Tag: MID-SHIP

September 23, 2024

Market Overview:
We start the week on a positive note, albeit continuing the relatively flat/narrow range trading from last week.

Broker Team Estimates and Historical Data:
Please refer to the below chart, which illustrates our broker team estimates for commodity specific trade lanes and the historical range they have traded in the past year.

Market Outlook:
The fall season has arrived in the northern hemisphere, and the market is cautiously optimistic, positional volatility remains a concern, while rates for now trade within a narrow range in all segments.

 

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September 18, 2024

Market Overview:
We start the week on a positive note, while last week, all markets traded down, each within a very narrow range.

Broker Team Estimates and Historical Data:
Please refer to the chart below, which illustrates our broker team estimates for commodity-specific trade lanes and the historical range they have traded in the past year.

Market Outlook:
The market is more optimistic this week, with the expectation of a lowering of interest rates in America.

 

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September 11, 2024

The story of the Capesize market this year and this summer has been strong supply-side fundamentals. The daily average of the time charter routes has peaked twice in recent months – $29,365 in early May and $32,250 in early July – we today stand at about $28,000. The largest bulkers have enjoyed a volatile summer in June and July and a strong run-up since the start of August. Vessel owners are bullish on the Cape sector.

Over the summer months, the Panamax market has seen a fair amount of volatility; the time charter average rates have picked up in mid-June at $17,700, dropped to $13,700 the first half of July, partially recouped by the end of July, reaching $16,200, and finally slide down to the current $11,500.

The Supra/Ultra market has traded within a narrow range across the summer months. Positional volatility reigns supreme. Similar to the Panamax market, the Pacific Basin is where the action has been this summer. There is optimism amongst owners that the levels have hit bottom and there should be a spike in the near term that will carry through Q4.

The Handy market has had a relatively strong summer. As the weeks went by, expectations of the usual summer lull kept getting pushed back, and only toward the second half of August did we start to see a slowdown. However, the market has rebounded overall rather quickly, and this week, there was optimism throughout the globe. The freight futures forward assessment signals some optimism, and the period inquiry is strong as a result.

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September 10, 2024

Market Overview:
Post summer season and the market traded within a very narrow range this past week. The trend continued with the Cape size was showing strength. Note Panamax rounds in the Pacific have reached almost double those for a transatlantic round.

Current Market Conditions:
A quiet start to the week. Notably, since Friday, rates have stabilized.

Broker Estimates and Historical Data:
Please refer to the chart below, which illustrates our current broker estimates and the historical range in commodity-specific benchmark trade lanes.

Market Outlook:
As we approach the commencement of the northern hemisphere grain season, and potential realization of lower interest rates and Panama Canal returning to normal transit capacities, we anticipate increased positional volatility. This market continues to be influenced by several factors, including, ongoing going wars in Ukraine and Gaza, diversions of Red Sea traffic via the cape by the Houthis, and the convergence of Panamax and Supramax daily rates. Add this week, the tropical storm hitting the USG.

 

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August 28, 2024

Market Overview:
The end of the summer season and the market traded within a very narrow range.

Current Market Conditions:
A quiet start to the week. Notably, since Friday, rates have fallen further across all sectors.

Broker Estimates and Historical Data:
Please refer to the chart below, which illustrates our current broker estimates and the historical range in commodity-specific benchmark trade lanes.

Market Outlook:
As we approach the end of the summer season, the commencement of the northern hemisphere grain season, and the potential realization of lower interest rates, we anticipate increased positional volatility. This is influenced by several factors, including further improvements in the Panama Canal, ongoing diversions of Red Sea traffic via the cape by the Houthis, and the convergence of Panamax and Supramax daily rates.

 

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August 20, 2024

Market Overview:
Aside from Capesize vessels, which demonstrated strong performance this week, the market traded within a very narrow range.

Current Market Conditions:
Today marks a quiet start to the week. Notably, since Friday, Panamax daily rates have fallen below those of Supramax vessels.

Broker Estimates and Historical Data:
Please refer to the chart below, which illustrates our current broker estimates and the historical range in commodity-specific benchmark trade lanes.

Market Outlook:
As we approach the commencement of the northern hemisphere grain season, anticipate increased positional volatility. This is influenced by several factors, including improvements in the Panama Canal, ongoing diversions of Red Sea traffic via the cape by the Houthis, and the convergence of Panamax and Supramax daily rates.

 

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July 12, 2024

We regret having to pass on the sad news that, yesterday, our Founder, Partner, Mentor and Friend, Matthew I. DeLuca, Jr., passed away peacefully at home surrounded by his beloved wife Marguerita, his loving son Matthew, and their family. Matt was 86 years old. It is a great loss for all of us who knew him over the years and he will be missed.

