Capesize (Atlantic and Pacific)
After very quiet Christmas Holidays, the Capesize market has seen a very dramatic start of the 2012: minus 651 points from the 3rd of January 2012 or minus $8,514 on the 4 T/c routes which was quoting $15,477 daily only. The Brazil/China iron ore was at about low $23's, the West Australia to China about mid $9's, while in Atlantic the iron ore from Brazil to Rotterdam went down to about $11.65 and the coal Bolivar/Rotterdam to about $12.25. Basically there was no period activity and the time charter rounds were fixed down to about $13,500 to $14,000 in Atlantic and slightly less in Far East.
Panamax (Atlantic and Pacific)
The Atlantic market trended down due to a large number of early vessels and a few cargoes to fix. Trans-Atlantic round turned soft gradually and was talked at about $14,000 daily while USG round to the Far East was around $24,500 daily plus $450,000bb level due to many ballasters from the East. In the Pacific, rate also broke $10,000 daily level with many vessels trying to find cargoes to cover the Lunar New Year Holiday. For Indonesia round vessels in S. China were done at about mid $9,000 daily and candidates in N. China could only secure $9,000 daily for the Nopac round. Vessels in India got better rates with many charterers trying to secure vessels there for ECSA grain business at about $13,500 daily. Few charterers were there to take short period this week due to negative market trend and few fixtures seen during past weeks.
Handy (Far East/Pacific)
Market levels decreased further on all trades; however low rates managed to keep the market active even through the holidays. Charterers were taking advantage fixing all they could at very low levels. There was a larger freight fall on the Supramax backhaul business, with daily T/c rates getting close to $1,000 daily. No fixtures were reported as owners worked hard to keep the miserable rates agreed confidential. Local and Indian Ocean bound trades saw freight rates resist such a collapse due to the subsequent unprofitable positioning. During the week better money was agreed on an infancy Supramax type, but so far didn't bring any improvement on the other local trades. The situation was not so different for the smaller Handies as they could not find sufficient employments.
Handy (North Europe/Mediterranean)
Europe business dried up during the festivities. Black Sea was the only region with on-going activities. Although the agreed rates stayed similar to the lower levels seen before Christmas, they did not decrease further. It was rumored that the few Supramax fixtures reported were only a part of the actual concluded business, which also involved some smaller Handies and the Atlantic bound business.
Handy (USA/N.Atlantic/Lakes/S.America)
At the beginning of the week, business was quiet from all the Atlantic Americas coasts. The report about $30,500 daily for USG /China was actually agreed slightly before Christmas. Nowadays the available requirements on this trade showed owners starting to indicate very low $30,000's dop other USG ports, encouraging $30,000 or slightly less. It was said that charterers were there to pay no more than $27/28,000 on aps delivery. Similar vessels were worth around $24,000 for trips into the Continent and about $1,000 more for Med. These larger units experienced a lower market from Latin Americas where Handies on Trans-Atlantic trades enjoyed highest rates.
Handy (Indian Ocean/South Africa)
The Indian government hiked the iron ore export taxes which almost put a pause on the India/China iron ore trade. As a result, the number of enquiries in that area deceased further. Luckily, Iranian traders took advantage from this situation by selling iron ore and generating a small amount of additional Supramax demand. The owners who can trade Iran showed to fix trips out on dop basis at better levels compared with the return leg from China to the Indian Ocean. Compared to the general market, the reported Handysize fixtures with delivery India didn't look bad at all. Apparently the better quality tonnage within this size range still managed to take advantage from some private business, popping out only after the deal was concluded. A prospective additional demand for moving Handysized iron ore products out of the Middle East Gulf and agricultural products out of India may bring some general benefit to owners.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it