Weekly detailed analysis of world shipping freight markets for all major routes for May 16- May 22, 2011
Capesize (Atlantic and Pacific)
On Thursday 19th May, without any sign, we saw a rally in rates in the Atlantic sector. A number of modern Capesizes fixing Trans-Atlantic biz at rates up to about $ 8,500 daily, when few days earlier, the Trans-Atlantic rate was below $ 5,000 daily. And the Baltic Capesize Index jumped up by 145 points!!! The reason was definitely due to the very thin number of vessels available in the Atlantic combined with a flurry of fresh Trans-Atlantic business. The Far East instead remained more or less stable with the West Australia to China iron ore route fixing now at about $ 7.30/7.35 level which was a little better than the previous cargoes for June dates. The high number of Capesizes available in the Far East will probably maintain the low rates seen up to now.
Panamax (Atlantic and Pacific)
The market turned firmer since mid week especially for the Atlantic side. In the Atlantic, rate rocketed up almost overnight in mid week. By the end of the week, LME could gain $26,000 plus 600,000bb for South America front haul biz and vessel open Passero was also talked at about $23,000 level for a trip to the Far East. Rates for Trans-Atlantic biz also turned up a lot and they kept firm at $14,500. From the Pacific side, influenced by the Atlantic, rates climbed up step by step as well. South China positioned LME was talked at mid $12,000 for short Pacific trip and vessel in Japan could get $13,000 for Nopac biz. Short period was still at low level with little interest fixing at $13,000.
Handy (Far East/Pacific)
A little less business was reported concluded. Besides the usual coal run from via Southeast Asia to India, the larger tonnage was busy also with some fixing for loading ex Australia to India and to China. Southeast Asia trade was keeping similar levels to last dones with some deals concluded a slightly improved rates. Business loading ex Australia was concluded at lower levels due to longer sea passage. Period interest was smaller, a Handysize was reported booked for short period commitment at low $ 10,000's while unconfirmed rumors talked about a Supra booking $ 14,000 for similar duration. Chartering interest out of the North Pacific was very small and a Supramax long duration backhaul biz to the American Gulf called a much discounted rate for the first 50 days.
Handy (North Europe/Mediterranean)
Tonnage kept building up in the Mediterranean and the Black Sea with very small outbound business available, which may create a difficult situation for owners in the near future. A Supramax managed to fix front haul business ex the Black Sea at almost unchanged levels. The lack of tonnage created some tension to fertilizer charterers in north Europe. Owners resorted to the backhaul rates for single trip and up to two charters had to book short period to get rid of the first leg.
In spite of the customary slow start, the rates out of the U.S. Gulf easily managed to keep in line with previous week's levels, with marginal ups and downs dictated by positional reasons. The weak market in the east Med and the Black Sea was bringing Supramax rates at similar levels to the ones achievable for east bound employments. South American business was kept a lot under wraps as usual, while smaller Handies didn't show to enjoy much of excitement from the area. Their larger relatives got similar levels of the U.S. Gulf for Trans-Atlantic business and were rumored to achieve $2/3,000 daily more for east bound directions. There was little ore under wraps, with much less fixtures.
Handy (Indian Ocean/South Africa)
A negative combination of the monsoon hitting India, smaller demand of iron ore from Chinese final users and most of the required supply booked on contractual basis by Chinese owners performing with their own tonnage, has dried up almost completely the demand for spot requirements on the India China trade. The requirements left to be quoted in the market were very few, charters were quoting unattractive rates and it's wondered if the business was firm at all.
Banchero Costa and Co Spa
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