Market Commentary:

The second quarter of the year has come to an end, and it is time to do a quick review of the S&P market for bulk carriers and tankers. 2022 was a pretty good year for the S&P market, having about 660 transactions within the bulk carrier sector and about 710 transactions within the tanker sector. Bulk carrier transactions lost their pace as 2022 was coming to an end, and tanker transactions were gaining momentum.

2023 started just like 2022 ended. Bulk carrier secondhand sales for the first six months of 2023 accounted to about 325 vessels, 14% lower than the first six months of 2022. The trend in the dry bulk S&P transactions was decreasing since the fourth quarter of 2022 - following the fall of the dry bulk freight rate - although there was an uptick towards end of Q1 2023 in the dry bulk S&P sentiment. In the first quarter of 2023, 175 bulkers changed hands while in the second quarter of 2023, there were a total of 150 transactions, 25 less than the first quarter. These numbers are lower than the 184 transactions of the first quarter of 2022 and the 183 transactions of the second quarter of 2022. It is obvious that most owners and investors, were alarmed by the downward trend in freight rates and the simultaneous high prices of vessels, and as a result became more selective in buying bulkers, pushing for lower prices, and waiting for the market to balance.

“Going deeper underground” with our review for the dry S&P market, Handysize and Supramax vessels are clearly the most sought-after candidates. 86 Supramaxes (Q1 2023: 45, Q2 2023: 41) and 81 Handysizes (Q1 2023: 50, Q2 2023: 31) were sold in the first half of 2023, while Capesize, Ultramax and Panamax vessels followed, with almost similar sales to each other (Capes: 41, Ultramax: 36, Panamax: 32). Capesizes and Newcastlemaxes are the only vessels categories that saw their transactions rise comparing to 2022 in terms of the first half of the year, from 24 to 41 and from 6 to 12 respectively. The preference for vessels between 8 and 13 years old was strong for both 2022 and 2023. More than half of the vessels that were sold in the first half of the year were between these ages. New emission policies along with the high asset prices have made older vessels far less attractive and owners have clearly turned their interest to the most value for money alternatives.

The tanker market follows exactly the opposite trend than the dry bulk market. The war in Ukraine along with the small orderbook, have created the conditions to sustain freight rates at healthy levels, creating earnings for the owners for many consecutive months. This has whetted the appetite for tankers, giving a boost to the S&P market. In the first quarter of 2023, there were 215 transactions while in the second quarter, the transactions were 183. This sums for 398 tankers that changed ownership within the first half of 2023, 88 vessels more comparing to the same period of 2022. In terms of quarters, the first quarter of 2023 had 75% more transactions than the same period of 2022, while the second quarter of 2023 only had a 1% difference compared to the second quarter of 2022.

The champions in the wet S&P market are definitely the MR2 and Panamax/LR1 vessels. 67 and 48 MR2s have changed owners within the first and the second quarter of 2023 respectively. These 115 transactions for the first half of the year are 55% higher compared to the same period of 2022. In the Panamax/LR1 size the difference in numbers between 2023 and 2022 is quite impressive. Within the first six months of 2023, about 64 vessels have been sold, a 146% increase comparing the 26 similar vessels that were sold during the same period in 2022 and 6 vessels more than the whole 2022 year. In terms of vessel age, definitely the majority of sales are about vessels between 13 and 20 years old. About 288 vessels ageing between 13 and 20 years were sold in the first half of 2023, 100 vessels more than the same period of 2022. The increased interest for older aged tankers is mainly connected with the Western sanctions on Russian oil trade, as many Asian companies are trying to get into the game of transporting Russian oil and oil products, filling the gap of Western companies. 

Sale and Purchase:

Although the northern hemisphere is in the heart of summer, both the dry and wet S&P activity have revved up during July, as within the current month we witnessed almost 20 dry bulk sales more compared to the number of sales took place in June 2023. On the Newcastlemax sector, the “Clear Horizon” - 208K/2012 NACKS and the “Blue Horizon”- 208K/2012 NACKS were sold for USD 33.5 mills each to undisclosed buyers. The Capesize “Shiosai” - 177K/2009 Namura was sold for region USD 21 mills to Chinese buyers. Finally, the Handysize “Cielo Di Palermo”- 37K/2013 Saiki changed hands for USD 17 mills, while the 3-year older “Cecilia” – 34K/2010 Orient was sold for region USD 13 mills.

