Capesize (Atlantic and Pacific)
Cape size market is collapsing!! Baltic Capesize Index has lost 2,106 points all over last week. The Iron ore Brazil/China lost about $ 11.00, the coal from Richards Bay almost $ 6.00 and so on... The reason of this drop is mainly due to the lack of cargoes quoted, mainly in Far East from West Australia to China and to the high number of available spot vessels, but also in the Atlantic the situation is not much brilliant as the cargoes quoted are very scarce and the ships ballasting to South America, especially from Far East are increasing sharply. The coal from Richards Bay has also dropped in view of the many vessels willing ballast to South Africa to pick up cargo to come back into Atlantic. The prospects for next week dues not seem more brilliant and also most operators are worrying that the market should not recover prior to the Chinese New Year holidays that are the 4-5 February onwards.
Panamax (Atlantic and Pacific)
Bad week for Panamax business. The market took a downturn day by day in both basins: many spot tonnage are seeking fresh cargoes with very low results and rates dropped heavily. Transatlantic rounds are now well under $70,000 daily while for trips out in very low 70,0000s. In the Pacific, short period business supported rates in the early week but rates dropped quickly. Some fixtures reported for 1 year period, which brings little positive sentiment by the end of week.
Handy (Far East/Pacific)
The new ignition of business proved not be enough to recover this market which kept decreasing, especially for prompter positions where owners showed either to fix and fail on subs or not fixing at all. The result is spot tonnage building up constantly with some vessels already thinking to start ballasting to the Atlantic. The forward positions kept showing to be firmer with an on going short period interest
Handy (North Europe/Mediterranean)
A sudden demand for scrap loading out of the Continent quickly showed Handymaxes and Handysizes getting paid huge money for trips to the East Med. Also the steel export from Black Sea to East showed fresh activity and fixtures at good money, which both were of great assistance to the slightly decreasing Atlantic American market, no longer able to absorb the ballasters from Europe.
Handy (USA/N.Atlantic/Lakes/S.America)
Requirements from Us Gulf and South America proved to be more positional showing a combination of excellent and not so good fixture. Rates held to previous weeks levels except for some starting rumors of fixing and failing which in combination with a predicted fresh volume of enquiry from South America which did not actually show up yet, brought additional worries. Luckily a more active demand from European ports washed away the ballasters who may otherwise have brought additional weakness.
Handy (Indian Ocean/South Africa)
The sole reported chartering activity was still limited to the iron or export from India to China. No other commodities to other destinations appear to have been traded. Even if cargo volume was reasonably large in combination with a decreasing Far East market, the reported fixtures were concluded at money which even being still good enough, where more than 10% lower compared to last week, as not South African or South America loading business could attract tonnage open at these water.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it