beijing's boldest retrenchment program in almost two decades. China's leadership will spend nearly $23 billion to cover layoffs in just the coal and steel sectors in the next two to three years. The overall figure is likely to rise as closures spread to other industries and even more funding will be required to handle the debt left behind by "zombie" state firms. The term refers to companies that have shut down some of their operations but keep staff on their rolls since local governments are worried about the social and economic impact of bankruptcies and unemployment. Shutting down "zombie firms" has been identified as one of the government's priorities this year.

Boyang Shipping’s vessel has been arrested in Singapore

Boyang Shipping’s only owned vessel has been arrested in Singapore for unpaid bills. The 28,400-dwt Magic Orient (built 1995) was detained on the instructions of Singapore law firm Haridass Ho & Partners. The South Korean shipowner allegedly owes $73,950 to Romanian ship supply company Blue Marine Service Co, according to court documents.

UN blacklists 31 North Korean ships

A total of 31 ships owned by North Korea’s Ocean Maritime Management Company (OMM) have been blacklisted by the United Nations (UN). The organisation’s security council voted to adopt new sanctions against North Korea following recent rocket launches. All cargo going to and from North Korea must now be inspected and North Korean trade representatives in Syria, Iran and Vietnam were among 16 individuals added to the UN blacklist, along with 12 North Korean entities.

Fearnleys Dry Bulk Market Report

Capesize Long suffering from extreme market imbalance not seen for 3-4 decades, focus is divided between spot challenges and concern for big and medium industry names struggling to survive. Daily spot earnings have dipped a further 10-15% w-o-w to an apocalyptic $2200, and for certain main trades including West/China the actual return is less than $1k/day basis today's conference rate of a meagre $2.95/3.00 pmt. Mineral volumes keep on disappointing for both fronthaul, transatlantic and -pacific. Period at new lows remain the only relevant alternative to layup for a number of owners, most recently exemplified by 179kdwt/built 2011 done for 11-13 months at BCI AVE 5 TC for 1st 30 days then $5350 for balance. Panamax The Panamax market continue at historical low levels. However, we saw increased activity in both hemispheres during the last week. Atlantic basin more active with coal, iron ore, bauxite and grain shipments. Fronthaul activity firmed a bit last week mainly with grain as driver and rates around 6500+160k for ECSA/Far East. Pacific basin also more active and firmer last week. Nopac rounds paying around 4000 del Japan. Aussie/Indo rounds paying in the high 4k delivery Aussie. Aussie/China rounds paying around 3k. Period fixtures still limited these days but some 10-13 and 11-14 months periods concluded at 4850/4900. Supramax In the Pacific, the market is a bit firmer; vessels are fixing basis DOP rather than arrival load port. Levels achieved are in the low USD 4000’s, whereas Ultramaxes are asking mid USD 5000’s. The East Coast South America market is helping the Indian Ocean market by drawing tonnage out in ballast towards the grain load ports. On the USG to India petcoke run, rates are also firming and high USD 8000’s are now the fashion. Period is still slow and the general levels are in USD 5000’s with a front-end discount to tempt the takers.

UN votes on mandatory North Korea cargo inspections

The UN Security Council today votes to impose mandatory inspections of any cargo vessel leaving or entering the Democratic People's Republic of Korea (DPRK). The agreement would require all UN member states to inspect cargoes leaving from or heading to North Korea. As well as searching for concealed weapons shipments, contraband under the new agreement includes exports of coal, iron, iron ore, gold, titanium and rare earth minerals from the country, the proceeds from which, the US believes, fund the DPRK's missile programme. Imports of aviation fuel, including rocket fuel, would also be banned.

Norden $285m loss in 2015

Norden was pushed into the red in 2015 due to a $340m write-down of vessel values, in line with the company’s profit warning. The Danish owner logged a full year loss of $284.9m, which was lower than the $415.6m recorded in 2014. The Danish company has already cut its exposure to the dry cargo market in 2016 and 2017 by 24%.

Glencore reported an annual loss of $5 billion

Glencore reported an annual loss of $5 billion, reflecting big write-downs of mining assets; without those, the Swiss mining-and-trading group’s net income was $1.3 billion, down by 69%. Glencore expects to sell $4 billion-5 billion-worth of assets this year and to cut net debt, once $30 billion and a worry for investors, to $15 billion by the end of 2017.

