Capesize (Atlantic and Pacific)
The Capesize market moved up again last week especially in Far East due to the massive activity of Rio Tinto, BHP Billiton and FMG who went on the market for several iron ore cargoes from West Australia to China. Rates were going up to about $13.50 and Rio Tinto was the most active charterer who fixed several vessels for 9/10 December onwards. In the Atlantic, ballasters from the East continued to fix the Tubarao/China run and increased activity was also registered for TransAtlantic business with rates close to $30,000 daily. The BCI gained only 360 points while the average of the 4 routes improved by $3,508 daily.
Panamax (Atlantic and Pacific)
Both the Atlantic and the Pacific market were suffering low rates with BPI dropping for the whole week. In the Atlanticearly candidates were a little tight, but this didn' t prevent the market to soften. TransAtlantic rounds were talked below mid teens and many charterers were willing to take vessel for 2laden legs at $16/17,000 daily. Fronthaul business ex USG still couldn't find enough support with rate around mid $20s and few vessels were willing to commit that. The Pacific round was struggling with rates dropping almost everyday. By the end of the week, short Indonesia round was talked at about $10,000 daily for S.China candidates and N.China vessel was done at similar rate for Nopac round business. Some charterers were looking for period candidates, but few fixtures were concluded last week.
Handy (Far East/Pacific)
There was more interest for Supramax round voyages via North Pacific, and as a result, more fixtures were reported concluded. However that didn't affect rates that actually got in line with further depression experienced in other business. Charterers easily achieved "aps" deliveries; a 50,000 tonner was reported agreed at $8,000 daily plus &320,000 ballast bonus; another 53,000 tonner was fixed at $7,000 plus $300,000. Short period was still active: Supramax rates for 3/5 months was done below $10,000. Comparatively the trip with grains via North Pacific into the Indian Ocean, which can easily last over 3 months from the Chinese ports, was fixable at 2/300 daily less compared to the 3/5 months period.
Handy (North Europe/Mediterranean)
More interests to load grains from Black Sea to North Africa pushed up Handysize rates in this area. The 30,000 tonners were achieving around $15,000 daily mark for the Black Sea rounds via Egypt, which allowed owners to get firmer rates in exchange of considering backhaul business to the US Gulf. Larger vessels available in the area could not take advantage of this situation due to small stem sizes. Those owners unwilling to trade the Gulf of Aden, even against firmer rates available for eastbound legs, were forced to accept low rates for TransAtlantic backhaul business. 2 laden legs TransAtlantic rounds were stable at mid $15s, while the rate agreed for a 58,000 tonner booking 3/5 months delivery Gibraltar was unexciting. Activity from Northern Europe showed to be quieter with a lot of fixing and failing going on.
Handy (USA/N.Atlantic/Lakes/S.America)
Demand for TransAtlantic business was smaller in U.S. Gulf probably due to charterers' willingness to take tonnage from Europe through backhaul positioning business. Eastbound requirements were fixed basis tonnage open locally at rates well in excess the $30,000 daily mark, which proved to firm up further through the week. In this scenario operators were caught by positional troubles and had to agree big money for moving coal from North Coast South America to the Black Sea. Handysize tonnage fixing TransAtlantic business from South America was concluded at better rates while rates for similar sizes remained quite poor from the US Gulf.
Handy (Indian Ocean/South Africa)
Iron ore trade from India to China again was inactive and only one fixture was reported concluded at considerably lower level. More fixing activity was seen from South Africa. The lower market levels seem to help charterers to finalize their trades from this area.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it