Similarly, to the dry firm S&P activity, the tanker S&P activity was also strong during July, with the total tanker sales increasing by 14 sales compared to June’s tanker sales. On the VLCC sector, clients of Sinokor Merchant Marine acquired 3x Scrubber fitted vessels, the “Fida” - 316K/2011 HHI, the “Sifa” - 316K/2011 HHI and the “Saham”- 300K/2010 Universal for region USD 194 mills enbloc. 2x Ice Class 1B LR1 vessels, the “Mandala”- 65K/2006 Brodosplit and the “Donna” - 65K/2006 Brodosplit found new owners for USD 21 mills each. On the MR2 sector, the “Cassiopeia II” - 51K/2008 SPP changed hands for USD 23 mills. Last but not least, the Chemical tanker “Celsius Monaco” - 20K/2005 Shin Kurushima was sold for high USD 13 mills.

The Ambasssador and General Consul of Panama in Greece, H.E. Mrs. Julie Lymberopulos met the Deputy Minister of Foreign Affairs of the Hellenic Republic, Honorable Mr. Giorgos Kotsiras, on Tuesday 25th of July 2023 at the Ministry of Foreign Affairs of Hellenic Republic to discuss about the strengthening of the cooperation between the two countries, in various sections such as Diplomacy, Shipping, Trade and Investment.

The conversation between the Deputy Minister and the Ambassador was carried out in an atmosphere of mutual appreciation and sympathy.

Capesize

After a slow beginning to the week, the Capesize market experienced a surge on Wednesday with a rise of over $2,500 in a day on its five timecharter routes average. The week closed at $15,180 with +$3,222 week-on-week. Both fronthaul and trans-Atlantic business were particularly active whilst tonnage in the Atlantic tightened. Solid volume lent support and made the North Atlantic the strongest sector of the week. By Friday, vessels delivered in the Continent/Mediterranean were paid close to $36,000 for runs to the Far East. From Brazil, moving iron ore to China was marked in the mid $19s for second half August loading. In the Pacific, the West Australia to Qingdao trade remained stable throughout the week at the level of $7.70. Currently both a trans-Pacific and a China to Brazil round voyage are in the $12,000s per day.

Panamax

It was an eventful week with the Panamax market finally finding some life. The week began slowly, but eventually sparked and was duly accompanied by an FFA drive/some Cape splits in parts only to flatten out as the week ended. In the Atlantic, some much needed mineral demand was evident alongside solid demand ex South America for mid/end August arrival window. 82,000-dwt types delivery Singapore were now achieving somewhere between $10,500 and $11,000 date dependent. Further north, an 82,000-dwt delivery Continent achieved $7,500 for a trans-Atlantic round trip via US East Coast. In Asia, rates improved marginally, buoyed somewhat by the pick-up in South America, but decent levels of Australian coal provided the support for most part of the week and a small smattering of NoPac enquiry mid-week, but pitted against a lengthy tonnage list rates hovered around the $6,000 mark for Australian mineral round trips.

Ultramax/Supramax

Another rather unexciting week for the sector, certainly from the Atlantic, which saw further drops with limited fresh impetus across most areas with the ongoing Summertime slow down. The US Gulf was described as positional whilst the South Atlantic had positional opportunities for owners with prompt vessels, although it did remain fairly uneventful. A 55,000-dwt was heard fixed delivery Recalada for a trip to the East Mediterranean at $14,000. In the US Gulf, a 58,000-dwt was heard to have fixed from SW Pass to the Mediterranean at $9,000. From Asia, stronger enquiry was seen in the south at the beginning of the week and with the recent bad weather some vessels where delayed, which kept levels at a reasonable level. Further north, some saw demand remain for backhaul enquiry but limited fresh enquiry was seen from the NoPac. A newbuilding 64,000-dwt open Japan fixed a trip to Brazil in the high $7,000s. Further south, a 63,000-dwt fixed delivery Koh Si Chang via Indonesia redelivery China at $9,000.

