Latest news with #BalticExchange
Bloomberg
5 days ago
- Business
- Bloomberg
Fuel Tanker Rates Surge as Mideast Conflict Puts Hormuz in Focus
Tanker rates for vessels carrying refined oil products from the Middle East have surged in recent days, as the exchange of fire between Israel and Iran makes hauling fuel through the Strait of Hormuz more risky. The cost to ship fuels from the Middle East to East Asia climbed almost 20% in three sessions to Monday, according to data from the Baltic Exchange. Rates to East Africa, meanwhile, jumped more than 40%. Tanker owners and managers had been pausing vessel offers in the Middle East as the hostilities between Israel and Iran show no signs of letting up.
Mint
5 days ago
- Business
- Mint
Oil Freight Rates Jump in Mideast as Iran Conflict Fans Risk
(Bloomberg) -- Oil-shipping rates for Middle Eastern routes have spiked after some tanker owners and managers paused offering vessels as they assess risks from Israel's conflict with Iran, fueling concerns over flows from the region. Key rates for supertankers voyaging from the Middle East to East Asia rose almost 60% in less than a week, according to shipbrokers and charterers, as exporters who had been trying to book ships were met with few offers. They asked not to be identified as they're not authorized to speak publicly. Meanwhile, some owners with tankers that had been provisionally chartered as of Friday, pending confirmation of the booking, chose not to extend the agreements into the weekend, one of them said. The global oil market has been transfixed by the conflict in the Middle East, with Israeli strikes on Iranian energy and nuclear infrastructure roiling prices. While the likelihood of significant supply disruptions may be remote at this stage, the stability of shipping in and around the Middle East will be closely watched. The region is home to about a third of the world's production, and major exporters such as Saudi Arabia have limited scope to divert exports if needed. As hostilities have intensified, tanker owners are monitoring conditions for navigation through the Strait of Hormuz, the vital waterway that links the Persian Gulf to the Indian Ocean. Though ship diversions haven't yet been spotted, owners are holding back on fixing new voyages in the Gulf, setting the stage for higher freight rates and the possibility of disruptions. The benchmark rate for a supertanker capable of hauling 2 million barrels of crude from the Middle East to China — the TD3C route — jumped to 70 to 71 Worldscale points on Monday, up from about 44 last Thursday, before Israel struck Iran, according to shipbrokers. Worldscale points are a percentage of an underlying flat rate, which is set for each major route at the start of the year. On a per-day basis, chartering costs were near $46,000 on Monday, according to data from the Baltic Exchange. That's up by more than $12,000 from the prior session, the biggest gain since February last year. Forward-freight agreements — a derivative that allows buyers to lock in future rates — have increased as an indication of caution across the sector. FFAs for the TD3C route rose to around $14.50 a ton at one point on Monday, compared with about $11 before Israel's attacks on Iran. --With assistance from Alex Longley and John Deane. (Updates throughout with latest rates.) More stories like this are available on
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Business Standard
13-06-2025
- Business
- Business Standard
GE Shipping, SCI soar up to 12% on heavy volumes in weak market
Shares of shipping companies like Shipping Corporation of India (SCI) and Great Eastern Shipping Company (GE Shipping) have soared up to 12 per cent on the BSE in Friday's intra-day trade amid heavy volumes in an otherwise weak market. The surge in stocks came as the Baltic index extended its rally to hit an over-eight-month high. Among the individual stocks, SCI rallied 12 per cent to ₹230.50 on the BSE in intra-day trade. The average trading volumes on the counter jumped over fivefold. A combined 25.97 million shares, representing 5.6 per cent of the total equity of SCI, changed hands on the NSE and BSE. Baltic index extends rally; hits over eight-month high According to a Reuters report, the Baltic Exchange's dry bulk sea freight index extended gains to scale a more than eight-month peak due to higher rates across both large and small vessel segments. The main index was up 166 points, or 9.6 per cent, at 1,904, its highest since October 7. The escalating tension in the Middle East is sparking fears of global trade disruptions and rising tanker rates. The Baltic Exchange's dry bulk sea freight index measures shipping rates for vessels transporting dry bulk commodities. The Baltic Dry Index (BDI) is a number (in $) issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides an assessment of the price of moving the major raw materials by sea. Taking in 23 shipping routes measured on a time charter basis, the index covers Handysize, Supramax, Panamax and Capesize bulk carriers carrying a range of commodities including coal, iron ore and grain. Dry bulk trade demand is generally driven by the global economic outlook. US, China reach agreement US President Donald Trump on Wednesday claimed that a trade deal with China has been finalised, pending final approval from both him and Chinese President Xi Jinping. In a post on Truth Social, Trump stated, 'Our deal with China has been finalised, pending final approval from President Xi and myself. As