Capesize (Atlantic and Pacific)
Capesize market finally surged by the middle of last week towards a strong recovery of rates and activity. The Baltic Cape Index increased up to 3,481 points (+ 518) and $ 33,922 on the 4 T/c routes (+ $5,532). In particular the iron ore rates Brazil/China reached $ 25.43 while the West Australia to China broke the $ 10 and reached $ 10.55. Chinese demand for iron ore was very strong with the ‘big three', Vale, BHP and Rio Tinto, which were actively taking capes from Brazil and West Australia to China and almost covered all the lifting for the month of May and were working the loading in June. The rates climbed substantially and are expected to climb further during next week. It was also remarkable that almost all capes available in Atlantic for May loading positions disappeared with some Charterers still desperately looking for tonnage.
Panamax (Atlantic and Pacific)
A good week for the Atlantic market, the limited tonnage in N.Atlantic brought Baltic/interCont business at $35,000 daily, and charterers had to concede big numbers for trips via the US Gulf or US East Coast. Those still looking for tonnage for May-early June from the Continent would find very few opportunities. As a consequence short period rates climbed significantly in mid $25,000 daily with some good fixture done also for 1 year at close to 17,000. In the Pacific market, since charterers continued to draw tonnage from the Pacific basin to cover cargoes ex East Coast America, rates remained struggling. In the last part of the week there was also great demand for short period vessels; short period was rumoured done at $17,000 daily.
Handy (Far East/Pacific)
The first few days of the week showed that market was getting better for Handymax and Supramax owners. It showed better rates were agreed on for North Pacific round voyages and trips via Australia to the Indian sub-Continent, together with slightly higher figures agreed on for smaller Handies loading from Australia. Period interest was also quite alive for up to 12 months commitments, here it was the smaller Handies that fetched better rates while larger ones could achieve levels only a little better than last dones. The activity was seen to slow down towards the end of the week which hasn't affected the positive market trend so far.
Handy (North Europe/Mediterranean)
Owners were seen to be even more reluctant to consider employments via the Black Sea into the East; although some charterers allowed routing via Cape of Good Hope it was not alluring enough for owners to leave the firming-up Atlantic waters. Charterers needed to pay higher rates to attract somebody to go this way, which brought an uptrend also to rates agreed on for loading out of the Black Sea to Atlantic destinations. Northern Europe was going through a similar process; the enquiry from this area kept growing while tonnage available was very scarce, as a result charterers have to pay higher rates to take tonnage on delivery 7/10 days off their loading port.
Handy (USA/N.Atlantic/Lakes/S.America)
The market of North and South Americas presented firm on Monday, a large portion of the trade was dedicated to shipments bound to the Middle East, for which larger Handies achieved proportionally better rates irrespective of delivering already on the loading side or in West Africa/European areas. The large number of business reported concluded was rumored to be still smaller than what was actually done. The firmer trend of these trades also reflected on better figures for trans-Atlantic business on which also the smaller Handies were seen to enjoy nice rates. The slowdown of activity at the end of the week didn't bring any effect to the rate levels, a generally optimistic view led us to think they will further increase.
Handy (Indian Ocean/South Africa)
More charterers demand was seen to load Supramax sized stems from South Africa. This in combination with some anxiety related to the forthcoming monsoons hitting Indian coast led to a good improvement on rates to carry iron ore into China. It also brought an upward trend to rates paid for tonnage delivering in the Arabic waters to load from South America and coming back to this area. Owners of smaller Handies were, instead, lacking business, but tonnage available in the Eastern side of the range managed reasonable enough deals by loading from South East Asia.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it