Capesize (Atlantic and Pacific)
Similarly to last week the Capesize market continued to slide basically without any exception: BCI lost 531 points, the 4 T/c routes minus $6,026, but in general in all the various routes we have seen a minus sign. There were basically very few quotations of Brazil/China cargoes with Vale completely absent from market and little activity on West Australia/China run with limited lists quoted by Rio Tinto and BHP Billiton. Rate for West Australia /China ended at about $8.50/8.75 and Brazil to China down to about $24's with rates continuing to slide, and we will not be surprised to see this route approaching quickly to $20's. Atlantic market was also very quiet with very few cargoes quoted and some cargoes to be covered under contracts.
Panamax (Atlantic and Pacific)
The Atlantic market showed touch-lower rates over the week for lacking any real push with little improvement close to the end of week. Trading still focused on the North Atlantic with some new trans-Atlantic business in great demand and rates done to the low $20,000 daily for ships coming from the Mediterranean. Ballaster from the Pacific continued to service the US Gulf market, lending some support the East. As to the Pacific basin the market remained very positional, with NoPac rounds seeing some improvement on fresh inquiry due to shorter tonnage list and the longer round rates giving a premium to shorthaul business. Some good deal have been concluded for long term periods with rumors saying a ship fixed for seven years at usd 15,000/15,500 levels and the other modern large eco panamax ship fixed at usd 18,000 for two years.
Handy (Far East/Pacific)
There is still a long way to go before rates will become good enough for owners compared to other market areas. But better numbers were seen agreed this week on local trips and India-bound business, with the average supramax rate for the North Pacific round now said to be in the usd 16,000 daily mark. Activity for similar sizes on Australian rounds was quite limited with rates hardly finding their way to reach previous dones level. Short period was still concluded at levels quite similar to the previous week. A new building 53,000 tonner showed to be booked for two years at discounted rate bringing additional confusion about the future market developments. The smaller handies still generally showed to enjoy better market level on spot fixtures.
Handy (USA/N.Atlantic/Lakes/S.America)
A more confused trend for requirements from South America so far could not manage to bring any affection to the USG market where the enquiry was so stable to keep owners invulnerable from the uncertainty which affected the adjacent South America market. Activity from the USG this week concentrated on trans-Atlantic business showing stronger rates available for the tonnage delivering on the European side and extremely strong ones for tonnage delivering in the loading area. South America started in an attempt to keep in line with the previous trend but the smaller demand combined with some fixing and failing affected the latest agreed levels. At the end of the week also from this area the activity showed some more stability again.
Handy (North Europe/Mediterranean)
The North European market got further strength for renewed demand to load scrap into the East Med and handy sized grain stems into North Africa. The scarcity of tonnage in this area still showed charterers fixed their required tonnage basis delivery East Med at very fat rates for trips into the Middle East. The Black Sea fully carried on with its firm trend mostly still led by the large grain export but further assisted by some steels and fertilizers, and ended up in several fixtures concluded at better rates.
Handy (Indian Ocean/South Africa)
These waters showed to enjoy fresh chartering vitality, mostly driven by a sudden renewed demand for supramax tonnage to load iron ore from India to China which quickly led to improved fixtures. The result may be not fully enjoyable for owners as this revitalized trade will end up in positioning additional tonnage in the Pacific waters, where the enquiry is already insufficient to feed the good number of vessels already open there with cargoes coming from the Atlantic side. The coal trade from South Africa to India kept carrying on at levels very much in line with previous dones from both coasts.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: http://www.bancosta.it/