Baltic Index Inches Up & Speculations On SALT (Scorpio Bulkers) Up For A Sale!



Greetings readers.

We are happy to write to you on this first day of the new month.  So what the shipping market has to say today? Here are few exciting and interesting updates happening around the globe which we think will bring you to the edge of your seat.  Go on! Read further to get insights from MFAME’s exclusive Market updates.

Size doesn’t Matter! Baltic Dry Index Inched up with Smaller vessels extending its rally.  If you have small bulkers, you are likely to see an uptrend with the current scenario.

We reported that the Baltic Dry Index tumbled to record low at 290 points on February 10th 2016.

The overall index is at 329 points, where:

  1. The Capesize index has touched an all time low at 174 points with average daily earnings of about $2,356
  2. The Panamax index inched up by two points to 354 with average daily earnings of about $2,845
  3. In the smaller vessel segment, the supramax index inched up by six points reaching 339 points, while the handysize index gained two points reaching 214 points

Does the Baltic Dry Index makes sense?

Here comes a story from Pacific Basin (Pacific Basin is a leading owner and operator of bulkers ranging from handy sizes to supramaxes.)

Pacific Basin’s top executive said that despite the downtrend for the dry bulk shipping, the demand for minor bulk commodities and grains carried by small bunkers is growing and is expected to increase further.

The Top executive from Pacific Basin said that commodities like soybeans and bauxite are showing “good growth”.  A turnaround in Pacific Basin’s supramax performance has helped the company chop its annual loss reports Tradewinds.

Does Angelicoussis’ Anangel Shipping Enterprises has a Huge taste for SALT?

While Pacific Basin outperforms the market, here comes a shocker.

Scorpio Bulkers is in advanced talks to sell its entire fleet to Greek shipowner John Angelicoussis and such speculations continue as usual.  Scorpio Bulkers (SALT) has 33 vessels in the water and a further 20 scheduled for delivery, although two of the new buildings are believed sold to Zodiac Maritime.

Angelicoussis’ Anangel Shipping Enterprises has been a buyer of bulkers at what appear to be trough-level prices, eyes even more capesizes from Star Bulk, who is another leading Dry Bulk operator.

While SALT has not yet confirmed any sale or negotiation, it is really surprising to know that the Greeks are buying more bulkers than ever at a rock-bottom price.  On the other end, Scorpio tankers  quadrupled profit in 2015 with a strong market for tankers.

Resources disclosed to MFAME that even Bangladeshi ship owners are buying bulkers at a better price, and to be precise, at almost double the scrap price.

What?  Is someone in confidential talks to buyout Baltic Exchange?

Before we proceed to the news, if you are wondering what is Baltic Exchange, here is a short note on it.

Founded in 1744, the Baltic Exchange has 650 member companies and publishes a number of key shipping indexes including the benchmark Baltic Dry Index.

The Baltic Exchange said in a statement that it was in “confidential discussions with selected third parties regarding its future strategy and ownership”.  The statement follows a Reuters story that up to four different parties were looking at the possibility of buying the Baltic Exchange.

The report name four interested parties – Singapore Exchange (SGX), CME Group, – of which only one SGX has publicly confirmed its interest. SGX said on Friday it had made a non-binding bid for the Baltic Exchange.

Hope these updates were not too much to digest.

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Happy Reading Folks!

I will write to you tomorrow.

Source: Baltic Exchange, Reuters & Tradewinds


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