1 comments:
Michael said...
Curious thing:Moments ago I checked my e-mail inbox, and I have been invited to interview with a well-known London shipbroker in April. I applied to them some time ago and had almost forgotten.So with shipbroking at the front of my mind, I decided to check on your blog; and what do I know, the e-book has been released.I don't want to get ahead of myself but I think God wants me to be a shipbroker, haha!(I'm reading your e-book right now).
++
Michael, if god wants you to be a shipbroker i am not entirely sure if its a reward or punishement!
Just joking - good luck!
Tuesday, March 31, 2009
The E-Book Is ready to go
Hi
Follow the link to the sister blog 'Virtual Shipbroker Extras' and please read the posts.
http://virtualshipbrokershop.blogspot.com/
If you decide to buy - I hope the systems all work and I hope you like the book!
Quick comment regarding payment by paypal - I do not see any of you bank account details or personal information. the one thing i do get is your email but this is unavoidable. the email will never be passed to any other 3rd parties.
Cheers
VS
Follow the link to the sister blog 'Virtual Shipbroker Extras' and please read the posts.
http://virtualshipbrokershop.blogspot.com/
If you decide to buy - I hope the systems all work and I hope you like the book!
Quick comment regarding payment by paypal - I do not see any of you bank account details or personal information. the one thing i do get is your email but this is unavoidable. the email will never be passed to any other 3rd parties.
Cheers
VS
Tuesday, March 24, 2009
Baltic Dry Index - Where is it heading?
The BDI is down another 15 points to finish at 1758.
Want to know the direction of the BDI - the following article from Bloomberg
quote
Baltic Dry Index seen stagnating in next quarter
Wednesday, 25 March 2009
The Baltic Dry Index, a measure of world trade, will stagnate in the next three months after what is likely to be a record quarter as annual talks over iron-ore prices stall demand, a survey showed. The index will average 1,786 points in the second quarter, compared with 1,782 last Friday, according to the median estimate of 10 analysts, fund managers and shippers surveyed by Bloomberg. The gauge of demand for shipping commodities more than doubled this quarter as China bought more iron ore.The ore, used to make steel, is the single biggest cargo for dry-bulk ships and annual benchmark prices are negotiated for the start of the Japanese fiscal year on April 1. Prices were actually set as late as May in 2002, 2003 and 2006, and last year as late as June, according to Macquarie Group Ltd.'Iron-ore price negotiations should slow down shipping activity,' said Philippe van den Abeele, London-based managing director at shipping hedge fund Castalia Fund Management (UK) Ltd. The global economic slump is sapping demand and new ships are still being delivered this year, increasing competition for fewer cargoes, he said.The Baltic Dry Index fell a record 92 per cent last year. Global steel production shrank 22 per cent last month, with a 54 per cent decline in the US and 44 per cent retreat in Japan, according to the World Steel Association. Eurofer, the European steel industry lobby group, said that demand dropped 30 per cent this quarter and would likely fall further in the next three months.The estimates in the March 16-19 survey ranged from 1,135 to 2,950 points. They came from Castalia, Lorentzen & Stemoco AS, Drewry Shipping Consultants, Fearnley Fonds ASA, Thurlestone Shipping Ltd, M2M Management Ltd, Freight Investor Services Ltd, Galbraith's Ltd, HSBC plc and Island View Shipping.
