August 29– September 4, 2011 Weekly market report.. Banchero Costa

Tuesday, 06 September 2011 17:16:23 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

Many big ships were rushing into the market after the bank holiday, which caused a small decrease on Tuesday. However from Wednesday the market changed direction again in the hope of a firmer market in the last quarter of the year. By the end of the week, The BCI went up by 629 points, and $7,183 daily which represents an increase of almost the 43 % in only 3 days! Brazil/Cont was then fixed at about $13 from last $11.25, West Australia/China from low $9's to $11 and the corresponding rounds from about $15,000 up to $25,000 and about $15,000 to $23,000. Rates have the potential to keep going up and the spot market seems to continue improving to the longer terms with more period enquiries and rates being pushed up.

Panamax (Atlantic and Pacific)

The Atlantic market started a little soft due to limited cargoes for early vessels. However as the time moved on, more owners showed confidence for USG grain, which attracted increasing number of Far East candidates. By the end of the week, the Trans-Atlantic round was soft at $13,000-$14,000 daily while front haul was still firm at about $23,000 daily. The Pacific market turned firmer with a lack of candidates in both SE.Asia and the Far East, which was partly influenced by USG grain business. An LME in S.China could gain $12,000 daily for Indonesia round while a good vessel in Japan could earn $13,000 for a Nopac business. Rate for short period continued going up with fixtures done at $13,250 daily level.

Handy (Far East/Pacific)

Last week's improving trend started to cool down for Supramax sizes, with agreed rates similar to previous week's levels or slightly lower on some trades. Most of the spot larger size trading was again concentrating on the Far East round trips with nickel ore and coal while the coal trade to India slowed down a lot. Smaller size market was hotter and good rates were agreed both on North Pacific rounds and trips to Indian Ocean.

Handy (North Europe/Mediterranean)

Business was slow all around the European coasts; there was only a limited amount of reported concluded fixtures. The agreed rates remained quite similar to last ones, both on the scrap trade to Med and on the fertilizer trade from lower Baltic to Americas. There was little information available from the Mediterranean Basin, but it was rumored that rates from the Black Sea to the East were unchanged and a little improvement was seen for Supramaxes fixing from this area to the Continent. The Handy-size short period fixture reported also showed that this market segment was kept at previous done levels.

Handy (USA/N.Atlantic/Lakes/S.America)

The U.S. Gulf market was softer this week. The larger Handies also suffered a rate decrease, both for Trans-Atlantic and the Far East bound business. Trips to Europe were fixed at no more than $24/25,000 daily while the Singapore/Japan direction was paying $27/28,000. The South American market was better but apparently only for larger tonnage fixing to the Far East and the Middle East direction. Even if only 2 fixtures were reported on this trade, both were showing improved rates. No fresh news was available for Atlantic trading on similar sizes, while smaller tonnage kept running at lousy rates.

Handy (Indian Ocean/South Africa)

No remarkable changes were seen in the Middle East. India was still loading a small amount of iron ore from east coast, which was again paying low money. There was little activity from other areas, which allowed charterers loading coal ex Indonesia to India to fix tonnage open at India and agree at low rates. The rate for a large Supramax booked from South Africa to the Far East was good enough for owners just because the vessel was ending her previous employment at Durban. However, by calculating the equivalent for a ballaster coming from Muscat/WC India range, the agreed rate appeared to be lower than what was paid for the straight trip from India.

Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it


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