Shipping bitez Sept 2022

HohumYNWA’s shipping basket has had a rough Sept 2022.

Was perusing a shipping broker’s report to see if there were any positive developments. Don’t always use this broker (Allied), but they are the best one around this week.
#1 Dry bulk market (Page 2)
Particularly strong this week is the Baltic Cape Index (BCI), up around 45.2% week-over-week. That’s nice, but still a far cry from their average last year.

#2 Dry bulk market (Page 2)
The other vessel sizes are also trailing their averages for last year. But generally not as bad. All vessel sizes profitable at these rates.

#3 Tanker market (Page 3)
Q3 is usually a weak quarter for the sector. But not this year. In 2021, most owners were losing money on spot trades. In 2022, across the board on all routes and vessel sizes, owners are printing money

#4 Period market (Page 4)
Time charter market holding up well for both dry bulk shippers and tanker charters. But, the longer time frames on two tanker fixtures a particular positive.

#5 Sale & Purchase (Page 9 & 10)
If world economy is headed into a recession, the vessel sellers are doing well exiting here - majority of vessels in the 10-15 year range, which means likely less maintenance as shipping heads into EEXI standards in 2023. At least, that’s the vessel buyer premise.

Separately, shipping analyst from Jefferies issued downgrades on several dry bulk companies (DSX, SB, GOGL). Analyst is still optimistic on the long term prospects of the market, and remained positive on some bulkers (EGLE, SBLK, GNK). Mixed bag for me as I still hold stakes in GNK, SBLK & GOGL. HohumYNWA remains more optimistic on the dry bulk shipping market.