Capesize (Atlantic and Pacific)
Capes market grew again last week especially in the Atlantic basin where the lack of prompt positions persists forcing many operators to pay higher rates especially for short/medium periods. We also saw again interest on longer period 1, 2, 3 or even for 5 years. There were reported fixtures at $37,750 for one year, $29/30,000 for two years, $31,500 for 3 years and $26/26,500 for five years with delivery not before the end of 2006 / beginning 2007. The average rate for the 4 main T/C routes jumped from $ 33,629 to $ 35,402 (+ $ 1.773 daily in one week) whilst BCI index gained 102 points. We believe this rush will end during the next week when many units from
Far East will ballast to South
Africa or will try to fix to go in Atlantic; coal from Richards Bay to Rotterdam started showing first signs of weakness and few operators managed to fix a rate under $13.00.
Panamax (Atlantic and Pacific)
The week started with a considerable activity with a particular interest on the time charter period from the 3/5 months up to 1/2/3 years. In the first case rates increased from the $22,000 of previous week up to $23/24,000. The time charter for one year reached the top of the week at $23,000: plus 4000 compared of the mid June fixtures. Two years period were fixed at $19,000 with an increase of about $1,000 compared with the last week fixtures. Atlantic grain is still moving consistently: there were a number of ships taken from passing Muscat ballasting over to the east coast of
South America at low $20,000's level.
Handy (Far East/Pacific)
Period chartering interest has dominated the activity, with several supramaxes being booked for durations between 4/6 to 12 /13 months employment. Besides a general optimism for the coming market, the longer duration fixtures are strictly linked with combined deals on Papers. Local trips are paying similar money to short period, handymax backhaul rates are in the mid/high $20,000's daily level.
Handy (North Europe/Mediterranean)
Black Sea market is slowly waking up with better agreed figures for direction Middle and
Far East while available money for business accords is similar to last week. There is still some way to go before this market can reach a similar vitality to other shipping areas, period fixtures are reported concluded at much better money than single trips, as a further confirmation that the lower market is strictly linked with the area. Activity from the Continent was again quiet.
Handy (US/N. Atlantic/Lakes/S. America)
Period activity definitely improved this week making rates firmer consequently charterers are looking for different tonnage. A supramax has been reported fixed for a trip from US Gulf to
Far East at mid- high $20,000 per day and transatlantic voyages reached $20,000. Activity in
South America remained quiet because of the sugar transportation which is not clear if it can continue until the end of the next month.
Handy (Indian Ocean/South Africa)
South
Africa has taken the full lead of the
Middle East market this week, most of the charterers need to fix the tonnage basis delivery on completion at last discharging port and still have to pay quite firm rates to all destinations. A large handymax achieved an attractive rate for almost two years charts and the end of the week brought some additional joy to owners with south African charterers reported booking a supramax at $25,000 for a trip to the east.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it