Capesize (Atlantic and Pacific)
Market appears to be lousy in all areas and this fact is starting to loose confidence for those who where always bullish: Baltic Capesize Index lost 289 points and the 4 T/C routes lost $ 3,381 daily. Rates for W.Australia to China are now approaching to $ 8.00 equivalent to a timecharter just above $ 17,000 daily which is just around $ 2,000 above the Panamax rate for Pacific Round. Atlantic sounds little better but with very scarce activity and the transatlantic round being fixed in the $ 31/32,000 daily. With the Brazil/China at just above $ 20 the fronthaul rates are now in the range of only about $ 43/44,000 daily. The reason is always the same: there are too many ships open in the Far East and a lot of new building hitting the water with the market who cannot provide cargoes for all of them. Period rates are now moving
to indexed terms and there have been some modern Capes fixed for short period upto one year at average of the 4 T/c routes, with some of them succeeded to get plus 5 % on top of it.
Panamax (Atlantic and Pacific)
The market continued to be divided in the past week with the Atlantic business kept firm for the whole week except on Friday while the Pacific market still under struggle. Rates for the Atlantic biz kept on a high level due to the lack of early vessels until the end of the week. Trans-Atlantic biz was very active in the second half of the week with early vessels almost all gone. The fronthaul rates went firmer at the week's beginning but dropped back in the end. The Pacific market trended down in the first several days and kept soft to end the week with volume also limited. Nopac and Pacific round voyage were both done at a low rate. Some needs for period appeared in the Pacific while rate was
still of a low level.
Handy (Far East/Pacific)
Activity started very slow with rates under pressure. Lower money were agreed also for the smaller tonnage. More fixtures were said to have been concluded afterwards, but the number of reported fixtures was small. Period interest disappereared from the market. A reported fixtures showed contradictory levels with Supramaxes fixing improved rates. Time Charter levels for trips via Indonesia to India were falling, and a long duration West Coast Mexico round was paying a little higher hire to compensate the long ballast leg.
Handy (North Europe/Mediterranean)
Very limited activity was concluded all around the European coasts. Demand for loading scrap ex Northern Europe decreased and owners made strong fights to try to keep levels similar to last dones. No East bound business was reported concluded out of the Black Sea from where only a couple of deals to load cement for West Africa were reported done at quite unattractive levels. Some comfort came from the strong North America Atlantic market that at least allowed a few vessels to get decent levels for loading across and a Supra got fixed at realistic levels with delivery Gibraltar.
Handy (USA/N.Atlantic/Lakes/S.America)
The market out of Atlantic Americas was sharply cut in two pieces. North Atlantic/U.S. Gulf kept enjoying a favorable strength with Trans-Atlantic demand growing. U.S. Gulf delivery rates grew through the week and ended up over the $30,000 mark. Tonnage delivering on the European side enjoyed levels around low $20,000 while larger units kept fixing low to mid $30,000 levels for trips to Far East. South Atlantic was much more quiet showing lower East bound rates than the ones achievable ex U.S.gulf. The progressive growth of Trans-Atlantic rates through the week is described as being mostly driven by an end of the year rush, rather than consolidating market.
Handy (Indian Ocean/South Africa)
Activity was seen only around the larger units with higher rates paid both for a sulphur cargo out of the Persian Gulf into China and a South African coal round. The amount of this "alternative" business wasn't soar enough to influence positively the India/China iron ore rates which remained stable to previous week's levels.
Banchero Costa and Co Spa
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