Capesize (Atlantic and Pacific)
Another week with heavy slow down on Capesizes: the Baltic Index lost 868 points from last Friday, the average of the 4 T/c routes ended the week at $85.700 daily with a loss of $11.391, but all the routes are facing quite heavy discounts. In Atlantic the iron ore from Brazil to Continent passed from the almost $28.00 to below $26.00, the T/a rounds lost about $8.700; in Far East the rounds ended at $77.375, a fall of $13.442 and the backhaul lost about $9.250. The coal ex-Richards Bay is also fixing today at about $23.50 when it was about 2 dollars more one week ago. Period activity also softened a lot with basically no reported medium or long fixtures reported. On the other hand there are quite a number of operators who went on market to take ships for short period about 4/6 months t/c to speculate in this falling market in the hope to secure cheap tonnage.
Panamax (Atlantic and Pacific)
Market was uncertain this week while paper values began to fall during the middle of the week physical trades for a short time ignored it. The Atlantic remained very steady and $58,000 daily was concluded for trip Far East, but thereafter since Capesize market collapsing many cargoes supposed to be splitted but no any longer: some fixing and failing has also undermined the market and now some charterers claimed to have tonnage willing to the low $50,000 daily range or even $50,000 daily for trips to the East. Rates for the longer round voyages dropped below $50,000 daily. Also the period activity has been affected for these reasons and rates are moving down quickly. The expectation for next future remain negative.
Handy (Far East/Pacific)
Market was quite active with charterers' prevailing interest for short period bookings. There has been as well a reasonable amount of concluded fixtures for single trips, for local destinations, Atlantic and Indian Ocean. Agreed rates range from previous week's levels to softer ones. A foreseen build up of tonnage may push rates down a little further.
Handy (North Europe/Mediterranean)
A little more chartering interest from the Continental area lead to some fresh fixture reports showing bit lower money agreed for the Med and much lower for transatlantic destinations. Black Sea remains not active enough with interest mostly to Middle East destinations which not being any owners preference nowadays prevents agreed rates to fall. Transatlantic business from the Mediterranean showed lower rates agreed as well.
Handy (USA/N.Atlantic/Lakes/S.America)
Rates for US Gulf loading business so far managed keep to stable levels both for Transatlantic and Far East bound employment. The volume of the fresh demand is decreasing and the predicted build up of tonnage in connection with charts pressing attitude may lead to some downwards correction. Spot South American market became a little bit more messy with several stems being postponed by 7/10 days and rumors, still unconfirmed, about some strike possibly affecting Brazilian ports in a short wile, no fixtures were reported but rumors said some owners got scared and booked second half June loading positions at lower rates.
Handy (Indian Ocean/South Africa)
South Africa and Persian Gulf/Indian areas kept extremely quiet with just an Indian coastal trade fixture reported concluded at nice money, mostly due to the very short duration and vessel being redelivered in an area that has become quite undesirable at the moment. Owners of tonnage open in other sides of the world started quoting their open tonnage positions specifically mentioning they are not interested consider business ending up in this area.
Banchero Costa and Co Spa
Mail: research@bancosta.it