February 21, 2015– February 27, 2015 Weekly market report.. Banchero Costa

Wednesday, 04 March 2015 12:14:24 (GMT+3)   |   Brescia
       

Capesize (Atlantic and Pacific)

During last week Capesize freight rates remained basically unchanged and closed to the ultra low levels of the previous week. Cargoes from W Australia to China were fixed around $4.5/mt while those from Saldanha Bay to Qingdao and from Brazil to Chine were respectively agreed at low $7/mt and Low $10/mt. Market was still oversupplied and several owners decided to stop their vessels waiting for better rates. The Atlantic market remained very slow and RVs were fixed below $6/mt while fronthaul cargoes from N Atlantic received offers from unit ballasting from China.

Panamax (Atlantic and Pacific)

Positive signs were seen in the Atlantic market primarily due to the end of Chinese holidays. Some fresh requirements were also registered from Cont/Baltic area, particularly for grains and minerals trades. Quick RVs were fixed around $4,000/d and an higher figure was agreed for a trip with redelivery Med. USG remained largely flat because of the oversupply and lack of cargoes. The last fixture registered was a LME that agreed $13,500/d without bb for a trip to Far East. S America market followed the same trend of the previous week with some ships fixed around $10,500/d + $150,000 bb. In Far East the activity was still slow, but some positive some improvement were seen by the middle of the week with some fixtures done on dop basis. Indonesia RVs were agreed around $4,500/$5,000/d for normal Panamaxes with aps dely, while Australian RV was fixed in the low $4,000/d with dop China. More interests for periods, but rates were still flat. The value of a standard Panamax open N China was around $6,250/d for a duration from 4 up to 6 months, and around $7,000/d for a fancy Kamsarmax.


Handy (Far East/Pacific)

The end of the holidays gave some encouragement to the market that showed some improved fixtures. A Handysize agreed $6,000/d for a trip from S Korea to SE Asia for instance and better rates were also agreed on the customary coal trade from SE Asia to India. A 55,000 dwt was reported at $4,750/d within delivery S China to EC India and a 57,000 dwt delivered very close to loading port agreed $6,000/d basis redely EC India and $7,250/d for WC. Interest for Supramax stems ex NoPac to East increased and some fixtures were reported in the mid/high $7,000/d + bb well in excess of $100,000.

Handy (North Europe/Mediterranean)

Handysize tonnage was lacking and owners played the hardball in the spot market. Grain trade levels ex B Sea allowed owners to repeat previous levels, even if no fresh fixtures were reported on this trade. A 35,200 dwt was fixed at $5,000/d from the W Med to NCSAm. The supply was even tighter in N Europe for charterers with a 37,000 dwt fixed at a huge $11,000/d and delivery N France for a trip with scrap via Baltic to Italy. A slightly smaller unit delivering at Poland was rumored around $9,500/d via ice-free Baltic ports for a trip to Continent. So far no positive reflection was felt in the Supramaxes market.

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

The activity in the Supramaxes market loading out of the USG was still acceptable. Trades started slowly with owners struggling to confirm previous fixtures on TransAtlantic employments and a lower $10,500/d was agreed on a 57,000 dwt for a fronthaul employment. An improved $9,000/d was reported for a 33,000 dwt carrying petcoke to the Med. From S America an Ultramax was reported done on aps dely at just $9,500/d + $95,000 bb to East. From the same area a Handysize agreed $8,500/d for a business to F East and another unit got fixed at $9,000/d with redely MEG.

Handy (Indian Ocean/South Africa)

No fixtures reported from this area excepted for short intra-MEG employments, which increased. Owners were rumored to be further discounting the already very low backhaul rates.

Banchero Costa and Co Spa
Email: research@bancosta.it
Internet: www.bancosta.it


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