Capesize (Atlantic and Pacific)
After few days of declining rates at the beginning of the week we saw a recover during the last 2/3 days notwithstanding the approach of the Chinese New Year holidays. The BCI index ended with an almost even (+20 points) and minus $ 293 on the 4 T/c routes. On the West Australia/China run we saw an improvement with rates reaching close to $ 10/mt and Brazil/China being reported upto about $ 26.50 level, a cargo from Itaguai to Qingdao was said to have been done at $30.50 allegedly on a limited draft of 17.10 metres at loading port. Congestion in China is still lasting to about 12/15 days while a heavy congestion is still in force at Dalrymple Bay where ships are forced to wait for about 30/35 days to get loaded. There was not much activity this week because of the coming Chinese New Year of next Saturday and most of Chinese operators already on holidays from next Wednesday or Thursday.
Panamax (Atlantic and Pacific)
Slightly better week with positive feeling especially by the end of week in the Pacific: rates there firmed up due to raising paper values and increased short period enquiry; there was more demand for period tonnage due to long queues of Panamaxes waiting for loading coal on East Coast Australia and even due to some delays in Indonesia. In the Atlantic the abundant availability of tonnage continued to weigh heavily on the market. Rates remained steady similar to last dones level, but without a quick infusion of new business rates could easily start to slide. Still quite good number of ballasters and early ships chasing too few cargoes made rates drop over the week.
Handy (Far East/Pacific)
Activity has been very quiet with no fixtures reported on the North Pacific round run and Australia showing lower rate agreed on a Supramax types. Rates for larger Handies showed some better resistance on the South East Asia to China trades where due to the on-going Chinese demand for steam coal the volume of the requirements still to be covered was large and as a consequence nickel ore charterers had to pay similar level if not slightly higher rates. The South East Asia to India run was very quiet as well, with rates for large modern types rumoured to be in the low usd 10,000 daily level. It was easier to get better rates for these sizes on short period deals where a 53,000 tonner was booked at usd 22,000, while long period rates remained stable to last dones level. Business was even smaller for Handy-sizes which still proved to proportionally suffer a little less than the larger units.
Handy (North Europe/Mediterranean)
While more and more owners were reluctant to trade the Gulf of Aden waters, activity from the Black Sea to the East was discontinuous and showed that owners who can trade the piracy risk zone were considering the Middle East as a better position compared to the Pacific Ocean. From this area demand for larger vessels to Atlantic destinations and generally for handy-sizes was very small. The North European market kept a little bit of life through scrap, clinker and fertilizer enquiries which showed acceptable rates agreed to the Atlantic destinations.
Handy (USA/N.Atlantic/Lakes/S.America)
The chartering interest from the Atlantic Americas showed to be very irregular through the week, with Monday starting very slowly and rates trading sideways, Tuesday showing again a little pressure on the market which quickly faded away the following morning and finally stabilizing a little bit in the vicinity of the weekend. Interest for short period was still alive with smaller Handymaxes paid high 20,000' s and large Supra's reported done in the mid 30,000's which was larger for short period chartering. On single trips the week started by showing that similar levels were available both for the trans-Atlantic and East bound destinations. Shortly afterwards the trans-Atlantic rates stabilized at an approximately 10pct discounted figure compared to the Eastbound runs. Similarly to other areas smaller Handies showed to be less affected by the rate decrease and in certain cases it proved to still achieve attractive enough figures.
Handy (Indian Ocean/South Africa)
The India to China iron ore trade managed quite easily to keep levels similar to last dones and in some case fixtures were even concluded at slightly better levels. The softening of the Pacific market and the loading dates which will allow delivery of cargoes well after the Chinese lunar holidays, were probably the major reasons which kept the trade firm enough.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it