Capesize (Atlantic and Pacific)
It has been a very hot week in the Capesize Market: the average of the 4 T/c routes ended last Friday at $ 67,229; that means an increase of $ 22,724!! The Transatlantic round $ 73,773 (plus $29,273) the Pacific round $68,231 (plus $ 23,423) and the Fronthaul $ 90,308 (plus Usd 24,346). There were many more cargoes worldwide and especially in the Atlantic where there are no more ships available. Brazil and the Far East are hot with many cargoes quoted and to be fixed, but also congestion in China and Australia is increasing and is withdrawing ships from the market. Chinese demand continued to dominate with Rio Tinto and BHP Billiton having an insatiable appetite for tonnage together with their Brazilian giant Vale.
Panamax (Atlantic and Pacific)
The increasing numbers of splitted Capesize cargoes in Atlantic were creating a huge demand for vessels which were limited. They were pushing market levels at high rates: over $30,000 daily for a couple of laden legs in the Atlantic, and it suggested that the transatlantic round by the end of next week could reach $35,000 daily. Rates in the East remained very solid with a 72,000-tonner booked from Zhoushan for an Australian round at $20,000 daily and larger sizes were likely to see more. Three factors mainly influenced Pacific rates: strong demand for minerals, period activity, and booming Capesize market again with splitted cargoes which absorbed many Panamaxs open Middle East/India range.
Handy (Far East/Pacific)
The quiet start of the Atlantic market did not affect rates in this area which were kept at the level of last fixtures or firmed up slightly until local holidays started on Wednesday when the trend was turned down and fresh fixtures were concluded at lower rates for local or India bound trips. Charterers, in spite of the weaker market, did not show any special interest in trying to chase period activity at possible lower rates.
Handy (North Europe/Mediterranean)
Initially the North European market was not affected by the Monday holidays in USA and United Kingdom but things changed through the week. Tonnage available in the area remained scarce, and the volume of enquiry decreased with agreed numbers quite low. A slow-down of the demand for loading out of the Black Sea further allowed charterers to book tonnage delivering in the Western Med to load out of the Continent at lower rates, but even if the volume of business available was smaller, rates from the Black Sea to the East remained strong.
Handy (USA/N.Atlantic/Lakes/S.America)
In connection with a large amount of available tonnage, it showed the South American market was mostly affected by the holidays. Rates for tonnage delivering in South-West Africa ranges progressively decreased both for Atlantic and East-bound tonnage, inducing the tonnage still available in these regions to look at USG loading employments, where the on-going steady and firm rates allowed to absorb the additional ballast with a still better revenue to owners. Additional demand for loading coal out of South Africa is foreseen to be available from next week onwards; if it will materializes the South American market may find some recovery.
Handy (Indian Ocean/South Africa)
In a generally quieter trend the West Coast India/China trade began to be affected by the shortly coming monsoon and rates trading sideways. Charterers involved with coals from South Africa to this area were trying to further undercut levels. The East Coast India/China market did not show any especially better trend until the week came closer to its end when charterers involved with this trade suddenly started to anxiously knock back at owners' doors and charterers involved in the South Africa coal trade bided out firmer rates.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it