August 8– August 21, 2011 Weekly market report.. Banchero Costa

Tuesday, 23 August 2011 15:26:59 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

The Capesize market slightly improved this week. One of the reasons was that China started to buy iron ore and charterers were willing to fix on the spot market to find coverage. As a result, the iron ore route from West Australia to China jumped from low $8's level to $9 and the corresponding Pacific round from $9,000 to about $12,000. The Atlantic market was also active, with rates that from $23s increased to about $32/32,500 level for Brazil / China route by the end of the week. Because of the very high number of Capesizes open in prompt positions in Far East and many ships lying up in the Singapore area, it is still unclear whether this market trend can either be sustained for a long time or possibly leads to further improve. The market direction could be confirmed in the next few weeks.

Panamax (Atlantic and Pacific)

The Atlantic market turned a little firm and kept stable by the end of the week. The Trans-Atlantic voyage was talked in the mid/low $14s daily, almost unchanged to previous levels. But the fronthaul business was done at a higher level, i.e. $25,000+500kbb for an LME in USG. However there were very limited fresh cargoes available by the end of the week, so the market level was unlikely to maintain the trend. The Pacific side experienced an improved market starting from last week, but by Friday most cargoes were covered while little fresh cargoes appeared. Because of very few S.China positioned vessels were available in the market, the Indonesia and Australia round voyage rates were pushed up to $10,000-$11,000 daily. Many short period fixtures were done on Thursday around mid $12,000 daily level.

Handy (Far East/Pacific)

Rates were recovering slowly but steadily this week. The owners started to feel a little more optimistic about the general trend. Because of Supramax tonnage shortage at Chinese ports, the Inter-Asia fixtures were concluded at better figures and the same happened to the trips into the Middle East. At the same time a renewed interest for short period on the larger sizes lead into a good number of units reported fixed, with more recent deals concluded in the $14,000 daily level or even more. Smaller Handies kept running well and also enjoyed some rate improvements; although the actual levels agreed were more balanced compared to the fixtures of larger tonnage.

Handy (North Europe/Mediterranean)

A Handy was rumoured to be booked for the Continent to the East Med run at $13,000 daily and also a Supra fixed the same trade at Usd 18,000 daily. After that, enquiries dried up from Northern Europe and left owners the only choice of looking at business across. Activity from the Mediterranean waters was extremely quiet as well, so Norwegian operator could book a nice Supramax at just $4,200 daily for trip from North Africa to the USG. The Black Sea business was kept under wraps with activity said to be larger and more beneficial for Handy owners, but the only fixture agreed for a larger vessel to the East was still far from being exciting.

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

A first the market was generally stable for loading out of these areas, but then suddenly changed. The Supramax Trans-Atlantic rates for loading USG fell to low $20,000 levels bss redelivery Continent, then it recovered into upper $20,000s which was recently fixed to the Eastern Med. Front-haul activity from this area was very scarce, but the last fixture showed a level slightly in excess of the $30,000 mark which was still quite good for Supramax tonnage. To the contrary the ECSA Supramax business was more oriented to the front-haul employments. The agreed rates were more or less keeping an equivalent figure of about $20,000 daily basis delivery West Africa. Coals from NCSA showed smaller demand for tonnage.

Handy (Indian Ocean/South Africa)

With the on-going crisis on the India/China iron ore trade, more fixtures were reported concluded from South Africa, but limited to Handy size or Handymax sizes. Rates were slightly improved, but still remained quite unattractive considering the "aps delivery". Larger Handies available in the Bengal Bay can still look at Indonesia loading employments whilst the Indian Ocean available tonnage can only ballast into the Atlantic.

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


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