Capesize (Atlantic and Pacific)
Capesize market like a yo-yo: last week registered a fall of about 487 points and Usd 5,490 when the previous week it rose Usd 6,245 on the 4 average t/c routes. All areas weakened over the week if we except Friday when market recovered about 125 points. Will be again the sign of another improvement? Iron ore Tubarao/China slipped from around Usd 31.50 down to about Usd 30 while the iron ore from West Australia to China went from Usd 13s to about high Usd 11s. For sure will see another improvement next week again.
Panamax (Atlantic and Pacific)
This week the Atlantic Panamax market appeared to have peaked, with rates trending sideways in most areas. In the North Continent especially new business helped to keep the market steady and absorbed much of the early tonnage. There were fewer cargoes being quoted from the USG and East Coast South America today. Rates in the regions were holding near last dones. In the Pacific basin, holidays in Korea and Hong Kong have helped to curtail activity by the end of the week with little activity: NoPac rounds saw rates drift in the absence of demand but short trips from Indonesia continued to give support. There was some new interest in period tonnage, with LME's earning around $27,000-$28,000 daily for a period of about 1-year's trading. A 1998-built 72,000-tonner was fixed in the low-$30,000's daily range for a short period of about 6 months trading.
Handy (Far East/Pacific)
Charterers' interest for taking Supramax tonnage on short term period was still strong. Rates for large modern eco types kept growing with rumours about tonnage fixing usd 30,000 daily on a 4/6 months duration. Similar sized tonnage could not find a similar enjoyable situation for the spot business, even if reported agreed rates appear high enough, they were for tonnage delivering very close to loading areas, whilst rates for the usual trip with coal ex North China via Indonesia to India showed a progressive falling. Smaller Handies struggled a bit to find their own employment even if agreed rates on the very few reported deals still look firm enough for owners. At the end of the week activity slowed down with a predicted downwards trend affecting all sizes.
Handy (North Europe/Mediterranean)
The scarce amount of tonnage available in North Europe further firmed up rates both for Atlantic and East bound business. Due to the lack of positions some charterers showed to be compelled take a vessel from the East Med to cover their stem from the White Sea to India. Mediterranean and the Black Sea were less active and even if timecharter rates for eastbound business remained good enough for owners, the lack of Atlantic enquiry allowed charterers to get rid of a larger amount of their Middle East bound business.
Handy (USA/N.Atlantic/Lakes/S.America)
Supramax activity out of the USG remained large and stable. Even the larger number of ballasters from the Far East didn't seem to bring any effect to the achievable rates. The level for the large modern eco types has stabilized to an average level between the high 50,000's and the 60,000 usd daily level, both for trans-Atlantic and east bound business. Owners showed to consider the longer duration and enough compensation for the eastbound direction rather than call for a higher rate. The South American market showed to be a little less active, agreed rates were not much weaker. The last Supra taken with delivery at Indian Ocean to load in South American eastbound cargo was agreed at more than usd 2,000 daily compared from the previous one.
Handy (Indian Ocean/South Africa)
The week's trend on the India/China iron ore trade became difficult to describe with the enquiry disappearing almost totally from the West Coast and decreasing consistently from the East Coast. Despite of this the few reported fixtures at much lower rates still showed owners managing some strong opposition to a total rate collapse, and luckily they still managed to find their way of ballasting their tonnage elsewhere rather than getting totally squeezed from the local charterers.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it