Capesize (Atlantic and Pacific)
Another increase of 284 point, which is equivalent to about 4.5 percent, on the Capesize Market for this week: the average of the 4 routes T/C increased from $68,942 to $72,625, but especially the Atlantic is still very much under pressure with still quite several transatlantic and front-haul cargoes quoted and a lack of prompt/March tonnage available. At the end of the week Tmt fixed a modern 171.000 dwt, the “Ocean Cosmos” at a healthy $99,000 daily which means about $43 on voyage basis on the Tubarao/Beilun+Baoshan route!! The
Far East market instead is still weakening with the West Australian round voyage lowering down to $62,000 fixed by
BHP on a modern 176.000 dwt. Is this probably due to the Chinese charterers willing to cover themselves at the best in view of the coming holidays for the Chinese New Year due on next 17th February? We will see next week.
Panamax (Atlantic and Pacific)
Market keeps being fairly difficult to read as sentiment keeps being positive, especially on Atlantic side, but physical market is taking a bit longer than expected to fly. Having said this is true we are still expecting to see the flow of cargoes that should come into the market with the beginning of grain season during next few days as expectations are for shipment dates as from mid March onward from ECSA. As well, understand the ban for exportations of grains from Black Sea area has been now lifted and a license for about 600,000 mt barley has been granted and should be shipped in the weeks to come with both Panamax and Handymax vessels. In Atlantic the numbers for short period keep being steady and good around $35/36,000 dot. Pacific market has been overall more quiet the past week as many seem to believe that Atlantic will be the stronger market for the forthcoming days. In any case numbers have remained basically unchanged but steady and sentiment leads to believe they should as well improve slightly.
Handy (Far East/Pacific)
The flow of fresh business remains a bit irregular reflecting a similar instability to rates decreasing and improving back from a day to another. This week the spot market was more active around trades into the Indian Ocean where Handymax t/c rates remain in the high 20,000's. Fresh short period enquiry ended up in a large modern Handymax reported booked at a good 30,000 daily for 3/5 months but firmer fixtures are rumored to have been concluded. Fancy Handysizes keep achieving fancy rates.
Handy (North Europe/Mediterranean)
More positive news are still missing from this side of the market where the Continent is quiet enough to enable charts fix tonnage at lower rates into the Mediterranean even if owners won't be meeting any beneficial market from there afterwards. Rates paid from Black Sea to the East are back to low levels and only tonnage that manages to fix business via Americas is achieving reasonable enough money.
Handy (USA/N.Atlantic/Lakes/S.America)
Similarly to Pacific the trend in the
US Gulf has been bouncing up and down all the week, initially rates have been sticking to last done, afterwards a Handymax to
Far East fetched a quite lower fixture. With the week ending up better money was agreed for trip east together and another Handymax booking took nice money for short period. Handymaxes are seeing softer rates for
South America loading where Handysize rate faced a more brutal fall.
Handy (Indian Ocean/South Africa)
India went again another “wave” of full steam activity with it's
iron ore trade to
China, for which numerous Handymaxes have been reported fixed at much pretty rates, also considering all reports show the tonnage taken on delivery on a “dop” basis, often 3/5 days from actual load port. Considering the short duration of the actual loaded leg, same has a considerable positive impact on the business economy. A lack of available Handysize tonnage at the customary East African discharging ports lead into firmer fixtures from South
Africa and the Atlantic.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it