Suez Canal Access Channel is Officially Opened

Completed within just three months, the new 8.5 km (5.2 mile) access channel directly links the East Port Said port complex to the Mediterranean Sea, eliminating the need for vessels heading to the Suez Canal Container Terminal (SCCT) to wait 6-8 hours for a time window between vessel convoys transiting the canal. This means that the channel, dredged to a depth of 18.5 meters (61 feet), can provide 24-hour access to East Port Said, and SCCT, to the Ultra-Large Container Ships (ULCS) of 18,000 TEU capacity and above now deployed in the Far East/Europe trade lanes, and using the canal in increasing numbers.

Western Bulk has announced that it faces a lawsuit from creditors

Western Bulk has announced that it faces a lawsuit from creditors seeking reversal of the recent sale of its subsidiary Western Bulk Chartering to Bulk Invest's majority shareholder. The firm raised $16 million in cash from the recent sale, but it is spending about $4 to $5 million per month on overhead. A dissolution of the company at current market values for its assets would most likely leave creditors with a loss– especially given the bankruptcy liabilities in its charter-in contracts, which it estimates in the range of $250 million.

Scorpio Bulkers has delayed the delivery of eight bulker newbuildings

Scorpio Bulkers has delayed the delivery of eight bulker newbuildings by roughly six months. The dry bulk shipowner has delayed two ultramaxes and six kamsarmaxes under construction in China from delivery between March and September 2016 to September 2016 and April 2017. As a result of the delivery delays $41.2m in newbuilding payments due in 2016 will be pushed back to 2017.

Scorpio Bulkers posted a net loss of $510.78m for 2015

Scorpio Bulkers (SALT) has posted a net loss of $510.78m for 2015 as it took a big impairment hit in torrid dry markets. SALT has 33 vessels in the water and a further 20 scheduled for delivery.

India approved a $150 million credit for the development of Iran's Chabahar port

Under the agreement signed last year between the two countries, India will equip and operate two berths in the first phase of development at Chabahar Port and extend a credit line of $150 million through its external lending arm. Both berths will commence operations within 18 months of the signing of a final contract. India will make a capital investment of $85.21 million and annual revenue expenditure of $22.95 million on a ten year lease following which the ownership of equipment will be transferred to Iran. The Port of Chabahar is the only Iranian port with direct access to the ocean. The port was partially built by India in the 1990s to provide access to Afghanistan and Central Asia, bypassing Pakistan.

Greek bulker refloated in Argentina

A Greek bulk carrier is underway again off Argentina after grounding on Wednesday. Maritime agency NABSA said the 82,000–dwt Alkimos Heracles (built 2014) got stuck in the Punta Indio Channel in the morning. Later in the day, it moved slightly from its position, but could not refloat, blocking some traffic. Owner Ariston Navigation then brought in tugs to help the vessel free itself, but NABSA said on Thursday it had refloated under its own power.

Vale iron ore shipping drops 27%

Vale reported a 27% decline in maritime freight spending in its iron ore business in the fourth quarter as it shifted more of its volumes to a cheaper spot market. Adjusted for higher volumes, the Brazilian company’s quarterly freight costs represented a 15.8%, or $122m, decline when weighed against the third quarter.

Fearnleys Dry Bulk Market Report

Capesize Cape market remains flat and uninspired. It has been very little volatility this year, and the small changes that appears is mostly driven by the volatile bunker prices. West Australia market dipped again below USD 3 pmt mark this week. The timecharter rate for Pacific rounds is still around the low USD 2000 per day. Brazil to China market is in the mid/high USD 5 pmt level. There is still interest from owners to fix out their tonnage for period as it does pay a big premium to present spot market. Q1 is seasonally the weakest period of the year, but there is limited belief that the market will improve significantly when we do enter Q2. Panamax The small upswing and positive breeze after Chinese New Year is evaporating. Both hemispheres is in a mixed and uninspiring condition with some optimistic souls still looking for a seasonal upturn. The Atlantic is suffering with lack of fresh requirements, and Owners are crying at poor rates on voyage for TA and Fhaul. A Baltic round at 2750 show the TC return is well above voyage levels. Fhaul is hovering in the 6k range with USG/FEast just >20 pmt and falling. ECSA, which should be growing seasonal, has left the 6500+15 level and is hovering at abt 13 pmt. Aussie rounds done at 2800 from S.China, NOPAC at 3750 but all under pressure. Period interest is limited with 1-year done at uninspiring 4500 on LME. Supramax Fresh inquiries continued to surface this week, although activity not as strong as last week. Rates in both hemispheres have been increasing. Good candidates getting around 4k in the Pacific and rates now above 4k for the Indonesia/India coal run. Aussie RV is fetching mid 3k for vessel del SE Asia. The Atlantic is less active with Continent RV getting around 3k levels. Period trading at a good premium to spot market with late rumours of a new built Ultramax getting around 5k for about one year trading. Nice vessels getting 7k+70bb for ECSA run to Singapore/Japan.

