July 30– August 5, 2012 Weekly market report.. Banchero Costa

Tuesday, 07 August 2012 11:45:43 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

Last week was mainly driven by excess of tonnage which led rates trending down in Atlantic and Pacific. On the closing there was some resistance from owners which made levels for West Aus/China reaching high $6 range. It was noticed good period activity with some takers willing to get advantage of cheaper rates even if expectations are still gloomy: modern tonnage with del prompt in Pacific was fixed for 10/13 months between $9,000 and $9,750.

Panamax (Atlantic and Pacific)

The market at the beginning of the week was extremely slow. It appeared that Atlantic trades were all covered approaching the end of the week with charterers preferring to wait until the next one, rates for a Transatlantic round voyage were around $7,000 daily, 2/3 laden legs at around $8,000, and there were no sign of any rebound. Fronthaul trading was limited as well with fixtures at around $14,000 daily + $400,000 ballast bonus level for trips from ECSA to East. US Gulf requirements still offered some premium at levels around $15,000 + $500,000. The sentiment was rather negative also in the East with Pacific Rounds going south every day and closing on Friday at around $6,000/day for NoPac or Indonesia rounds. Charterers were still looking for candidates in North Pacific to cover their USG grains requirements fixing LMEs at $7/8,000 daily by the end of the week. Requirements for short periods were rather limited because of the lack of support in the foreseeable future.

Handy (Far East/Pacific)

A few fixtures were reported concluded in this area, mostly for Supramax tonnage trading Inter-Asia trips either to India or back to Far East. In general rates softened a little further, a couple of deals were reported at better levels, but only due to the peculiarities of the trade rather than a market rebound. An LME was reported for a NoPac Round at around $8,750 + $350,000 bb showing that also this trade lane has finally followed the same trend of the rest of the area. Period interest was alive, but no deals have been reported concluded.

Handy (North Europe/Mediterranean)

Chartering interest was slow to emerge in these waters. Only two fixtures were reported concluded, one for loading ex central Med and discharge Far East and the other Turkey/Bengal bay, both showed that rates stayed quite firm. The Gulf of Aden piracy extra expenses are now allowing owners to get higher numbers on East bound business compared with what US Gulf would pay. Moreover an undisclosed Supramax was rumoured fixed at around $16,000 daily with delivery Continent via lower Baltic for a trip into East Med.

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

The activity slowed further both for loading ex US Gulf and ECSA. On the USG to Far East trade was initially agreed $22,750 daily rate for a fancy 58,000 tonner that was followed by another fancy 55,000 tonner at $19,750. At the end of the week there were further rumours of a third unit fixed at lower figures. The negative trend was further confirmed by a larger number of Supramax reported ion TransAtlantic trip at poor rates. Two modern Handysize were agreed at healthier rates for trips to Iceland and West Africa. South American market registered a similar negative trend with particularly low rate on a Supramax to load grains to Algeria. Fronthaul business was said to be better than previous weeks, but all the concluded deals were kept confidential.

Handy (Indian Ocean/South Africa)

While the raw materials export from Arabian Gulf and Indian regions remained quite idle some charters took the advantage of a depressed market in South America and fixed a few ballasters for loading ex South Africa. Two units were taken for trips back to East and one into Europe. All fixtures were concluded at quite unattractive levels. An Handymax was fixed for short period at an higher rate with delivery East Africa.

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


 


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