24 – 30 April 2010 Weekly market report.. Banchero Costa

Tuesday, 04 May 2010 15:39:22 (GMT+2)

Capesize (Atlantic and Pacific)

Notwithstanding the upcoming holidays and the Golden Week in Japan, there is still a reasonable volume of business either in Far East and in Atlantic to support the market. Atlantic remained quite busy with the Transatlantic rounds being covered at about Usd 45,000 levels. The fronthaul at about Usd 65,000 for modern 177/180.000 dwt which means about Usd 28/29.00 voyage equivalent on iron ore Brazil/China. In Far East the West Australia to China route was ranging up to about Usd 10.75/11.00 level which  corresponds to about Usd 30/31,000 on T/C basis. The Baltic Index gained 698 points, the average of the 4 T/c routes $ 10.170 daily.

Panamax (Atlantic and Pacific)

The Atlantic market was influenced by the capesize market as the values rose quickly and it brought some charterers with Transatlantic cargoes to split them. By the end of week the market was less active, however early tonnage remained tight with good premium obtained by owners. In the Pacific, charterers with grain business from South America largely absented themselves from the market and with a lack of significant fresh business combined with holidays some negativity was felt in the market. Still quite good activity on the long period.

Handy (Far East/Pacific)

Charterers' interest for single voyage business was still small compared to short period - upto 12 months duration. Agreed rates on spot employments were contradictory, the market showed to be very positional with larger modern types fetching much better levels for NoPac rounds and in some cases even for trips to India compared to rates reported agreed on far east rounds. Supramaxes enjoyed stable rates for 3 to 5 months employments with several vessels fixed anywhere between Usd 25,000 to 26,500 daily and low 20,000s for 12 months. Smaller Handies kept enjoying good numbers for Australia rounds and short period employments.

Handy (North Europe/Mediterranean)

The small amount of enquiry from the Black Sea the lack of fixtures from this area makes the trend from this area a bit misterious with larger units fixed for very short period upto 8/9 months at levels which did not help to understand the market direction. North Europe was active again with the India run; Supramax tonnage was rumoured fixed at about Usd 40,000 daily for a trip to Far East via Cape of Good Hope (about 2 additional weeks). Smaller Handies are still enjoying a good market with single trips and 2 laden legs all fixed over the Usd 20,000 mark.

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

Week started with improved rates for larger tonnage out of the US Gulf fetching Usd 45,000 for trip across. As the activity quietened rates grown further. During the week less fixtures were registered, but rates kept rising especially for larger, modern types fetching over 55,000 daily for trips East. Most of the business concluded for loading in South America was kept confidential although this area enjoyed a very good trend as a Supra was reported at high 20,000's for a trip into India basis delivery at East Coast India. Fresh Period interest was seen from Us Gulf area: Handymaxes and Supramaxes were booked at juicy rates for short durations upto abt one year. Handysize kept enjoying a stable firm market.

Handy (Indian Ocean/South Africa)

Less activity was seen from this area although a quite firmer fixture was concluded for a Supramax iron ore trip WC India/China while a slightly smaller vessel booked short period at good money basis delivery Bangladesh. Quite firm rates are said to be available also on the Persian Gulf/India run.

Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: http://www.bancosta.it/

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