Vale mine workers held protest

Vale SA workers held protests at several of the company’s Brazilian iron-ore mines seeking a bonus that wasn’t paid after slumping prices eroded earnings. Blockades organized by the Metabase Belo Horizonte union prevented other personnel from entering operations in the state of Minas Gerais. The protests were cleared by 2 p.m. local time. Seven mines and two railway terminals were targeted, an official briefed on the matter said. The strike was halted while negotiations with Vale take place. Union leaders are scheduled to meet again on Feb. 29 to discuss any additional strikes or protests.

New grain facility built in Ukraine

Cargill has been given the green light for a new $100m grain terminal in Ukraine. Ukraine Prime Minister Arseniy Yatsenyuk and other political figures formalised the plan with company officials. Cargill and partner MV Cargo entered a memorandum of cooperation on the project last August with the new port to be able to handle vessels up to 100,000 dwt.

China to close more than 1,000 coal mines in 2016

China will aim to close more than 1,000 coal mines over this year, with a total production capacity of 60 million tonnes, as part of its plans to tackle a price-sapping supply glut in the sector. China has a total of 10,760 mines, and 5,600 of them will eventually be required to close under a policy banning those with an annual output capacity of less than 90,000 tonnes. China has promised to stop approving all new coal mine projects for three years in a bid to control capacity.

Baltic Dry Index 316 points.

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, inched up on Monday on improved demand for smaller vessels. The overall index, which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertiliser, rose for the seventh consecutive session, by 1 point to 316 points.

Canadian owner Algoma removing vessels from tough markets

Canada’s Algoma Central Corporation is responding to softening markets by taking six vessels out of operation. It would “retire” five bulkers and a products tanker that have reached the end of their economic lives. It blamed a drop in rates due to stiff competition in the domestic bulker business and a drop in volumes carried by tankers and ocean-going dry cargoships. Algoma currently has 13 self-unloading bulkers, seven gearless bulkers and six products tankers.

China Cosco Shipping Corporation Limited has been officially launched

China Cosco Shipping Corporation Limited has been officially launched on Thursday in Shanghai, gelling together China’s two biggest state-owned shipping conglomerates – China Cosco Group and China Shipping Group (CSG). The merged China Cosco Shipping is led by chairman Xu Lirong, current chairman of CSG, while China Cosco’s deputy general manager Wan Min has assumed the position of president. Since the merger news circulated last year, eight listed companies of the two shipping groups saw their shares trading halted in August, before Beijing officially approved the merger in December.

China imported a record amount of sugar

China imported a record amount of sugar last year in what is one positive for the dry bulk sector, as much of it is shipped from Brazil. The world's largest buyer of sugar imported 4.85 million tonnes in 2015, 39% up on the previous year, and slightly higher than the previous record of 4.5 million tonnes in 2013.

Golden Ocean Group postponing newbuildings and selling new shares

John Fredriksen’s Golden Ocean Group (GOGL) has announced more refinancing measures to combat dry cargo markets. The bulker owner said it will strengthen its balance sheet by amending bank loans, further postponing newbuildings and selling new shares.

Vale’s iron ore production missed expectations

Vale’s iron ore production missed expectations in the fourth quarter as disruptions hit harder than analysts predicted. The Brazilian mining giant reported quarterly production of just under 90 million tonnes, when the results of its 50% share of production at shuttered mine Samaraco Mineracao and its third-party purchases are factored in. That marks a 4.9% slump from the prior quarter and a 0.2% dip from the final quarter of 2014.