part of the agreement, China will supply, upfront, full magnets and any necessary rare earth materials.' CLICK HERE FOR FULL REPORT Crisil Ratings' view on GE Shipping GE Shipping is the largest private sector shipping company in India. The company operates two main businesses, tankers and dry bulk carriers, wherein it owns and operates 38 vessels (26 tankers and 12 dry bulk carriers) with a combined capacity of 3.04 million dead weight tonnage as of February 21, 2025. In February 2025, Crisil Ratings upgraded its rating on the non-convertible debentures (NCDs) of GE Shipping to 'Crisil AAA/Stable' from 'Crisil AA+/Positive'. The rating upgrade reflects Crisil Ratings' expectation that the company shall sustain its strong financial risk profile as supported by its sizeable net-worth, robust liquidity and low leverage amid healthy operating performance, resulting in strong cash accrual. Despite cyclicality in the operating performance of the shipping and offshore oilfields service businesses, the financial risk profile of GE Shipping is likely to remain strong over the medium term. Owing to its prudent risk management policy, the gearing (measured as a ratio of debt to equity) has remained below 1 time over the past 10 years, the rating agency said in its rationale.
Business Times
04-06-2025
- Business
- Business Times
Iron ore markets head for shake-up as Singapore-linked Simandou nears production
[SINGAPORE] Global iron ore trade is facing a pivotal shift as Simandou, a massive iron ore mine in Guinea being developed by a Singapore conglomerate, is about to ramp up supply of the ferrous mineral. Estimated at 2.4 billion tonnes of high-grade iron ore as one of the world's richest untapped deposits, and projected to start production by end-2025, Simandou is a strategic project for China as it aims to diversify its suppliers from Australia and Brazil – the two countries together accounting for about 80 per cent of seaborne iron ore exports. As a long-anticipated supply disruptor, the project is closely monitored by the iron ore industry, which is also betting on India to absorb demand lost in China, based on panel discussions during Singapore International Ferrous Week. Two blocks of the mining concession are being developed by Winning Consortium Simandou (WCS), a joint venture led by Singapore-based mine-to-shipping conglomerate Winning International Group. This is in partnership with China Shandong Weiqiao Group and state-owned China Baowu Steel Group. The remaining two blocks are under a Simfer joint venture, led by British-Australian mining giant Rio Tinto, in partnership with China's Chalco Iron Ore, and the Guinea government. At full capacity, the mine is projected to produce up to 120 million tonnes of high-grade iron ore (about 65 per cent iron content) annually. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Trade implications Cheong Jin Yu, head of Baltic Exchange Asia, told The Business Times that Baltic Exchange is keeping an eye on the development of Simandou as a key force to change trade routes of iron ore. 'What I would imagine would happen is that, if and when Simandou becomes a consistent supplier into the iron ore market, the (Baltic Exchange's) advisory council will tell us it's time to start pricing a route out of. So it will be a West Africa-to-China route,' he said. He added that once an index is established, the exchange would then develop different tools such as futures for the new index for market players to manage freight volatilities. The impact of Simandou's supply on key iron ore routes such as China-Australia hinges on actual cargo flows, Cheong said, with markets awaiting clarity. Vamsi Goutam, chief commercial officer of Tata Steel Minerals Canada, said during a panel that Simandou's supply could push up volumes and potentially freight rates in the Atlantic trades. He expects 'freight balancing' as shipping capacity might not pick up at the same rate as the steep increase in dry bulk volume. De-risking for iron ore producers The expected influx of high-grade iron ore from Simandou might worsen an oversupply situation as China's demand growth softens, which would put more pressure on iron ore producers. 'A lot of producers who are high on the cost curves will come under pressure,' said Claire Chong, senior analyst of Thurlestone Shipping, noting that their operational resilience will come into play. Francois Lavoie, senior vice-president of sales of technical market and product development at Champion Iron, said that as Simandou is 'mixing things up', small producers such as Champion Iron are trying to diversify offerings as part of their de-risk strategy. This includes converting production into iron ore of even higher grades and lower impurities, he noted. India's rising appetite Baltic Exchange's Cheong noted that the industry is also monitoring how iron ore imports to India would evolve, as the second-largest steel producer in the world ramps up its production. Paul Bartholomew, lead analyst of S&P Global Commodity Insights, noted that India is expected to emerge as a major iron ore importer, with the import forecast in 2026 to more than double from 2024's imports. However, Thurlestone Shipping's Chong noted that despite a rising projection, India's iron ore imports are still 'too small to compare with China's'. While India's iron ore import is expected to hit more than 130 million tonnes, China's iron ore imports are projected to stay above 1.1 billion tonnes to 2035, S&P Global indicated.
