03 - 10 March 2006 weekly market report..Banchero Costa

Tuesday, 14 March 2006 16:01:08 (GMT+3)   |  
       

Capesize (Atlantic and Pacific) A soft week this has been, with the market trying to hold on previous positions but finally lost 87 points at the end of a very quiet week. The 4T/C routes have nevertheless resisted little above $40,000 which is anyhow a very good level. The market has been dominated by speculation on the new iron ore price which has still not been decided even though CVRD (the world's largest producer) was said to be ready to accept a 10 percent increase although all has proved to be only market rumour. In Atlantic activity has been very scarce but the round has remained little below $41,000, the round Pacific about $40'000, the trip Brazil/Far East about $52/53,000 whilst the backhaul little above $19,000. Panamax (Atlantic and Pacific) There has definitely been more activity in the Atlantic, and levels fixed in the Pacific were still steady during the course of the week. There has been a lot of enthusiasm about the market especially at the beginning of the week which resulted in good fixtures being reported. The market appeared to be grain driven, with the onset of the Plate season. Therefore operator activity increased, which was good news for owners. The re-appearance of charterers willing to take tonnage for short period was another healthy sign although owners were reluctant to fix their vessels for 3-5 months. Handy (Far East/Pacific) The persisting positive trend compels charterers in need to book their single trip requirements to fix in tonnage basis short period. The on-going rates for single employments would otherwise be far too expensive and this still leaves some hope to charterers to recover some money through the subsequent legs. Even if positioning of tonnage into the Indian Ocean appears a very attractive choice with the iron ore rates achievable back to the east, charterers involved with coal shipments to the Middle East can only fix by paying high money to owners. Handy (North Europe/Mediterranean) The Black Sea market is still poor of business and not showing any sign of recovery for the near future. Most of the tonnage in the area got fixed at unreported terms, owners may have wished not to show what they needed to take for getting out of there. The Continent remains firm enough, mostly led by the scrap trade into Turkish ports. Handy (US/N. Atlantic/Lakes/S. America) There is a little more enquiry from the US Gulf but the market is still going sideways with very few fixtures reported and rates in straight contradiction with each other. At the end of the week handymaxes to the east are rumoured to be earning $2-3000 daily more. Handy (Indian Ocean/South Africa) Charterers rush to carry as much iron ore as possible before the monsoon season starts affecting loadports by mid of next April is driving timecharter rates to crazy levels. It is now normal for nice handymaxes to achieve well over $25,000 for a trip to China. Banchero Costa

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