Capesize (Atlantic and Pacific)
There were finally some signs of life in the market last week. Colombian cargoes finally appeared again in the market and found tonnage at about $3,000 for Continent destinations. Front Haul trips from Brazil to China for first half of September settled in the low $17. Pacific market was active during the second half of the week on the key route West Australia to China, which was fixed at an higher $7 for prompt dates. More activity was registered as well from South Africa: Saldanha Bay/Qingdao was fixed at mid $12. Charterers were bidding in the low $12 at the end of week. Short period levels were again a bit lower as it was reported something done in the high $7,000 to $8,000 for 4/7 months.
Panamax (Atlantic and Pacific)
The market was almost inactive during last week with the BPI falling to a record 599 points. In Atlantic, the owners were all in trouble to find suitable business and, as a result, charterers preferred to fix cargoes on voyage basis. For a short trip within Atlantic, some fixtures were done at $3,000 daily level or even less. For a USG trip to Far East, charterers were able to secure good candidates at $14,250 plus $450kbb. Fronthaul cargoes from ECSA were scarce and rumored at $13,500 daily + $350kbb level. Also the Pacific basin was suffering extremely low rates, with Indonesia round from E. Kalimantan talked at around $5,000 daily plus $70,000 bb for an LME. Candidates in North Pacific were facing an even worse market with charterers willing to pay maximum $7,000 daily plus $200kbb for NoPac round. Short period was at a record low level with fixtures in the $6,000 level for 4/8 months.
Handy (Far East/Pacific)
A good amount of fixtures was reported again with Supramax rates that didn't softened any further and in a few cases showed a little improvement. The leading trade was still coal from Indonesia to India and some nickel ore to China. A little more activity on period business was registered as well with a 53,000 tonner booked for 12 months and a 58,000 for 5/7 mos, both at $9,750 daily. Business ex NoPac was much less attractive with a 53,000 tonner ex China at only $7,000/d, even though the SE Asia redelivery makes it a little better it is still a disappointing fixture also compared to a 32,000 dwt fixed ex Japan at $8,500 daily, with full range redely though. Smaller Handies keep enjoying better rates as confirmed by two 28,000 dwt: one fixed at $9,000/d ex Far East via East Asia to Persian Gulf and the other at $7,000/d for an Australia round. A 30,000dwt was rumored concluded at $5,000 from Japan to Atlantic destinations.
Handy (North Europe/Mediterranean)
Activity was still extremely limited in connection to the poor harvest season in Europe. Despite that fixtures agreed, even if unattractive, were not as bad as they could have been. In comparison with the general market a Supramax booked at $12,000/d from Cont for short period with redely Atlantic was not bad at all. Another Supramax was fixed ex Norway to India at a good $15,000/d via Good Hope, however the redelivery area as of today is still dry of business to make the fixture attractive. Shade better rates were agreed on Handysizes with one fixture to load scrap ex N. EU to East Med and another for fertilizers to India.
Handy (USA/N.Atlantic/Lakes/S.America)
Bad harvest season in North and South Americais considered to be one of the major reasons preventing these markets to stabilize. Some demand for fronthaul business, mostly, coal to EU destinations, gave some support to Supramax rates that remained in the $10/12,000 daily depending on the destination. Rates for trips to the East were around $20,000/d or a shade less. Demand from South America was smaller, with Supramaxes still getting better rates for trips to WCSA. There were rumors of a vessel fixed at improved rate basis dely dop Wafr via South America to the East. Transatlantic trade was limited to smaller units which however suffered significantly.
Handy (Indian Ocean/South Africa)
A lack of spot demand resulted into a couple of Supramaxes fixing dramatically low levels also on local trades. At present the only hope of seeing some sign of recovery is coming from new stems quoted in the market for loading next October. This in connection with good harvest is helping smaller units to get employed and may bring some more business in this area.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it