Greek American Perry Danos Releases Latest Album!

And it's rather good! And he looks a bit like Bobby Mitropoulos!

Herbjorn Hansson shares with CNBC

But misses Larry Kudlow's humour shoots straight over his head.

Charles Weber Tanker Report Week 18

Positive Undertones Fears that swine flu could further hinder air travel and erode demand for jet fuel were compounded Thursday by a warning from the World Health Organization that the first global pandemic since 1968 is now “imminent.” In early week trading, markets were responding negatively to the growing number of confirmed and suspected cases of swine flu, but as the week progressed, investors seemed to become increasingly ambivalent as to the real effect the outbreak would have on the world economy and more focused on the myriad economic reports which were issued during the week. Those reports were mixed, but the positive signs to be found within them seem to support the growing speculation amongst analysts that the worst could now be behind us. Separate reports released this week show that consumer confidence in the US and South Korea had widely improved in April, with the US seeing the largest monthly gain since 2005 and South Korea rising by record margins to pre-financial crisis levels. In Japan, the world’s second largest economy, industrial activity rose by 1.6% in March, beating analysts’ estimates and marking the first time industrial output there has risen in six months. The average interest rate for auto loans in the US fell last month to 2.67 percentage points above Libor, down from about 8 percentage points in December, but still above the 10-year average of 1.84 percentage points. Mortgage rates also fell in April, prompting the decline in home prices to slow for the first time since 2007. US gasoline inventories unexpectedly fell last week by 4.7 Mbbls – a greater draw than the build-up of crude inventories of 4.1Mbbls during the same week. Simultaneously, AutoNation, Inc., the largest US-listed auto retailer, said sales in the second half of March surged on the back of better accessibility to better financial terms as the company posted a smaller than expected drop in first quarter earnings. Stocks pushed higher again mid-week after the Federal Reserve left interest rates unchanged at 0-0.25% and noted that the pace of contraction in the economy “appears to be somewhat slower.” The push helped the S&P 500 post its greatest monthly gain in 18 years. The positive undertones in the market, as well as the news that gasoline demand could be leveling off after a number of months of contracting helped boost oil futures. In line with OPEC Secretary General Abdullah al-Badri’s assessment on Monday that oil prices could recover to $60/bbl by the end of the year if global demand picks up as per OPEC’s forecasts, oil futures for delivery in one year rose to $61/bbl. This is positive news for the tanker markets as the prevailing need for tanker storage for equity crudes and related relets could now be once again bolstered by higher crude differentials. Currently, analysts’ estimates suggest that 125 Mbbls of oil is stored offshore – at least 70% of it crude. This would mean that floating storage is equivalent to almost 3 days of forward demand cover for the OECD countries with the total, including land-based storage, now standing just under 62 days of forward cover for the same area. As previously reported in the Weber Weekly Tanker Report on April 17th, such levels of forward demand cover are well above OPEC’s historical target for the OECD countries of 52-days. The Weber Tanker Index took its cues from the rest of the markets this week, rising by week’s end to 1,255.82, a 9.1% increase from last week’s close and its highest level since it began being recorded in late February. VLCC What a difference a year can make; at this time last year we were reporting a fixture from the AG to the Red Sea at ws240, May had already yielded 86 cargoes on the way to 106 total fixtures and the price of crude oil was $113.46! Today AG / Red Sea is arguably in the ws30's, cargo-wise owners are hoping May yields a total of 86 fixtures and the price of crude oil stands at $51.64. Along with the softer price of crude, Tanker demand has fallen dramatically and supply continues to rise with a large order book and a minimal amount of deletions thus far which has led to the flat, lackluster market that has been present much of 2009. Especially stagnant has been the last three months where, since February 1st rates have not topped the ws55 level for eastbound business and the average over that period has been ws35. This week was no different with rates showing little variance as charterers continued to be patient, finishing up their first half May stems, while holding off on later dates, using the inactivity and more than ample tonnage list in the second half of the month to their advantage. With supply considerably outweighing demand as we move forward owners will have to battle next week to hold on to current levels. Fixture-wise it proved a slightly below average week with a total 27 fixtures reported, 20 emanating from the Middle East and 7 from the Atlantic Basin. The former as usual was led by eastbound business where all but 3 fixtures were destined in that direction, China discharge leading the way accounting for almost one third of activity. Rates in this direction