Capesize (Atlantic and Pacific)
Market changed direction again, after the quick and heavy loss of previous week, the index recovered and went over 15,000. Both basins are very strong especially in Atlantic with very limited number of available vessels. The sentiment remains positive with expectation of many fresh requirements coming out for december loading.
Panamax (Atlantic and Pacific)
Week started with low activity and lack of fresh inquiries but the last part showed firming rates from both basins: in Atlantic some ballasters kept the market a bit under pressure and some Capesize cargoes splitting were fixed keeping market sentiment positive for the next week. Pacific business continues to rely on period business for stability, but also trips back Atlantic were reported done at better rates whilst Pacific rounds are keeping solid rates. Short period is now around Usd mid 90,000s; Transatlantic rounds and Pacific rounds are at low 90,000s. Still good activity also on long period deal, especially with prompt delivery.
Handy (Far East/Pacific)
A slow start of the week showed charterers attempt to push down rates. Only the ’last minute' spot enquiry is pushed around while charterers are trying to keep forward hidden requirements. A number of vessels was employed during the previous week and the less availability prevented rates to decrease that much. Panamax rates strengthened through the week inducing charterers adjust grain stems to Supramax sizes. This didn't help enough yet owners due to week ending with fresh larger amount of available prompt positions. Handysize rates were seen struggling a bit due to smaller and irregular flow of enquiry, with increased bunker prices making it a little more worse for owners.
Handy (North Europe/Mediterranean)
In an otherwise quiet area, a sudden flow of fresh enquiry from Continent helped a lot the Atlantic market not to trend sideways. There is little tonnage available out of these waters and often charterers need to take tonnage with delivery in the Western Mediterranean to satisfy their loading needs out of the North European waters. Demand from Black Sea was smaller and mostly limited to Middle East and Mediterranean/Atlantic destinations. However owners have played the hardball until one of them refusing to discount their rates. Easier rates could be achieved by charterers with Handysized tonnage that suffered more the reduced demand for loading out of Atlantic Americas.
Handy (USA/N.Atlantic/Lakes/S.America)
The soft start of the week has not initially affected the firm rates achievable from this area, but the ongoing smaller volume of demand connected with a lack of period interest started pushing rates down, even more than what is shown by the agreed figures, taking also in consideration the bunker increase. The second part of the week showed the spot enquiry growing up again and even if initially no concluded business report was available it ended up showing Supramaxes again fetching bigger money. Handysizes appeared slower to recover previous market levels but an ignition of fresh grain and sugar enquiry just before the week-end brought optimism to owners for the coming week.
Handy (Indian Ocean/South Africa)
The customary ’up & down' trend of this market showed again quiet activity this week. Generally the business quoted and concluded was smaller. The sole fixture reported on the India/China iron ore trade showed lower money. This caused an even more difficult market for operators having requirements into the Persian Gulf, laying from other basins. Besides the aps rate itself, the short duration further affects the overall economy of the buziness by considering on top the ballast expenses from the Persian Gulf/Muscat range.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it