Handysize

Limited enquiry in the South Atlantic has led to ever growing tonnage availability. A 32,000-dwt was fixed basis delivery Recalada for a trip to the US East Coast with an intended cargo of sugar and duration of about 50 days at $9,000. The US Gulf was also suffering similar issues with limited cargo availability. A 32,000-dwt was fixed from SW Pass to Israel with an intended cargo of grains at $5,000 and a 38,000-dwt fixed from Barranquilla to China with an intended cargo of coal at $10,000. In Asia, a 34,000-dwt opening in Koh Si Chang was fixed for a trip via Kijing to Samalaju with an intended cargo of alumina at $4,750 and a 37,000-dwt was fixed from Papa New Guinea via Australia for a round voyage at around $10,000 with an intended cargo of concentrates whilst a 36,000-dwt open in Japan was linked to fixing for a round trip via Australia in the upper $5,000s.
Source: The Baltic Exchange

BEIJING, July 29 (Xinhua) -- The Chinese military has always been a steadfast force in upholding world peace and stability, a defense spokesperson said on Saturday.

China's military force has never posed a challenge to anyone nor threatened others, said Tan Kefei, spokesperson for the Chinese Ministry of National Defense, in response to a question concerning the 2023 defense white paper newly approved by the Japanese government.

According to media reports, the white paper says China has presented an unprecedented and the greatest strategic challenge to Japan.

The Japanese defense white paper clings to its mistaken perception of China, deliberately exaggerates the so-called "Chinese military threat," smears China's legitimate military development and activities, rudely interferes in China's internal affairs, and provokes regional tensions, Tan said.

"We strongly oppose this and have already made serious representations to Japan," the spokesperson noted.

In recent years, Japan has substantially increased defense spending and has been steadily advancing its military expansion, Tan said, adding that it has aligned itself with certain major powers, forming targeted "small circles."

These acts have posed a severe challenge to regional and global peace, security, and stability, Tan added.

The spokesperson urged Japan to learn from historical lessons, refrain from irresponsible words and actions, abandon zero-sum and confrontational thinking toward neighboring countries, develop a correct understanding of China, and take practical steps to restore bilateral relations onto the right path. ■

BEIJING, July 26 (Xinhua) -- Guoyuan Port in southwest China's Chongqing is bustling, with rows of new energy vehicles queuing up to be transported overseas via the New International Land-Sea Trade Corridor.

Launched in 2017, the new corridor is a trade and logistics passage that was jointly built by provincial-level regions in western China and ASEAN countries. It is also one of the key projects under the Belt and Road Initiative (BRI), which was initiated by China.

Trade and investment often follow closely on the heels of infrastructure connectivity. More companies, especially those in western China, are expanding their footprints in overseas markets amid tailwinds from facilitated transportation.

"The new trade corridor has provided us with a more efficient alternative, thus helping us to go global, and has greatly enhanced our competitiveness in the global market," said Wang Di, senior manager of the logistics department at Changan Automobile Co., Ltd., a leading vehicle manufacturer based in Chongqing.

For instance, through the trade corridor, Changan's cars can reach Central Asia in only about 30 days, whereas previously it would take about two months.

In the first half of the year, the company exported 178,000 vehicles, with the export volume through the trade corridor 3.5 times more than during the same period of 2022.

As part of its strategy for broader expansion in the Southeast Asian market, the company will put a new plant in Thailand into production in 2024, with an expected annual output of 100,000 units. "We anticipate that the overseas market will account for 30 percent of the total by 2030, with the exports reaching 1.2 million units by then," Wang said.

Chongqing Wankai New Materials Technology Co., Ltd. is another company benefitting from the route as it seeks more business in the global market. Thanks to the corridor, the food-grade polyethylene terephthalate producer can cut costs and transportation times when selling its products to countries around the globe.

"Compared with the previous shipping route via river and sea, the new corridor offers a shortcut, saving us about 10 days and helping us gain an upper hand in the global market," said Lin Zheng, the company's logistics manager.

"We believe that the trade route will attract more enterprises to develop their business in western China and nurture industrial clusters," Lin added.