Source: Bloomberg
Want to know the direction of the BDI - the following article from Bloomberg
quote
Baltic Dry Index seen stagnating in next quarter
Wednesday, 25 March 2009
The Baltic Dry Index, a measure of world trade, will stagnate in the next three months after what is likely to be a record quarter as annual talks over iron-ore prices stall demand, a survey showed. The index will average 1,786 points in the second quarter, compared with 1,782 last Friday, according to the median estimate of 10 analysts, fund managers and shippers surveyed by Bloomberg. The gauge of demand for shipping commodities more than doubled this quarter as China bought more iron ore.The ore, used to make steel, is the single biggest cargo for dry-bulk ships and annual benchmark prices are negotiated for the start of the Japanese fiscal year on April 1. Prices were actually set as late as May in 2002, 2003 and 2006, and last year as late as June, according to Macquarie Group Ltd.'Iron-ore price negotiations should slow down shipping activity,' said Philippe van den Abeele, London-based managing director at shipping hedge fund Castalia Fund Management (UK) Ltd. The global economic slump is sapping demand and new ships are still being delivered this year, increasing competition for fewer cargoes, he said.The Baltic Dry Index fell a record 92 per cent last year. Global steel production shrank 22 per cent last month, with a 54 per cent decline in the US and 44 per cent retreat in Japan, according to the World Steel Association. Eurofer, the European steel industry lobby group, said that demand dropped 30 per cent this quarter and would likely fall further in the next three months.The estimates in the March 16-19 survey ranged from 1,135 to 2,950 points. They came from Castalia, Lorentzen & Stemoco AS, Drewry Shipping Consultants, Fearnley Fonds ASA, Thurlestone Shipping Ltd, M2M Management Ltd, Freight Investor Services Ltd, Galbraith's Ltd, HSBC plc and Island View Shipping.
Source: Bloomberg
Monday, March 23, 2009
A day in the life
It was requested that I include in the e-book a section regarding a day in the life of a shipbroker.
I have therefore included 4 pages of a typical brokers day
Here is a snippet.
quote
"As he heads back to his building he checks his Blackberry and notices that a message from the Charterer. He quickly scans the message and sees that they have rejected the ship owners offer. The message states that the market has turned in the charterers favor and that they have 4 ships chasing their one cargo. If the ship owners are very keen they need to drop the rate substantially before they will get a counter offer.
- 10 minutes later (2.30pm) he sits down at his desk with a head full of steam. He quickly calls the charterer and asks him some key shipbroker questions such as ‘what is the best price you have seen?’ And ‘If I can get my owner to come in at such and such freight rate will this be sufficient to get a counter?’ The broker is playing every card in his deck. He is trying to pin down the charterer.
unquote.
It was fun to write this section actually - brings back memories of many different situations
Yours
VS
I have therefore included 4 pages of a typical brokers day
Here is a snippet.
quote
"As he heads back to his building he checks his Blackberry and notices that a message from the Charterer. He quickly scans the message and sees that they have rejected the ship owners offer. The message states that the market has turned in the charterers favor and that they have 4 ships chasing their one cargo. If the ship owners are very keen they need to drop the rate substantially before they will get a counter offer.
- 10 minutes later (2.30pm) he sits down at his desk with a head full of steam. He quickly calls the charterer and asks him some key shipbroker questions such as ‘what is the best price you have seen?’ And ‘If I can get my owner to come in at such and such freight rate will this be sufficient to get a counter?’ The broker is playing every card in his deck. He is trying to pin down the charterer.
unquote.
It was fun to write this section actually - brings back memories of many different situations
Yours
VS
Wednesday, March 18, 2009
Insiders Guide to Shipping - tip
Did you know that over 50 percent of the world dry bulk trade is related to the steel industry.
Knowing about Steel products, iron ore, coal, bauxite and alumina will make you an expert on international trade!
Knowing about Steel products, iron ore, coal, bauxite and alumina will make you an expert on international trade!
Relpy to a comment - explains more about the E-book
I thought I would create a new blog post rehashing a reply i have just given under another comment post.
This makes it more visible and will stop me having to repeat myself regarding the contents of the e-book
Jim wanted to know if I would explain more about the BDI and the 'insider' way it works.
Here is my reply
qte
Jim - I have written about the BDI and will make a commentary regarding its relevance as a barometer of world economic health.
It is not a perfect measure becasue the bdi is amongst other things a reflection of 'trading' techniques by individual companies, Stockpliling / logistics issues, plus seasonal factors.
The term Insider as it will be used in the book refers more to me (the VS) being an insider and thus giving insider and hopefully insightful views and suggestions regarding the the mysterious world of international shipping.
The book will cover
- how the industry works
- discuss all the major player and how they make money
- provide those wanting to get into the industry with suggestions and a comprehensive method to improve ones chances,
- help those already in the industry with methods to leverage their positions....etc etc.
- plus some special surprises.
Hope this explains. Thanks again for the encouragement, im happy you enjoy the Blog.