Matt was born in Brooklyn in 1937. After graduating from Saint Francis Prep, Matt joined the United States Marine Corps and served honorably and with great pride. Upon returning to civilian life, he started his career in shipping and eventually joined his father’s brokerage firm, International Chartering Services. In 1974, Matt founded MID-SHIP and paved the way for his company’s growth. With a keen eye and a steady hand, Matt led MID-SHIP for 42 years of excellence and success in the industry until his well-earned retirement in 2015. For the past seven years, Matt graciously lent his time and vast knowledge to the students of the United States Merchant Marine Academy at Kings Point by serving as a guest lecturer.

Matt was funny, loyal, generous, a fierce friend, a lifelong learner, and a true Gentleman.

Our thoughts and prayers go out to Marguerita, Matt III, his daughter, Robin, the rest of his family, and to all those fortunate enough to have known him.

Per the family’s request, funeral services will be held privately. In lieu of flowers, they have asked that donations be made in Matt’s name to The Whole in the Wall Gang or The Wounded Warriors Project.

The MID-SHIP Family

June 7, 2024

Sentiment in the cape size market is positive, reflecting a tight new vessel order book, expectations that Chinese ore imports will continue in the face of declining steel production, as Japan, Korea, and Taiwan are increasing steel production as their economics continue to improve. Long-haul West African sources continue to support firm front haul rates.

The Panamax market remains quiet with levels softening as we enter the summer months. Over the last two weeks the Time Charter Average has lost another $1,000 or close to 10% of its value, approaching now the $15,000 per day support level, and is now at 20% off the January lows, with several  players attending Posidonia in Athen this week, we expect activity to further slow down at least for the remaining of the week.

The Supramax index continues to slide this week, heading towards April lows, which dropped to 1258 points on Wednesday. Although paper shows a bullish outlook on the market sector from June through Q4 with a moderate rate increase of 3-7%, the market still appears to lack momentum. Many market players are attending the shipping event in Posidonia, so the segment will likely see a muted week.

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March 1, 2024

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MID-SHIP’s 50^th Anniversary!

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We proudly announce that the MID-SHIP Group is celebrating its Golden Anniversary today, March 1, 2024, marking an incredible milestone of 50 years of dedication to client service, innovation, and success!

Since our inception in 1974, the MID-SHIP Group has been a standard bearer for highly customized personal service in the dry bulk transportation industry. Dedication to our clients and their business success has been a constant priority and a proud tradition at MID-SHIP. Guided by our founding philosophy of providing quality service based on hard work, humility, integrity, and professionalism, we have enabled our clients to grow and prosper. We have, in turn, been fortunate to share in their success.

MID-SHIP’s accomplishments have required the diligence and vision of numerous people working together to deliver on the promise of client-first service and create a competitive advantage.

Over the past five decades, MID-SHIP Group has weathered challenges, embraced change, and emerged stronger than ever, thanks to the unwavering support of our loyal clients, dedicated team members, and trusted partners (past and present). As we reflect on our journey, we are immensely proud of our achievements: pioneering advancements in cargo/ship broking, offering complete supply chain management, and developing technology to foster a culture of innovation and continuous improvement.

To commemorate this significant milestone, we extend our heartfelt gratitude to everyone who has contributed to our success. We are grateful for our clients’ trust, team members’ hard work, and partners’ collaboration. Your support has been invaluable, and we look forward to many more years of service, mutual growth, and prosperity.

As we embark on the next 50 years of our journey, we reaffirm our commitment to excellence, innovation, and client service. With your continued support, we are confident that MID-SHIP Group will continue to thrive, create a competitive advantage, and add value to our clients.

Please join us in celebrating 50 years of MID-SHIP.

Choose Excellence – Choose MID-SHIP!

Brian Malone
President, MID-SHIP Group LLC on behalf of the Partnership and Management Team

February 23, 2024

Last Wednesday saw a notable surge in trade activity as both China and Brazil re-entered the market following the conclusion of the Lunar New Year and Carnival festivities. This resurgence has led to significant breakout in cape market performance, with prices soaring from approximately $18,800 two weeks ago to the current level of $26,000. The return of miners to the market across both basins, driven by sustained robust ore prices, has contributed to this upward momentum. Despite facing challenges such as elevated inflation and interest rates, market dynamics remain resilient, with Capes experiencing substantial gains, potentially signaling positive trends ahead. The Capesize index was up 355 points to 3,145 today with front haul ore trade Brazil to China up $0.53 to $26.18. China’s decision to lower interest rates to support the struggling real estate market is viewed positively, although its impact remains to be seen in the coming months.

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