Capesize (Atlantic and Pacific)
Even though Rio Tinto and BHP were very active ex West Coast Australia and Vale ex South America to China, the Capesize market dropped 385 points and $ 4,951 on the 4 T/c routes. West Australia to China lost about 90 cents closing at Usd 7.00. The timecharter lost about Usd 5,000 daily while in Atlantic the round $ 4,900 daily with the Tubarao / Rotterdam rate reaching $ 9.46. Capes available in Atlantic are increasing for April loading dates and the expectations are therefore for another drop in the near future.
Panamax (Atlantic and Pacific)
Rates were coming off in all areas. Since half of the week Atlantic business was becoming poor with little fresh inquiry or concluded business. This decreased trend indicated that grain cargoes for March appeared to have been covered and charterers were holding back until they need to re-enter the market. As for passed weeks the pressure in the Atlantic business influenced positively the other basins, this pause also hit the Pacific and Indian market which rates are on hold despite some good demand especially for Middle East vessels.
Handy (Far East/Pacific)
Optimism faded away with Australia slowing down consistently its demand for Supramax tonnage to load iron into the Far East and lack of the other trades for this size. A little more Demand for Supramax and Handymax tonnage to load cargoes to India led to the best rates being achieved on this trade. Even the return leg with iron ore to China showed firmer rates agreed due to the tonnage lacking. 12 months period showed Supramaxes fixing in the low 10,000's and the same size getting 5,000 dollars daily for the backhaul business to the USG. Generally rates remained much below what similar tonnage could achieve in the Atlantic. Only the Handies, even if fixing much lower rate than what they could achieve in the other basin, were getting some rate premium.
Handy (North Europe/Mediterranean)
Fresh demand to load grains and fertilizers from northern Europe/lower Baltic added pressure to this area where the ongoing demand to load scrap has already pushed up rates considerably and washed out the available tonnage. Charterers loading from this area easily agreed to fix tonnage delivering in West Africa or in the Med, still having to pay quite firm rates irrespective of the ballast days they were taking on their shoulders. A similar scenario prevailed in the Black Sea, where besides the on-going active grain export there was also a fresh demand to load steels into the Middle and Far East, a consequence of the Turkish and Ukrainian steel mills selling their products in hugely discounted prices as they over-stocked by the recent economical crunch. Supramaxes were fetching close to usd 40,000 daily for trips into the East. The firmer trend around the European coasts allowed also period fixtures to get a nicer rate.
Handy (USA/N.Atlantic/Lakes/S.America)
A steady flow of fresh grain stems from South America pushed rates further up both on trans-Atlantic and East bound stems, allowing tonnage coming open at the Indian Ocean to keep looking at South America/Eastbound stems due to the encouraging rates which charterers have proved to be able to agree. The USG and US Atlantic markets couldn't manage to keep a similar strength with rates going sideways and some fixing and failing. The big number of ballasters was further affecting the rates and may also bring negative influence to the South American market.
Handy (Indian Ocean/South Africa)
A reasonable amount of tonnage was washed out from the Indian Ocean for South America loading business, which generated a firming-up of rates on the India/China iron ore trade. Also, a good amount of tonnage recently got fixed from Pacific into Indian Ocean. So it will be interesting to watch what will happen to this market in a couple of weeks. Regular demand from South Africa showed a further positive trend in this area.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it