24 Jun-01 Jul 2005 weekly market report..Banchero Costa
Capesize (Atlantic and Pacific)
The week has passed with a limited number of fixtures but, maybe, with a slight recovery of the market in the
Far East. In short the Baltic Cape index closed the week once again below level 3'000 (2'982, 93 point less) a level which is nevertheless almost unchanged compared to a week before. The vessels open on positions keep having big difficulty finding employment on the market also because charterers try not to publicize excessively the cargoes on the market to keep rates down, but it seems that Chinese
iron ore stocks are getting smaller and this could mean that there could be again a rush in the forthcoming months to rebuild such stocks with an unavoidable recovery in the market.
Panamax (Atlantic and Pacific)
Also this week
trading has remained very slow with activity very poor. Rates have eased on every route and at this stage are very difficult to predict that things will improve in the near future. Enquires for period tonnage is very limited and induce owners to chase and firm business. Rates have dropped by close to $3'000 for time charter trips to the East and similar for Transatlantic rounds. Rates in Pacific are still coming down and we have seen some older small Panamaxes fixed at rates less than $10'000 per day for Pacific rounds. Meanwhile, a few period fixtures have been done at rate levels of $17/18'000 per day for short periods (3-5 months). Clearly the tonnage list in both basins for large modern vessels is far larger than the rather thin enquiry list, anticipating that also next week will maintain same trend.
Handy (Far East/Pacific)
Market re-started to fall on all trades with very few enquiries quoted from this area and no fixtures reported concluded except for a couple of deals concluded for loading ex-West Coast Central Americas to Continent and
Middle East destinations. Eastern based charts are showing again interest for booking handymax tonnage for short period employment up to 8/10 months duration. Rumors say Chinese charterers fixed a 43'000 tonner for backhaul trip at somewhere around $9'000.
Handy (North Europe/Mediterranean)
The
scrap enquiries have kept alive the Continental area and the respective achievable
freight levels but volume of business still to be booked is decreasing and
freight are following the same direction. Norwegian charterers have been busy booking some tonnage to load steels from this area and the Black Sea at considerably lower rates. The Mediterranean basin was otherwise quiet.
Handy (US/N. Atlantic/Lakes/S. America)
The market along the American coasts has further deteriorated for owners with charterers strongly pushing for lower rates. Owners are so far making lots of resistance but a small increase for July enquiries has not been able to bring any good yet. The South American market showed to be a little weaker.
Handy (Indian Ocean/South Africa)
Last week's improved volume of business showed to be a positional situation as dullness is back all around these waters. Demand for tonnage to load out of South
Africa has almost disappeared again and the few charterers having enquiries from there are holding back to achieve further lower levels. Indian
iron ore was very quiet and only a very fancy handymax was reported booked at an extremely low rate. It is interesting to note that suppliers are acting as charterers on this one, instead of the usual Chinese receivers.
Banchero Costa