Capesize (Atlantic and Pacific)
The Capesize market has literally boomed this week: BCI +1170 points (an increase of nearly 36 percent), 4 TC average moving from $31,984 to $46,657 (+45 percent over the previous week!). This incredible and unexpected rally brought owners to see charter rates they have not seen since last year. Such improvements have been seen all around the globe. The Atlantic saw much more demand and due to the scarcity of tonnage charterers had to pay higher rates; the
Far East, regardless of the abundance of tonnage, has an even better performance, whilst South
Africa followed both markets, but especially the
Far East one, and rallied up to almost $18 on the Richards Bay/Rotterdam route. One of the reasons, according to us, is the full return to activity of the Chinese after the New Year holidays but especially the will to cover themselves with
iron ore cargoes before the new price hike is agreed with producers.
Panamax (Atlantic and Pacific)
After the usual quiet Monday, the levels unexpectedly improved during the rest of the week. On Monday levels for a transatlantic round were slightly above $13,000 daily whilst at the end of the week reached the $14,500 US dollars. The bigger pressure came from short period and trips
Far East where rates have surged up by around $2,500 over the week. There are still a number of charterers that need to take vessels so it appears that levels will remain healthy with a chance of further upside. Also in Pacific the week started very slowly but it quickly recovered supported by the high pressure of the major grain houses heavily chasing the market for any position for short period up to about one year. This pushed the short period rates up at least $2-2,500 daily to levels in the high $19,000's and the trip rates quickly followed. Most Owners with available tonnage are now not rating and inviting Charterers' interest and we now hear that rates in excess of $20,000 are being proposed to entice. NoPac round voyage reached levels of $19,000 and even more, and a trip via the NoPac back to the Atlantic has also been fixed at a much improved level of $17,000.
Handy (Far East/Pacific)
A colder start to the week was quickly contradicted by a further rising market, enjoyed by owners on all trades. Charterers' interest to book handymaxes for short period persists, with agreed rates for 3/5 or 4/6 month employment stabilizing between 17 and 18,000 US dollars daily. Supramax tonnage is now earning similar rates for backhaul business, local trips and trips to the Indian Ocean, from where, considering the latest hire rates paid for
iron ore back to
China, the round voyage becomes economically exciting.
Handy (North Europe/Mediterranean)
A little more chartering activity all around the north and south European coasts is slowly pushing up the rates both for Continental and Mediterranean originating business. A handymax was booked for short period basis delivery Continent at acceptable level, the Black Sea remains bullish with charts still managing good strategies to let the tonnage run spot and book at cheap enough money.
Handy (US/N. Atlantic/Lakes/S. America)
There is still some way to go before the US Gulf reaches a complete recovery, but a larger volume of enquiries has taken away some of the tonnage in surplus, and rates for business to the East have climbed up further. Transatlantic rates seem to need a longer process to rise accordingly, but they have improved since a week ago, and are expected go further up. Also short period from this area have shown better money paid, while the South American market goes on a little more firmer to all destinations and an improvement of the South African trade may push it up further by cutting down the ballasters.
Handy (Indian Ocean/South Africa)
This is another play-yard where owners can operate with fun their chartering strategies.
Iron ore fixtures from
India to
China are gaining upwards on a daily basis, with the end of the week showing a fancy supramax booked well in excess of the 20,000 mark. Owners willing to afford heavy duty short duration business get big money to move aggregates within the
Middle East Gulf ports, South African reported fixtures don't show yet a proportional follow-up in the levels but owners with tonnage still having tonnage unfixed in the Indian waters start hearing South African charterers willing to rate on dop basis.
Banchero Costa