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November 6th, 2015
Volume 159, Issue 697
Week 45
“You just can’t beat the person who never gives up.”
- Babe Ruth
Highlights:
MARKET COMMENTARY
EASE THE PRESSURE!
• Sales rack up.
The anticipated glut of fourth quarter sales began in earnest this week with several decent
sized panamax containers sold amidst the now customary dry panamax and capesize bulker
sales.
• Bangladesh absorbs.
• Container woes.
• Sharing burden.
• 100 capes for year?
It was little surprise that all of those vessels were committed into the best-placed market i.e.
Bangladesh, as levels and demand pushed on there for another consecutive week.
Struggling container freight rates and the continued disappointments of the dry-bulk sector
should see many more vessels hit the recycling market before the end of the year, but
questions remain as to how much longer this Bangladesh revival can (will?) hold for.
A number of the hot buyers have already been booked with larger LDT tonnage in recent
weeks and those buyers that remain are simply not as aggressive or do not have their LCs in
place, in order to conclude a safe deal with. As such, the job of a dependable cash buyer is to
ensure on LC facilities in order to confirm that the vessel can be imported upon arrival,
without any banking delays / non-performance issues by the end user.
The responsibility therefore has to fall on competing sub-continent markets – Pakistan in
particular – in absorbing some of this tonnage, in the final few months of the year. India
appears to be absolutely nowhere (in terms of its current ability to negotiate / conclude
available units) and is as much as USD 30/LDT behind on select tonnage.
With 89 capesize bulkers sold so far this year for recycling and several more in the pipeline
for the weeks ahead, it would be no surprise to see 100 capes sold for scrap this year, to ease
the pressure on a currently bloated sector.
For week 45 of 2015, GMS demo rankings for the week are as below:
Cash Buyer to be
ISO 9001:2008
Certified
Demo
Ranking
1
2
3
4
5
Country
Bangladesh
Pakistan
India
Turkey
China
Market
Sentiment
Weak
Weak
Weak
Weak
Weak
GEN CARGO
Prices
USD 300/lt ldt
USD 295/lt ldt
USD 280/lt ldt
USD 175/lt ldt
USD 125/lt ldt
TANKER
Prices
USD 330/lt ldt
USD 325/lt ldt
USD 310/lt ldt
USD 180/lt ldt
USD 145/lt ldt
GMS Weekly
Page 2 of 8
BANGLADESH
TO THE FORE!
BANGLADESH
BANGLADESH
A number of high LDT vessels were concluded at decent rates into Chittagong this
week as the Bangladeshi market maintained its top-placed status once again.
Top status.
At current levels, demand and sentiments remain good but there are concerns that
some of the more capable buyers are starting to dwindle and the market may
inevitably cool off in the weeks ahead.
BANGLADESH
Of the tonnage concluded, Swissmarine sold their capesize bulker CHOULEX (18,563
LDT) for a rather firm USD 330/LT LDT (although the vessel had 500 Ts of bunkers
included in the sale).
BANGLADESH
Vessels sold.
BANGLADESH
Two panamax containers were concluded ‘as is’ Singapore with the EVER RACER
(22,144 LDT) sold for an impressive USD 322/LT LDT with extra payment for
bunkers and lubes, whilst the Laeisz controlled PUSAN (18,851 LDT) was fixed for a
more modest USD 315/LT LDT, in what seems to be the initial signs of a softening
market.
BANGLADESH
Finally, the panamax bulker SEA VENUS (9,937 LDT) was fixed from Korean owners
for a good USD 315/LT LDT ‘as is’ Singapore with 400 Ts bunkers included in the
sale.
BANGLADESH
MARKET SALES REPORTED
VESSEL NAME
TYPE
LDT
CHOULEX
Bulker
18,563
EVER RACER
Container
22,144
PUSAN
Container
18,851
SEA VENUS
Bulker
9,937
REPORTED PRICE
USD 330/LT LDT (with 500 Ts bunkers
upon arrival)
USD 322/LT LDT (‘as is’ Singapore with
extra payment for bunkers and lubes)
USD 315/LT LDT (‘as is’ Singapore with
extra payment for bunkers)
USD 315/LT LDT (‘as is’ Singapore with
400 Ts bunkers included in sale)
GMS Weekly
Page 3 of 8
INDIA
ALL ENVELOPING GLOOM!
INDIA
INDIA
The depression presently enveloping the Indian market showed few signs of abating
this week, with further falls reported on local steel plate prices, resulting in an overall
reluctance to offer on any available units, in the fears of further losses in the future.
No sales.
INDIA
As a result, there have been no sales reported to Indian end buyers and whilst Pakistan
and Bangladesh continue to perform better, it is likely to be a much quieter period on
the shores of Alang.
INDIA
Indeed, fresh arrivals at the waterfront have been limited over the last few weeks as
only 20 - 25 yards remain operational locally, out of the 150 or so that have been
acquiring vessels over the peak of the last few years.
No arrivals.
INDIA
Banks remain incredibly reluctant to sanction new LCs due to the severity of the falls
this year (almost 50% of market value has been lost) and a number of yards have been
forced into closure as a result.
INDIA
The Indian Rupee spent much of the week trading at levels around Rs. 65 against the
U.S. Dollar as the currency gives little respite to under pressure and beleaguered endbuyers.
INDIA
As such, it remains worth steering clear of the Indian market in the current form.
NO MARKET SALES REPORTED
Steer clear.
GMS Weekly
Page 4 of 8
PAKISTAN
PRICE GAP TOO GREAT!
INDIA
INDIA
Losing out.
Pakistan lost out to a rampant Bangladeshi market this week and was unable to secure
any sales despite an improving demand.
