21-26 June Weekly market report.. Banchero Costa

Tuesday, 30 June 2009 11:09:25 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

After 4 days of a dropping market, the sentiment of last Friday turned again in a positive mood resulting in an increase of 72 points. Otherwise, on average, over the entire week the BCI lost 890 points, that is, $10.917 less on the average of the 4 T/C routes. Sentiment drove the market with expectations of another forecasted upturn despite an easing in rates over all last week as owners expect that more cargoes will come on the market with expectations of strengthening of rates up to levels of about 46/47.00. The Pacific market seems to be still less active after the rush of the month of June and probably also due to the still persisting congestion in all the Chinese iron ore discharging ports.

Panamax (Atlantic and Pacific)

The market in the east had been under pressure the whole week with a build up of early tonnage. However as the week drew to a close resistance was evident with rates for now holding over $20,000 daily for round voyages buoyed earlier by firmer paper values. There were some mixed views in the Atlantic although several tentatively suggested a firmer rate this week after a week of easing values. The round voyage rate dipped to near the mid $20,000 daily range and $30,000 daily for Murmansk rounds. Fronthaul levels were still in the low $30,000 daily range with some optimism evident here despite the lack of significant grain business and charterers taking tonnage from the East. In Atlantic a Chinese charterer took the 70,000-dwt 1990-built B. Asia, geared, for 1-10 July delivery Guangzhou for a trip via east coast South America to the East at $18,000 daily. These levels reflected to some extent easier spot values this week in the East. Sinochart booked the 72,400-dwt 1992-built Magda, an obo, for spot delivery Fangcheng for a similar round at $17,250 daily. However for those charterers looking for tonnage to go East from the Atlantic the rate was still over $30,000 daily. There was talk that Pacific bulk booked an lme for a trip from Brazil to the East at a rate in the mid-high $30,000 daily range.

Handy (Far East/Pacific)

A new slow-down in the chartering demand brought this area back to an unattractive trend. The coal trade into India was the sole trade managing to keep rates similar to last done levels. Supramax tonnage was reportedly fixed at lower rates on the inter-Far East trade and unattractive money was reportedly agreed on for Australia round voyage business. A supramax was reported as being fixed below the 15,000 USD dollars mark for a North Pacific round, and unconfirmed rumours said that another vessel was booked afterwards below USD 14,000 on the same trade. The working week closed by showing a small handymax fixed from Southeast Asia to Pakistan at a rate slightly over USD 10,000 daily.

Handy (North Europe/Mediterranean)

The chartering interest from Northern Europe was more active on Eastbound directions; supramaxes fetched firm rates for longer duration employments into Pacific waters showing that this route is now paying higher money compared to Middle East bound business. The activity around scrap and other commodities bound for the Mediteranean slowed down. No fixtures were reported concluded out of the Black Sea although the grain trade into the Red Sea carried on with fixtures concluded on a confidential basis with agreed rates described as being a little better for charterers. Demand from Mediteranean waters was otherwise quiet, although an on-going strong enough market from the Americas still allowed owners to employ their tonnage available in this area for business loading across, at attractive enough rates.

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

The slow start of the activity showed shortly afterwards that rates for loading out of the U.S. Gulf are still holding with petcoke and fetilizers still dominating the trade, followed by a minor amount of grain enquiries. An already strong South American market was further powered by a huge demand for sugar loading, with charterers no longer hiding their intention to pay up for supramaxes, which end up still being more convenient compared to taking small supramaxes for the same trade. Same generated a tonnage shortage in connection with less vessels ballasting here from the Indian Ocean with a consequent increase of levels for the other trades ex South Atlantic.

Handy (Indian Ocean/South Africa)

A reasonable volume of demand for loading iron ore ex the East Coast of India to China, connected with the premium required by owners for ending up in the more depressed Pacific waters, pushed up rates on this trade, showing some supramaxes achieving a daily time-charter rate well over the USD 20,000 mark. Charterers involved in loading from South Africa were immediately hit by the reflection of the Indian market; a vessel was seen booked with delivery Southeast Asia for loading in South Africa a cargo back to the Pacific Ocean.

Banchero Costa and Co Spa

Mail: research@bancosta.it
Web: www.bancosta.it


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