Monthly Shipping Review
13- November - 2012

Editorial date: 15 October 2012
Dry bulk: Firmer; Tankers: Softer ; Ship values: Wet: Softer; Dry: Softer

Dry Bulk
• Baltic Exchange Dry Index returns to the late July level as the Capesize TC average breaks $10,000/day for the first time since January.
• The Panamax Atlantic market collapses then recovers in October.
• US Dept of Agriculture revises its US soyabean export forecast higher, partly reversing earlier cuts.
• Comparative stability in geared vessel markets, but Handysize and Supramax TC averages sink to seven-month lows in October.
• Strong demand pushed transatlantic MR rates to the highest since May, however, European refinery maintenance has since cut volumes weighing on rates.
• US demand, particularly from the west coast, has boosted the Atlantic Panamax market as tonnage lists tighten.
• Mediterranean Aframax earnings turned negative for the first time this year due to excess prompt tonnage.
• VLCC MEG-East earnings strengthened in first half September but excess tonnage soon pushed them back into negative territory.
Fleet Developments
• Despite concerted scrapping in 2012, dry bulk fleet growth continues apace: in the first 9 months of the year, fleet additions exceeded removals by a net 582 vessels of 59.23mdwt. Much of this expansion in fleet supply has been concentrated in the Panamax and Capesize sectors.
• A lighter schedule of new deliveries and continued scrapping of older vessels has led to slower growth in the tanker fleet in 2012 to date. Tonnage supply rose by a net 94 vessels of 16.56mdwt in January- September inclusive.


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