Capesize (Atlantic and Pacific)
Market activity during last week was affected by vacation in Western countries on Thursday, but overall it was tight in North Atlantic where a 176,000 dwt open Dunkirk was fixed at $9,000 for a TA round. Brazil to Qingdao business was reported fixed between $20.25 and $20.50 levels. Out of Richards Bay to China charterers paid mid $13 and about $1 above from Saldanha Bay. For the key route West Australia to China, all the majors were looking for beginning of June candidates, however activity was not massive as owners were trying to fix at better levels, last done was $7.80 and some fixtures were rumored to fix at $7.85.
Panamax (Atlantic and Pacific)
The Atlantic market was softer for almost the whole week, by the end then there were rumors about fronthaul rates turning slightly firm on Friday. More South American grain business was available and helped to hold the market at $17,000+650,000 to $700,000 bb level for the trip to the East. Candidates in N. Atlantic managed to get good rates at about $20,000 daily with dop delivery since few owners were willing to get out of the Atlantic. As a result, TransAtlantic round was fairly soft being fixed between $12,000 to $13,000 daily level. In Far East, vessels in N. China were still suffering due to bad position for South American grains and a limited number of NoPac or Australia cargoes. Rates for S.China vessels were stable with charterers willing to pay $8,500 to $9,000 daily for Indonesia round or $8,000 daily for ECSA business. There were still some enquiries for short period, but rates were talked at pretty low levels around mid/high $9,000 daily.
Handy (Far East/Pacific)
A worsening surplus tonnage in this area forced owners to assume a "fix-what-you-can" attitude which led into a massive amount of reported fixtures at falling rates. Even one of the few nickel ore charterers still active managed to book a Supra for a China round via SE Asia at a very low rate. Supramax rates to carry coal from Indonesia to India went down even further and backhaul rates were in the mid $6,000's to West Africa (from where owners will enjoy a closer positioning to S. American market avoiding piracy areas) and mid $7,000's to Europe with a differential which hardly compensates the Gulf of Aden transit and redelivery in a softer area. Supramax period interest was still active for durations between 4/6 and 12 months at rates around mid $10ks level. Fancier and smaller units showed to keep trading at firmer levels fetching better returns than Supramaxes.
Handy (North Europe/Mediterranean)
The Holiday celebrated on Thursday brought considerable slow down to the activity especially around European waters. The consequences were experienced in particular by owners of Supramax and Handymax tonnage open at North Europe and West/Central Med, which had very small amount of demand and only a few fixtures reported at lower rates. Atlantic Americas rates were still decent. Rates for fronthaul business ex Black Sea improved slightly for larger units able to trade through the Gulf of Aden. Smaller Handies were struggling from this area, but found larger demand from West Med with charterers enjoying attractive short period deals.
Handy (USA/N.Atlantic/Lakes/S.America)
As in Pacific, a lot of fixtures have been reported from these waters, opposite to Pacific rates had an upward trend especially from USG and NCSA rates kept on growing daily with a constant flow of fresh cargoes, most on similar loading dates. Supramax rates on the USG/Far East trade climbed up during the week up to $26,500 daily level. On Friday a large fancy Supra was reported at that rate for a trip to Turkey. If confirmed we may shortly hear Supras fixing in the $30,000 mark for USG/Far East. South American market moved ahead with an even better trend. From both areas smaller Handies easily fetched daily time charter rates in the high teens, for Trans-Atlantic employments.
Handy (Indian Ocean/South Africa)
Demand from these waters was scarce for all sizes. Coal interests from South Africa were inactive and iron ore export activity kept idle both from India and Iran. The Arabian Gulf was quiet as well and even owners of smaller Handies saw less interest for bagged rice stems ex Bengal Bay to Africa. At present Supramax owners with tonnage open at the Red Sea/Middle East Gulf range tend to look at ballasting back to the Red Sea/Black Sea waters, but may also start to enter the South American market shortly.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it