Capesize (Atlantic and Pacific)
Atlantic Capesize market was steady; even though a little more TransAtlantic activity was registered rates were still at a disappointing $4,500 daily level. Fronthaul cargoes Brazil/China remained in the high $17s / low $18s. In Far East there was a further weakening with West Australia/China iron ore rates reported down to $6.40 level. There are always too many Capes available, spot or prompt, in addition to many sitting in semi-lay up in Singapore. More activity has been reported again on the short period terms with charterers like SwissMarine, Classic Maritime, Louis Dreyfus and others taking units in for about 4/6 months TC at rates ranging around $10,000 with prompt delivery in Far East that is not a bad rate today considering that the Pacific round is not even fixed at $4,500 daily. It seems clear that Charterers believe in an improvement in the near term, although hopes of a change in the tendency are still not there.
Panamax (Atlantic and Pacific)
The market continued softening last week. In the Atlantic basin, South American grain trade was still well supplied by candidates ballasting from Far East and the number of cargoes decreased; as a result fixtures were done at $15,000 daily + $500,000 bb level. The fronthaul ex North Atlantic could still get some premium. Rate for Transatlantic employments plummeted with an ECSA grain cargo to Continent covered at $9,000 daily + $180,000 bb with a PostPanamax. Rates for Pacific round were still hovering at low levels and suffering a further downward trend. A vessel in S. China was talked at about $8,000 daily for Indonesia/Australia round and in Japan could fetch $8,500 daily for NoPac round or $1,000 more on daily hire for longer USG round. Short period softened further to mid $8,000 daily level due to a lack of takers.
Handy (Far East/Pacific)
Coal and nickel ore trades ex Indonesia were still the main driver for the market in this area and rates kept on sliding throughout the week. India-bound coal trades lost more than $1,000 during the week. Approaching the end of the week a 56,000 tonner was fixed at $5,000 basis delivery dop North China to load nickel ore in Indonesia for China. Other Supramax trades were marginal with a 52,000 dwt fetching $9,000 daily basis dely Indonesia for a trip via Australia back to China. North Pacific rounds were in the mid/high $8,000 basis delivery N. China/Japan range. Period interest was scarce and a fancy 58,000 tonner was booked a bit over $8,000 for 12 months employment whilst another Supra was rumoured agreed at $14,000 for 2 to 4 months. Also the Handysize market was less active inducing owners to accept smaller rates for backhaul business like the 31,000 tonner fixed at $2,500 for a N. China/ECSA trip.
Handy (North Europe/Mediterranean)
A good amount of demand to load ex Baltic, mostly for backhaul business, kept the market active. Agreed rates were between $6/8,000 daily, not exciting, but reasonable considering the following fronthaul fixture from Atlantic Americas. A nice fixture was also agreed with a 43,000 tonner loading scrap ex Cont to Turkey basis dely Morocco. From the same region a fancy 31,000 tonner was booked for 12 months at $10,900 daily. The Med/BSea trade was kept private, but a strong $27,000 daily rate was agreed for a 53,000 tonner for a trip to Persian Gulf through the Gulf of Aden.
Handy (USA/N.Atlantic/Lakes/S.America)
Last week started with many rumours of a market sudden slow down from USG and ECSA. At first all concluded business was kept private and only after, when fixtures started to leak, it was possible to see a market correction. Supramax coal business ex USG to East was booked below $25,000 daily and a similar unit fetched $14,000 for short period redelivery Atlantic waters. The week closed with the fixture of a large/fancy Supra at $17,000 for a trip with coal to East Med at $17,000. From S. America the market followed a similar trend, but more positional. No activity was reported for Handies from S. America. Charterers' interest was concentrated only into West Africa destinations and volume was not enough missing Europe and East bound cargoes.
Handy (Indian Ocean/South Africa)
Reports of concluded business from these waters are more and more unavailable, rumours of a Supramax booking $9,500 plus $350,000 ballast bonus for delivery S. Africa to perform a trip to Far East would mean that rates may have further decreased in the area.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it