Business Times
04-06-2025
- Business
- Business Times
Iron ore markets brace for shake-up as Singapore-linked Simandou nears production
[SINGAPORE] Global iron ore trade is facing a pivotal shift as Simandou, a massive iron ore mine in Guinea being developed by a Singapore conglomerate, is about to ramp up supply of the ferrous mineral. Estimated at 2.4 billion tonnes of high-grade iron ore as one of the world's richest untapped deposits, and projected to start production by end-2025, Simandou is a strategic project for China as it aims to diversify its suppliers from Australia and Brazil – the two countries together accounting for about 80 per cent of seaborne iron ore exports. As a long-anticipated supply disruptor, the project is closely monitored by the iron ore industry, which is also betting on India to absorb demand lost in China, based on panel discussions during Singapore International Ferrous Week. Two blocks of the mining concession are being developed by Winning Consortium Simandou (WCS), a joint venture led by Singapore-based mine-to-shipping conglomerate Winning International Group. This is in partnership with China Shandong Weiqiao Group and state-owned China Baowu Steel Group. The remaining two blocks are under a Simfer joint venture, led by British-Australian mining giant Rio Tinto, in partnership with China's Chalco Iron Ore, and the Guinea government. At full capacity, the mine is projected to produce up to 120 million tonnes of high-grade iron ore (about 65 per cent iron content) annually. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Trade implications Cheong Jin Yu, head of Baltic Exchange Asia, told The Business Times that Baltic Exchange is keeping an eye on the development of Simandou as a key force to change trade routes of iron ore. 'What I would imagine would happen is that, if and when Simandou becomes a consistent supplier into the iron ore market, the (Baltic Exchange's) advisory council will tell us it's time to start pricing a route out of. So it will be a West Africa-to-China route,' he said. He added that once an index is established, the exchange would then develop different tools such as futures for the new index for market players to manage freight volatilities. The impact of Simandou's supply on key iron ore routes such as China-Australia hinges on actual cargo flows, Cheong said, with markets awaiting clarity. Vamsi Goutam, chief commercial officer of Tata Steel Minerals Canada, said during a panel that Simandou's supply could push up volumes and potentially freight rates in the Atlantic trades. He expects 'freight balancing' as shipping capacity might not pick up at the same rate as the steep increase in dry bulk volume. De-risking for iron ore producers The expected influx of high-grade iron ore from Simandou might worsen an oversupply situation as China's demand growth softens, which would put more pressure on iron ore producers. 'A lot of producers who are high on the cost curves will come under pressure,' said Claire Chong, senior analyst of Thurlestone Shipping, noting that their operational resilience will come into play. Francois Lavoie, senior vice-president of sales of technical market and product development at Champion Iron, said that as Simandou is 'mixing things up', small producers such as Champion Iron are trying to diversify offerings as part of their de-risk strategy. This includes converting production into iron ore of even higher grades and lower impurities, he noted. India's rising appetite Baltic Exchange's Cheong noted that the industry is also monitoring how iron ore imports to India would evolve, as the second-largest steel producer in the world ramps up its production. Paul Bartholomew, lead analyst of S&P Global Commodity Insights, noted that India is expected to emerge as a major iron ore importer, with the import forecast in 2026 to more than double from 2024's imports. However, Thurlestone Shipping's Chong noted that despite a rising projection, India's iron ore imports are still 'too small to compare with China's'. While India's iron ore import is expected to hit more than 130 million tonnes, China's iron ore imports are projected to stay above 1.1 billion tonnes to 2035, S&P Global indicated.
