Market Overview

Jefferies’ Weekly Shipping Report (DRYS, SB, TK, ONAV, TNP, BALT)

Jefferies and Co. is out with its weekly shipping update this morning; they believe that the outlook for the crude oil tanker market looks strong, which “may spark OPEC to increase production in the coming months.” The Jefferies analysts also noted that the dry bulk-shipping index will continue to be volatile given the “improving outlook for global industrial activity, but significant shipyard deliveries.”

Here are some key statistics from the report:

Shipping Stock Performance:

• The Jefferies Shipping Index increased 5.2% last week but is down 9.8% year-to-date.
• Dryships Inc. (NASDAQ: DRYS), Safe Bulkers (NYSE: SB), and Teekay Corp. (NYSE: TK) outperformed the Jefferies Shipping Index last week while Omega Navigation (NASDAQ: ONAV), Tsakos Energy Navigation (NYSE: TNP), and Baltic Trading ltd (NYSE: BALT) underperformed.

Crude Tanker Spot Charter Rates:

• The average modern VLCC rate decreased 27.3% to $25,922; the WAF-U.S. Suezmax rate decreased 5.4% to $17,767; the AG-East Aframax rate decreased 20.8% to $14,542; the Carib-U.S. Aframax rate decreased 35.7% to $7,613.

Product Tanker Spot Charter Rates:

• The AG-Japan LR2 rate decreased 16.6% to $11,217; the AG-Japan LR1 rate decreased 13.6% to $7,403; the average MR rate increased 2.8% to $8,148.

Dry Bulk Carrier Spot Charter Rates:

• The average Capesize iron ore rate decreased 34.9% to $16,615; the average Capesize coal rate decreased 48.7% to $7,102; and the average Panamax coal rate decreased 13.3% to $12,660.

Asset Values:

•Tankers

o VLCC newbuilding - $105.0MM; VLCC 5-year - $93.0MM
o Suezmax newbuilding - $68.0MM; Suezmax 5-year - $65.0MM
o Aframax newbuilding - $58.0MM; Aframax 5-year - $45.0MM
o Handymax newbuilding - $36.5MM; Handymax 5-year - $28.5MM

•Dry Bulk

o Capesize newbuilding - $59.5MM; Capesize 5-year - $57.0MM
o Panamax newbuilding - $34.3MM; Panamax 5-year - $38.0MM
o Handymax newbuilding - $32.0MM; Handymax 5-year - $33.0MM

See Some of the Top Moving Indexes Here.

Posted-In: Jefferies & CoAnalyst Color

 

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