07th December 2018
Usually in December we would expect to see more LPG deals being concluded than petchems, however, in the last week we have seen an equal split between the two. Generally, the market has been quiet, nevertheless, rates have remained high due to a limited amount of prompt small coaster tonnage. As a consequence, some charterers have scaled back their programmes and are only approaching the market when necessary or if a good trading opportunity presents itself. Looking forward, we are seeing more small coasters, including relets, showing open positions next week which may lead to a softening of rates and hopefully some additional trading. On the larger side there are open positions at the end of this week in both NWE and SWE with petchem last cargoes. Further South and in the Med it has been quiet with only a few cargoes fixed for delivery into Morocco on forward dates.
Coming to the December, CP price dropped to C3: 445 and C4: 415 as expected. Far East Asian’s inventory level still relatively high and buying interests are still thing. There is a 2.3kt C4 SPOT FOB sell tender out from Port Dickson this week with loading date mid of December which will be awarded by today. Traders also looking for other size of ships instead of 5000cbm ship from the freight market for the tender cargo due to there is very limited suitable candidate could meet the laycan. FOB offers from S. China for 1h Dec lifting cargoes were quoted similar as last week at high USD 30’s pmt. Chinese wholesale market moved slightly upward during the week quoted at Yuan 3,950 – 4,300 pmt in South China and Yuan 3,820 – 4,270 pmt in East China. The Philippines CFR purchase tender from Petron has not been awarded this week.
Time Charter Fixtures
No new Time Charterers to report
Sale and Purchase/New Buildings
Murakami Hide has contracted a fully pressurised 5,000 cbm for delivery Q4 2019. This super early slot is understood to be one of the last Tier II hulls. According to our records, this brings the total orderbook of FP 5,000 cbms to 8 vessels, given the 5,000 cbm BLANCHE is delivering on TC to Geogas from Kanasashi S.Y. during the course of today.
Once again activity in the second hand market has been centred around the VLGC sector:
First, Pacific Gas has sold the 82,100 cbm LPG SCORPIO (built 2003 at HHI) to an unknown Chinese Buyer. There has been widespread rumour that the Buyer is Sinochem, but this is unconfirmed. She has already delivered and has been renamed GLOBAL SCORPIO.
Secondly, Kumiai Navigation are inviting inspections of the 79,300 cbm OCEAN ORCHID (built 2001 at Kawasaki HI), fitted with re-heater/booster, when she arrives in first disport Japan on/around 23rd December. She is expected to deliver mid Feb – mid May 2019 in Singapore when her current employment with Gyxis expires.
The ethylene capable 8,200 cbm GAS PUFFER (built 1991 at Heinrich Brand), 4,426 ldt, has been sold by her UAE based Owners, Safe Soul Shipping, for US$ 505/ldt into India reflecting the 5% nickel in the cargo tanks.
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