Capesize (Atlantic and Pacific)
A horrible week has already expired: Minus 941 points and minus $ 12,468 on the 4 Time Charter routes of the Baltic Capesize index where we saw the market not having reached the floor yet with a little support of activity. Brazil to China voyage rates were approaching to $ 30.00 and West Australia to China $ 12.00 still with a lot of vessels quoted and looking for cargoes in either area. Atlantic has shown a little more activity but rates were weakening after all. It seems holiday season is prevailing and doubts until next week or after that some resumption could be shown again on market...
Panamax (Atlantic and Pacific)
Atlantic Panamax business ended the weekend with rates down in virtually all areas. Overabundant tonnage and a lack of new business have combined to hit rates hard this week. Trans-Atlantic rounds have reportedly dropped to around $17,000 daily range. Fixing and failing of vessels has accelerated the descent of rates. Rates in the Pacific are also giving way.
Handy (Far East/Pacific)
The on-going slow market showed supramax and handymax rates decreased through the week on all trades within Pacific waters. Rumours of fresh period interest for these sizes were not confirmed by any reported fixtures. A large supramax was reported fixed at a lousy rate for a trip with nickel ore via New Caledonia into the Black Sea. Handysizes showed a little more resistance to the market fall although this was limited to the modern/fancy types.
Handy (North Europe/Mediterranean)
The North European market better resisted this market stagnation which was affecting most of the Atlantic areas; a few fixtures were still reported concluded at good rates. But the heart of the holiday season with a number of European operators taking their summer vacations showed a progressive decrease of the cargo volume, further negativity is building up due to the very slow trend in the USG and US Atlantic waters. Mediterranean market was quiet and enquiry started to lack also from the Black Sea, although from here the few charterers still had to move business into the East and struggled to achieve competitive enough rates, even more when the Red Sea trading was involved.
Handy (USA/N.Atlantic/Lakes/S.America)
Demand for tonnage from the USG progressively faded away through the week, knocking down rates considerably during the week. Rumors of fresh grain enquiry from this area were not supported by any market recovery. South America so far managed to resist quite well to this otherwise depressed atmosphere. Tonnage kept fixing fancy rates to go to the East, both basis delivery West Africa and Indian Ocean. Rates for the cross-Atlantic business were decent enough as well, especially if compared with the USG ones. The question is whether the volume of the demand will be sufficient to keep rates firm enough considering tonnage from other Atlantic areas will try focusing its fixing basis South America loading.
Handy (Indian Ocean/South Africa)
Lots of tonnage open in the Southern Far East area were compelled to look at business loading out of EC India due to the local lack of enquiry. Rates on the India/China iron ore trade kept decreasing through the week also in connection with the smaller charterers demand. Still a supramax delivering in the South Red Sea managed to fetch a nice t/c rate for short period employment, showing there are still market operators in optimistic feelings for the market trend in the near future.
Banchero Costa and Co Spa
Mail: research@bancosta.it
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