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24 - 30 October Weekly market report.. Banchero Costa

Tuesday, 03 November 2009 08:01:10 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

Last week ended in a very positive mood with spot rates firming either in Atlantic and in Far East. At the beginning of the week there was a slowdown of activity because of Coaltrans in London withdrawing many operators from the daily work but from Wednesday onwards the market resumed in a very good attitude: West Australia/China iron ore jumped to mid Usd 14's level with the Pacific Round increasing to about Usd 50,000 level. Atlantic also showed the usual flurry of coal from Bolivar, but also iron ore ex Brazil and St. Lawrence to Cont/Med which coupled of the usual lack of available tonnage in the Atlantic basin put the rates for Transatlantic rounds well in excess of Usd 60,000 daily. Charterers were also approaching Owners on short period in the East and have increased their rates to about Usd 38/39,000 for about 4/6 months t/c for standard 172,000 dwt Baltic type.

Panamax (Atlantic and Pacific)

In Atlantic level were pushed by the mineral trades and fronthaul rates were encouraging some charterers to avoid the high levels of the single trip and to go for short period terms. Trans-Atlantic rates were mixed and to some extent positional. Trans-Atlantic rates reached levels around the mid-high $20,000 daily depending on delivery. Short period rates were pushed on with talk of a 76,000-tonner open 7-12 November Cape Passero fixing for 4 to 6 months trading at $33,000 daily. The year rate for ships giving Atlantic delivery was around $23,000 daily and two years about $19,000 daily. The Pacific was sustained by charterers who sourced tonnage for US Gulf business. Rates achieved were still around $23,000 to $24,000 daily for Australia or Pacific rounds with more optimism emerging. Firmer paper trading here also helped to underpin period activity with short period rates now at $24,000 daily and one year rates not far from $20,000 daily. A 72,000-tonner open China has already seen $18,500 daily for two years trading.

Handy (Far East/Pacific)

The long list of reported fixtures was just due to on-going huge volume of tonnage available in the area. Actually business in this area remained very quiet compared to the number of vessels getting free in these waters and searching for a next employment. Interest for supramaxes was mostly in short period employments and the local market trend was again attractive for owners to look at business loading out of the USG back to the East. Handysize tonnage struggled to find business.

Handy (North Europe/Mediterranean)

The better rates were still agreed for business loading out of the Black Sea. A larger handy was reported to get fixed basis delivery Indian ocean for loading out of this area a cargo back to the Middle East, even if the agreed figures have showed to be weaker compared to previous week's levels. The Continent started showing a fresh ignition of enquiry, mostly oriented to the handysizes. Initially it was a "fixing and failing" scenario which afterwards ended up into a number of vessels reaching clean fixtures for scrap and fertilizers liftings at rates lower than last dones.

Handy (USA/N.Atlantic/Lakes/S.America)

The week started showing the USG as the more active Atlantic area for supramaxes, although levels agreed for trans-Atlantic business traded side-ways. At mid-week a pick-up of fresh enquiry was seen both from the USG and the East Coast of South America but rate were seen more in a fight to keep last done levels rather than increasing, which was also in connection with a slow-down of the demand at the end of the week.

Handy (Indian Ocean/South Africa)

With an almost un-existing interest and trade involving other commodities and destinations the sole chartering activity allowing the shipping blood to keep running in this area was the usual iron ore trade from India to China, now further restricted for loading almost only out of the East coast from where a 50,000 tonner reported booked at unattractive rate, but a larger supramax delivering on same dates showed to fetch a nice time-charter hire level.

Banchero Costa and Co Spa

Mail: research@bancosta.it
Web: www.bancosta.it


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