Capesize (Atlantic and Pacific)
There is not much more to say what happened this week in the Capesize market: again and again sliding down... The Baltic Capesize Index has almost reached 1.000(actually 1.016) and the average of the 4 Time-Charter routes $ 3,793. All the remaining routes are slowly but constantly sliding to shortly reach the level of "zero". Capesizes timecharter rates are already well below the running costs and more and more Owners are stopping their vessels in Singapore, Brazil, Far East and also Continent awaiting better times as it will cost less idling at anchor than afford an almost zero market, if even able to find any suitable cargo. The short terms prospects are still very negative while somebody is more optimistic if we talk about Chinese economy, which should recover in about 3 to 4 months or as soon as the iron ore stockpile in the various ports will be consumed.
Panamax (Atlantic and Pacific)
Atlantic Panamax market got a little improvement this week, little more cargoes mainly grain have been quoted and fixed with the result rates rising slightly. However the situation is still uncertain and far way to be solved, there is concern about whether the market can hold on to these improvements. In the East, market is more active with more evident improvements in rates: at least NoPac rounds have been done at about $8,000 daily, while a trip back to the Atlantic made $5,500 daily. Charterers are keener (and paying a bit premium) to take vessels with short chain in which not appearing ''dangerous'' operators.
Handy (Far East/Pacific)
The spot enquiry for Supramax sizes went less again with rates decreasing, while the smaller Handies kept the market better. Period rates for the smaller size showed some increase during the week, which ended up with charterers having interest for the bigger units in a larger period. The general trend, although low rates for single employments, brought to owners some optimism about going towards a better new year market.
Handy (North Europe/Mediterranean)
Activity from Northern Europe increased with more interest for scrap cargoes to Med and the Indian Ocean. So far rates didn't show to enjoy any improvement. The majority of the stems are for India discharge which owners keep avoiding until charterers will show they would like to pay a "real" premium on freight to this destination. Also the Black Sea spot market showed more chartering interest, but most of the enquiries bound to pacific waters generated only a resistance from owners to fix their tonnage this way.
Handy (USA/N.Atlantic/Lakes/S.America)
The quiet start of the week further made rates downwards with a market in these areas now reaching its bottom. Some more demand for tonnage to load out of the U.S. Gulf and NCSA created a sudden resistance from owners who were saying that they preferred to wait until their tonnage run spot before taking charterers levels. A little larger selection of chartering opportunities brought them the hope that rates may rise a bit.
Handy (Indian Ocean/South Africa)
Chartering interest for iron ore shipments from India to China considerably increased through week with the agreed rates showing a little growth on a daily basis. The majority of this positive trend was generated by a sudden interest for loading on the West Coast of India. As quiet with exportations for several months, the achievable rates look much better than what a similar vessel could have got last week basis loading on the east coast.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it