Fearnleys Dry Bulk Market Report

Capesize Still very overtonnaged, despite increased idling/warm layup. With average daily spot unchanged at some USD 2800, less than half of OPEX, the fundamental question for many owners is why to bother keep propeller running. Substantial coa volumes concluded on the Tubarao/Qingdao run at equivalent to USD 4500 basis RV, but spot volumes keep disappointing on this conference trade. Similarly for TA, where coa discussions have hovered around the equivalent of USD 3k/day for 2016 and spot activity is close to negligible. Index-linked period remains a solution providing upside potential for typical tonnage providers, last exemplified by 180kdwt/2016 done ex yard for 11-14 months at BCI AVE 5 TC+19 pct. Panamax There has been some expectations of a seasonal upturn after the Chinese holidays and entry of “the year of the monkey”. However, market seems to continue its bumpy ride with the only exception being grains out of ECSA. Fronthaul has come up a fraction to hover around 6500+165k GBB bss APS alternatively about 4500 bss India/Spore rge dly. Otherwise, most business in the Eastern hemisphere is moving from APS to DOP although only in the poor 2k rge. In the Atlantic there is not much to cheer from either, although rounds are done in the 2-3k rge on TC and fronthaul up to above 6k bss DOP dly. Owners willing to do period are facing mid 4’s for same. Supramax In the Supra market, we see an increased activity level in the Eastern hemisphere mid-week. The Chinese are back from holidays and we do see a greater volume of cargoes being circulated. This put a side we still have an oversupply of tonnage, but stronger rates are being concluded after all. The 4k mark for trips Indo/India is not that far ahead and coal cargoes into China are increasing. In the Atlantic we do not see any market uptick in the same extent. Owners taking the re positioning leg into USG face rates barely covering bunker cost. A positive sign is fresh grain cgos ex ECSA for March dates which could help the TA market somewhat going forward. Period market is quiet and rates are still in the high 4k's.

Crew Missing After Cargo Ship Sinks off Papua

Forteen people are missing after the cargo vessel KM Azula capsized off the coast of Papua last weekend. Indonesia’s Mimika Search and Rescue spokesman said the organization received notice of the casualty on Saturday evening local time. The rescue team located the heavily listing vessel around 20 kilometers from Asmat, but none of the 14 crewmembers were found. KM Azula was reportedly carrying building materials from Surabaya, and the vessel is believed to have capsized due to the heavy load and poor weather conditions. The search continues with at least three SAR vessels deployed as well as police and naval support.

Japan offers to buy 150,817 tonnes food wheat

Japan’s Ministry of Agriculture is seeking to buy a total of 150,817 tonnes of food quality wheat from the United States, Canada and Australia in a regular tender that will close late on Thursday.

Shipowners refrain from newbuilding market

Ship owners around the globe are trimming down their investment plans, as a plunging freight rate market for both dry bulk and container segments. Market has been a fairly slow week, being mostly orders that were fixed prior to last week and were delayed to surface in the market. Difficulties continue to be seen.

Intermodal Dry Bulk Weekly Report

The BDI moved further down last week (291pts), fact that hardly took anyone by surprise as the lunar year holidays in Asia on top of the already depressed market almost no space for improvement in earnings yet again. Acti vity during the first half of the week was depressed across the board, while closer to Friday there was a sense that things had finally started moving a bit. The Panamax segment has been the only positi ve excep tion, over performing the rest of the market, with a small rebound in average earnings being noted. Given current levels, this upward reversal was of course no reason to pop open the champers, but despite the lack of significance it certainly signaled that rates for the segment could be booming. Whether this is true, will be more evident of course once Asian ac tivity resumes, while a shift in psychology will also be needed on behalf of owners in order to give this small posi tive reversal support to extend further into a more substanti al turnaround. Lack of acti vity in the beginning of the week together with rock bottom senti ment, has pushed rates for Capes south for yet another week, while period numbers reported in the market complete the very challenging mes ahead for the segment. Panamax rates out of ECSA were s ll gaining a premium over the rest of the market, as increased ac tivity led to slightly improved numbers in the region. In addi on, Rio Tinto is reported to be topping its bauxite produc on in northern Australia, which is definitely good news for the Panamax trade in the region that has suffered a lot on the back of depressed coal volumes. Handymax/Supramax tonnage saw less acti vity ex USG last week, while in the East very few orders added extra pressure to owners, who nonetheless seemed to be resisti ng to fix much lower. The Handysize market kept witnessing very thin ac tivity across both basins, while period enquiry for the geared sizes as a whole remains scarce.

