February 1, 2016–February 5, 2016 Weekly market report.. Banchero Costa

Another week characterized by rates that remained under pressure. Despite good volumes on the W Australia/China trade rates kept softening with fixtures around $2.80/2.85/mt agreed at the end of the week for 20/29 Feb dates. Australia RV was agreed around $2,250/d. Activity from Saldanha Bay to China was almost halted and the fixtures reported at levels in the low $4/mt basis second half Feb dates. Fresh cargoes were requirements were missing from Brazil to China, however rates slightly increased due to owners’ resistance to fix at ultra low levels. Tubarao/Qingdao was agreed in the mid $5/mt. A few cargoes from Pepel were rumored done around $5.60/mt basis Qingdao discharge. In the Atlantic Bolivar/Rotterdam was agreed around $3.40/mt for end of Feb dates and TransAtlantic between $3,500/d and $3,250/d. Some activity was registered for periods with a unit fixed at $4,800/d for 1yr TC basis dely F East prompt.

The market showed an increase in the freight levels during last week. From South America fixtures were around $6,500/d + 150,000 bb basis aps dely for fronthaul trips; the increase of freight levels was mainly due to an increase of grain houses activity more than a rush by Chinese to cover their shipments before the holidays. For trips within Atlantic owners were looking at levels around 4,500 bss aps dely and no bb. From USG levels remained stable; Chinese charterers fixed at $19.75/mt basis 55/10% loading USG to China whilst on TC the market is close to $7,000/d + 70,000 bb for fronthaul trips and close to $5,000/d for Atlantic trips. In Continent a 81,000 dwt open Rotterdam was rumored fixed for a trip via Norway to India at around $6,000/d basis dely dop. In F East levels remained on the low side with a 82,000 dwt fixing NoPac RV around $2,750/d basis dely China and another similar unit getting $3,000/d + 86,000 bb basis dely aps March. Owners are looking at levels close 2,000/+ 20,000 for Indonesia/India trips and similar levels for TCT to China. Two laden legs were fixed by Rio Tinto at just $2,000/d.

Despite the holidays helped to increase the activity with a few “last minute” enquiries the surplus of available tonnage in the area prevented any recovery. TC levels actually further decreased by a few hundred dollars on all trades. Supramax were reported fixed at levels between $1,750/2,500/d for trips within SE Asia. A 56,500 dwt got $1,700/d from Indonesia to China and similar levels were agreed for trips from China/S Korea range to SE Asia. The coal trade from Indonesia to India registered an Ultramax done at $3,050/d and a 51,000 dwt agreed $3,500/d for a trip from Japan to MEG. The Handysize market wasn’t that better, a 31,000 dwt built 2012 was reported fixed at $2,200/d basis delivery Spore for a trip via Australia to Indonesia and a fancy 37 000 dwt got 37,000 $5,500/d basis dely aps N Pacific for a trip to F East.

Fronthaul trading from BSea managed to remain close to the levels of the previous week on Supramax. A 56,000 dwt was done at $5,750/d to MEG and similar sizes agreed between $6,500/7,000/d for Spore/Japan range. A 55,000 dwt fixed backhaul business from E Med to USG at $1,000/d. A 32,000 dwt fixed a short trip from BSea to E Med at $3,500/d and a large Supramax got $3,250/d from S Morocco to WAfr. No reports where available for business loading N Europe, however there were rumors that a 35,000 dwt was fixed around $4,000/d to move scrap from UK to Turkey. Fronthaul rates were described as falling.

TransAtlantic rates were heavily affected by the persisting slow activity. A Supramax got $4,000/d from S America to Cont and a larger unit got fixed at $4,500/d basis dely aps Texas to carry petcoke to UK. From the same loading range an Ultramax fixed $8,400/d for a trip to F East and another Ultramax got $7,150/d + 71,000 bb to carry sugar to India/Japan range basis dely S America.

There was little interest to move any cargo to F East despite the very low rates which charterers can achieve in the present market. A 50,000 dwt fixed $2,750/d from MEG to F East and on a similar trade a 58,000 dwt got $2,250/d basis dely at loading port in Iran. A slightly smaller unit with dely WC India got $2,000/d to move bauxite to China. A 53,000 dwt with dely Red Sea got $4,200/d for a trip with fertilizers to India.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it