Capesize (Atlantic and Pacific)
As expected the Capesize market took a breath by ending the week in a negative tone: minus 338 points. Main reasons were the holidays in China, Japan and South Korea of last week which largely limited the activity. We expect anyhow that market will resume again by next Monday with another rising on most of the routes as the sentiment remains strong with many Charterers still seeking to take spot positions and period coverage. The Baltic Capesize Index closed at 13,664 on Friday i.e. a decline of only 338 points in one week, anyhow rates remain extremely healthy.
Panamax (Atlantic and Pacific)
The effects of holidays in China and Korea were reflected by the limited amount of activity done the whole week for both basins. However rates for period business remained very firm especially in Pacific where demand for period tonnage is carrying the market. The Atlantic marked closed the week with little concluded business with some fixing and failing noted especially with prompt position. Rates for spot business were said to be holding at or near last dones with better expectation for the next future.
Handy (Far East/Pacific)
Chinese showed to be celebrating their holidays this week, with some of the major area operators showing up here and there with an update of their enquires and open tonnage, but showing a general willingness of postponing business developments to the next week. Are they starting to show out the money they have been recently earning? Irrespective of this, the Pacific market remained firm mostly lead by a charterers strong period interest and a general busy activity on the spot trades showing further increased fixtures with a larger Handymax fetching upper 60,000's for a trip via SE Asia to India and some strong fixtures reported on backhaul business.
Handy (North Europe/Mediterranean)
The volume of reported finalized fixtures remains small showing that activity remains a little back from the top but smaller age Handymaxes are paid very nicely for business of West Africa and Handies keep getting firmer money from Continent to Med. The fresh rate increase seen in the Us Gulf will enlarge the pressure on rates for larger tonnage coming available around the European waters.
Handy (USA/N.Atlantic/Lakes/S.America)
An initial slower activity did not manage affect the last week's rates and a fresh ignition of enquiry quickly pushed up trans-Atlantic rates from Us Gulf for larger Supramaxes which after reaching timecharter rates in the mid of 80,000s for biz back to Europe are now showing the 90,000 Usd / daily level to be paid by charterers. Rates to the East are more than 15 pct lower but nowadays this has become a "positioning" business for owners afterwards earnings.
Handy (Indian Ocean/South Africa)
Even if iron ore time-charter trip rates from India to China keep progressively growing, this is not appearing any longer the representative trade of the area, which recently has become more and more a "fishing" area for Handymax / Supramax period charterers who keep fixing short to medium duration commitments with owners at bright money.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it