February 27, 2017 – March 3, 2017 Weekly market report.. Banchero Costa

Capesize market registered a sudden improvement for both Pacific and Atlantic, in particular out of Brazil, rates after softening early last week. The standard route from West Australia to Qingdao was fixed in the end of the week at an improved $/6.25/6.45/mt for mid March dates with timecharter equivalent in the low teens depending on vessels description and position. Not much activity for the Saldanha Bay/Qingdao trades, however low $8's was agreed for end March dates. Some activity was reported for cargoes from Brazil with levels jumping from mid $10's to mid $11's quickly and, over end of the week, market moved further with charterers at low $12/mt for end March dates. In the Atlantic market rates remained stable with around low $6's agreed for the customary route from Bolivar to Rotterdam bss mid/end march dates. Due to the spot market moving up, some period vessels were fixed in the region of $12,500/13,000/d for 1 year bss dely ppt China.

During last week market levels increased a bit with Kamsarmax vessels now fixing $15,500/d for trip via ECSA to Skaw-Passero redelivery, while similar size fixing around mid $10,000/d + $550,000 bb for fronthaul trips with redelivery Spore-Japan. 82,000 dwt vessels were also reported fixed for trips via ECSA to F East basis delivery India at around $10,000/d and basis Singapore delivery a similar size was reported at $10,500/d. From USG/NCSA loading area, an 80,000 dwt has been fixed basis Ijmuiden delivery at $15,500/d for trip via NCSA to F East while a 77,000 dwt fixed basis USG delivery trip to N Continent at $10,000/d + $250,000 bb. A Kamsarmax vessel was reported fixed for 2LL, again basis Ijmuiden delivery, at $10,000/d with redelivery Skaw- Passero with first leg to USG. In B Sea an 82,000 dwt fixed basis P Said delivery for trip via B Sea to Vietnam at $16,000/d while, for same delivery, a 75,000 dwt fixed $9,500/d for trip via B Sea to Egypt Med redelivery. In F East, NoPac RVs have been reported fixed at $8,500/d basis Ulsan delivery on an 80,000 dwt, while similar sized fixed trip via Indonesia to EC India at $12,500/d basis Surabay delivery. An 82,000 dwt fixed basis Yosu delivery trip via EC Australia to Japan at $11,500/d while, on the period front, a 75,000 dwt fixed 9-12 months at $9,350/d basis S Korea delivery. Also a similar size was reported basis Bayuquan delivery for 5-9 months at $9,250/d basis redelivery worldwide.

Supramax rates kept growing considerably, reflecting positively also on the Handysize segment. A lot of larger vessels were reported fixed, still showing the spot chartering interest focused on trades between Muscat/Japan range. Inter-Asia business showed $10,800/d on a 58,000 from Spore via Indonesia to Thailand and, afterwards $11,000/d for a 55,000 size doing the same trip. In the big basket of Supras booked from SE Asia to China a non eco 57,000 dwt with bauxite was paid $10,500/d from Spore via Indonesia to China, and a similar type got $11,250/d basis delivery Indonesia. A fuel efficient 58,000 size delivering Vietnam got $9,250/d for a trip from Indonesia to China, and an Ultramax, initially fixed for about 5 months period at $9,600/d with delivery SE China was relet on her first leg at $9,600/d via Philippines for coal to China. A 63,800 dwt got $11,250/d from Manila via Indonesia to full range India, a 53,000 dwt delivering Singapore agreed $9,000/d for a trip via Australia to Indonesia, and a non eco 56,000 dwt got $10,000/d from Indonesia via Australia to Singapore/Japan range. Contradictory rates were reports for backhaul trade from China, where a 57,000 dwt fixed $5,500/d to N Europe and an Ultramax got $3,750/d to B Sea. Some more tonnage was booked for short period, an Ultramax sister vessel to the one mentioned above was paid $9,500/d with delivery EC China for a 5 to 6 months commitment.

The chartering interest was still limited. Scrap rates from N Europe to E Mediterranean were trading sideways, a 56,700 dwt was booked at $10,000/d and 35,000 size performing a very similar voyage got $8,300/d. Rates for fronthaul business from this area were described as increasing with a non eco 57,000 size reported done at a firm $16,000/d with delivery Belgium for a minimum 75 days duration trip via Baltic and COGH to the F East. Lack of fixture reports from S Europe/B Sea area showed just a 39,000 dwt getting $8,750/d for 3/5 months period delivery Morocco, and a 21years old Handymax fixed from Canakkale via B Sea to the Caribbs at $4,500/d.

Slower activity on spot market from USG showed an Ultramax fixed with grains to Japan at $22,000/d, and a similar type done at $14,500/d for a trip to NCSA. A 50,000 dwt dely Boston got $11,000/d for a trip via USEC to USG. No T/A deals were reported done but the general sentiment is that rates remained steady. To the contrary, the limited amount of deals reported concluded is likely due to confidentiality clauses required by charterers as rates progressively increased through the week. A non eco 56,000 dwt was booked at $10,750/d from Argentina to Europe, with the same dely an Ultramax got $13,000/d for trip to Europe with int to discharge at Lebanon, and another Ultramax was reported at $12,750/d + $275,000 bb from Argentina to Spore/Japan range. Rumors were circulated at the end of the week about a third Ultramax done at $13,000/d plus $300,000 bb on a similar trip.

With the usual fluctuant trend commonly driving this area, rates picked up again and a fancy 58,000 dwt fixed a trip from MEG to EC India at $11,000/d. A 55,000 dwt non eco type delivering EC India did a trip via Bangladesh to China at $6,750/d and, from the same area, few vessels were reported booked for short period. An Ultramax delivering Bangladesh fetched a daily hire of $9,500/d for about 5 months duration, a fancy 58,000 dwt agreed 5/7 months period with delivery MEG at $7,500/d. Deals from S Africa showed an Ultramax done at $11,500/d from S Africa via Madagascar back to South Africa and a 55,000 size delivering S India fixed at $9,000/d via S Africa to China. A 63,000 dwt Ultramax was booked at $17,000/d from S Africa to India.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it