February 15, 2016–February 19, 2016 Weekly market report.. Banchero Costa

Capesize registered a quite flat week with a market characterized by low activity after the Chinese holidays. In Pacific waters more owners were reluctant to fix present levels idling their ships in order to force charterers to pay a bit more. The standard route from W Australia to China was paid $3/3.10/mt for early March dates, while the Saldanha Bay/China route stood around $4.30/mt bss mid March dates. In Atlantic, the usual lack of fresh cargoes out from Brazil kept rates in the mid/high $5's for prompt/early March dates with a noticeable number of ballasters approaching Brazil. The standard route from Bolivar to Rotterdam was fixed in the region of $3.25/mt bss very end February loading. A cargo from Colombia to India was reported fixed around $6.25/mt for 1/10 March bss discharge Mundra. Despite the poor market there was some activity registered for short period with around $5,000/d agreed on a couple of vessels open China prompt for one year trading.

Last week was seen a quick turn in the ECS Am market. Despite the higher levels seen at the beginning of the week, vessel were being fixed towards the end around low $6,000/d + $130,000 bb as reported on an 81,000 dwt fixed for fronthaul trip at $6,300/d + $130,000 bb bss aps ECS Am, and another similar unit was fixed basis Dhamra at $4,500/d for ECS Am to F East. The increase on numbers of vessels ballasting towards ECS Am has reduced the freight levels from the area, bringing owners interest more on order from S Africa if ballasting from the East, as seen reported on a 74,000 dwt fixed bss aps Richards Bay to India at $4,750/d + $90,000 bb, or holding vessels spot at Gibraltar in order to keep also USG loading as an option. From USG owners will be looking still at high $6,000/d + $65/70,000 bb for trip fronthaul, while for trip to Med levels are close to $5,500/d as seen on a 75,000 dwt unit being fixed for petcoke to Med. For vessels loading in B Sea levels seen were close to $7,000/d as seen on an 81,000 dwt reported having fixed bss Canakkale to F East at $6,800/d. In the F East market remained on the low side with a 75,000 dwt vessel fixed at $3,000/d bss passing Taiwan for a trip via Indo to Hong Kong while for trips via Australia to China/India redely owners will be looking closer at $4,000/d bss Indonesia dely.

The constant coal trade ex SE Asia to India showed through the week a progressive increase on the agreed rates. On this trade a 55,000 size was done at $3,000/d aps Indonesia, followed by an Ultramax getting $3,750/d, closer to the end of the week another 55,000 dwt was seen going at $5,000/d. A third 55,000 tonner got $3,700/d from N China to SE Asia and a 37,000 dwt fixed $3,250/d for a very similar trade. On the inter SE Asiatic trade a 58,000 tonner got $3,500/d with dely dop Thailand for a trip Via Indonesia back to Thailand.

A Supramax was paid $3,600/d for a trip from N Europe to W Africa showing no improvement on the trade but allowing owner to find better chance on her next leg employment due to a slowly improving S American market. From same area 37,000 size got $4,500/d with delivery at Baltic to carry timber into the Egyptian Med, afterwards a 28,000 dwt got $5,000/d from Skaw to the E Med, in contradiction with the lower $3,850/d earned by a 35,000 size from Belgium to the Central med. Fronthaul showed another similar unit getting $5,000/d from same loading area to Singapore/Japan range. Looking to the southern part of this market, a Supramax was fixed at $7,750/d with dely Atlantic Morocco to carry fertilizers into Djibouti and a 28,000 dwt delivering inside B Sea fixed $5,250/d redely Spore/Japan.

Better rates were available for owners loading from Atlantic Americas, even if the bit more positive trend of the market still show contradictions. A 55,000 unit agreed $5,000/d plus $50,000 bb for a trip from ECS America to F East. From the same area a slightly smaller vessel got $4,250/d to go to S Africa and a similar type fixed $4,000/d to Algeria, later in the week an Ultramax got $7,700/d plus $70,000 bb for a trip to F East. Less reported deals out of USG/N Atlantic loading range, with only a 32,000 dwt reported at $4,500/d from USEC to F East.

Middle East market continue to be disastrous for the owners, the very short chartering demand showed a 56,000 dwt fixing a miserable $1,925/d from WC India to N China and a larger Supramax doing a short inter-coastal Indian trip at $3,300/d.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it