Capesize (Atlantic and Pacific)
Very slow start, lots of activity in the middle of the week in all areas and very slow end of the week. BCI ended this week at 3,946 points (- 2.08%) compared with previous week and 4 tc routes average at usd 37,865 / day (- usd 1,058) with peak of the index on Wednesday at 4,026. Voyage rate from West Australia/China started the week at around $11/11.25, then jumped in excess of 12 on Wednesday and ended at the level of Monday. Similar trend for fronthaul with opening of the week at 27.50/28.00 dollars, around 30 dollars on Wednesday and down again on Thursday and Friday. Little activity for trans-Atlantic.
Panamax (Atlantic and Pacific)
The Atlantic showed a little recovery starting by the end of the week. Some vessels committed in loading area fixed; but charterers were finding tonnage tight in some positions particularly those looking for tonnage for US East Coast and US Gulf cargoes. Fronthaul rates were improved particularly with charterers looking at tonnage in the North Atlantic. In the East, market was more under pressure than the Atlantic, with good numbers of vessels available which were also looking for better rates from ECSAM to USG; nevertheless there was an increase in short period with a few ships fixed or close to fixing which might bring better feeling for near future.
Handy (Far East/Pacific)
The large number of reported fixtures was not due to an improving trend but to a further sliding-off market. In view of the on-going excess of available prompt tonnage and the smaller volume of enquiry, owners showed to just fix rapidly what they could rather than stay idle waiting for employments. Most of the remaining available business was consequently covered leaving very few enquiry and still lots of tonnage to be covered. Rates for handymaxes/supramaxes showed to further decrease on all trades, with local trips fixing in the low teens, trips to West Africa well below 10,000 and a n/b large supramx even agreed below usd 5,000 daily for a trip to position her into the USG in this pessimistic scenario. Charterers still managed to book some vessels for short period at levels similar to last dones. Newly established Hong Kong operators threw some confusion around after they were reported having fixed an "okean type" at usd 18,000 for short period whilst the better described "tess 52" types were so far evaluated less by the market. Again smaller handies proved to suffer less of the negative market trend.
Handy (North Europe/Mediterranean)
A fresh flow of chartering enquiry was seen all around Europe with Northern Europe dominated by handy-size grain and scrap enquiries which led to several fixtures reported at firmer levels. The Black Sea area kept pumping new requirements, mostly for the larger sizes, due to the wash-out of tonnage, which led to several charterers booking vessels basis delivery in the Middle East on a sort of a round voyage basis. Even considering the longer duration of the whole trip rates were not bad at all for owners, especially compared with the very small activity going on in the Middle and Far East. The very few available smaller handies got quickly fixed at firmer levels.
Handy (USA/N.Atlantic/Lakes/S.America)
Activity from South America and USG was slow with rates struggling to keep the same levels of last dones. On the trans-Atlantic side the reported fixtures showed some stability but charterers were not pressed to fix and try to postpone their coal shipments to Europe, which may generate some troubles to owners on the short-run. Business to the East was more led by positional matters, which in connection with the weak market owners would have to face afterwards led a large modern supramax to fetch high 30,000's to carry scrap in the Far East. South Atlantic stayed active enough and showed a reasonable stability as well. But an increased number of ballasters into this area may affect rates in case the chartering demand would not pick up further.
Handy (Indian Ocean/South Africa)
The area was very quiet all round, both on the customary India/China iron ore trade and for business loading out of MEG and South Africa. Business for prompt loading was missing and so far only a few enquires were quoted for loading second half of September. No fixtures were reported for cargoes loading out of this area.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it