Capesize (Atlantic and Pacific)
It seems there is no stop on this falling market: another week totaling a minus 1,158 points on the BCI!!! It is exactly one month, from 15th May till 15th June, when Capesize market started to weaken and this fall it has not yet reached an end totaling so far minus 3,297 points: the average of the 4 T/c routes which was at 15th of May $114,220 ended last week at $ 72,070, i.e. a net loss of $42,150 daily which representing about 37 percent less in one month only!!! Again this heavy fall embracing both eastern and western hemispheres with the Pacific reaching the hardest hits, the congestion and the bad weather in East Australia increasing this loss with many lack of available cargoes. Long Time-Charter period market was also affected with quite a number of negotiations failed because of this continued falling spot market and also affecting a few long terms iron ore contracts. It seemed that at the end of the week there were some more encouraging signs at least of a stop in the falls... let's see what will happen next week.
Panamax (Atlantic and Pacific)
Market showed a week where rates either in the Atlantic or Pacific sector fell again, nevertheless grain from South America kept rates not too low with some fixtures saying that trips out with grain are under $50,000 daily for an 'average' ship. The Pacific basin fared no better, with rates for a Pacific round reported done at $39,000 daily. Again short period was of little consequence of this situation but with little more activities in last part of the week.
Handy (Far East/Pacific)
The area traded quite contradictorily through the week. An initial positional market good rates were paid only to Indian destinations, to compensate owners afterwards troubles inside the monsoons, was followed by a fresh period interest from charterers with several concluded fixtures at firm levels. The spot remained quite uncertain with lot of activity on the surface, mostly ending with fixing and failing.
Handy (North Europe/Mediterranean)
There is still no real enough activity around this area to keep the Handymax market busy. Demand from the Continent and the Black Sea is small and discontinuous; the few requirements bound to Americas are not showing attractive enough rates to induce owners' consideration until their tonnage runs spot. And the preference remains to try fix the tonnage for cargoes loading across even at smaller money than a couple of weeks ago, market across may be weaker than at present if vessel is delayed by the positioning business. Handysizes kept achieving rates closer to last done.
Handy (USA/N.Atlantic/Lakes/S.America)
Even if the reports showed fewer fixtures concluded, rates for business loading US Gulf and east coast South America showed to keep much closer to previous done, contrary to what the Panamax and Capesize market have been showing. A slow market decrease did not prevent good rates to be agreed both for transatlantic and eastbound business but cold not revive any charterer period interest.
Handy (Indian Ocean/South Africa)
A sort of "limbus" atmosphere goes around the area. Shipping activity out of India is stuck by the monsoons giving a general downward trend to the local freight market. This should allow charterers of lower paying requirements from the Persian Gulf to take advantage but strangely they are also keeping quiet an idle. Similarly does the South African outbound market.
Banchero Costa and Co Spa
Mail: research@bancosta.it