Capesize (Atlantic and Pacific)
Small improvement again with just the three major players of the capesize market largely dominating the iron ore route from West Australia to China (BHP Billiton and Rio Tinto) and Brazil to China (Vale). Basically European importers of iron ore remained almost absent from the market. Chinese stockpiles were improving and standed at about 70 million tons with the record of importation during the 1st quarter of 2009. Capesize shipping market however did not improve very much so far. Baltic Cape Index improved of 185 points, the average of the 4 T/c routes got almost $ 2,000 closing last Friday at $ 19,889, the Route C8, Transatlantic round at $ 18,800 and the Fronthaul (route c9) $ 33,746.
Panamax (Atlantic and Pacific)
This week market improved mainly due to the large number of fresh grain business essentially from South America/China with the Chinese still the major buyers of Argentinean grain; in addition same fresh mineral trading from the Baltic also kept market under pressure. As logical consequence charterers booked many Middle / Far East tonnage where rates are lower, but this in turn has had a good effect for Pacific market which also showed a good recover and all rates were improving for NoPac rounds or short and medium periods there.
Handy (Far East/Pacific)
The week started showing some confusion with the rates trend. In a generally quiet atmosphere some fixtures were reported at better levels while others were agreed at lower levels. This "positional market" still allowed some charterers to involve with U.S.Gulf/Far East stems to catch tonnage for U.S. Gulf round voyages at lower rates which was similar to that of tonnage for trips from the Far East to the Indian Ocean. This latter trade was proved to be the dominant interest from charterers' side after most of the inter-Asia nickel ore stems were covered. Later in the week interest for trans-Pacific rounds revived, for which better rates were said to have been agreed.
Handy (North Europe/Mediterranean)
Availability of tonnage for loading out of Northern Europe and the Black Sea was still short and rates kept a firm trend on all sizes both for larger and smaller tonnage. The constant demand for tonnage to lift fertilizers out of the lower Baltic into the Middle East compelled charterers to agree high rates in exchange of booking tonnage, and smaller vessels still got quite decent rates for trips with scrap into the MED. The short amount of tonnage open in the area still put some charterers in the need to book tonnage delivering in Muscat to load out of the Black Sea for business back into the Middle East.
Handy (USA/N.Atlantic/Lakes/S.America)
The Catholic Easter holidays generated a very slow start of the activity from these areas. The demand for loading out of the U.S. Gulf and North Coast South America was still enough but agreed rates were keeping to similar levels of last dones which were not exciting. As the slow down of chartering interest from South America, some fixtures were concluded at lower levels, but the afterwards quick recovery of the chartering interest and the scarce available tonnage showed charterers were paying much better only for Supramaxes delivering in South Africa for loading in Brazil cargoes bound back into the Indian ocean.
Handy (Indian Ocean/South Africa)
The volume of the activity with iron ore loading from India into Chinese ports was good but not enough to avoid rates hardly repeating last dones on the spot positions and showing decreased figures on the fixtures agreed for loading slightly forward stems, which kept pushing owners to look at business loading out of other basins. Smaller sizes involved with the same trade were showed to get even more penalized on rates.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it