The subcontinent market is on a roll with good availability of tonnage in the form of Capesizes and VLOCs. The prices being offered are swinging in the range of USD 390-430/MT depending on the size and type of the vessel and the place of delivery. Due to the consistency of high prices prevailing in India, Pakistan, and Bangladesh, ageing tankers have also started entering the demolition market.
Shortage of containers has critically hampered the Global import and export activities. Logistics community worldwide is working closely to reduce empty idle times, shorten loading times and make optimal utilization of all available space.
The Baltic dry index, which tracks rates for capesize,panamax and supramax vessels rose this week as freight rates increased across all vessel segments.
On 10th December, which is celebrated as UN Human Rights Day, IMO called out all Government bodies who have not yet designated seafarers and marine personnel as “Key Workers”. Our heart goes out for all those seafarers who are stuck in sea since past 18 months due to travel restrictions and hope the voice of our marine community gets heard across the globe.
With less than 3 weeks to go for Brexit deadline, the UK and EU have a lot to work upon regarding the Trade agreements. There is a lot of ongoing trade between the EU and the UK, which will not change overnight. Brexit supporters say leaving the EU will give the UK more freedom to strike trade deals around the world.
EU believes that Maritime transportation and Aviation willhave to go extra lengths to achieve decarbonization due to longer life cycle of vessels and heavy investments required in infrastructure and refueling equipments. Decarbonization of the entire shipping fleet is now underway as the environmental lobby is gaining prominence and there will be greater pressure to adopt sustainable fuels quickly.
Ship recyclers in India have to keep their offer prices high to match the levels being offered by their counterparts in Bangladesh and Pakistan. The lucrative prices being offered by subcontinent market has lured more Ship Owners to consider the option of recycling their vessels to lighten their Balance Sheets.
Domestic scrap market is pretty warm with prices remaining on an increasing trend since past few weeks. The slow movement of scrap in the domestic market due to Farmers’ protests has also contributed to this rise in prices.
Indian export market is facing severe logistics issue. Due to COVID-19 induced lockdowns and fall in imports, there are not enough shipping containers present in India to get the goods across the sea. The Freight costs and charges have tripled and the waiting time for containers which used to be 1-2 days normally is currently two weeks or more. This situation may highly impact the fulfilment of holiday season orders from Indian exporters.
Several farmers’ groups are marching towards the National Capital Delhi today to protest the Centre’s new farm laws. The Centre has agreed to amend the farm acts according to the concerns raised by the farmers, but the unions are demanding a complete withdrawal of the laws. The ongoing strikes have costed dearly to the Indian economy as transportation has been highly affected leading to disrupted supply chain.
The local market witnessed some dull moments on Wednesday and Thursday, but we anticipate that it was a momentary pause, and the market will once again bid competitively for the available tonnage.
Containerized scrap prices continue to rise due to tightened supply in the market.
Rebar is trading at USD 732/MT in major steel mills of Bangladesh.
US origin HMS bulk cargo is being traded at USD 405-410/MT CFR level, moving up by USD 5-10/MT on a weekly basis.
COVID-19 infection rates across Bangladesh are relatively stable and well below the peak. Health Minister Zahid Maleque has announced that the first consignment of Oxford-Astrazeneca Covid-19 vaccine will reach the country by early January.
The Government is planning to form a monitoring team to plan the proper distribution of COVID-19 vaccines once it arrives in Bangladesh.The quality of the vaccine will degrade if the doses are not properly preserved, transported, distributed, and vaccinated which calls for a detailed logistics strategy to be in place before bringing the vaccines in the country.
The recycling market is booming with continuous rise in prices being offered to acquire available tonnage. The competition among buyers of India, Pakistan,and Bangladesh has ensured that the prices remain on a higher level throughout the week.
Prices of melting scrap and Ship plates have been on increasing trend since past few weeks.
Due to the continuous increase in the raw material prices, the booking rates being offered by the steel mills have been on a rise.
Buyers of shredded scrap are mostly covered for December with occasional orders being placed at USD 370/375 MT CFR and offers ranging between USD 380 -385 MT CFR PQ in containers for January shipment.
The World Bank has approved a $300 million loan to help Pakistan address climate change issues, health emergency and manage solid waste to reduce chances of flooding in Karachi.
COVID-19 is on a rampage again in Pakistan with current positivity rate at 7.3%. The Covid exclusive wards in government hospitals are running at full occupancy.
The government is pinning hopes on the Chinese vaccine and are also participating in the UN's COVAX program to potentially secure millions of doses by the end of 2021.
One Car carrier and a Handy size have arrived from Canada this week.
Import scrap is about USD 30-35/MT higher compared to last week. This continual increase over past few weeks has taken the prices to a range that has not been witnessed in the last 7-8 years.
Rebar spot prices have increased by $6-10/MT amid the positive sentiment in the import scrap segment.
Steel Prices have improved locally by about USD 15/MT this week. The stable steel prices have boosted the sentiments of ship recyclers to make competitive bids in the market.
Turkish Lira is trading at around 7.9/USD. The direction of Lira’s movement will be determined by whether the EU and United States give messages in the direction of reconciliation or signal that further sanctions will come.
COVID-19 cases are still on high levels. Schools have been closed for some time, with complete lockdowns imposed during the weekends and between 21:00-05:00 during weekdays.