held generally steady in the low ws30's for double hulls and the mid to high ws20's on the older singles, a much narrower delta than we have seen in the past. Westbound we saw 3 fixtures reported, one to South Africa at ws35 and two longer haul pieces of business to the US gulf and Brazil at ws26 and ws28.5 respectively. Although long-haul business is arguably softer on later dates the previously mentioned rates faced a very limited audience and the next done will likely be lower. Looking ahead to next week we expect a slow start as Golden week will be in full swing in Japan, a Bank Holiday will close London and much of Europe will also be off on holidays. To date we have seen 46 fixtures reported for next month which has likely brought us past the halfway point. We compare that to a tonnage list that leaves us almost 60 units through the end of the month, of which twenty-five are available before the 15th. As charterers do start working on their programs for the second half of the month they will be left with more than ample choices which will likely lead rates further south. Expect westbound rates to fall back to the ws20 level, while eastbound business shows less of a drop back to the mid - high ws20's on the doubles. The older single units will continue to get whatever they can, rates dropping into the low ws20's. The Atlantic Basin was much quieter this week with 7 fixtures reported, 2 emanating from the Caribbean, the rest from West Africa. Trans-Atlantic rates were largely untested, the fixture below of ws48.75 has storage options on it that make it higher than market levels which are arguably in the low ws40's. The tonnage list in the Atlantic does remain very tight for ships in the west, but charterers are now fixing further ahead to take advantage of ballasters from the weaker Middle Eastern market. Suezmax The week commenced at the ws55 level for USG-bound voyages, but with limited inquiry and plenty of tonnage, rates bottomed by mid-week at the ws52.5 level with a slight rebound at week's end to ws55. Going forward, with the East becoming more active and the West holding steady, expect rates to remain around last done. Aframax It was a slightly soft start to the week with rates hovering between the ws60-62.5 range. With few inquiries and no shortage of available tonnage, rates would have otherwise erode if it were not for some owners' refusing to offer at such returns. In fact, rates managed to hit ws67.5 as the week's high. However; by week's end, with charters increased patience, rates stabilized once again at ws65. Panamax European markets remain flat this week at 55@70. There remains sufficient prompt tonnage in the UK/C and the Mediterranean leading the probability for rates to slip further, provided demand doesn't pick up. At the start of the week charterers experienced pressure on rates, paying 50x80 for CBS/USAC-G. On Wednesday around five cargoes jumped out; however, as there was still ample tonnage to meet demand, rates slipped from ws80 down to ws65 levels.... Ecuador/USWC remain at 50@130 despite falling rates in the Caribbean. Products The Atlantic clean market seems to have exceeded expectations throughout this week. Following a firm close to last week's market, the momentum continued to favor shipowners throughout the week. The Cont/TA market led the way, reaching 37x120 for a reported replacement fixture, with Upcoast and Euro-bound fixtures riding the wave. The rise in freight rates seemed to be driven primarily by thinning tonnage, which it seems is being driven by delays due to ullage issues on both sides of the Atlantic as much as anything else. While there were significant draws on gasoline last week in the States, inventories are still around the upper end of the average range for this time of year, and crude and distillate stocks increased, leaving both well above the upper end of the average range. Thus, in addition to the LR2's fixed for floating storage, there are any number of MR's unwittingly serving as storage as they await space to discharge in to. Nigeria has begun their subsidy program again for product imports, so we saw an increase in Cont/WAFR fixtures, with some Owners appearing happy to fix in that direction, where they expect to collect demurrage as they await discharge. What is less certain, however, is what effect, if any, a quiet Friday and Monday will have on the European markets as we move into next week. There are some who believe that this week's rate increase is due at least in part to European Charterers fixing early in advance of their 3 or 4 day weekend. It may be that once they return, charterers will try to hold back their cargoes somewhat, in which case rates may back off somewhat, but this remains to be seen. However, what may be a more controlling factor is tonnage awaiting discharge in Europe, WAFR and the States as ullage slowly becomes available.

TS Empire State passing Greenwich on May 18th 2009

On Monday the 18th of May 2009 the TS Empire State will be sailing past Greenwich at the start of her summer cruise. A number of CMA members and Fort Schuyler alumni will be whizzing out on their boats to say hello as she passes. For those of you with boats wishing to head out there, her ETD from the Bronx is 10:00 am , which should put her off Greenwich between 11:00 am and 12:00pm at a rough Lat: 40 57 38.28N Long: 073 34 39.02W.

CNBC Goes to Sea