Capesize (Atlantic and Pacific)
This week the biggest Iron Ore players dominated Capesize market: Vale, BHP Billiton and Rio Tinto. The week however ended very weak also in view of the several holidays in Europe, China and Japan; the Baltic Index closed Friday the 1st of May at 2,376 points i.e. minus 118 points or minus $ 1,357 on the 4 time charter routes. Several ships were reported fixed by Vale on Brazil to China route which were ranging between Usd 18.00 and 19.00. In the East Rio Tinto was more active than BHP and was still paying about $ 7.00 on the West Australia to China run; Atlantic and South Africa not moved too much from the previous week.
Panamax (Atlantic and Pacific)
Panamax rates fell over the week as the May holidays began in both basins. However in the last part of the week market revived especially in the North Atlantic and in the East. A shorter list of prompt ships open in the Continent with not so large number of may open ships brought some good feeling of rates rising in the following week. Inquiry has been limited but so far enough to keep levels as the last done. There were some increased grain shipments from South America, and this was once again helping the market in the East together with the India iron ore market which was still active. Quite good activity for short period business has been reported mainly in the Pacific basin.
Handy (Far East/Pacific)
An initial reprise of the chartering demand cooled showed some better figures agreed for supramaxes cooled down quickly, as it were probably generated only by positional needs. The area turned back to the previous unattractive market trend with most of the interest for business from Far East to the Middle East/MEG area. Although rates stayed low on this trade, some fixing and failing were going on. Most of the owners keep trying to bring back their tonnage into the more attractive Atlantic business, even by facing further decreased rates for backhaul business.
Handy (North Europe/Mediterranean)
There was more activity for Handysizes compared with Supramaxes, firm rates were still agreed for trips from Northern Europe into the East and scraps to the Eastern Mediterranean. The trend was similar for loading out of the Black Sea where Supramaxes were proved to achieve good rates from eastbound business. More fixtures were concluded over the reported ones.
Handy (USA/N.Atlantic/Lakes/S.America)
Both the Handy and the Supramax markets were showed to remain quite firm from North and South Atlantic Americas, with a good variety of requirements and fixtures to stay in the area and to go to the East. Later in the week demand from South America cooled down a bit with some new enquiries put out just before the widely celebrated Labour Day. Charterers appeared to postpone their bookings to the week after in the attempt of making some freight savings in connection with a possible market slow-down due to long-lasting holidays in Japan. Some fresh period interest was seen in the Atlantic basin.
Handy (Indian Ocean/South Africa)
The volume of iron ore export from India to China remained stable through the week, but the mid-week slow-down of the South American market showed charterers were no longer in need to fish for tonnage coming open in the Indian ocean, with a consequent negative impact to the latest agreed rates on the iron ore trade. This assisted rates to remain firmer for local trips.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it