June 25– July 2, 2012 Weekly market report.. Banchero Costa

Wednesday, 04 July 2012 09:34:30 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

Capesize market, despite good activity reported, trended sideways last week. In Pacific, West Australia-China voyage settled in the high $6 with a couple of fixtures reported even in excess of $7 for very prompt laycan. From South Africa a trip out of Saldanha Bay to North China was fixed $12,40. Atlantic was busy in the middle of the week: a vessel delivery Fos for a trip with option redelivery Singapore-Japan was fixed at $18,500 daily and $17.50 was agreed for a standard Front Haul from Tubarao to Qingdao. Transatlantic round was still flat and weak even if bunker price tended to come off marginally. Short period, 5/8 months, quite stable between $9,500 and $10,000.

Panamax (Atlantic and Pacific)

Very low activity with a large amount of tonnage and low demand, especially for prompt requirements. The Panamax index dropped 42 points from 1026 to 984. In Atlantic owners with vessels in Atlantic largely preferred to remain in that basin, even discounting for good redelivery areas, Skaw/Gibraltar, instead of trying to compete with ballasters from Mid/Far East. ECSA ballasters got fixed APS basis in the region of $10/11,000+250,000 ballast bonus to Skaw/Passero, while for trip out levels had been in the Mid/Low $15,000+550,000 bb or region $10,000 DOP basis from Middle East & Singapore. Tansatlantic rates remained below $10.000 with Baltic trades fixed around $8,000 and the round voyage slightly above this level especially with redelivery Med. Atlantic market saw also the increase of the 2/3 legs in charterers' option scheme, at rates around $10,000. In Pacific prompt business was slightly under pressure. In general the trade has been low, but steady, with a little pressure for prompt cargoes caused by a large amount of ballasters pointing towards ECSA and Panama. Most of the activity came from Australian and Indonesia. Even if few grain stem out of NoPac have registered good numbers rates overall remained in the $7,000/8,000 region. Short period is not a choice largely followed at the moment, as most of the players not even pay the spot levels, while one year levels are getting closer and closer to the spot levels and not of great appeal.

Handy (Far East/Pacific)

Most of the activity was still on the coal trade between Indonesia and India with improved Supramax rates. Chartering interest for Supra and Handymax from North Pacific back to the East was registered again with rates climbing up during all week. The initial level of hi $7,000's daily basis Far East delivery ended up into a fancy 55,000 tonner fixing $9,000 daily. Little news was available for Australia loading business, but a the nice 53,000 tonner delivering at South Korea for a trip with coal via Australia to India got a nice $10,000 daily rate showing that this market is enjoying the same positive trend of other Pacific areas. Reduced interest for period business allowed a German operator to fix a 53,000 tonner at only $8,500 for short period at the beginning of the week. However improved spot market quickly influenced period rates leading to a slightly larger unit fixed by the end of the week at $10,500 daily with delivery Japan.

Handy (North Europe/Mediterranean)

Reduced activity all around Europe did not affect the North European market where the only reported Supramax fixture for fronthaul via Cape of Good Hope showed a still very firm market. Mediterranean and Black Sea were very quiet with only a couple of backhaul trips to US Gulf and to West Africa reported fixed at low levels.

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

Ongoing large demand for loading ex US Gulf and North Coast South America to TransAtlantic destinations kept rates in this area "alive and kicking". This influenced also the short period where a "dolphin type" Supramax was booked for about 3 months with redelivery Atlantic at a daily rate well over $19,000 daily. However on Thursday a very large fancy Supra was fixed for short period at "only" $18,000 daily with delivery US Gulf. The market however turned firm again before the weekend.

Handy (Indian Ocean/South Africa)

Demand was seriously lacking in the whole area between Persian Gulf and Singapore. Exports from India and Arabic area kept very quiet. Moreover enquiries from South Africa were lacking. The limited stems available were covered as a first leg employments for short period Supramax tonnage available in Indian Ocean, but no fixture were reported. On Handysize segment rice exports were much slower and major grain charterers were rumoured to have fixed at low rates 2 x 30,000 mts size bulk wheat stems from West Coast India to Red Sea.

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


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