December 5, 2016 – December 9, 2016 Weekly market report.. Banchero Costa

Capesize market showed a sudden drop in rates and, in addition to a soar of bunker prices, the equivalent timecharter for the owners started to shrink. The standard route from West Australia to China settled the week in the low $5’s per mt, meanwhile the customary route from Saldanha Bay to Qingdao showed rates around $7.75/mt and cargoes with loading in Tubarao and discharge in Qingdao for January dates were agreed in the mid $10’s per mt. The decrease registered in the market was particularly quick mainly due to the quick drop in the volumes out of Brazil decreasing. Also in the Atlantic basin the market maintained a similar trend with owners especially aggressive on the offers. The round voyage in Atlantic showed the key route from Bolivar to Rotterdam dropping to $7/mt.

Last week market has shown a slight easing on the rates especially in the Atlantic area with fewer cargoes loading in USG and with owners and charterers trying to cover most of the requirements prior the holidays. From the Continent a 74,000 dwt was reported fixing $20,000/d basis Hamburg for 1 trip via Baltic to Med with redelivery Gib, $24,000/d was reported on a 82,000 dwt basis Szczecin via Murmansk to Italy with redely Gib, while a 76,000 dwt was able to fix a good level of $22,000/d for a trip basis Baltic dely to Brazil. From USG a Kamsarmax was reported fixed at $14,500/d + $450,000 bb for 1 trip via USG delivery to F East via COGH, while a 72,000 dwt was fixed retro Qinghuangdao at $8,000/d for similar trip via USG to F East. In ECSA levels seen reported on a Kamsarmax at $14,500/d + $220,000 bb for 1 trip delivery Fazenhdinha via Itacoatiara to Skaw-Passero, while similar size fixing around $18,000/d for quick trip to Baltic with steels basis Brazil dely. Trip direction F East basis ECSA loading have been reported fixed on a 73,000 dwt basis dely retro Spore at $8,500/d. In F East levels maintained stable throughout the week with owners still able to fix $8,750/d on a Kamsarmax basis Dafeng dely for NoPac RV, while a 76,000 dwt fixed $8,250/d for similar business basis CJK delivery. A 93,000 dwt was reported fixed basis Hong Kong dely for 1 trip via W Aus to S China at $9,850/d, while a 76,000 dwt fixed basis CJK trip via Australia to China at $8,750/d. Period levels slowing but owners still able to achieve around $9,500/d basis Philippines for 4-7 months as was reported on a 82,000 dwt, similar levels were also seen reported on a 75,000 dwt fixing New Mangalore dely for 4/6 months period.

The Supramax market in these waters remained flat, with the usual coal trade from Indonesia to China paid $7,250/d. A 56,000 dwt with delivery C China carrying the same commodity to WC India agreed $6,600/d. Iron ore from EC India to China showed a similar vessel fixed at $6,000/d with delivery Bangladesh, while a 51,000 dwt delivering S Korea was fixed for a trip with steels from Vietnam to USWC at $4,000/d for the first 60 days and $7,500 for the balance. A new building Ultramax delivering ex yard Japan was agreed at $8,500/d for 4/6 months timecharter and a 2000 built Tess-52 with a similar delivery agreed $7,000/d for 3 to 5 months. A lack of prompt vessels for cargoes from WCS America pushed rapidly up the rates fixing an Ultramax at $19,000/d from Chile to Muscat/Japan range. Indeed rates from this area are known to be hugely influenced by positional issues.

Despite a small number of reported fixtures from N Europe Supramax rates were reported improving considerably especially on fronthaul business. Handysize trend was again a little more hesitant, a 24,000 dwt delivering UK was booked for a trip from Baltic to Med at $8,500/d and a 28,800 dwt fixed a quite interesting $11,500/d for a trip to WC Mexico. A similar trend was reported from S Europe, where a 33,000 size fixed B Sea to Egypt Med at $10,400/d. From the same area a 24,000 got $8,500/d to the Cont and a 33,000 dwt delivering S Spain was committed at $8,500/d for 2/3 laden legs redelivery Atlantic. A Handymax got $8,500/d for backhaul from Egyptian Med to USEC and a nice Supramax delivering at WC Italy fixed 4/7 months period with WW redelivery at $12,500/d.

S American rates enjoyed a sudden strong increase, while rates from USG showed a regular increase through the week. A 66,000 Ultramax delivering Argentina got $14,000/d plus $400,000 bb for a trip to F East, a large Handymax was fixed with delivery W Africa at $9,500/d for a trip via Brazil to W Med. A 37,000 dwt was booked on an inter ECS America trip at $12,000/d while a smaller Handy was paid $11,000/d from Brazil to the Caribbean. Basis USG delivery a non-eco 57,000 dwt fixed a very good $28,000/d for a trip to Peru, another similar vessel did $17,500/d to Brazil and a 55,000 dwt fancier type booked $18,000/d with redelivery Cristobal/Venezuela range. Another fancy 57,700 dwt fixed 2 laden legs with redelivery Atlantic at $20,750/d. Handysize vessels already available in the area contributed to decrease the rates, and a 33,000 dwt with delivery Casablanca was agreed at $9,500/d to load at USG and discharge at WC Honduras.

The simultaneous improvement in B Sea and S American markets showed positive reflection also in this area, where the tonnage to demand improved. A large 66,000 dwt Ultramax was fixed at $13,750/d for a trip from MEG to F East, an inter-Gulf trip with aggregates was done with a Tess-52 at $11,000/d and a slightly larger unit delivering at same area fixed a trip with iron ore via Iran to China at $12,000/d. A 56,800 dwt standard type got $12,500/d to carry fertilizers from R Sea to WC India and Supramax owners were heard asking $20,000/d for trips with coal from S Africa to Pakistan. Handysizes were reported taking trips from MEG to India or China in the mid $7,000/d’s range.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it