A Sign of the Times: Bulk Carriers Still Being Idled

In the past six months, the amount of bulk carriers (big ships which carry loose commodities in holds) being idled is significant. Coincident with economic recovery, there is a noticeable increase in commodity demand – and therefore the usage of these bulk carriers.

A few times a week I travel to the local village Sungai Rengit to get supplies. It was uncommon to see a bulk carrier anchored offshore as Sungai Rengit near the eastern opening of the Singapore Straits – until the middle of last year. Last week, the amount of anchored bulk carriers I could count in a 60 degree visual range was 39 (all panamax size plus a few oil rigs). This week the count increased to 42.

This is a free anchorage for these ships, but is far away from services. This is not the type of location a ship anchors in when it is in service – as time is money. Even provisioning and crew change-out is difficult – but not impossible. I have been told that the same scene exists on the western approach to the Singapore Straits – which would total several hundred idle bulk carriers.

This is not a designated anchorage, and it is visually obvious the amount of anchored ships continues to grow every time I go to town. The picture below taken this week shows Malaysian fishing vessels with bulk carriers in the distance.

So you get an idea where this picture was taken, here is a C-MAP shot off of my ship’s computer:

Disclosures: none.

Comments

[George yach...:]

Steve very nautical. i liked the photo. Do you have any actual hard figures of ships at idle / cargo rates etc.

Also

Have you any graphs or Data that graphs the over-valuation / undervaluation of the American dollar .

Really enjoy your articles.

Regards

George Amable
Satun Thailand

Apr 12 09:31 AM

[Ricard:]

Steve,

Thanks for the perspective. Sometimes a picture really is worth a thousand words.

Apr 12 02:17 PM

[Blair Dehuff:]

It will be a good indicatior the world wide economy is really starting to improve when you are able to report seeing fewer idle bulk carriers. Thanks

Apr 12 03:48 PM

[Michael Jahr:]

Steve,

Nice observation, please let us konw when the total starts to trend in a more favorable direction.

Apr 12 10:21 PM

[poor&unempl...:]

Steven,

How can it be? BDI is up. It can't be true. The BDI is up! The BDI is up! It can't be true.....................

Those are not American ships listed on wallstreet.........
Those are not Dryship ships....................
Those are not Excel ships ...............

What proof do you have that those are real ships .........

Just kidding. Thanks for the realtycheck.

Apr 13 11:36 PM