April 17, 2017 – April 21, 2017 Weekly market report.. Banchero Costa

Capesize market showed a softening week with rates under pressure in all basins. In Pacific, the standard route from West Australia to Qingdao dropped a bit closing the week at $5.95/mt basis laycan very early May dates, whilst trades from Saldanha Bay to Qingdao have been traded at around $10/mt for mid May dates. Out of Brazil an increasing number of ballasters put a strong pressure on freight rates, while the route from Tubarao to Qingdao lost more than $1.5/mt from $14.90/mt to $13.15/mt agreed on Friday basis first half May. The trend was similar also in the Atlantic waters with Bolivar/Rotterdam fixed mid $7's in the end of the week for mid May l/c, and TCE equating in the low teens. Some front haul businesses were fixed at time charter equivalent to $26,000/27,000/d. Almost absent the short period activity.

Panamax business started the week on a stalemate between owners and charterers over rates. At the beginning of the week very little concluded business surfaced from either basin, but rates for business via ECSA were said to be holding onto the gains they made last week. During the week a thinner cargo list saw rates slip in the N Atlantic for both TransAtlantic and front haul business. There was a noticeable shortage of fixtures reported for the run east for ships open on the N Continent. The USG too remained very slow with the brief revival in demand for ships moving coal to make up for an Australian logistical problem, now evaporated. TransAtlantic RVs were in short supply and a 2010-built 79,000 dwt fixed a trip from Gijon via Kamsar with Stade redelivery at $10,000/d. S America trading slowed too this week with rates easing and charterers more frequently fixing on an aps basis. Several ships also failed on subjects as the week drew to a close including S America. In the East, rates came under pressure and here several ships were reported failed. A 76,000 dwt open Shibushi fixed for a NoPac RV at $11,500/d, while a Kamsarmax ready Longkou went at an easier $10,750/d for a NoPac RV with petcoke. Demand for period tonnage has largely vanished.

Despite slightly less fixtures reported in the area, rates remained at least in line with previous week, showing also some better number agreed for favourable positions. The NoPac RV topped with an Ultramax done at $10,200/d with delivery and redelivery China, afterwards another one was done at a more ‘customary’ $9,500/d. Nickel ore trade from Philippines to China registered an increased activity with two 56,000 dwt delivering in the area fixed at $10,500/d, a third similar vessel agreed at $10,000/d dely S China and a 53,000 size fixed at $8,500/d basis dely NW China. Although the lower volume of coal seen from Indonesia to China, a 55,000 dwt was able to fix at $10,000/d and a 17 years old 52,000 dwt agreed $11,000/d delivering near to the loading place. Coal trades to India showed Supramaxes running at almost unchanged rates with $8,500/d paid with dely C China.

Increased interest for Supramax stems from the B Sea showed high rates paid by charterers caught by the catholic Easter holidays. Anyhow rates for these sizes remained good enough also after the festivities. Ukrainian operators were reported fixing an Ultramax at a very firm $20,500/d with dely Egypt to Singapore, shortly afterwards a smaller unit was done for the same trip at $16,000/d with dely Canakkale, confirming that the higher rate was not fully backed from the market. On the Atlantic trade, a 56,000 got $11,500/d from Canakkale to Med and a Tess-52 moved clinkers from Turkish Med to West Africa at $13,000/d. Handysize kept trading in a slower market with two 30,000 dwt seen booked form the Med to USAC/Caribbs range in the mid $7,000’s daily. Supramax rates from N Europe kept firm, while Handies experienced some lower trend. A 55,000 dwt delivering at Gibraltar was fixed at $12,000/d via Cont with scrap to Turkey, same trade showed 29,000 size delivering at Belgium done at $9,500/d via Baltic to Turkey. A similar size delivering Baltic got $10,300/d for a trip to W Africa.

A pre-Easter fixing rush pushed up considerably the rates, especially for Supramaxes and Ultramaxes loading from USG allowing also some short period deals to be finalized. The slower activity in the following week affected rates only partially. A prompt Ultramax fixed petcoke to Med at $15,250/d, another one got $23,400/d for grains to Japan, and two non-efficient types were agreed at $21,000/d to Spore/Japan rang. From this area before Easter, an Ultramax booked 6/9 months period redely WW at $14,000/d and a 57,000 dwt non-eco type was agreed at $12,500/d for a 5 to 7 mos duration. This trend influenced only partially S American trades where a smaller growth was followed by a return to the elder levels after the holidays. Initially vessels were taken with dely in other areas with an Ultramax paid $13,500/d from W Africa via S America to Europe, and another one taken with dely Pakistan via S America to India/Japan range at $12,350/d. Afterwards a fuel efficient 58,000 size fixed $14,000/d + $400,000 bb from Santos to Iraq, an Ultramax had $15,250/d + $525,000 bb to China and a 55,000 with a similar dely fixed $13,250/d + $350,000 bb. A 38,000 delivering Praia Mole got a firm $18,500/d to WCSA, near to slightly smaller unit done at a nice $15,500/d to Skaw-Gibraltar range.

Despite a slowdown in chartering demand started with a negative influence on some trades, rates remained at quite good levels for owners. A 56,000 dwt got $11,000/d from MEG to WC India. A similar type got $9,000/d from East to WC India, earning also a better positioning, and an Ultramax fixed a lower $9,000/d from S India via WC to China. A 32,000 dwt delivering at Aqaba was fixed at $9,750/d for a trip with fertilizers to WC India.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it