Capesize (Atlantic and Pacific)
Heavy losses continued during the past week reaching $ 81.362 on the average of the 4 T/c Baltic Capesize Routes. The market almost got to the same level as that of January 2008 when it broke the figure of about $ 80.000 daily. The BCI index fell down in total of 2.798 points which meant a loss of about 26 pct in just one week only! The Brazil to Far East route closed at $ 54.917 (minus excess of $ 15) on Friday, the West Australia to China at $ 19.22 (minus $ 7.85) and similarly on the corresponding t/c routes with no exceptions. The long period T/charter remained more or less unchanged.But one fixture, a modern 177.000 dwt built 2007, M/v "Madeira",reported fixed by Cosco at $ 87.000 for 5 years and delivery at end of 2008, was considered as a very good level. It was also reported that Cosco took other four 180.000 newbuilding capes for 10 years T/charter each at an average rate of $42.000 with delivery during 2010.
Panamax (Atlantic and Pacific)
Last week Panamax market in general lines has followed a clear downward trend, even if at certain stage Pacific market has remained a bit more steady than the Atlantic one that has continued the move down. This more negative Atlantic market is also due to the lack of fresh cargoes especially from the USG area affected as well by the hurricane situation and followed closely by ECSAM. As well a fair number of ships are ballasting from Far East to take cargoes from ECSAM. Overall, there has been activity on the spot whilst the period or even short period has been very slow to move or conclude business. Only relevant fixture for short period reported on Pacific has been m/v Grand Esmeralda (69,000 dwt blt 90) open Xingang 16 September which fixed to Cargill at Usd 49,000 per day for 3/5 months period.
Handy (Far East/Pacific)
No business was reported on Handysizes while Handymaxes and Supramaxes struggled to keep the previous levels for single trips. Local trips and the Pacific rounds for the lme's kept daily hire in the mid 30,000's. In this situation, a 45,000 tonner achieving very low 30,000's for a trip from China to Atlantic was considered good enough for owners. The short period fixtures showed untouchable higher rates.
Handy (North Europe/Mediterranean)
As lack of enquiry in the Continental area, very low rates were agreed for scrap to the East Med and grains to the Red Sea. Even the European charterers cannot make a large number of bookings, with only some vessels fixed cheaper for delivering in this area and loading in the Atlantic America. Lower rates were also agreed on the Black Sea Mid-East trade, and charterers no longer need to pay a premium to attract owners to position their tonnages in the Indian Ocean where the market got so depressing.
Handy (USA/N.Atlantic/Lakes/S.America)
The week started with the United States celebrating the Labor Day, which brought further decreases to the freight market. The greater demand from the U.S.Gulf made charterers achieve a larger number of fixtures at cheaper rates, both on the Trans-Atlantic and the Far East bound business. Hanysizes were said to be more active but with no fixtures reported.
Handy (Indian Ocean/South Africa)
A few more enquiries for Hanymaxes and Supramax were seen out of the Indian coasts, but with disastrous rates. Besides the extremely low rates reported, a rumour said that a modern Supramax was booked at a daily rate below usd 20,000's for a trip from India to China. The markets in MEG and South Africa were very quiet.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it