Capesize (Atlantic and Pacific)
The Chinese New Year holidays celebrations took most of the Far East away from the market for almost one week and kept rates on waiting... In Atlantic there was still lack of tonnage available with however market staying more or less stable if we excluded two fixtures of overage capes both fixing trip via St.lawrence (by breaking IWL then ...) to China. While in Far East rates were slowly sliding down especially the iron ore from West Coast Australia to China. Some activity was reported on oneyear period side for 150,000 dwt size by Deiulemar.
Panamax (Atlantic and Pacific)
A positive end of the week in all areas especially in the Atlantic. Rates were firm for the Trans-Atlantic with many prompt vessels disappearing. Some Capesize cargoes have been splitted because of the good effects on frounthaul business in particular. Period interest was good as well with charterers talking almost $13,000 daily for one-year periods. The East started to climb slowly. Round voyage rates have been improved and were certainly hovering around the mid $4,000 daily. Short period interest underpinned the market, largely from just a handful of charterers, with four to six months now in the low $8,000 daily range.
Handy (Far East/Pacific)
The long-lasting Chinese lunar holidays and South Korea's celebration of their new year on Monday and Tuesday showed this market started the week with a further negative push, bringing the rates nearly to disastrous levels. Only the period fixing for up to 12 months duration showed to pay a reasonable premium over the spot market. Period rates further increased during the 2nd part of the week, when the spot market showed as well some small "pick-up" trend on the local round voyages. Friday brought a more optimistic feeling as the Chinese traders will be back to work and would bring some additional benefit to rates in the Pacific waters.
Handy (North Europe/Mediterranean)
A smaller chartering interest for loading out of the Black Sea ports did not affect the rate levels, with the bulk of the business still tripping into the Middle East. In the previously week, the North European market was revitalized by some fresh interest to load scrap. Although the concluded fixtures stayed confidential, the agreed rates were described as a good start for owners to enjoy a more realistic market from this area.
Handy (USA/N.Atlantic/Lakes/S.America)
Even if the Trans-Atlantic rates failed to show any improvement, there was a larger demand for Supramaxes to load from the U.S. Gulf and the Atlantic side of South America for business bound to Middle and Far East. Rates on these trades showed as progressive improvement through the week which ended up showing a shortage of prompter tonnage which was expected to bring a further increase in the near future. The renewed demand for or loading scrap cargoes from U.S. Atlantic ports into eastern Europe helped the Handysize to achieve better freight levels.
Handy (Indian Ocean/South Africa)
Although receivers were celebrating their new year's holidays, the trade of the iron ore from India to China showed a renewed vitality with a larger volume in demand. And a few reported Supramax fixtures show that nicer money is available again. Less attractive rates were still agreed for Atlantic bound business, likely due to the better positioning for vessel subsequent employments.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it