Weekly detailed analysis of world shipping freight markets for all major routes for May 2- May 9, 2011
Capesize (Atlantic and Pacific)
Again it was a very uneventful week for the big ships, mostly negative, which was ending last Friday with the average BCI at $ 6,777 only. If we exclude the iron ore ex West Australia to China, then the rest of the market was mostly dead without any sign of recovering. The only fixture of some interest was the M/v Koho, 172,000 dwt built 1999 which was fixed by BHP Billiton with delivery Shanghai for a coal from East Coast Australia back to the Continent at $ 1,000 daily that was at least a positive rate after so many negative time charter rates done since quite some months. Very little activity in the Atlantic with a couple of ships fixed for trip to the Far East at a rate in the region of about $ 17/17,500 range which was equivalent to a voyage rate of about $ 19/19.25 on the iron ore route from Tubarao to Qingdao.
Panamax (Atlantic and Pacific)
In the past week the market continued turning firm rapidly and the BPI recovered 319 points to 1,769. South American grain became the major engine pushing the Atlantic market forward. By the end of the week, some good LMEs could earn $26,500 plus 650,000bb for biz to the Far East. A lack of spot vessels was said to be the main reason for the improvement. Rates for trip within the Atlantic also ticked up to about low $14,000. The Pacific market level was also upped everyday due to very limited spot vessels in good position. Now for an Indon or WC.Aussie round voyage, an LME in south China was talked at about $15,000 or even higher. For the trip to Nopac, charters could also pay similar rate. With the market warming up, more interest for short period appeared with 4/6mos done at $16,000.
Handy (Far East/Pacific)
The market started with a weaker trend due to major shipping-involved countries closed for holidays. A Supramax size north Pacific round was reported agreed at low $ 12,500 daily, but a subsequent stronger chartering demand showed some afterwards improvement with a smaller Handymax fixing $750 daily more on the same trade. Coal from Indonesia to India and China was active again, as well as nickel ore back to China. The agreed rates on respective trades were very similar to last dones with the usual exception for tonnage delivering in the loading area getting paid much higher rate in exchange of the ballast leg saving. Some short period interest was still there with Supramax rates around the $15,000 mark and smaller fancy Handies fetching about $ 2,500 daily less.
Handy (North Europe/Mediterranean)
A combination of fresh grain and scrap requirements from northern Europe brought chartering demand back to this area with smaller Handies getting paid better than their larger relatives for trips into the Med. A Supramax was rumored fixing a better $10,000 daily for trip Continent/U.S Gulf. A little more activity was seen as well from the Black Sea but rates were still lousy for owners, both for East bound and west Africa directions.
Handy (USA/N.Atlantic/Lakes/S.America)
A slow start of this market was quickly contradicted by better rates agreed for business originating ex north and south coast South America. Reports were a bit slow to reach but showed afterwards that Supramax rates were back to over mid $20.000's daily for Trans-Atlantic business and in the $28/30,000 daily range for east bound requirements. A signal of additional sugar requirements being available from next June helped this market to consolidate. A similar trend was also seen a little later from the U.S. Gulf where the positive trend of rates was more due to the lack of tonnage rather than from a physical increase on the demand. Short period interest was available with Supramaxes booking 4/6 mos slightly in excess of $ 20,000 daily.
Handy (Indian Ocean/South Africa)
Iron ore business to India and China kept paddling ahead with a very small increase on the agreed rates, compared to previous week's levels. Rates were still inconsistent for owners depending on the vessel's next opening within the Pacific waters. This was probably one of the reasons for the rate that charterers Norden had to agree for taking a large Supra for coal ex South Africa into India. A 30,000 modern boat booked a nicer level for short period with delivery India.
Banchero Costa and Co Spa
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