Capesize (Atlantic and Pacific)
The market continued its rally over the Capesize tonnage all over the Atlantic and Pacific: the Atlantic market was very strong in view of the chronic lack of promptly available tonnage, while the Pacific continued to be very active with all the iron ore cargoes shipped by the two largest iron ore exporters, BHP Billiton and Rio Tinto. The Brazil/China iron ore route was the one under major pressure however, with rate fixed up to the very high 60,000's daily for a prompt June loaded with redelivery in the Far East. In the East rounds have been done up to about Usd 45,000 and voyage rates in the mid $ 12's level.
Panamax (Atlantic and Pacific)
The good feeling of past weeks did not continue as the Panamax market eased over the week, but it might have bottomed. Quite a large number of prompt tonnage has been fixed but fresh cargoes were still few. The market took some positive input from talk that capesize cargoes could be split as not too many ships were left for the first half of June; if these split capesize cargo really will be quoted they will have a very good impact on raising the rates. The Pacific have been expected to ease at the start of the week but due to the increased mineral business round voyage rates were seen in the $17,000 daily and even over $18,000 daily. The market was extremely slow up to now. Rates steadied around the low-mid $16,000 daily range, but still remained a bit nervous. There was still some limited short period interest but good interest again for 1 year period buisness.
Handy (Far East/Pacific)
Rates were kept a positive trend for owners who easily managed to achieve similar levels to last fixtures on single trips and were able to scratch a little more out of charterers' pockets on a few occasions. No concluded fixtures were reported but it was clear that charterers' interest to take supramaxes for 12 months employment was still alive, and some boats were booked confidentially at a daily rate in the mid 13,000's; backhaul business was vey limited but the few charterers involved with such enquiries were said to be struggling in the attempt of keeping rates low. The lowering demand from the spot market seen at the end of the week may lead into some downwards adjustments in the near future.
Handy (North Europe/Mediterranean)
In a generally firm Atlantic area, North Europe was proved again to be the tightest area for charterers due to the serious lack of tonnage. With a further firming-up the Black Sea market mostly involved with east bound business pushing rates upwards. Due to the on-going Aden Gulf piracy risk, it's getting harder to attract owners into Continent business, the tonnage coming open in the Mediterranean, unless charterers are able to prove that they pay very special premium rates. The conflict pressure aroused between these areas ended up showing larger Handies fetching time charter rates in the mid 20'000's for trips Continent/East Med and larger Supramaxe fixing mid 30'000's for trips via Black Sea into the East.
Handy (USA/N.Atlantic/Lakes/S.America)
The market generally stayed on a firm trend in these areas where the on-going additional demand keeps rates firm or makes them firmer due to the on-going shortage of available tonnage. Increased demand for tonnage to load ex Indian Ocean prevented charterers to fish out performing tonnage from that area, and increased rates were agreed on for tonnage delivering in West Africa for loading South America, both for East-bound and Atlantic destinations. Rates for tonnage delivering in the USG were greater both for East-bound and Atlantic destinations. Period interest was alive here as well but limited to 3/5 months duration.
Handy (Indian Ocean/South Africa)
The India/China iron ore trade showed a full steam activity during the week with rates for larger Supramaxes reaching levels close to the 20,000 usd daily mark. The South Africa /India coal trade was supposed to pay similar levels for tonnage delivering dop India, but the economy of the trade so far was not able to support it and charterers with enquiries still to be covered on this trade are quite puzzled about how to book their shipments.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it