Capesize (Atlantic and Pacific)
Another horrible week on capsize market: the index lost 3,030 points, the average of the 4 T/c routes closed the week at $ 85,372 that is $ 39,079 which is equivalent to a loss of about 31 %!!! Rates came down heavily all the week and until last Thursday/Friday there seemed no end to the downside however Friday was bringing, mainly due to the paper a boost in rates which is at least bringing the hope of a recover during next week. Anyhow both markets were in crisis, Atlantic with a lot of prompt capes and very few quoted requirements ended in a very low voyage fixture: $ 21.00 fixed for a cape coal from P.Drummond to Continent which is probably equivalent to about only $ 55/60,000 on t/c round equivalent. The Far East market was very depressed too with a huge amount of prompt and ballasting tonnage and a lack of cargoes usually being quoted by the major traders BHP and Rio Tinto. One of the main reasons of this situation is also due to the fact that the main Iron Ore producers are still under new price increase negotiations and new price still has to be settled.
Panamax (Atlantic and Pacific)
For most of the week paper market showed very ''volatile'' trend with operators running after it trying get same profit trading short terms Transatlantic r/v. Sentiment is very negative and charts taking good rates thought breaking will gets a very good premium. In Pacific many prompt ships keep charts very happy since again here low rates have been achieved. However by the very last part of the week paper market had a very good recovery and suddenly rates especially for periods had a very good increase with better sentiment for next following week in both basin.
Handy (Far East/Pacific)
Optimism about a better forward market has become difficult to be kept alive. A further build up of prompt tonnage pushed rates further down and generated additional fixing and failing. There is a little bit of enquiry on all trades, local trips, Australian rounds and Pacific rounds, less interest for backhaul. But it's too "little" and in the present trend charterers tend to hold back from fixing, with a belief that rates haven't reached the bottom yet. Short period interest is still quoted but to consider same at the low rates charterers are aiming at, owners should have to lose any confidence in the future market. Smaller handies who were showing to better resist at this collapse, started as well to see falling rates at the end of the week.
Handy (North Europe/Mediterranean)
Demand for scrap loaders out of the Continent remained the leading activity of the Atlantic market. All stems appear to be bound into Eastern Mediterranean ports and show tonnage fixing attractive time-charter rates for covering it. Rates which could be considered even more attracive considering the afterwards rates tonnage gets fixed at from Black Sea to Middle East, to end up close enough to the Indian coasts where the iron ore export keeps to area quite alive and kicking. The end of the week showed some downwards adjustments both ex Continent and Black Sea, as a possible reflection of an Atlantic Americas market that showed a bit of decline in activity and rates.
Handy (USA/N.Atlantic/Lakes/S.America)
A confusing start of the activity showed that besides some additional enquiry was quoted out, agreed rates were contradicting each other and quite positional. A little fighting was required to keep rates at previous weeks levels, making initially vain chartrers attempts to push rates down. Subsequent build up of tonnage did not appear promising at all and week ended up showing Some definitely lower fixtures reported agreed which came as as sad confirmation about some previously unconfirmed rumours pretending that the us gulf/continenet trade had become fixable at lower money.
Handy (Indian Ocean/South Africa)
Chartering interest for iron ore India/China grew up further. A large number of fixtures were reported concluded and it is supposed to be only a prtion of the actually agreed ones. At the worst rates were stable to previous weeks levls, but in several cases they showed some interesting increase, Considering the near Pacific market rate collapse and some weakening now also stabilizing in the Atlantic, the Indian iron ore chartering market is getting quite an attractive spot for owners. Some charterers are trying to atttract in the trade vesels coing open South China, due to the local depressed market perhaps it could even mak sense take tonage with delivery there for loading India and returning back.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it