Unqte
Your
VS
This makes it more visible and will stop me having to repeat myself regarding the contents of the e-book
Jim wanted to know if I would explain more about the BDI and the 'insider' way it works.
Here is my reply
qte
Jim - I have written about the BDI and will make a commentary regarding its relevance as a barometer of world economic health.
It is not a perfect measure becasue the bdi is amongst other things a reflection of 'trading' techniques by individual companies, Stockpliling / logistics issues, plus seasonal factors.
The term Insider as it will be used in the book refers more to me (the VS) being an insider and thus giving insider and hopefully insightful views and suggestions regarding the the mysterious world of international shipping.
The book will cover
- how the industry works
- discuss all the major player and how they make money
- provide those wanting to get into the industry with suggestions and a comprehensive method to improve ones chances,
- help those already in the industry with methods to leverage their positions....etc etc.
- plus some special surprises.
Hope this explains. Thanks again for the encouragement, im happy you enjoy the Blog.
Unqte
Your
VS
Thursday, March 12, 2009
Baltic Dry Index (BDI) - Down 70 points
Down 70 Points to 2201. Market eased in all areas due mostly to the declining level of grain stems from South America. What many scribes fail to realise that although the BDI is a good general indicator of the strength of the world economy it is also subject to 2 major factors that are short term issues and have nothing to do with long term economic strength.
1. The cyclical nature of trade expecially with regards to agricultural products.
2. Stockpiling..
Yours
VS
1. The cyclical nature of trade expecially with regards to agricultural products.
2. Stockpiling..
Yours
VS
Wednesday, March 11, 2009
Insiders guide to Shipbroking - Tip
I think I should explain exactly how the chartering of a ship fits into the wider international trade process.
Here is a typical example.
1. A buyer identifies a need for a certain bulk product. Could be coal, oil products, grains etc.
2. The buyer finds a seller through commodity brokers, commodity exchanges, or through direct relationships.
3. They begin a negotiation. The negotiation will 10-15 core elements and another 100 or so secondary elements.
They will need to agree on the specifications of the product, the amount of product, the timing of the purchase, any banking and finance issues etc etc.
Importantly they will need to agree on a number of core shipping issues
- Will the product be sold FOB or CIF. IE who will handle and pay for the shipping?
- Timing of ship arrivals at both load and discharge ports
- Clarification of stevedoring and port issues at load and discharge port.
- Ship loading and discharging speeds
- Demurrage and Despatch rates
- Shipping related docuimentation process
plus a few more.
4. During the process the buyer or the seller may be in contact with shipbrokers and shipowners checking freight rates. Once the sales deal is signed off, the next step is the charter a ship!
Bring in the Shipbrokers..Finding and fixing a ship can take anywhere from 5 minutes to 2 weeks, depending on market conditions.
Intersting point.
Sometime the cost of shipping (freight) can be higher than the price of the actuial commodity being sold. This happens regularly with low priced high volume cargoes like iron ore and coal.
Any questions about the process? - drop me a line.
Your VS
Here is a typical example.
1. A buyer identifies a need for a certain bulk product. Could be coal, oil products, grains etc.
2. The buyer finds a seller through commodity brokers, commodity exchanges, or through direct relationships.
3. They begin a negotiation. The negotiation will 10-15 core elements and another 100 or so secondary elements.
They will need to agree on the specifications of the product, the amount of product, the timing of the purchase, any banking and finance issues etc etc.
Importantly they will need to agree on a number of core shipping issues
- Will the product be sold FOB or CIF. IE who will handle and pay for the shipping?
- Timing of ship arrivals at both load and discharge ports
- Clarification of stevedoring and port issues at load and discharge port.
- Ship loading and discharging speeds
- Demurrage and Despatch rates
- Shipping related docuimentation process
plus a few more.
4. During the process the buyer or the seller may be in contact with shipbrokers and shipowners checking freight rates. Once the sales deal is signed off, the next step is the charter a ship!
Bring in the Shipbrokers..Finding and fixing a ship can take anywhere from 5 minutes to 2 weeks, depending on market conditions.
Intersting point.
Sometime the cost of shipping (freight) can be higher than the price of the actuial commodity being sold. This happens regularly with low priced high volume cargoes like iron ore and coal.
Any questions about the process? - drop me a line.
Your VS
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