Obamacare is to the Baltic Dry Index what a fish is to a bicycle. Focus on the issues, buddy!
Looking at the T/C rates for DCIX's ships, it looks like they are all chartered out at $20k gross per day. Many of these ships were chartered in 2013 when panamax rates were below $20k. Am I reading this wrong or did DCIX just get good rates?
The news that came today shows a rate for at least one of the ships at $7.4k per day minus commission of 1.5%, which much less than $20k. see below:
9:15a ET December 20, 2013 (GlobeNewswire)
Diana Containerships Inc. (Nasdaq:DCIX), (the "Company"), a global shipping company specializing in the ownership of containerships, today announced that it has agreed to extend the present time charter contract with A.P. Møller-Maersk A/S, for its Panamax container vessel, the m/v Sagitta for a period of up to minimum September 15, 2014 to maximum November 30, 2014 at a gross charter rate of US$7,400 per day, minus a 1.25% commission paid to third parties. The new charter period will commence on January 29, 2014.
This guy is a clown.I have been reading his BS for almost a year now. And then the lemmings on this board trade this stock based on his advise. Sell, sell, buy, buy do whatever J says.
Containership deletions to reach new record
The total capacity deleted from the containership fleet is expected to exceed
450,000 teu in 2013, breaking the previous record of 377,000 teu deleted in
2009. Based on the latest reported scrap sales, of the 197 ships to be deleted
this year, 184 units (435,200 teu) were scrapped, 9 units (8,300 teu) were
converted to non-container use and 4 units (11,400 teu) have either sunk or
were damaged beyond repairs.
The average age of scrapped units reached an all-time low of 22 years, compared to the historical average of 28 years. The younger age at which ships are scrapped reflects the weak trading conditions and excess supply of vessels especially in the 3,000-5,000 teu range which have kept charter rates below breakeven levels in this segment. 59 units of less than 20 years old were scrapped in 2013, with the youngest ship at only 14 years old - the 1999 built OCEAN PROVIDER, ex NORASIA SELINA (1,538 teu), which was disposed prematurely due to technical flaws in its design
...With panamax earnings expected to remain under pressure in the
foreseeable future, more ships of this class are expected to be
scrapped in 2014 and 2015.. The opening of the new Panama Canal
locks, planned for late 2015, will deal a further blow, although this
third set of locks could become saturated by too many ships queuing
up to transit This would entice the owners of the current panamax
units to retain them as they could continue to transit via the 'old'
locks, comparatively less busy. The postponement of the Ballast Water r Treatment obligations will also bring some respite.
Capacity idling to last for at least two more years
The idle (unemployed) containership fleet reached 718,000 teu at mid December, and is expected to continue to rise until the end of March as the
current excess supply is aggravated by accelerating vessel deliveries due in the
first half of 2014.
Although demand is expected to pick up in April, as several East-West services
withdrawn for the winter slack season are reinstated, it will not be sufficient to
absorb all of the excess supply. Based on Alphaliner’s latest two-year forecast,
the idle fleet will not be eliminated in 2014 and 2015, as record levels of new
vessel deliveries will continue to keep supply and demand out of balance
Over the last 12 months, new vessel orders have reached 1.78 Mteu as the
orderbook increased to 21.7% of the fleet after falling to a ten-year low of
19.4% in July. The surge in new vessel orders will keep most of the major ship-
yards busy well into 2015, with 1.62 Mteu expected to be delivered in 2014
and 1.76 Mteu due in 2015. Barring significant deferrals and cancellations, the
new capacity due in the next two years will break the previous record of 1.58
Mteu delivered in 2008.
Although the idle fleet averaged 595,000 teu in 2013 compared to 651,000
teu in 2012, the lower level of idling was mainly due to the record level of
scrapping this year. Scrapping and other deletions reached over 450,000 teu
Idle fleet swells with 40 over-panamax ships idle at year-end (Jan 15,2014)
WORLDWIDE the total number of idle containerships bigger than 500 TEU stood at 235 units with an aggregate capacity of 779,230 TEU at the end of 2013, representing 4.5 per cent of the total cellular fleet.
The increase in the global idle box ship fleet was attributed to the impact of year-end void sailings and winter capacity adjustments, resulting in a number of larger ships being temporarily out of work, reports Alphaliner.
At the end of December, 13 vessels of above 7,500 TEU were without employment, along with a further 27 ships ranging in size from 5,100-7,500 TEU, bringing the number of idle over-panamax units to 40, the highest level in over a year.
Hardest hit continues to be panamax vessels in the 3,000-5,100 TEU range, with 75 units idle, representing 7.3 per cent of the total number of ships and 7.5 per cent of the total capacity in this size category.
The record level of scrapping in 2013 had only a negligible impact on the overall surplus position. A total of 74 ships of between 3,000 and 5,000 TEU were scrapped, but did little to redress the over-supply of panamax tonnage.
The on-going surplus is expected to send more panamax ships to the scrapyards in 2014, including some relatively young ships of below 20 years.
Although the idle fleet could shrink slightly in January due to stronger demand in the run up to the Chinese New Year holidays, the impact will be short-lived.
Idle capacity is forecast to remain high until March, before the resumption of services withdrawn for the slack winter season is fully restored.
The container shipping market will also have to make room for a record 1.6 million TEU of new capacity due to arrive in 2014.
Source : Schednet