December 7, 2015– December 11, 2015 Weekly market report.. Banchero Costa

Another negative week was registered on Capesize market with all the routes registering further drops. In the Pacific waters only few miners were active so rates softening with $4/mt paid bss eta end December dates. The standard route from Saldanha Bay to Qingdao was fixed beginning of the week at $7/mt but then market softened and last done was in the low $6's for early January dates. On the Brazilian market VALE was rumored to have taken couple of vessels at index linked, otherwise around $9/mt was the level agreed for second half December. Some activity was registered for backhaul via Brazil with $4.85/mt agreed for a trade from Tubarao to Rotterdam for very early January dates. On the Atlantic basin the usual lack of fresh cargoes forced owners to fix lower levels with $5.30/mt done for Bolivar/Rotterdam end December dates and below $9,000/d agreed for a nice described vessel open Gijon for TransAtlantic. Few period deals concluded with low $7,000/d agreed for one year period bss standard Capesize dely prompt F East and $7,750/d fixed for Newcastlemax for same duration and similar delivery.  

Panamax rates still remain low with the only provision on making a better return will be related to the falling on bunker prices. In ECS America a 76,000 dwt was fixed with HMM for a trip to F East at $5,950/d + $160,000 bb while MV Genco Leader, a 73,000 dwt vessel, was fixed for trip Atlantic with Dreyfus at $6,000/d for redely Spain. Levels seen in the USG for trip to F East were $9,000/d + $90,000 bb bss USG as reported on MV Coronis, a 74,000 dwt unit, and on MV Tuo Fu 6, an 81,000 dwt. Instead owners willing to keep vessels in Atlantic will have to consider levels around $7,000/d bss USG for redelivery Skaw-Med. B Sea loading levels were around $3,500/d for 1 tct within Med and $8,000/d for fronthaul both bss Canakkale delivery on a 75,000 dwt. In the F East market an increase on steel cargoes from China to Med was registered with vessels such as MV Doric Arrow, a 75,000 size, fixed at $1,600/D. NoPac RV were still at $3,500/d levels bss Korea/Japan delivery while for Indo/India business owners will be looking more at $4,000/d bss Indonesia. Period vessels have been reported being fixed at a low $5,000/d for 5-9 months for a 75,000 dwt delivery Yosu and at a lower $4,950/d bss Spore for 11-14 months period.

The spot chartering interest was concentrated on Supramax size stems and, similarly to previous week, rates kept resisting with improved figures agreed on some of the concluded deals into the M East. An Ultramax delivering at Singapore was agreed at $6,250/d for a trip with coal via Indonesia to China while, from the same loading area, a 57,000 size got $8,500/d for a trade to India basis aps delivery. Still ex Indonesia a 51,000 dwt going to China got a low $4,000/d dely Singapore; on a similar business a 19 yrs old 47,000 agreed a slightly better $4,500/d. Round voyage showed a fancy 58,000 dwt done at $6,000/d basis delivery Singapore for a trip to EC India via Australia, a large Ultramax got $7,400/d + $130,000 bb aps NoPac for a trip to Philippines, meanwhile Supramaxes bss N China/Japan delivery were said to be evaluated around $3,000/d for a backhaul trip to Europe and near to $4,000/D for redelivery MEG. A 56,000 size delivering at S Korea fixed 5/8 months period at a lower $4,900/d.

Supramax registered on this market a slight increase of the rates with owners fixing their tonnage for single trips from N Europe to Far East, while rates in Atlantic were substantially unchanged. A 55,600 dwt was fixed at $7,700/d dely Skaw for a trip via the Baltic Sea to Singapore-Japan and a large Ultramax got $3,000/d for a backhaul trip to USG, with a very similar delivery and loading range. Limited activity out of the Black Sea reported only spot business concluded with handysize moving grains to different Mediterranean destinations with agreed rates between low and high $4,000/d. Supramaxes from the Black Sea to F East were said to have increased by a few hundred dollars daily.

The approaching Christmas and New Year holidays increased the charterers demand for loading ex Atlantic Americas and, as a consequence, the list of fixed vessel. Nevertheless rates were not helped and continued to stay on the same levels previously fixed or decreased further. A 58,000 dwt fancy type was done at $9,000/d for a trip from Texas to E Med, near to a standard 56,000 dwt accepting the same money from NC Brazil to MEG. Fronthaul concluded deals out of USG included a Supramax done at $8,500/d with redely F East near to another one getting $9,000/d to the F East. A nice 58,000 size with delivery in the same area took a trip to WCS Am at $10,750/d. Rates from Latin America were even less bright: a 51,000 dwt fixed upriver S Africa at $6,000/d. The same rate was paid to a fancy 58,000 size from SC Brazil to Egypt near to a 55,000 dwt fixed at $5,750/d for a trip to Greece. Fronthaul reported another 58,000 dwt done at $8,000/d plus $30,000 bb with redelivery SE Asia and an Ultramax was fixed at $8,000/d plus $80,000 bb to MEG.

Activity was still missing from these areas with owners described as struggling to find anything to fix at all. A small Ultramax was fixed for a trip with aps delivery West Coast India to China at $5,000/d. A 33,000 dwt vessel was fixed at $4,500/d delivering SE Africa to perform a trip to Singapore/Japan range.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it