INDIA
Presently, the price gap remains just too great to divert vessels from the shores of
Chittagong – especially for those units coming from the Far East (and therefore closer to
Bangladesh).
INDIA
Improving?
There were signs towards the end of the week that prices were starting to improve to
compete with Bangladesh and with many containers set to come into the market (not the
unit of choice for Gadani buyers due to draft issues), they will need to make a notable
improvement in prices, in order to get their hands on desired vessels once again.
INDIA
INDIA
INDIA
NO MARKET SALES REPORTED
GMS Weekly
Page 5 of 8
CHINA
GREEN GAP CLOSING!
With levels at around USD 150/LDT (over half of what sub-continent markets are
presently offering), there was no chance of any international market tonnage being
concluded into China.
Half of sub-continent.
Moreover, with class NK certifying several yards in India recently, the gap in standards
on green tonnage between both locations is also significantly (and certifiably) narrowed.
Notwithstanding, the number of deliveries of Chinese flagged vessels from state owners
to local yards continues to keep them busy, so the supply has not totally dried up for
them and it remains business as usual (to a certain extent).
NO MARKET SALES REPORTED
State supply continues.
GMS Weekly
Page 6 of 8
TURKEY
MIXED POSITIVITY.
TRY tumbles.
The uptick in the national currency did not last long, with the Turkish Lira bouncing
back to TRY 2.9 levels (where it has been trading during the recent past) wiping out any
positive sentiment created last week, due to the unexpected appreciation to TRY 2.7
levels against the U.S. Dollar.
Nonetheless, local steel plate prices keep appreciating, thereby further encouraging the
rumors that prices starting with USD 2XX/MT are inevitable. This also resulted in offers
improving by another USD 5/MT during the course of the week.
Meanwhile, supply remains notably dithered with only 1 (less than 4K LDT) vessel
having reportedly arrived Aliaga during the last week as demand remains high (in light
of the inability of yards to secure tonnage and the increasing value of local steel prices).
NO MARKET SALES REPORTED
Miscellaneous
Page 7 of 8
i
THE HUMAN BODY…
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1 in 10,000 people have their internal organs reversed or "mirrored" from their normal positions.
10% of human dry weight comes from bacteria.
10% of men and 8% of women are left-handed.
80 head hairs are likely to fall every day.
Diabetes causes 6 deaths every minute and 1 in 20 deaths in the world. Every year 3.2 million people
in the world die from diabetes or related causes.
Body fat is not particularly hazardous to health until the level of total body fat reaches 35% for men
and 40% for women.
Eating Breakfast helps to burn 5 to 20% of calories throughout the day.
A red blood cell can circumnavigate your body in under 20 seconds.
A child’s ability to learn can increase or decrease by 25% or more depending on if the child grows up
in a stimulating environment.
IMPORTANT DATES
INDIA
BANK HOLIDAYS
BEACHING TIDES
November 11 – Diwali
November 25 – Guru Nanak Jayanti
November 10 – November 17
November 23 – December 01
BANGLADESH
BANK HOLIDAYS
BEACHING TIDES
November 09 – Birthday of Muhamma Iqbal
November 11 – November 13
November 25 – November 27
IMPORTANT BANK HOLIDAYS
TURKEY
PAKISTAN
CHINA
No more holidays until 2016
November 09 – B’day of
Muhammad Iqbal
No more holidays until 2016
Prices indicated above are as reported in the market and are not necessarily accurate. This information is provided without prejudice and is given in
good faith and without any guarantees whatsoever. While every care has been taken in the preparation of this report, no liability can be accepted for
any loss incurred in any way whatsoever by any person relying on the information contained herein. Opinions expressed herein may be deemed
subjective and arbitrary. This WEEKLY is intended only for the person or entity to which it is addressed and may contain confidential and/or
privileged material. Any review, retransmission, dissemination or other use of this information by persons or entities other than the intended
recipient is prohibited.
GMS Port Report
Page 8 of 8
ALANG - Port Position as November 06, 2015
No.
1
2
3
4
5
6
7
8
VESSEL NAME
Ahura
Infinity
MSC Anna
SCF Suek
Tsunomine
Ville D'aquarius
Wind Forrader
Winner
LDT
6,977
7,878
3,938
15,335
19,701
15,887
2,461
9,203
Total Tonnage
TYPE
STATUS
Passenger
Bulk Carrier
Gen Cargo
Bulk Carrier
Bulk Carrier
Container
Reefer
Bulk Carrier
Beached November 03
Arrived October 04
Arrived November 03
Arrived October 27
Arrived October 09
Arrived November 02
Arrived November 04
Arrived November 04
81,378
CHITTAGONG - Port Position as of November 06, 2015
No.
1
2
3
4
5
6
7
8
VESSEL NAME
Banglar Moni
Duke
Feng
Forever
Multi Delta (Dead Vessel)
Tania
Tiger Bridge
Zim Pacific
Total Tonnage
LDT
6,090
10,644
13,973
9,724
9,184
4,647
8,596
16,900
TYPE
STATUS
General Cargo
Bulk Carrier
Bulk Carrier
Bulk Carrier
Tanker
Container
Container
Container
Arrived July 17
Arrived October 30
Arrived November 02
Arrived November 04
Arrived November 04
Beached November 02
Arrived October 30
Arrived October 31
79,757
GADANI - Port Position as of November 06, 2015
No.
VESSEL NAME
LDT
TYPE
STATUS
No new vessels reported.
Total Tonnage
0
WHILE EXTREME CARE HAS BEEN TAKEN IN THE PREPARATION OF THIS REPORT, NO LIABILITY CAN BE ACCEPTED FOR ANY LOSS INCURRED IN ANY WAY
WHATSOEVER BY ANY PERSON RELYING ON THE INFORMATION CONTAINED HEREIN.