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Weekly Review of Ship Trading (2019.09.11)


Sep 23 2019

Weekly Review of Ship Trading

Capesize prices plunge, prices of refined oil tankers rise slightly

On September 11, the Shanghai Shipping Price Index released by the Shanghai Shipping Exchange was 828.50 points, a slight increase of 0.14% from the previous month. Among them, the Composite International Tanker Ship Price Index and the Inland River Bulk Cargo Price Index rose by 0.33% and 0.94% respectively; the International Bulk Carrier Ship Price Composite Index and the Coastal Bulk Carrier Price Composite Index fell by 1.36% and 0.60%, respectively.

Freight rates in the international dry bulk shipping market fell and the BDI index fell for four consecutive days. It closed at 2393 points on Tuesday, down 4.32% month-on-month, and the prices of second-hand bulk carriers fell more or less. In this issue, a typical 5-year-old international bulk cargo ship is valued at 355,000 DWT- $ 11.95 million, an increase of 0.32% from the previous month; 577,000 DWT--15.21 million, an increase of 0.96% from the previous month; 75,000DWT--18.80 million, an increase of 0.21% from the previous month ; 170,000 DWT-28.71 million US dollars, down 4.79%. At present, after the concentrated shipment of iron ore, grain, coal and nickel ore, the number of pallets has decreased, and the spot freight rate has dropped. The 1-year time charter rent of various types of international dry bulk carriers has been reduced. The price of second-hand bulk carriers is expected. The short-term shocks are mainly concentrated. In this period, the transaction of the second-hand bulk carrier market is very active, with a total of 30 vessels (an increase of 23 vessels), a total capacity of 1,950,500 DWT, a turnover of US $ 383.4 million, and an average age of 10.20 years.

U.S. crude oil inventories have once again decreased and the decline has far exceeded expectations. At the same time, refined oil inventories have fallen sharply across the board. Saudi Arabia ’s commitment to steadily promote production reductions has greatly encouraged the confidence of crude oil bulls, and international oil prices have continued to rise. Brent crude oil futures closed at $ 62.38 / barrel (Tuesday), up 7.07% from the previous month. In this issue, the international crude oil tanker freight rate fell slightly, the refined oil tanker freight rate fluctuated and consolidated, and the prices of second-hand international tanker ships rose steadily. Five-year-old international oil tanker typical ship valuation: 477,000 DWT-22.14 million US dollars, an increase of 1.16% month-on-month; 744,000 DWT--21.97 million US dollars, a decrease of 0.03% month-on-month; 105 000 DWT-31.76 million US dollars, a decrease of 0.02% month-on-month; 158000 DWT-- 42.79 million US dollars, an increase of 0.15% from the previous month; 300,000 DWT-66.29 million US dollars, an increase of 0.15% from the previous month. At present, the volume of West African crude oil pallets has increased, crude oil transportation distance has been extended, and the spot freight rates of international oil tankers have rebounded slightly, and the forward rents have risen and fallen slightly. It is expected that the prices of used oil tankers will increase steadily in the short term. In this period, the transaction volume of second-hand international tankers has recovered, with a total of 16 ships (an increase of 14 ships), a total capacity of 1,273,800 DWT, a turnover of US $ 279.4 million, and an average age of 11.38 years.

The domestic coastal bulk shipping market is affected by typhoons, the ship turnover is blocked, the available capacity is tightened, the freight rate has risen slightly, and the prices of second-hand coastal bulk carriers have fallen more or less. In this issue, the typical value of a 5-year-old domestic coastal bulk cargo ship is 1,000DWT--1.5 million yuan, a decrease of 1.11% from the previous month; 5000DWT--7.52 million yuan, an increase of 0.33% from the previous month. At present, imported coal may be restricted, domestic coal prices will rise, renewed enthusiasm for downstream procurement, coal pallets will increase, and spot freight rates will rise slightly, but steel mills are relatively cautious in purchasing iron ore, and coastal bulk freight prices continue to rise. It is expected that the price of bulk carriers will stabilize in the short term. In this period, the transaction volume of coastal bulk carriers was scarce. The tonnage of the transacted vessels was mainly 7000 DWT, and the vessel age was about 10 years.

The inland river bulk shipping market is basically stable, and the price of second-hand bulk carriers continues to rebound after falling for many weeks. In the current period, the valuation of typical domestic inland river bulk ships with a 5-year age: 500DWT--520,000 yuan, an increase of 3.68%; 1,000DWT--980,000 yuan, an increase of 1.64%; 2000DWT--1.92 million, an increase of 1.36 %; 3000DWT-2.64 million yuan, an increase of 0.54%. At present, the infrastructure and real estate markets generally have demand for building materials such as steel, cement, and yellow sand, and the inland bulk freight prices are basically stable. It is expected that the prices of inland bulk carriers will fluctuate and consolidate. In this period, the trading volume of inland waterway bulk carriers shrank significantly, with a total of 38 ships (a decrease of 38 ships), a total capacity of 87,400 DWT, a turnover of 78.71 million yuan, and an average age of 9.49 years.

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