Capesize (Atlantic and Pacific)
Worldwide Shipping Market is still very bad and nobody knows until this situation will last. Even the world largest producer of iron ore, Brazilian company Vale, has decided to cut their export production of about 10 per cent. A lot of Capesizes are already laying-up in Singapore and a lot are drifting along the coast of Brazil seeking for cargoes which are not coming. All steel mills in the world are forced to cut production because of falling prices and have their iron ore and coal stockpiles full. Vale himself did take seven or eight Capesizes for two to four months, but this is still a little to reduce the volume of prompt tonnage available on the market. BCI lost further 239 points, the 4 T/c average routes lost $ 2,513 to reach $ 5,982 last Friday.
Panamax (Atlantic and Pacific)
Nothing ''new'' was showed in the market: the trend continued to drift downwards and no signs of recovery were seen in a short term. There was very limited activity in the Atlantic and Pacific market. As we noticed, during last couple of months, there were too many ships and not enough enquiries, as the credit, iron ore pricing, currency, and recession issues continue to dictate the market.
Handy (Far East/Pacific)
The negative trend of the market remained unchanged. There were still no cargoes and was full of ships open in the area. During the week we have seen some fresh requirements across Pacific ports and via NoPac, but rates were still dropping day by day. The period business was still paying a premium if compared to the spot market; we can see the fixture of Anne Dorothea.
Handy (North Europe/Mediterranean)
Few reported fixtures from this area, no cargoes due to the fact there were no cargoes coming out of the Black Sea and Med. Even charterers who had requirements ex black sea before were not moving anything at this moment. Also from continent the activity was almost zero and rates were still dropping.
Handy (USA/N.Atlantic/Lakes/S.America)
The rates in USG were no longer at 5 digits this week. Nowadays the transatlantic trip was lower than 10.000 usd for a tess 52k. However, from USG and from S. America there was a bit more activity.
Handy (Indian Ocean/South Africa)
There were some fresh requirements from India to China and iron ore cargoes, but in view of the huge number of vessels open in the area, the rates were just over tc zero. The main issue is still the lack of Chinese demand.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it