Capesize (Atlantic and Pacific)
Another week of good gains either in the Pacific or in the Atlantic basin: BCI improved 536 points and the 4 T/c routes $ 5,970 to reach the level of $ 58,627 daily. In particular the Iron Ore from W.Australia to China reached the level of close to $ 15.00 per m/t which was equivalent to about $ 54,000 while the iron ore from South Brazil to Rotterdam was fixed at about $ 20.80 level which meant an equivalent T/c rate of almost $ 68,000 for round. In addition there have been activity on the short period terms with little evidence of some Charterers wanting longer duration and therefore all these sentiment fuelled further optimism on the possible continuation of the present good market in the Capesize sector. Congestion in major Chinese cape size ports, East Australian coal loading ports and Brazilian loading ports as well made some 30/35 capesizes withdrawn from the market and this was another reason of the present good increasing market which most of operators expect that will keep continuing in the following weeks too.
Panamax (Atlantic and Pacific)
A really strong market in both basins: Pacific area showed rates were continuing to be firmer and owners confident would be the same for the following week. Long and short period trading featured strongly despite volatile paper trading. These good improvements were due to the strong demand for prompt ships round voyages which rates are now close to usd 30000. In the Atlantic, a slow end to the week as a major dinner in Germany sidelined some market participants, but rates remained healthy in this area. Again the short/1 year period trading was in evidence as in the spot market many prompt ships have been fixed out but charterers still needed tonnage for their Middle/Far East cargoes especially where rates were in the forties.
Handy (Far East/Pacific)
Activity started slowly with few spot businesses mostly for local trading concluded at unexciting rates and charterers were more interested in 3 to 5 months period deals. Fresh activity from the North Pacific led the trend towards more attractive levels with some supras booked for this trade in the very high teens. The improvement showed to bring a slow reflection on the other trades, but the week ended with charterers in a rush to book the available larger tonnage which may indicate that a generally firmer market is expected for the near future. Supramaxes kept achieving rates similar to last dones on the short term period but better rate was agreed for 2 years commitment.
Handy (North Europe/Mediterranean)
There has been a bit of enquiry from the Continent both for handies and supramaxes. The smaller units mostly sought for local trades or trips into West Africa, agreed rates were proved to be scarcely impressive for the smaller vessels with more optimistic levels paid to the larger ones. With the week getting closer to its end this area was described as firming up. Activity from Southern Europe was scarce with quiet enquiry out of the Black Sea as handy-size owners started reducing their rates while larger vessels were still resisting to charterers' attempt to pay less rates. The lousy rates available for round voyages via America have further weakened Mediterranean waters.
Handy (USA/N.Atlantic/Lakes/S.America)
The volume of the enquiry at the week opening was small, with decreased rates agreed to all destinations and a stronger negativity for the smaller sizes. The chartering demand stayed smaller until the last working days when especially the market for the larger vessels enjoyed a sudden improvement, with the daily hire for trips to the East back to levels over usd 40,00 and better rates agreed also for Atlantic trading. Owners showed clear preference to short period fixing rather than single trips.
Handy (Indian Ocean/South Africa)
The weakness accumulated through the previous week made a couple of charterers involved with the South Africa/India coal trade come out of the bush and book two supramaxes at unexciting levels. Shortly afterwards the revived interest for the India/China iron ore trade generated a number of reported deals with agreed rates for supramaxes progressively climbing up and reaching levels which became enjoyable for the owners of the larger units. The freshly born positive trend didn't reflect yet on the smaller sizes.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it