Capesize (Atlantic and Pacific)
At the middle of the week, because of the coming Chinese holidays, the Capesize market heavily slowed down and the sentiment changed to very negative. Index close at 3136 points last Friday marking a decrease of $ 2,287 daily on the 4 T/c routes. All the routes decreased, but especially the Brazil/Far East and the West Australia/China dropped to about $ 26.85 and $ 11.15 respectively. We believe that we must wait at least the end of the next week to start see any improvement on the rates, if any.
Panamax (Atlantic and Pacific)
The Atlantic market turned fairly hot by the end of the week. The fronthaul business from US Gulf to Far East rocketed to $26,500+650,000bb levels, which was much higher than days before. Meanwhile trip in the Atlantic was also done at good rate like $15,000 daily and Baltic round was even higher due to a shortage of vessels in Continent. The Pacific side was still struggling in the mud of a flat market and low rate. Good candidates in S. China could only gain $11,000 to $11,500 daily for Indonesia round and charters were also willing to pay utmost $11,500 to $12,000 daily for LME in Japan for a Nopac round. The coming long holiday in China also made Pacific market unlikely to rebound quickly. Some charters were still looking for short period with fixtures done at $12,500 daily level.
Handy (Far East/Pacific)
The Pacific basin was very active the whole week because of some rush-to-fix from charterers with prompt business and China that will be closed the whole week for holidays. Period interest was registered both on Handy and Supramax tonnage at levels quite similar to previous week. Indonesia nickel or an Australia round showed slightly higher rates. Pacific rounds and trips with coal via Indonesia to India where still agreed at lower levels.
Handy (North Europe/Mediterranean)
The activity slowed during last week off the European coasts. Even though more tonnage was open in Northern Europe and there were less cargoes, rates remained healthy enough especially for a Handymax booked for a short period. No fixtures were available out of Black Sea, but activity was described regular with rates keeping at previous levels or a little firmer.
Handy (USA/N.Atlantic/Lakes/S.America)
Patchy demand to load out of US Gulf and NCSA brought some fluctuations that however didn’t affect too much rates that remained in the end at previous week levels. Most of the trade concentrated on the Transatlantic run. Supramax rates to Continent stabilized to the mid 20s, whilst Mediterranean bound trips kept swinging between Usd 25/27,000 daily. The week ended with a Supramax reported fixed with redelivery Far East slightly below Usd 30,000 daily. Smaller tonnage kept struggling, but could see slightly better trend from South America where to the contrary larger units went to a lot slower market compared to North Atlantic.
Handy (Indian Ocean/South Africa)
Rates for iron ore trade from India to China remained on the low side and with Chinese receivers off for the next coming week it’s unlikely they shall pick up. Nice figures were seen on Persian Gulf/China trade (but same was actual due to an “aps” delivery) and for Red Sea/India (owners achieved a firm rate to go East thru the piracy area and end up in the depressed Indian market).
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it