Over six years of rapid growth, the land-sea corridor program has enabled western Chinese provinces and regions to form close links with global markets, especially in ASEAN member nations, sending their cargo to 393 ports across 119 countries.

A total of 756,000 twenty-foot equivalent unit containers were transported through the trade corridor in 2022, a 223-fold increase over the same period of 2017. The variety of items transported also expanded to 940 plus from 50 in 2017.

Thanks to the trade corridor, an increasing number of products from China's inland provinces and regions along the route, such as Ningxia Hui Autonomous Region's red wine and nuts from Xinjiang Uygur Autonomous Region, have explored broader markets worldwide.

Meanwhile, Cambodian rice, Thai coconuts and mangosteens, and Vietnamese passion fruit and durians can now reach the Chinese market through the trade corridor in just a few days.

The new trade corridor has provided greater market space for China, as well as regions and countries along the route, and has boosted their trade and exchanges, said Liu Wei, director of the logistics and operation coordination center of the New International Land-Sea Trade Corridor.

"It also serves as an embodiment of the concept of a community with a shared future for humanity," Liu said.

China is planning to further strengthen the connection between domestic and external logistics, enhance cooperation with key ports along the route and promote multimodal transportation to ensure the stable growth of cargo volume, Liu added. ■

BEIJING, July 27 (Xinhua) -- China's road and waterway passenger volume registered robust growth in the first five months of the year, data from the Ministry of Transport shows.

There were 1.75 billion road passenger trips made in the country during the period, surging 17.5 percent year on year, according to the ministry.

In the same period, passenger trips made on China's waterways totaled 97.48 million, soaring 160.4 percent from last year.

In May alone, China's road passenger trips climbed 46.7 percent year on year, and its waterway passenger volume skyrocketed 269.6 percent from the same period of 2022, the data also reveals. ■

URUMQI, July 26 (Xinhua) -- With a loud train whistle echoing through the air, a freight train loaded with more than 260 new energy vehicles (NEVs) slowly pulled out of the Horgos Port in northwest China, and prepared to head to Uzbekistan.

In the first half of this year, a total of 18,000 NEVs were exported through the Horgos Port in Xinjiang Uygur Autonomous Region, mostly via China-Europe freight trains, marking a 3.9-fold increase compared to the previous year, the Horgos Customs said.

"The China-Europe freight train has provided us with a new pathway for exporting automobiles," said Li Ruikang, manager of Sino-Worlink Special Cargo Railway Logistics Co., Ltd.

Li added that 25 percent of the vehicles exported by his company are through railway transportation, with the efficient customs clearance process being a crucial factor in their decision to utilize the China-Europe freight train.

Based on vehicle type, weight, dimensions and other details, relevant facilitation measures for customs clearance have been formulated by the Horgos Customs, significantly reducing clearance time and lowering costs for car manufacturers.

Currently, the majority of automobiles transported through the Horgos Port, one of China's closest ports to Central Asia and Europe by land transport, come from provincial-level regions such as Chongqing, Sichuan and Guangdong, destined for countries along the Belt and Road, including Kazakhstan and Uzbekistan.

The China-Europe freight train service that started operations in 2011 has offered a secure and reliable channel between Asia and Europe, transporting a variety of goods ranging from IT products and automobiles to wines and coffee beans.

An increasing number of NEV exporters are turning to China-Europe freight train service due to its stable and smooth transportation environment, multiple routes and stops, said Lyu Wangsheng, an official from Horgos Customs.

In January, a freight train carrying 50 NEVs departed south China's Guangzhou metropolis for Europe. It's the first China-Europe freight train departing from Guangdong Province that is exclusively for Chinese-made NEVs.

Guangzhou Customs has opened a green channel for NEV exports to ensure smooth logistics and supply chains.

As global pressure to reduce carbon emissions and energy crises intensify, many countries are embracing policies that support the adoption of NEVs. Leveraging its industrial chain advantages, China's export of new energy vehicles has witnessed significant growth.

In the first half of 2023, China exported 534,000 NEVs, expanding 160 percent from a year earlier, data from the China Association of Automobile Manufacturers showed. ■

Business insiders have spoken highly of China's role in world economy as the country is striving to realize economic development goals in 2023. #GLOBALink

Produced by Xinhua Global Service