Posted: October 21st, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Iron ore, Metals, Steel, Transportation | Tags: baltic dry index, coal, iron ore, shipping, shipping rate, steel | No Comments »
In spite of the delivery of new bulk carriers ordered during the shipping golden age, dry shippers bulk freight rates are rising due to Chinese iron ore purchases. The shipowners are back on the bulk carriers spot market to meet the increase in Chinese steel production, the highest in three years, which is driving the biggest jump in shipping rates since 2009.
This increase in steel output has reduced the iron ore stock which fell to its lowest level since 2007. The number of Capesize vessels in service, the largest bulk carriers, increased by 51% in September to 124 from August according to a study by Morgan Stanley. More than 90% were intended for China.
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Posted: September 30th, 2013 | Author: Rod Sherkin | Filed under: Energy, Transportation | Tags: gasoline, gasoline price | No Comments »
Prices for gasoline on the New York Mercantile Exchange have fallen roughly 11% in September as supplies reached their highest level in three years and the peak summer driving season ended.
Technology allowing companies to retrieve oil from shale-rock formations has led to abundant, cheap supplies. And the availability of inexpensive oil has enabled refineries to increase their production of gasoline at a rate that has exceeded demand.
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Posted: September 10th, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Iron ore, Transportation | Tags: baltic dry index, dry bulk, iron ore, iron ore china | 1 Comment »
The Baltic Dry Index, a benchmark of commodity shipping rates, jumped 9.3 percent to 1,478 on Monday, the biggest gain since June 2009, according to the Baltic Exchange, the London-based publisher of freight rates on more than 50 trade routes.
The measure is now at the highest since January 2012, after collapsing from as high as 11,793 in 2008 because of a record shipbuilding program.
The surge in the Baltic Dry Index has primarily been tied to day rates for Capesize Ships and the increase in demand for Iron Ore.
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Posted: March 17th, 2012 | Author: Rod Sherkin | Filed under: Energy, Transportation | Tags: energy, oil | No Comments »
U.S. gasoline prices jumped 6% in February, and market experts predict they will climb higher because critical refining operations in the Northeast are shutting down.
From New York to Philadelphia, refineries that turn oil into gasoline have been idled or shut permanently because their owners are losing money on them.
Sunoco Inc. is expected to close the region’s largest refinery in July, taking another 335,000 barrels per day in production capacity off the market.
Read the rest of No Relief in Sight at Gas Pump » » »
Posted: February 29th, 2012 | Author: Rod Sherkin | Filed under: Natural Gas, Transportation | Tags: natural gas, transportation | No Comments »
Using natural gas could cut fuel costs by more than $20,000 for a truck traveling a typical long-haul distance of 100,000 miles (161,000 kilometers) a year, according to JMP Securities LLC’s Shawn Severson. Shares in Clean Energy and Westport are up at least 30 percent since the end of last year.
“Natural gas is green in terms of the environment, but the real green is in the money,” said Severson, a San Francisco- based clean-technology analyst. “If you do not have this fuel in your fleet for whatever percentage is appropriate, you’re going to be at an economic disadvantage.”
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Posted: February 14th, 2012 | Author: Rod Sherkin | Filed under: Transportation | Tags: container, transportation | No Comments »
The cost of moving a loaded forty-foot steel box to the West Coast from China was last at $1,824, from $1,418 on Dec. 16, Clarkson data show. That’s still 5.6 percent lower than a year ago after a capacity glut drove rates down as much as 30 percent in 2011. Average costs to charter ships carrying 4,400 twenty-foot boxes for six to 12 months will rise to $18,000 a day this year, from $8,700 in 2011, according to Morgan Stanley.
Container rates on the world’s biggest international trade route are rallying after U.S. imports of manufactured goods rebounded from the first decline in two years.
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Posted: January 24th, 2012 | Author: Rod Sherkin | Filed under: Transportation | Tags: transportation | No Comments »
The Baltic Dry Index – an index of global freight rates for shipping dry commodities such as iron ore, coal and grain – had fallen for 23 consecutive days as of last Friday, cutting its value in half in the space of a month. The last time the index was this low, the world was in the depths of a credit crisis and a major recession.
While the Baltic Dry Index is obscure to your average retail investor, keen market watchers have long considered it a valuable leading indicator for the world economy, indicating shifting tides in demand for key industrial commodities.
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Posted: June 29th, 2011 | Author: Rod Sherkin | Filed under: Transportation | Tags: transportation | No Comments »
Rates will remain below about $11,000 a day for the rest of the year, compared with a breakeven point of about $23,000, according to Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong.
Read the rest of Scrapping Record Fails to End ‘Nightmare’ for Shipowners: Freight Markets » » »
Posted: April 12th, 2011 | Author: Rod Sherkin | Filed under: Energy, Transportation | No Comments »
Retail prices for a gallon of regular-grade gasoline will average $3.86 from April through September, up from $2.76 for the comparable period last year, said the Energy Information Administration, the statistics arm of the Department of Energy.
In some areas, monthly average prices could top the national average by at least 25 cents a gallon.
“The continuing economic recovery tends to boost gasoline and diesel fuel consumption, while the effect of higher retail prices tends to dampen it,” according to EIA. “These counterbalancing forces are expected to be prominent features of the summer driving season.”
According to AAA’s daily fuel-gauge report, the national average price for a gallon of regular gasoline is about $3.79, up about 33% from $2.86 a year earlier
via Gasoline prices up 40% this summer, U.S. says – MarketWatch.
Posted: March 9th, 2011 | Author: Rod Sherkin | Filed under: Transportation | No Comments »
Supertanker owners are coping with the second-highest fuel costs on record by sailing ships at the slowest speeds in at least three years, reducing vessel supply and bolstering charter rates.
An empty supertanker burns about 90 metric tons of fuel, known as bunkers, a day when traveling at 14 knots, according to Riverlake Shipping SA, a broker in Geneva. Hamilton, Bermuda- based Frontline, the world’s biggest supertanker operator, can cut that to about 25 tons when sailing at 10 knots on the empty leg of a journey, said Jens Martin Jensen, chief executive officer of the company’s management unit in Singapore. That means saving about $42,000 a day at the global average price.
The combination of what the industry calls ultra-slow steaming and violence in Libya, Africa’s third-biggest oil producer, more than doubled daily returns for owners to $32,089 since the end of February, according to the London-based Baltic Exchange, which assesses more than 50 maritime routes. Traders of forward freight agreements, used to bet on or hedge shipping costs, anticipate the gains will last, with second-quarter contracts at $28,894.
via Tanker Rates Doubling on Lower Speeds, Libya: Freight Markets – Bloomberg.com.