par Eren Bektas | 6 Jan 2014 |
We are truly thankful to our clients for their kind support which leaded ‘AESA Chartering’ to a successful year in 2013 with almost 600.000 tons of cargoes shipped. How about some pearls of wisdom concerning 2014? We wish you good reading and much success in the New Year. The only surprise of 2013 has been the volume of grain exports from Black Sea and it will probably continue until March 2014. There has been no ban from Russia for exports and their grain production exceed 90 million tons. The Ukrainian corn harvest also registered records. Winter sowings are encouraging producers to set very close targets for next year’s harvest, which means the Black Sea grain supply may remain strong until April 2015. However traditional Black Sea tonnage becoming older and older and a large number of Charterers require younger vessels. This situation is attracting more European Owners with shallow draft and ice classed ships to profit of the high paying grain cargoes out of Black Sea and creating, as we noticed during the last quarter of 2013, a lack of vessel supply in Mediterranean which led to increases on freight levels. This is the first time since long we noticed some sort of stability between vessel supply and demand. Can the autumn optimism may change to a disappointing reality for Owners very soon? I really don’t think so, as we cannot explain everything with the volume of grain exports from Black Sea. This may just not be seasonal or a geographical bubble and it may just not fizzle out somehow though I expect a decline in freight rates between...
par Eren Bektas | 4 Jan 2013 |
While hoping to recover from financial crises in Europe, though the wheels of the European economy are turning very slowly, let’s look forward with some wisdom of experience. There is no prophesy in what you are going to read but a bunch of thoughts about the facts which have, which are and which will affect the short sea freight markets during the year 2013. I expect very difficult conditions for coaster fleet Owners for the first six months of 2013, perhaps the toughest we have seen yet. For the fourth consecutive year financial results of many companies in EU short sea industry are negative. Many Owners who have managed to make it out alive in 2012 may not be able to survive this period and I am especially worried that this may hold true for some German and Dutch fleets. Distressed Owners are continuing to sell out their fleet for some pennies and many new players, mainly cash buyers, are entering the coaster freight market. Most of the Owners are struggling not to lay up their ships and try to keep them trading as far as the ships can earn above the break even. The Dutch and German Owners are sending their fleets to areas with stronger economic growth and it increases their appearance not only in Black Sea and Mediterranean freight markets but also in South-East Asian markets and Caribbean markets, which gives them a low but a secure freight income and brings more efficient fleet to these markets. The Black Sea grain crop for the second half 2012 was very low which was partly a cause of...
