The Baltic Exchange’s main sea freight index fell for a fourth straight session on Tuesday as weakness in Chinese steel consumption took a toll on capesize demand, while rates for other vessel segments also retreated.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 65 points, or about 6%, to 1,017 points, a more than two-year low.

The capesize index fell for the fourth consecutive session, shedding 74 points, or about 18%, to 337 points, its lowest since early June  2020.

A sharp retraction in the overall trend brought about by the “deteriorating conditions faced in the steel market seems to have overshadowed and outplayed any seasonal hike that is typically seen at this point in the year,” Allied Shipping Research said in a weekly note.

“We can hardly expect any robust trend to emerge in the near term,” Allied added, referring to capesize demand from China.

Dalian and Singapore iron ore futures plummeted amid renewed worries over COVID-19 curbs and steel output restrictions in top producer China.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steelmaking-ingredient iron ore, fell by $620 to $2,793.

The panamax index fell 88 points, or about 6.4%, to 1,284 points, on its worst day in over eight months. It also hit its lowest since late November 2020.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased by $788 to $11,556.

The supramax index fell for the third day, losing 53 points to 1,691 points, on its worst day in more than three weeks.

A United States Coast Guard vessel was unable to enter Solomon Islands for a routine port call because the Solomon Islands government did not respond to a request for it to refuel and provision, a U.S. official said.

The islands’ government did not immediately answer a Reuters request for comment. The Solomon Islands has had a tense relationship with the United States and its allies since striking a security pact with China in May.

The USCGC Oliver Henry was on patrol for illegal fishing in the South Pacific for a regional fisheries agency when it failed to obtain entry to refuel at Honiara, the Solomons’ capital, a U.S. Coast Guard press officer told Reuters in an emailed statement.

The U.S. vessel was diverted to Papua New Guinea instead, the official said.

The British navy declined to comment on social media reports that patrol vessel HMS Spey, also taking part in Operation Island Chief to monitor for illegal fishing in the economic exclusion zones of Fiji, Papua New Guinea, Solomon Islands and Vanuatu, was declined port access by the Solomon Islands.

“Ships’ programs are under constant review, and it is routine practice for them to change. For reasons of operational security we do not discuss details,” a Royal Navy spokesman said in an emailed statement.

The Solomons’ government and Beijing have ruled out a Chinese military base on the islands, although a leaked draft showed the security agreement would allow the Chinese navy to dock and replenish.

The fisheries agency for the Pacific Islands Forum, a block of 17 Pacific nations, has a maritime surveillance center in Honiara, and holds annual surveillance operations for illegal fishing with assistance from Australia, United States, New Zealand and France. read more

The USCGC Oliver Henry was scheduled for a routine logistics port call in the Solomon Islands, Kristin Kam, public affairs officer for the U.S. Coast Guard in Hawaii told Reuters in an emailed statement.

“The Government of the Solomon Islands did not respond to the U.S. Government’s request for diplomatic clearance for the vessel to refuel and provision in Honiara,” she said.

“The U.S. Department of State is in contact with the Government of the Solomon Islands and expect all future clearances will be provided to U.S. ships,” she added.

HMS Spey had Fiji navy officers on board as it worked alongside long-range maritime patrol aircraft from Australia and New Zealand and the US Coast Guard in the operation to gather information for the Pacific Islands Forum fisheries agency, the Royal Navy said in a statement on Thursday.

It carried out inspections of suspect vessels in ports as well as boardings at sea, the statement said.

The Royal Navy spokesman said it “looks forward to visiting the Solomon Islands at a later date”.

Source: https://www.marinelink.com/news/us-coast-guard-vessel-blocked-bunkering-499118

A ship carrying wheat from Ukraine to the drought-stricken Horn of Africa docked on Tuesday, the United Nations said, the first to make the journey since the Russian invasion six months ago.

The vessel Brave Commander is carrying 23,000 tonnes of grain and will soon be followed by another carrying 7,000 tonnes.

The total shipment, which will be unloaded in Djibouti and transported to Ethiopia, is enough to feed 1.5 million people for a month.

That barely begins to alleviate the problems of Eastern Africa, where the United Nations’ World Food Programme says extreme weather, surging food prices and conflict mean 82 million people need food aid across nine countries – Burundi, Djiouti, Ethiopia, Kenya, Rwanda, Somalia, South Sudan, Sudan and Uganda.

“This shipment, the first of many we hope, will allow WFP to deliver this grain to 1.53 million people in Ethiopia and cover their needs for a month. It’s a start but we must continue to keep the food flowing to save lives across the region,” said Michael Dunford, the WFP director for Eastern Africa.

Officials hope the successful voyage will inspire private companies to begin shipping grain from Ukraine to Eastern Africa, where rising global food prices and difficulties raising donor funding have forced the United Nations to cut rations for refugees and displaced people.

Among them are 150,000 Eritrean refugees sheltering in Ethiopia, many of whom have been repeatedly displaced by conflict in the north, whose rations were cut in June to half the recommended amount of food.

“It’s not enough food. People are hungry,” said one Eritrean refugee in Alem-Wach Camp in northern Ethiopia.

“They explained to us the reasons, because of war in Ukraine,” said the man, who declined to give his name. “But it is especially hard because it is so cold now… the situation is so difficult.”

While the shipment will help people displaced by conflict, none of it will be sold commercially, meaning it will not lower food prices for ordinary Ethiopians.

Russia and Ukraine usually supply 90% of wheat imported in East Africa.

The Russia-Ukraine conflict sent fertiliser and food prices soaring as Russia blockaded Ukrainian ports. Energy prices have also surged following Western sanctions on Russia, a major energy exporter.

Last month, the United Nations and Turkey brokered a deal between Moscow and Kyiv to unblock three Black Sea ports, making it possible to send hundreds of thousands of tonnes of Ukrainian grain to buyers.

Ukraine is strengthening the humanitarian part of the grain initiative, officials said. On Tuesday, the bulk carrier Karteria departed, carrying 37,500 tonnes of wheat for Yemen, where 16 million people are hungry.

Source: https://www.marinelink.com/news/un-ships-food-relief-ukraine-499106