August 7 – 13, 2010 Weekly market report.. Banchero Costa

Tuesday, 17 August 2010 09:55:02 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

Very positive week for Capesizes with the Baltic Index up from 2,194 points of closing previous week up to 3,210 on Friday 13th with a very good + 46% on index and plus $11,534 on the 4 T/C routes. Fronthaul voyage rates are now in excess of $26/26.50 and iron ore from Australia to China rates jumped over $11.00. More activity on the period where 3/5 - 4/6 months fixed in excess of $33,000 and 1 year around $30,000 level. A few ballasters fixed Brazil round voyage ballasting from the Far East.

Panamax (Atlantic and Pacific)

There was still some period trading but as paper values eased with profit-taking it was evident that some charterers backed off. Spot values have risen albeit slowly in the East, but Atlantic trading was extremely slow. However rates were talked to remain as strong numbers, but very little was reported fixed. Reports that exports of grain from Russia will be frozen next week due to crop failures caused by the recent heat wave have caused speculation that Panamax rates will soon rise. Pressure on the Panamaxes and Supramaxes may also have an effect on the  capesize as flexibility to split cargoes decreases.

Handy (Far East/Pacific)

Rates for the smaller Handies slipped down a bit due to a slow down of the enquiry which allowed charterers to fix some vessels for round voyages at usd 1000 to 2000 daily less compared to previous week's levels. Supramaxes enjoyed a fresh flow of demand for business loading ex North Pacific for which the daily timecharter levels quickly bounced back to the upper teens. At the end of the week, a large modern vessel achieved over usd 21,000 daily on this trade. Period interest for the larger units remained alive showing that the agreed rates for short term employment were well in excess of the spot market levels.

Handy (North Europe/Mediterranean)

The wheat export from the Black Sea ports showed to slowly recover; so far smaller stems could be arranged, bringing some benefit to the outbound Handy-size market. The larger units have still been missing any fresh enquiry to load this commodity which kept this size's market quite shaky and led to a Handymax fixing a 2 loaded leg trans-Atlantic employment at lousy rate. Still a few larger vessels managed to book business from this area to the East via GOA, at decent time-charter levels. The scrap enquiry from the Continent was still quite alive but fresh concluded business was kept confidential. Fresh demand was also seen for tonnage to load coal ex lower Baltic to the Continent and the Med.

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

Market was stronger from Atlantic Americas showing more interest for bigger units from the US Gulf mostly for trans-Atlantic employments. Rates started improving throughout the week ending up with larger units worth in the usd 30,000 daily levels for dely US Gulf on a trip across. Charterer managed to cover the east bound requirements with tonnage ballasting from the Continent, willing to position itself in the East, but unable to trade via GOA. South America showed good volume of activity as well but was more spread to all sizes showing the smaller and medium size units achieving similar if not better levels on trans-Atlantic business, compared to the bigger vessels. Some larger vessels were booked to the East at improved figures.

Handy (Indian Ocean/South Africa)

The area was active again with fresh Supramax iron ore enquiry from West Coast India to China and additional volume to be loaded from the East Coast. The large modern eco type are now getting over usd 20,000 daily loading East and about usd 3,000 less ex West Coast. Same has assisted South Africa coal round voyage rates to improve into the upper teens. Market for smaller vessels was bad showing owners competing to get east bound business at low rate just in order to manage run away from that area.

Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: http://www.bancosta.it/


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