10 - 17 November 2006 Weekly market report..Banchero Costa

Thursday, 23 November 2006 14:20:50 (GMT+3)   |  
       

Capesize (Atlantic and Pacific) The downward trend of the Capesize market at the start of last week gradually slowed and reversed by week's end mostly due to increased activity within the Atlantic where certain Far Eastern charterers paid in a little excess of $75,000/day equivalent for fronthaul employment via Brazil to South Korea. Such fixture may demonstrate perhaps the charterers' need to fulfill prompt nomination obligations. The Pacific however weakened further only finding some support towards the end of the week in the low $62,000/day level. Overall the 4 T/C average regained earlier week losses to close marginally below (at $62,958/day) the level at week's opening. Although there was limited period activity to report this week, levels nonetheless remained fairly well supported. Panamax (Atlantic and Pacific) Even if in the Atlantic some new business were quoted, but mostly for forward dates which would do little to improve immediate prospects, there was some evidence of Capesize cargoes splitting and a stronger market for the big ships could continue to give support. The Pacific market this week showed up and down trend: rates falling since the beginning of the week but registered positive signs by the end of the week. Many ships has been fixed and failed so a direction in the market is still too hard to call. Handy (Far East/Pacific) After the usual slow start lots of fixtures were reported concluded. Charterers interest for period remains alive showing Handymaxes now booked at mid $20,000's for a year and Supramaxes achieving between high $20,000's to low $30,000's for bit shorter durations. Significantly higher money was paid for a backhaul voyage and again for another trip from the west coast to Atlantic. Owners kept disliking Middle East direction which pushed rates further up to $30,000 that were also paid for a Supramax fixing a Pacific round. Owners of Handysize tonnage are enjoying excellent fixture both for single trip and period employments. Handy (North Europe/Mediterranean) Although some chartering activity is said to have been finalized from the Continent, everything was done under the table. Market is anyhow extremely dry for Handymaxes while handysizes are said to be much better, although reported fixtures about same are missing as well. Comparatively the Black Sea is a little more active but not enough to yet push up further the rates. The “Xanadu” fixture itself looks a sign of improvement, but actually vessel delivered inside the Black Sea and was also based on Aden redelivery which on it's own already means $1,000 difference compared to Muscat out. Handy (USA/N.Atlantic/Lakes/S.America) Due to most of the activity done confidentially it is difficult to say how busy the US Gulf is however the sole reported fixture show levels are stable to last week. Charterers with Europe-bound cargoes face some troubles to attract owners' interest to send their tonnage to an area where afterwards they may not be doing that good. This has so far allowed rates to the East not to improve. South America shows a reasonable demand with little chartering activity concluded due to charterers trying to push around rumors of a weakening and owners toughly resisting from fixing at lower money. Handy (Indian Ocean/South Africa) More tonnage was reported fixed from the Indian Ocean to the East at rates, which partly are stable to last week's levels but some times show improvement. A slow strengthening of this market is consequence of some vessels fixed with delivery Indian Ocean for loading in South East Asia or Australia. South Africa was active but very unbalanced due to very much contradictory fixtures reported. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it