Capesize (Atlantic and Pacific)
A dramatic fall last week over all Capesize Market last week! Just two weeks ago the Capesize Index reached the record high, while this week the 4 T/c Index routes closed at $ 164.920 which represents minus $ 65.898 from last Friday!! However the slump happened in all basins, the Atlantic Ta round closed at $ 177.500 (minus $ 54.909), the Fronthaul $ 216.000 (minus $ 62.182), while the Pacific round was the most looser with minus $ 98.413. Can say that this loss representing about the 28 % of the market from last Friday in one week exactly and about the same percentage in the 4 T/c routes. The main reason is because of paper market which was driven the market at sky levels in the last weeks but also the gap between Capesize and Panamax rates which were inducing more than one Charterers, when at all this was possible, to split Capesize cargoes in two Panamaxes. We think that this slow down will probably continue during next week with a probable resumption again after about 10 days or so.
Panamax (Atlantic and Pacific)
The market in the Atlantic showed very much lack of activity and rates lost more than 30000 usd a day in a few days: many ballasters with few cargoes which brought quick fixtures done with many competitors created good advantage to charts who tried taking benefit cooling down the rates. On top the never-ending story between Argentinean farmers and government helps to keep the market under pressure. The Pacific market held up a little better, but here too there are negative signs for rates. However, there is still some demand for period tonnage.
Handy (Far East/Pacific)
Strong rates agreed on period business that maintains the leadership of the activity; the interest for spot trading is quiet. A further decrease of the tonnage demand for single employments was seen at the end of the week which however left untouched the period trading where strong rates kept being agreed for short and longer durations.
Handy (North Europe/Mediterranean)
The holiday in the Far East at the start of the week did not affect charterer's interest for period, which stayed quite alive showing fresh nice rates agreed and a good volume of such enquiries still needing to be covered. The North Pacific area showed to be active again with reasonable rates reported agreed for handymaxes and supramaxes, also little better money was
agreed on backhaul business and trips to India. The latter likely firmed up due to some recent crisis on India loading requirements. Cosbulk was rumored to have fixed for 5 years trading a 54,000 new building owned by Goldbeam basis delivery ex yard far east March/April 2009 at a very strong usd 34,000 daily.
Handy (USA/N.Atlantic/Lakes/S.America)
Very few fixtures were reported done from these areas even if more chartering demand was seen for tonnage to load scrap from the Continent and there is fresh chartering enquiry from the Mediterranean as well. The Black Sea is still not looking so active and the more than reasonable money paid to handymax loading here for a trip to the Continent may show that the north Continental market is not as good as owners tend to describe it. Still, owners of tonnage available in these areas show to be much more reactive to any enquiry they get quoted.
Handy (Indian Ocean/South Africa)
Activity out of the US Gulf remains mostly concentrate on transatlantic bound employments and rates remain stable and firm for all sizes. The Argentinean farmers dispute is still making a bit of a mess out of the South American market, Atlantic generally resists from falling as at the same time the on going period interest still results in healthy fixtures concluded. So far anyhow it's only the smaller handies that are suffering on the spot trend as the huge volume of iron ore stems to be covered otherwise keeps the supramax market firm enough. Any rate decrease remains far lower than what is affecting panamax and capesizes.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it