Capesize (Atlantic and Pacific)
Another adverse week in the Capesize sector: 180 points drop on the BCI index. The 4 t/c routes lost another $2,634 reaching $7,920 daily at the end of the week. Tumbling rates combine with the increase of bunker prices is creating serious trouble for the owners with big ships. Today's Tubarao/Rotterdam is being fixed at just below $9.00, Tubarao/Qingdao at just above $19.00 which gives a time charter equivalent of just below $8,000 and about $21,000 respectively. There was some period activity too, but the rates have fallen sharply as there were talks of a 180,000 dwt failing for four to six months at $12,500 daily. Another interesting fixture is the one for the 178,000 new building, the M/V Orsola Bottiglieri that was taken by Oldendorff. The vessel went for delivery ex yard China 7/9 April for 5/7 months at index rate for the first 30 days, $15,000 thereafter with charterers' option for another 5/7 months at $18,000.
Panamax (Atlantic and Pacific)
Another extremely soft week passed in both of the Atlantic and the Pacific market with BPI dropping down by 229 to 1,696. For the Atlantic market, grain biz from South America was still the major hope while the owners had to give in to the continuous sliding rates. For fronthaul biz, some major charters were aiming low 20s but still some fixtures could be seen down over mid 20s or more. Trips in the Atlantic were soft at about $14,000 per day with prompt biz rather limited. In the Pacific, an almost collapse was seen in the beginning, influenced by the Asian holiday and the overwhelming open candidates. Both Nopac and Indon round were being talked at mid low teens. Rate for short period slid down quickly after a LME was fixed at $14,000. Now such kind of biz was talked at $14,000 to $15,000.
Handy (Far East/Pacific)
At the beginning of the week higher rates were agreed for Supramaxes fixing North Pacific round voyage and Southeast Asia round voyage with nickel ore, but through the week owners' optimism faded away again with the majority of the spot trade for larger Handies limited to the Indonesia/India coal shipments. This caused softening rates, but at least short period interest was still alive for 3 to 5 months commitments remained at previous week's levels. Supramax owners enjoyed some fresh excitement towards the end of the week, although the results were mostly fixing and failing. Good activity registered for smaller Handies that enjoyed small premiums both on single trips and short periods.
Handy (North Europe/Mediterranean)
Demand improved for Handysizes in this market: Black Sea/East business allowed a couple of fixtures to be concluded at higher levels because of the East-oriented tonnage lacking from the area. That also indirectly generated a small increase to rates agreed for the Black Sea/Africa cement stems. Scrap demand from North Europe was quiet again and fixtures for tonnages delivering in this area were concluded at unattractive levels both for single trips or 2/3 laden leg commitments. Long term Handysize period deal from the area was concluded at realistic levels.
Handy (USA/N.Atlantic/Lakes/S.America)
The market around Atlantic Americas was slow this week. Some Supramax owners were still taking beneficial rates from S.America and N coast South America for Trans-Atlantic Supramax stems, some similar tonnage was caught at lower levels for loading ex US Gulf ports. Activity further cooled down through the week for larger sizes with East bound trips from the US Gulf now definitely below Usd 30,000 daily level. Operators were trying to utilize their tonnage to comply with their own contractual listing commitments rather than taking their chances in the open market.
Handy (Indian Ocean/South Africa)
The market in this area slowly paddled ahead to the customary India/China trade. Most of the owners were running spot prior fixing and rates were unchanged since the previous week. The absence of the South African coal export was not helping this market to keep firm. Activity for smaller Handies was limited, although Arabian Gulf based exporters were complaining about the lack of prompt tonnage able to load HBI and DRI cargoes. They have become almost the sole commodity keeping the export alive in this area. With the on-going slow mood on the iron ore export, Supramax rates from both Indian coasts suffered a downward trend. No remarkable trade was seen for smaller tonnage but it was noticed that the volume of tonnage available in the area was smaller.
Banchero Costa and Co Spa
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