Capesize (Atlantic and Pacific)
There were only negative signs about Capesize market from the last report. The last trading day of 2010 (24 Dec) saw the 4 T/C routes at Usd 20,009 daily, the New Year opened at Usd 18,697 and the last week closed at Usd 12.987. The Baltic Capesize TC is now well below Panamax and also below Supramax index. There are simply too many ships available and few cargoes to be fixed in all areas and now especially in Atlantic where T/A round voyage is still going down to reach about Usd 11.000 level. Major Shippers dealing on Iron Ore in West Australia were able to secure tonnage in the low Usd 7's range and all Cape in ballast from China are only able to get rate in the region of Usd 18.00 with the fronthaul rates ranging in the mid Usd 20.000's level. Period activity is very limited with few business being done for 4/6 or 5/7 months time charter at a daily rate based on the index of the 4 T/C.
Panamax (Atlantic and Pacific)
Market turned positive to welcome the first week of the New Year. A pile of fresh enquiries especially fronthaul orders appeared this week, largely due to USG cargo pouring out. Rates for trip to the East was pushed to high 20 thousand and Trans-Atlantic biz kept firm at low 20 thousand level. About the Pacific market, due to the flourishing USG cargo, many vessels ballasted or will ballast to the USG and rates for such biz were done at around mid low $10,000usd/d. Nopac round biz also turned positive with rates went up a little, while Indon and Aussie round voyage were still suffering, partly because of the flood of Queensland. Many charters were seeking pacific period vessel of 4/6 mos up to 1 year, but few owner was willing to do more than3/5 mos at low rate.
Handy (Far East/Pacific)
Huge number of new buildings is driving down the level of rates in the Pacific area. Nopac round is getting around 10,000 usd per day for a Supra with dely north China or Japan and Indonesia round is even worse, paying around $ 8,500 bss dely South China. Period activity was also slower than in the recent past, few deals reported and A1 charters considering taking ships only if they were able to pay in the low teens. It seems that many owners decided to ballast their tonnage towards the USG.
Handy (North Europe/Mediterranean)
Few orders were coming out from the Black Sea and the Med area in this period. Most of ships open in the east Med start to ballast to the USG or to the Continent in order to get better paying business. Trip out of the Black Sea to the Far East is about low 20's bss Cannakale delivery. Supramax can only get poor rates nowadays in the Far East. From the Continent there is stil some scrap keeping the market alive, and still paying a bit over than the market level. A Supramax can get in the mid high teens for trip to the east Med, which is a bit better than t/a round.
Handy (USA/N.Atlantic/Lakes/S.America)
The market in the beginning of the week was very soft, due to the bank holiday in the UK and most of people were still off. Around mid week activity started to resume to the usual volume. There have been a good amount of orders from the USG - USEC for the first part of the month (if compared with the number of ships). And it has been a very positional market in the recent past, in which we have seen some high fixtures together with other very low ones. It seems many ships will arrive in ballast around the end of the month, but for the time being, most of the owners continue to maintain high rates until the very last moment.
Handy (Indian Ocean/South Africa)
During this week, rates from West Coast India to China continued to drop. At the beginning of the week we have seen some Supras fixing in the mid teens bss dop WC India, and at the end of the week the average was about $12,000. We could say the same for trip via EC India and for South Africa round voyage. Both the level of the rates and the number of the fixtures has decreased.
Banchero Costa and Co Spa
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Internet: www.bancosta.it