Capesize (Atlantic and Pacific)
After a logical weakness happened during the Easter holidays, we saw instead during the week a sharp recover and a strong rise in all Capesize rates, but especially the South African and the Western Australia to China rates which, driven by BHP Billiton who was extremely active and fixed a huge number of ships. The Baltic Index shown plus 1,833 points, and the 4 T/c routes got an increase of $ 23,567 daily. But we also saw the Atlantic (plus $ 22,591), the fronthaul (plus $ 32,968) and the backhaul (plus $ 13,435) who got a considerable push up. Probably in this rush there is a remarkable reason in view of the paper trading who drove the physical market into a more rapid increase than what it was really expected. Period rates maintained the level without much activity.
Panamax (Atlantic and Pacific)
Easter Holidays influenced the whole week in many countries with lack of activity in both basins. Owners/charterers are waiting for next weeks to see which will be the market direction and to take their decisions accordingly. In any case the feeling is positive and owns foresee fresh inquiries for the next weeks. From the Pacific, there were only a few reports of concluded business. Demand is still stable for long period tonnage.
Handy (Far East/Pacific)
The slow start of the week further confirmed that most of the operators tried to get rid of their prompt available enquiries before the catholic Easter holidays. With activity from North Pacific still lacking, a considerable drop on rates was reported for larger Supramaxes both on local short employments and trips into the Indian Ocean. Only back-haul business kept paying
much better money, in a probable attempt to keep owners consider business to this direction in spite of the very worrying situation suddenly arising in the Atlantic due to the South American farmers strike. Only the smaller handies kept enjoing this market, mostly through short period fixtures which started the week showing quite attractive money agreed, and ended up same showing even etter rates avaialable for owners.
Handy (North Europe/Mediterranean)
The Black Sea area remains quite active and in demand for tonnage to load steels and fertilizers into the Persian Gulf, with rates easily keeping last done levels and tending to improve further. Also the ongoing good demand for tonnage to load scrap from the Continent keeps this area firm enough, but the paralysis arose in the South American market due to the farmers strike starts pushing tonnage open this side to consider local loading employments at somehow easier rates rather than risking to ballast across.
Handy (USA/N.Atlantic/Lakes/S.America)
The US Gulf area appeared a little difficult for the prompter tonnage to get fixed, but the better rates achievable for forward positions still bring some optimsm to owners. South American farmers went on strike creating a massive negative reflection to this market. Some of the already fixed tonnage are unable to be loaded and the still open ones on the coast are hardly being able to find employment with non-grain buziness. If this situation won't recover shortly a considerable negative reflection will take place to the rates for the tonnage avaialble in European waters.
Handy (Indian Ocean/South Africa)
This area has become a bit of a mess for owners, with all the charterers involved with India to China iron ore requirements holding back from fixing, unless with owners agreeable to concede huge discounts on rates. Ownes sofar are mostly resisting to this attitude, but it is still unclear if same is tactic which will end up in the need of fixing back tonnage at higher rates or chartrers are really managing to put this trade down to lower levels.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it