Dry Bits Week 12

Top & Bottom 5 Day: NMM @19.89 +9.70%, OCNF @0.70 +9.375%, DRYS @4.90 +8.40% >>>GLBS @8.39 -1.06%, SBLK @2.44 -1.21%, FREE @2.76 -1.42%. The fact that Navios Partners gained almost 10% somewhat legitimizes the Economou family plays. Bear in mind :~) that Angel’s spin NMM, is the only pure bulk play with both DRYS and Cousin Eddie’s OCNF running mixed fleets. For our covered sector, Ganiers 12 and Losers 4.

The Baltics: BDI @1585 +3.52%, BCI @1805 +6.99%, BPI @2078 -0.76%, BSI @1603 +1.84%, BHSI @780 +3.31%. The Handies continue the comeback posting their 7th consecutive week of gains. Do we think this might have something to do with the newbuild deliveries killing the larger tonnage fleets?

The Fixtures: Ore =14, Coal =7, T/C =84, Period =31, total =136. The Ore Chores and coal runs both saw huge w.o.w. improvements. The real headliner comes from the period market where we saw ~ one in five fixtures going “long”.

Top weekly fixtures vs. spot rates;

Capes $16,000 trading 11 – 13 MOS Navios Happiness vs. spot $10,634

Pmax $22,500 trading 4 – 6 MOS m/v Accord vs. spot $16,684

Smax $21,500 trading 3 – 5 MOS m/v New Liu Lin Hai vs. spot $16,854

Readers will notice the Supramax class is fetching more spot dollars than the Panasisters or Capes. The market remains Kadywhompus. The Cape/Pana ratio is being outperformed by the Cape/Supra spreads. Who are we to question the markets performance.

The Vessels: Capes =25, Post Pana =5, Kmax =4, Pmax =57, Smax =22, Hmax =4, Hsize =4, Bulkers =5. The capes employment is directly a function of the improved ore trades. The smaller ladies will start seeing more ECSA runs as we begin pulling from the harvests. Looking for the market to again improve this next coming week. Last week we had mentioned hitting 800 BHSI and even though we did not make it, we again stress the little ones will rock. Like our friend from Cotzias Shipping (Bernard) says “give me a handy with gears any day” so we wonder when EGLE will receive the markets affection.

Ski Notes: The following familiar vessels populated the week’s fixture reports. Navios Azimuth, Navios Asericks, Navios Serenity, Navios Cielo, Navios Herakles, Newsea’s Pearl, Genco Rhone, Navios Happiness. The newest addition to Angel’s fleet is the Serentity, beginning a Cargill charter ex yard. The “open to the public” Yahoo message board’s normally raucous and foul mouthed threads have been minus one of the few dry bulk informed posters this last week. The staff at TonMileTrader suggest this development yields more bad than good for genuine bulker enthusiasts looking for scraps of valuable information buried among the public offerings. Cheering good news is great and fun, enduring repetitive (yet accurate) bad news is perhaps compulsory.

Good Fortunes

Ski

Freeboards

Ahoy There!I often use the expression “watch your freeboards” when thinking something bad is about to happen, or advising against something. I knew it meant how many boards must remain visible (above water) for a vessel to be seaworthy. I came across some chartering terms while reaffirming my idea of SHINC and bam cut & paste away.

FREEBOARDS:The basic freeboards that are calculated according to these rules depend on the length and type of vessel. “Type A vessel” is designed to carry only liquid cargoes in bulk and in which the cargo tanks have only small access openings closed by watertight gasketed covers of steel or equivalent material. These vessels are assigned with the lowest freeboards owing to the fact that because they ‘are nearly sealed, their buoyancy is unlikely to be lost unless they are damaged.

All other ships are “Type B vessels”. Basic Type B freeboards are larger, which means a lower draught. The Type B freeboard can be increased or reduced depending on the type of ship and its fittings. If vessels have old-fashioned hatchways covered with portable beams and covers, their freeboards are increased. Vessels having steel weathertight covers fitted with gaskets and clamping devices, improved crew protection, better arrangements for freeing water on deck and good subdivision characteristics, are considered to be safer and can have a freeboard reduced from the basic Type B freeboard. A greater reduction can be enjoyed by such vessels up to the total difference between the Type A and basic Type B freeboards. The Type B vessel which is assigned a Type A freeboard is called a “Type B - 100” vessel. Its subdivision requirements will be very severe. Other Type B vessels may be assigned a freeboard based on 60 per cent of the difference between Types A and B freeboards if their subdivision requirements are less severe.

Bulk carriers will be most advantaged if they can reduce their freeboards and load to deeper draughts. Ore carriers with two longitudinal bulkheads may be as sealed as tankers and can enjoy the B - 100 freeboard.
Good Fortunes

Dry Bits Week 9

Ahoy There!
Top & Bottom 5 Day: FREE +9.96%, GLBS +7.17%, TBSI +6.21%>>>
SHIP -5.92%, EXM -6.0%, OCNF -6.41%. Readers will notice SHIP has populated the laggard list two weeks in a row. This qualifies as an alert to the momentum folks. Sector wide we had 9 gainers and 7 losers during the week. Uncle George’s DryShips/DrillShips almost made the top 3. It (DRYS) would have been the top dog if folks had read the latest DRYS projections authored by Ohms Law. We will be sharing portions of the report next TMT post.

The Baltics: BDI @1346 +8.11%, BCI @1427 +8.51%, BPI @1983 +9.43%,
BSI @1467 +5.92%, BHSI @704 +2.32%. This was a good week for the owners. Looking at the Baltic numbers Boomer James points out that Capes boast a 1427 point index compared to the Handies lowly sounding 704. That is less than half the cape index yet Handies are earning twice as much as Capes on the spot. Try to bounce them numbers off the Baltic’s formula and the index calculations have weighting issues that jump out at you.

The Fixtures: Ore =15, Coal =3, Bauxite =2, Scrap =1, HSS =1, T/C =87, Period =15, Total =124.
The Ore Chores dropped more than we expected. The drop in coal is significant but kinda the way it works. Hit one week off the next. One of Genco’s little boats Genco Sugar is hauling that load of scrap and we will look closer at it below.

Top Period & Spot rates:
Capes $16,000 11 > 13 MOS Spot $5,277
Panasisters $17,500 4 > 6 MOS Spot $15,478
Supras $17,250 4 > 6 MOS Spot $15,202
Handies $12,250 11 > 13 MOS Spot $10,460
This is amazing that we see another long term cape fixing way over the spot. We can only guess what those folk paying giant premiums above the spot market know that we don’t know!!!

Ski Notes: We have the following familiar vessels showing up in the reports. Navios Kypros, Genco Sugar, Phoenix Beauty, Navios Primavera, Thor Infinity, Corona. The fixture for the Genco Sugar has the vessel running scrap from Antwerp to Alexandria at a rate of USD27,00. Our calculations indicate this will be a profitable fixture in spite of the local areas abundance of available tonnage. The Panamax fixture volume was dismal until Thursday signing 24 CP. Even with the big day the week was weak.
Good Fortunes
Ski