BIMCO: Demolition Spree Hits Standstill Due to Rise in BDI

first_imgzoom Following a scrapping spree witnessed in the first quarter of the year, the Baltic Dry Index’s (BDI) positive effect on capacity being removed from the fleet did not continue into the second quarter of 2016, as capesize demolition came to a halt, according to BIMCO.The BDI went from “devastating” in February to “poor” in April with the highest total demolished DWT ever experienced in the dry bulk market, however, the demolition activity slowed down as the BDI improved.“With BDI hitting an all-time low in February 2016, the dry bulk market saw a quarterly record volume of demolished ships in the wake of it. Subsequently, demolition activity came to a halt as BDI increased from March to peak at 703 on 25 April 2016. Shipowners were reluctant in the last part of 2015 to scrap, despite clear indications from the BDI, but responded positively in 2016; up by 15 % as compared to the first four months of 2015,” Chief Shipping Analyst, Peter Sand, said.Panamax and handymax scrapping amounts to 40% in 2016With the BDI declining, demolition increased in all segments except handysize, which was down 40% for the first four months against the same period in 2015.Panamax and handymax segments are holding the “banner” for demolition, while capesize had a good start but could not keep momentum in the second quarter, BIMCO said.However, capesize’s reaction to a 58.5% increase in BDI from March to April 2016 lead to a 28.3% drop in demolition for the period.Handysize scrapping covered 18.1% of total scrapping in the first four months in 2015 but only 9.5% in 2016. Handymax and panamax, respectively, are up 81% and the 87% in 2016 compared tothe same four months in 2015. They now cover 40% of total scrapping in 2016.Demolition age continues to dropThe increase in scrapping has also seen the lowest average age in the past five years. Where capesize in 2015 was the main driver lowering the demolition age, it is now the panamax and handymax segments influencing the decline from a combined 25.8 years in 2015 to 23.8 years in 2016.“Despite the slowdown in demolition activity in April and May 2016 the decrease in ship demolition age continued from 2015. At an average of 23.3 years today, demolition age has decreased by 20.5 % over the past four years. Focusing on the two larger segments, we see capesize continue its trend towards the 20-year mark, together with panamax,” Sand said.“The industry needs to break the trend of halting demolition activity as soon as the BDI improves marginally. We can only improve the fundamental market conditions if shipowners are keeping demolition activity up consistently,” he added.Due to a Capesize market uptick, caused by an increase in iron ore trade, higher steel prices and a rise in scrapping, on April 26 the BDI marked its highest level so far in 2016 with 704 points, after it reached a new low of 298 points in February.The Capesize index was at 1135 points, while the Supramax index and the Panamax index were at 564 and 718 points, respectively.last_img read more

Traffic Advisory Pictou County

first_imgPICTOU COUNTY: Big Gut Bridge The temporary replacement bridge on Route 348 in Pictou County at Big Gut was reopened to traffic at 3 p.m. today, Oct. 23. The temporary bridge is a single-lane structure and is controlled by traffic signals. The bridge connects the communities of Hillside and Pictou Landing. Local Area Office: 902-755-7146 Fax: 902-755-7049 -30-last_img

Canadian consumer debt expected to rise 4 to record 28853 next year

TORONTO, Ontario — Canadians will ramp up their record levels of debt in 2014, says one of the country’s leading rating agencies.Credit-monitoring agency TransUnion predicts in its first such annual forecast that the average consumer’s total non-mortgage debt will hit an all-time high of $28,853 by the end of 2014.That would be about $1,100 more than the $27,743 of debt consumers are expected to have at the end of this year.TransUnion says car loans are expected to drive the increase in such debt, which also includes credit card debt, lines of credit, student loans and the like.On the plus side, the credit-monitoring agency says it expects loan delinquency rates to continue to decline in the coming year, falling to 1.66 per cent at the end of 2014 compared with 1.76 per cent forecast for the fourth quarter of this yearBoth figures are down from 1.93 per cent in 2012 and 2.87 per cent in 2009.“The average Canadian consumer’s total debt is expected to rise by four per cent in 2014, which would be more than $4,500 higher than what we had observed five years earlier in 2009,” Thomas Higgins, TransUnion’s vice-president of analytics and decision services, said in the report.Higgins noted that while the 2014 increase is much greater than the expected one per cent rise in 2013, it is in line with consumer debt growth of recent years.“In recent years, the increase in auto sales has helped propel the total debt number and we believe auto captive loans will once again be a driver of this increase in 2014,” he said.“Instalment loans also have played a major role and we don’t expect there to be a material change in this trend,” he added.While TransUnion expects delinquency levels to drop next year and remain significantly lower than just a few years ago, “there is a slight concern that delinquencies could rise once interest rates increase,” Higgins said.However, he added that at this time “we do not believe interest rates will rise enough to materially impact delinquency levels.” read more

ICMMs new guidance on local level concerns and Vedanta found in breach

first_imgICMM presents Human Rights in the Metals & Mining Industry: Handling and Resolving Local Level Concerns & Grievances, the second in a series of publications designed to help member companies deal with challenging issues in this area. The publication sets out good practice approaches to help companies design and/or enhance existing complaints procedures or mechanisms.  Focussing on this issue, which was highlighted in the recent publication, Human Rights in the Metals & Mining Industry: Overview, Management Approach and Issues, complements ICMM members’ work at the operational level to build strong, trusting relations with local communities around their operations.Meanwhile, a UK registered mining company failed to comply with OECD standards for operating overseas when it did not consult an indigenous group on the construction of a bauxite mine in India, a UK Government examination has found. UK-registered Vedanta Resources plc operates directly or through subsidiaries in India, Zambia and Australia with a focus on aluminium, copper, zinc, lead and iron mining. The company is listed on the FTSE 100.The Government’s examination found that Vedanta acted inconsistently with the OECD Guidelines for Multinational Enterprises by failing to put in place an adequate and timely consultation mechanism fully to engage the indigenous group Dongria Kondh about the construction of a bauxite mine in the Niyamgiri Hills, Orissa, India.Trade, Investment and Small Business Minister, Lord Davies, said: “The Government promotes responsible business practices and adherence to internationally recognised standards. Clearly, mining can have an impact on those living nearby so it is essential that UK registered companies maintain an open dialogue with local communities, including indigenous groups, affected by their activities and put adequate means of consultation in place”.A complaint under the Guidelines against Vedanta was made by Survival International on December 19, 2008, triggering the start of the complaint procedure by the UK National Contact Point (NCP) for the OECD Guidelines. The UK NCP’s Final Statement on the complaint made two recommendations:Vedanta should immediately and adequately engage with the Dongria Kondh, on the construction of the bauxite mine. And, Vedanta should include a human and indigenous rights impact assessment in its project management process, paying particular attention to the creation of an adequate consultation process, prior to the finalisation and execution of a project, with indigenous groups potentially affected by the company’s activities.So, the timing of the new ICMM publication is very appropriate as it aims to:Describe a set of ‘overarching design principles’ that provide basic, high-level guidance for companies developing complaints mechanismsOutline some basic criteria to help operations ‘assess the nature of and potential for complaints’ and so to develop a mechanism most appropriate to their situationPresent three possible types of mechanism, with incrementally greater levels of external engagementSet out various ways in which global headquarters of companies can develop ‘group-wide procedures’ to support best practice locally.http://www.icmm.com/document/691last_img read more