Port Officials Kicked Out

Kenya Ports Authority had replaced senior managers at Mombasa port in response to pressure to tackle drug and ivory smuggling at East Africa's main trade gateway. Masden Madoka, the port's chairman, said managing director Gichiri Ndua and five other senior managers had been sent into early retirement and several others were likely to follow. There are no suggestions any of the six were directly involved in smuggling, though Madoka said investigations into corruption were ongoing.

The European steel industry protest against Chinese dumping

Thousands of European steel industry workers and officials marched today to the European Commission in Brussels against possible recognition of China’s Market Economy Status (MES). Also demands fair trading practices and solutions to handle the loss of thousands of jobs due to manufactures from China. The aim of the protest is to raise awareness among leaders of the European Union and the European Parliament to deny recognition of MES to China, since it is not an economy operating under market conditions and could negatively affect the trade, industry and regional employment.

BDI rises for first time in 2016

The Baltic Dry Index (BDI) has risen for the first time in 2016 thanks to a small increase in the panamax sub-sector. According to the Baltic Exchange, the main index 291 today, gaining one point since Thursday. The BDI has set multiple new negative records in 2016, with rates for bulk carriers sinking.

Mercator sells dry bulk arm Mercator Lines $2.20mln

Dry bulk shipowner Mercator Lines (Singapore) Ltd (MLS) will be sold for a token SGD3 ($2.20) by its parent Mercator International to a group of three private equity firms. Mercator announced in a statement to the National Stock Exchange of India that it has entered into a sale and purchase agreement to sell the entire stake of 900,850,000 shares of MLS to Bellerophon Holdings Pte Ltd Singapore, MIB Investments Private Limited Singapore, and Wroclaw Holdings Limited Singapore. The proposed transaction, expected to be completed by 25 March 2016, will effectively allow Mercator to write-off MLS’s debts of around $164m.

It will be decades before big cargo ships link a shortcut through the Arctic Ocean

Climate change, retreating summer ice and the prospect of shorter journey times and 40% lower fuel costs has led Russia, European governments and some industries to expect a major ice-free shipping lane to open above Russia, allowing regular, year-long trade between the Atlantic and Pacific oceans within a few years. But, says the Arctic Institute in a new paper, low bunker fuel prices, a short sailing season and continuing treacherous ice conditions in the Arctic even in summer months means it could be 2040 at the earliest before it is commercially viable for ordinary merchant ships to pass through what is known as the northern sea route. Until then it will remain cheaper to send trade between Europe and the east via the Suez canal. Russia has tried to open up the Arctic to international traffic by offering icebreaker service and better port facilities. But cargo in transit along the northern sea route dropped from 1.3m tonnes in 2013 to 300,000 tonnes in 2014. Last year only 100,000 tonnes was transported between Asia and Europe on the route. However, there was a big rise in the number of vessels going to and from Russian Arctic ports.

Fearnleys Dry Bulk Market Report

Capesize The week has been heavily influenced by the Chinese New Year celebrations in the Far East. China is off the entire week and several other countries have been off for a few days as well. The market activity been very limited and the freight rates are flat. The West Australia market have since Christmas been steadily holding tick below USD 3 pmt mark, and the TC market for Pacific round voyage is around the USD 2000/day. There is a further increase in shipowners who now want to fix out their tonnage for period, as they see market is not likely to improve in near future, and period market still pays nearly the double of what the spot market presently trading at. However the period market is now well below OPEX. Panamax With Chinese New Year and most Asian countries away at the beginning of the week, it has been a very slow start. Rates are hovering around same levels as last done while the upcoming ECSA grain season is relighting some positiveness amongst owners. The start of the week has been in a wait-and-see modus where owners have been waiting for players to return from holidays. TA’s are paying around 2k depending on duration and destination, while fronthauls have increased somewhat with 6k being done. In the Pacific we see the rounds are being fixed in the low 2k’s. Supramax The past week has been influenced by the Chinese Lunar New Year celebrations. A quiet end to last week and an even quieter start to this week. Although there is some hope for a rally once the market is back at work, there is no sign of same yet. The Pacific is still wobbling around the USD 2000 mark, and the Atlantic is not faring much better. The fronthaul numbers have improved slightly and are ahead of the paper market now. This leg is presently trading at about USD 6000+USD 60,000 in ballast bonus. Period has been concluded at a premium to the spot market, but forward cargos are demanding a discount, if that is possible, to the spot market.