November 12– November 18, 2012 Weekly market report.. Banchero Costa

Tuesday, 20 November 2012 15:36:25 (GMT+3)   |   Brescia
       

Capesize (Atlantic and Pacific)

Market found a floor, rates were supported and even increased by the end of last week. Trip out from Tubarao to China was fixed in the low $22s with owners more and more willing to ballast their ship from
East to Atlantic; so far the market looked quite balanced and charterers had to chase a bit in order to convince vessel to remain in Atlantic to do rounds. Pacific market looked stable: at the beginning of the week West Australia/China voyage fixed in the mid $9s and then closed a touch lower. There were some signs of period activity as well with 12/18 months delivery Far East prompt, fixed in the low $11,000 per day.

Panamax (Atlantic and Pacific)

The Atlantic market finally got some support and rebounded during the second half of the week. Transatlantic trip recovered and from $6,000 went to $7,000 daily level thanks to some spot/prompt cargoes in North Atlantic. Candidates for Fronthaul business ex US Gulf, by the end of the week, could secure $14,500 daily +450,000 ballast bonus; a little less for East Coast South America round. In Pacific spot Indonesia cargoes, especially those with redelivery India pushed rates higher with modern tonnage in S. China talked at high $8,000 daily or even higher. However for candidates in North Pacific cargoes were limited and rates were a little bit shaky. There was little interest for short periods because of the widely shared pessimistic sentiment for the next two to three months. Vessels in FarEast were talked at high $6,000 daily for 4/8mos.

Handy (Far East/Pacific)

A quiet start of the week, due to some holidays in the area, was followed by the usual large number of fixtures mostly linked to single trips for loading out of South East Asia. While Supramax rates for loading coal to India kept at steady levels, with some fixtures slightly improved, FarEast rounds struggled to get fixed at the levels of the previous week. Improved rates were agreed both for short period and backhaul business to Europe. Smaller Handies enjoyed higher rates with a decent $8,100 daily agreed on a fancy 36,000 tonner delivering South East Asia for a trip via Australia back to FarEast. Even higher is the $6,500daily rate agreed for a fancy 28,000 tonner on a positioning trip from North China to South East Asia.

Handy (North Europe/Mediterranean)

More Supramax activity was reported concluded from North Europe even if rates are still far from being attractive for owners. Several Supramax were booked to load scrap to East Mediterranean, all at daily time-charter rates well below $10,000 daily. A trip to FarEast was agreed at only $11,000/d and backhaul trip to Brazil was done at a very cheap $5,600/d. Demand from Med and BSea was much smaller where the only fixture reported was for a fancy 55,000 dwt booked for short period with delivery in the West Med at $8,500 daily, probably a lower level than what she would have achieved for the same employment with deliver FarEeast.

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

Demand for Supramax to load out of US Gulf grew up throughout the week, confirming TransAtlantic rates at levels well over the $10,000 daily for redelivery both Continent and East Med. A similar trend was seen also on the trips to FarEast, but the improvement on this route was more evident on voyage basis with rates back to figures over the $40 mark. Within this general trend charters started to fix again tonnage with delivery Europe where the less active market allowed achieving more competitive figures. Chartering interest from South America was small with rates hardly holding at previous dones.

Handy (Indian Ocean/South Africa)

Very little business discussed from this area even if the sole Supramax fixture reported from East Coast India to China, to lift the usual iron or cargo, was agreed at an encouraging $5,250 daily. The amount of available tonnage in this area is limited. Demand for tonnage to load ex India, Persian Gulf and South Africa is limited and owners are mostly fixing local/short trips which are not attractive, but still they allow owners to keep trading while waiting for a more regular demand.

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


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