April 25– May 02, 2011 Weekly market report.. Banchero Costa

Wednesday, 04 May 2011 16:52:40 (GMT+3)   |  

Capesize (Atlantic and Pacific)

Very short week due to holidays on Monday 25th, Friday 29th April and Monday 2nd May in most areas of the world due to Easter holidays, Golden week, and labour day. Market remained therefore very depressed and nothing exciting happened in all areas of the Capesizes market.
 
The Baltic Index in these few days improved of only 24 points, the 4 T/c routes closed on 28th April at $ 6,698, plus $151 from last published index on 21st April. With marked still very depressed it has been reported few period fixtures which includes one Newbuilding, the KM Kobe 180.000 dwt, fixed with delivery ex yard Hiroshima 23/30 May for 6/8 months at BCI Index for 1st 30 days and $12,500 for the Balance with Swiss Marine.
 
Panamax (Atlantic and Pacific)
 
The market generally recovered from both sides since the beginning of the week. In the Atlantic, the grain biz from South America became hot in the 2nd half of the week. Because for several days charters were unable to make owners give in further for lower rate while they needed to cover the cargo quickly. By the end of the week, fronthaul to the East could see fixture done at $25,000 plus 500k bb and Trans-Atlantic cargo was covered at 14,500 plus 450k bb. The Pacific market continued to recover this week due to the lack of S.China positioned vessels for mid May Indon or Aussie cargoes. An LME in S.China was talked at about $10,000 to $11,000 for above biz. And about the Nopac biz, it was said that some charter could even pay $12,000 for Japan positioned vessel. The rate for short period rose up in the end, being talked at about $14,500.
 
Handy (Far East/Pacific)

An ongoing slowdown of the spot market induced some Supramax owners to let their tonnage go for period at unattractive rates. Besides the reported 50,000 tonner booked at usd 14,750 daily for 4/6 months, HMM was rumored to have booked an n/b 57,000 dolphin type at usd 14,000 daily for 12 months delivery ex yard. The Supramax coal trade from Southeast Asia to India faded away. A few coal stems from this area were still booked into Chinese ports at unattractive levels. On the same route nickel ore charterers booked a larger amount of Supramaxes by paying around usd 2,000 daily over the coal rates. North Pacific and Australia biz were generally scarce for all handies, and the sole Australia/Far East reported fixture showed the small Handy rates have also been lowered.

Handy (North Europe/Mediterranean)

Charterers' interest was very small from the Continent, the Mediterranean and the Black Sea with more vessels running spot and ballasting across. Positioning cargoes to Americas were paying very low money during the previous week. It was almost disappeared from the market this week. A nice modern Supra was agreed at low money for a trip ex northwest Africa via Gulf of Aden into the Indian Ocean.
 
Handy (USA/N.Atlantic/Lakes/S.America)
 
The market was still quite slow for business loading out of the U.S. Gulf, rates to the East showed further decline but the depressed European market didn't allow charterers to push down so much. The Trans-Atlantic rates almost leveled to the fronthaul fixtures, with owners no longer so much attracted to keep their tonnage trading within the western hemisphere. Forward business from the area was said to be worth a premium but same may be contradicted by the tonnage ballasting ex-Europe which shall be reaching this area in a while. No reports for business loading ex South America were available but there was a feeling that fixtures were concluded at better levels from this area, and kept confidential to avoid encouraging better levels.
 
Handy (Indian Ocean/South Africa)
 
Spot Supramax tonnage was caught by charterers at very low money for a usual India/China trip with iron ore. Other slightly forward vessel did better, although the agreed rate on its own still cannot be considered attractive. It was also rumored that a large Supra was fixed at $15,250 daily for 4/6 months period delivery south India.
 
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it


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