Capesize (Atlantic and Pacific)
After starting of the week still with rates continuing to fall, then there was a correction as from Wednesday and rates started to climb again driven by Far East Traders, expecially BHP Billiton and Rio Tinto, and ended at plus 484 points. Again the market was driven in the East with these major Charterers booking ships for West Australian round on time charter and rates climbed upto $180/185,000 level while one 180,000 dwt New Building agreed close/about $190,000. This run driven also the backhaul rates who raised upto about $122.000 from the previous $117,000. Atlantic market was more or less unchanged with only few Brazil /China trips reported at about $90 level and the corresponding t/c hire about $230/232,000 daily.
Panamax (Atlantic and Pacific)
Rates are becoming firmer and firmer for the Panamax sector during the week; the market absorbed most of the prompt tonnage available and owns are now obtaining again good levels seen in previous weeks. The Atlantic still better than the Pacific; the gap is abt $1,500/$2,000. Rates for Atlantic rounds are now in the mid $80,000's daily range, but might be stronger for next week. Trips out are still under $90,000 daily. From the Pacific, a positive tone has seen specially for short period demand where rates are in the low $80,000's daily.
Handy (Far East/Pacific)
A new interest from Charterers for period fixing helped rates to firm up a bit at the beginning of the week although same was not enough to change the market trend. The general volume of the demand was not large enough compared to large tonnage availability which made the market dull shortly afterwards, with rates decreasing again. The overlap of tonnage seeking employment still keep market prospects unstable for this area with the large number of fixtures concluded. Same leading to Charterers advantage.
Handy (North Europe/Mediterranean)
An enlarging demand for tonnage to load scrap from the Continent to Mediterranean and Middle-East has strengthened rates from the Continent. Charterers initial attempt to catch nicer rates from an area sofar slow in demand, failed against the competion of Charterers needing tonnage to load from Atlantic Americas. Even if rates softened from there they are still decent enough to keep attracting owners, also in combination with a longer-lasting buziness which would make the tonnage available a bit more ahead from christmas/new year's holidays, or in a better positioning area. Black sea and Mediterranean were quite dull especially for the tonnage becoming available in the eastern part, which by finding difficult to become competitive enough for buziness to load across, had to agree lower rates for going to Middle-East and Far East.
Handy (USA/N.Atlantic/Lakes/S.America)
Even if some fixtures where seen concluded for coal buziness, the grain remained the top leader of the handymax and handysize market. Generally the activity started on a smaller volume than the previous week, showing a softening of the rates in the first part of the week. Shortly afterwards rates appeared to start slowly picking up again but a clear market direction is not available yet.
Handy (Indian Ocean/South Africa)
A new slow down on the demand for loading iron ore from India to China showed a fresh bunch of fixtures concluded at softer rates. Same added unwillingness to owners of tonnage open in other areas for considering buziness to the Middle East. As a further consequences Charterers involved with local trade ending up in India where compelled to conclude fixtures at higher levels.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it