Capesize (Atlantic and Pacific)
After the rally of the previous week, the Capesize market continued on its positive trend for a few days, before losing almost the gain in just one day, and the BCI index decline 383 points, whilst the 4TC routes lost almost $5,500!!! What's happening to the market? There are too many sudden jumps either upwards or downwards, and this could be caused by a variety of factors: the uncertainly on the price of
iron ore still to be decided which pushed the Chinese to cover themselves on the spot? The chronic lack of prompt Capesizes in the Atlantic? Too much speculation due to “papers” which possibly distort the market? We will see. But maybe we will need more time. For now the prospects in the short term are not particularly bright as since the start of this week activity appears scarce.
Panamax (Atlantic and Pacific)
After the positive trend of the previous week, the expectations of Owners sank again in a dull market where rates turned back to the ones experienced two/three weeks ago. The "Bulk Fearn" 73,317 dwt built 1998, was allegedly fixed at $18,100 pd for a TC trip east from Auginish, a drop of around $2,000 from the previous week. After a positive momentum, from mid of the week the market took a definite turn downwards following the influence of the paper market. Chinese charterers took a breather but are expected to return to the market soon. In the meantime major grain houses were very active taking a considerable number of panamaxes for short period. Rates paid went anyhow down to $18,500 levels for 3-5 and 4-6 months. A drop in the region of $1,000 per day compared with several fixtures concluded last week although the level stills looks solid and a good.
Handy (Far East/Pacific)
Charterers interest for period tonnage is now going for longer durations upto the 12 months, with a tess52 type reported booked at nice money. The spot market has otherwise been a little more quiet. The fancier handymaxes are otherwise running between high teens and low 20,000's depending on the size and trade. Charterers in need to book backhaul cement business are struggling to attract owners interest.
Handy (North Europe/Mediterranean)
An irregular flow of activity has not brought any significant changes to the European market. The Black Sea appears to have weakened a little further and even operators having inbound positioning cargoes prefer redeliver the tonnage in this area rather than keep it for the outbound leg where a very small margin for speculation is left.
Handy (US/N. Atlantic/Lakes/S. America)
Last week's optimism was killed by a new slow down of chartering interest which quickly showed a build up of available tonnage and a decrease of rates to all destinations. Only fancier tonnage still manages fix at reasonable levels with standard tonnage remaining spot or having to agree quite low figures.
Handy (Indian Ocean/South Africa)
Some charterers try to play though on rates for
iron ore from
India but so far result in remaining open. Even though several fixtures have failed on subs proving that the quoted volume of demand is larger than the real business, the concluded fixtures are still agreed at very good money. The consequent rate increase in the South African market still needs to be proved.
Banchero Costa