18-23 January Weekly market report.. Banchero Costa

Capesize (Atlantic and Pacific)

A very positive week in the Capesize market, especially in Atlantic, brought the Index at a good 2032 points, which means about 15 % more over the week. The average of the 4 T/c routes also gained $ 3,514 from last Friday reaching average of $ 17,984. There were a few remarkable reports of period Time-Charters fixtures such as the M/v "Agility" 152,065/1989 who fixed 11/13 months at $ 20,500 with Formosa Plastic. Tonnage in Atlantic is quickly disappearing leaving a number of charterers having to fix T/c cargoes or Fronthauls iron ore with no choice but to pay up. However the Chinese Lunar New Year Holidays of next week in all the Eastern Hemisphere could put a brake on the market and this rush to fix could just be the result of the upcoming holidays.

Panamax (Atlantic and Pacific)

Atlantic market closed the week with a little of optimism and with increased period activity. Some fixtures were reported at low $9,000 daily for short periods. However Lunar New Year holidays next week could have a significant impact with the market potentially easing or at least put on hold. Owners wanting a premium to go East benefited the 'good' sentiment and a firmer Capesize market that has resulted in some Cape splitting and potential splits. In the East the market improved - albeit at still very low levels - with the market at least dop and rates at $2,500 daily for an Australian round with talk it could hit $3,000 daily. Also period activity was in evidence here with short period rates reaching $7,500 daily.

Handy (Far East/Pacific)

The chartering trend in these waters kept showing a dark scenario for owners. Quite an amount of tonnage is still to fixed and demand is small. Rates decreased further on all trade and on period chartering. Even if the rate agreed for a Supramax on a 12 months employment is double than what owners would have achieved on any spot employment, the figure remains quite small on its own. The North Pacific round voyage for Supramaxes was fixed at lower money than what owners could achieve for a round trip with iron ore via India back to China. No activity was reported for Handysizes, although some activity was there and available rates were said to be close to those of Handymaxes.

Handy (North Europe/Mediterranean)

The market was very weak all around the European coasts. There is a reasonable amount of grain moving from Black Sea to Middle East, but rates available are very much on the low side. Agreed rates were even worse for tonnage delivering/loading in Mediterranean waters, while North Europe was very dry of activity.

Handy (USA/N.Atlantic/Lakes/S.America)

Rates from South America managed to resist due to a partial lack of prompt tonnage, even if the market started quite slowly around the remaining coasts of the Atlantic Americas. The week carried on showing some more interest for Handysizes loading out of Latin America that afterwards was extended to Supramaxes as well. But rates stayed to previously agreed levels. The week ended showing some fresh grain enquiry also out of the US Gulf in connection with scarce availability of tonnage to load from this area and from South America as well.

Handy (Indian Ocean/South Africa)

Rates for India/China iron ore trade have started to increase again and charterers kept on looking at tonnage open in the Southern Pacific waters which in several cases ended up in cheaper fixtures compared to rates owners of tonnage open in the Indian ocean are asking. A couple of time charter trip fixtures for local trading were reported concluded at low rates, but in both cases they will help owners to better position their tonnage for subsequent India loading.

Banchero Costa and Co Spa