Capesize (Atlantic and Pacific)
Capesize rates came off again last week. In Pacific activity was concentrated on the usual West Australia/China trade which closed at $6.60. A trip back from Richards Bay to Rotterdam it was fixed tick above $6. In Atlantic a TransAtlantic round was agreed at $2,500, while a Front Haul from Tubarao to China was done in the low $17s. Considering the higher cost of bunker, returns for owners keeps on worsening. It was also reported some period activity with a vessel open in Taiwan fetching $9,000 for 3/5 months.
Panamax (Atlantic and Pacific)
The market finally showed some positive signs in both basins by the end of the week. Since the Atlantic market kept stable for the last three days the feeling is that the market bottomed. Charterers were talking $6,500 daily level for a single trip or $8,000 daily for 2lls within Atlantic for North Atlantic candidates unwilling to move to Fareast. For this reason vessels willing to go Fareast could get some premium for the trip from USG with rate at around $15,500 daily + $550,000 bb. The number of cargoes from ECSA decreased further, as a result, such cargoes were well served by ballasters from the East at $14,500 daily + $450,000 bb. In the Pacific more cargoes from Indonesia or NoPac were put into the market, which held the rate for Pacific round steady. By the end of the week, some vessels were fixed on aps delivery again with South China candidates fixed at $5,000 daily for Indonesia round. Despite the USG grain season, candidates in N. China were still under pressure with fixtures done at $6,500 daily level for a long USG round. There were some short period takers with fixtures done at $7,500 up to $8,000 daily.
Handy (Far East/Pacific)
Despite the summer holidays last week was pretty active in this basin with a large number of fixtures driven by charterers will in trying to take advantage from an area so heavily oversupplied. In particular charterers involved in Indian coal imports from SE Asia made very good deals. This trade is still the largest source of demand for Supramaxes and, despite the flow of fresh enquiries, rates kept decreasing. It's not even clear yet if rates have bottomed. The remaining amount of business fixed on different trades showed a proportional decrease of the rates. Supramax interest for short period was alive with rates reported down to $8,900 daily for 3 to 5 months and rumours of even lower rates, at $8,500 level, not confirmed yet. Inside this horrible scenario some vessels still fetched better money due to positional reasons or unattractive redelivery range. A little was heard about smaller Handies which were said to run proportionally better compared to Supramaxes.
Handy (North Europe/Mediterranean)
Continent kept paddling through it's slow, but regular activity moving fertilizers and steels in Handysize to US Atlantic Coast, small amounts of grains to Africa and some scrap to East Med. Rates to remain in West Atlantic were heading South, while backhaul business kept previous levels to attract owners to US that are no longer much attractive. Activity in Med was lacking and Black Sea was difficult to describe: demand is slow and irregular, however the tonnage fixing Eastbound directions still got nice rates. Backhaul employments were not reported, but seemed unattractive. A regular flow of grains into Med, mainly on Handysize stems, was described at rates which, even if not reported, are said to be acceptable.
Handy (USA/N.Atlantic/Lakes/S.America)
Rates further deteriorated especially for supramax owners. Transatlantic trips with coals are now fixing in the low teens and rates for fronthaul business USG to East are said to pay well below $20,000 daily. The trend is surely negative from S. America where the ongoing shortage of grain stems and a small amount of other trades has put timecharter and voyage rates under pressure on the Transatlantic trade. Out of S. America, in connection with the ongoing rice and sugar export, Handysize are enjoying a better market on trades to Europe and west Africa.
Handy (Indian Ocean/South Africa)
Activity out of Indian Ocean and Arabian areas were even quieter than usual. Arabian countries have been celebrating the long Ramadan holidays which have put to total quietness an area which was already not very active. In this scenario some chartering attempts where made to load mineral out of South Africa to Mid and Far East that however, so far, ended up into a bubble.
Banchero Costa and Co Spa
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Internet: www.bancosta.it