Capesize (Atlantic and Pacific)
The iron ore demand in the Far East was significantly increased while there was a shortage of open tonnage in the North Atlantic and ballasters in the Far East to Brazil. As a result, there has been a real boom in Capesize rates in almost every area. Iron ore Brazil/China reached $27.00 mark although it has slowed by the end of the week with Cargill having found a vessel and fixed at $23.00. The front-haul rate has reached the $38,000 level with option for Trans-Atlantic at $18,000. In the East, the West Australia to China rate climbed to $10.00 range and the round to about $17,000. However in the last two days of the week, the rates stopped the boom and started to decline. The real trend will be confirmed next week whether the market has the strength to increase further or instead to conclude another decline.
Panamax (Atlantic and Pacific)
The Atlantic market was improving at the beginning then went soft in the end of week. The continuous arrival of ballast vessels from the East dragged the rates down, considering the insufficient cargo available in the market. By the end of the week, the Trans-Atlantic business was talked at $14,000 daily while business to the Pacific at $24,500 plus 450kbb. From the Pacific side, the market was very positional and showing some downward trend. Some charterers were still chasing S.China positioned vessel but not as eagerly as days ago. An LME in S.China could gain about $12,000 daily for an Indonesia round. For N.China vessels, the very limited Nopac and E.Australia business left them few things to do but thinking ballast. So the rate agreed was not so good, ie at very low $10,000 daily. Short period was hot in the midweek, reaching $12,500 level.
Handy (Far East/Pacific)
The shortage of available tonnage all around the Chinese coast kept the freight trend positive for owners. Better rates were agreed for the Pacific rounds with an additional 20 percent extra premium for the ones redelivering in the India Ocean. The Supramax backhaul rates showed to enjoy a proportional increase, similarly to the Far East round voyage. It was strange to see charterers still being able to fetch tonnage at lower money for trips from the Far East to Indian Ocean, even if the afterwards depressed market from that area should call a higher time-charter rate. Smaller Handies, which was already less affected by the soft market trend, achieved better money compared to the previous week.
Handy (North Europe/Mediterranean)
Although the latest time-charter rate agreed on Handymax for a trip ex the East Mediterranean to South America was very small, it still almost doubled from what a similar business could be fixed a couple of weeks ago. Actually it's even better for the owners considering the firmer South American market. Charterers were said to be active from the Black Sea with an open tonnage shortage, but no fixtures were reported. Activity was still low but rates were firming up, a fancy Supramax got a very fat rate for a 3/5 months employment redelivery worldwide with delivery North Spain. That was due to the first leg was actually from North Spain to NCSA; perhaps charterers were forced to take a period vessel at fancy money in order to perform that single trip.
Handy (USA/N.Atlantic/Lakes/S.America)
The market was slow in the beginning then the Supramax side was boosted by the active Far East bound business, rates from South America to this direction grew up rapidly. In the end, a Supramax was fixed over $20,000 daily basis delivery West Africa. Another Supramax on the U.S. Gulf /Far East run was agreed at $31,000 daily, but from here rates showed to be better for charterers involved with Trans-Atlantic business who still managed to take advantage from the tonnage ballasting ex-Europe. The South America market was good enough for smaller Handies while the U.S. Gulf brought little employment to them.
Handy (Indian Ocean/South Africa)
The market was a bit weird for owners in this area. Business ex West Coast India was hit by the monsoon. Fortunately there was a larger demand for Supramaxes to load iron ore from the Middle East Gulf to China as compensation. A Supramax delivering ex West Coast India for loading in Middle East Gulf into China was reported fixed at a much higher level than what the same boat would have achieved by delivering at the East Coast India. Activity was otherwise slow with slim enquiry from South Africa and Handysize owners were contemplating business from Southeast Asia or Australia with tonnage coming available in the Middle East Gulf/West Coast India range.
Banchero Costa and Co Spa
E-Mail: research@bancosta.it
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