Capesize (Atlantic and Pacific)
The Capesize market maintained the same trend in all basins during the whole week. Cargoes from West Australia to China were rumored to agree $2.85/2.90/mt while coal volumes out of East Australia were still quite negligible. Trades out of Brazil registered another slow week with charterers still paying high $5/mt for stems on the standard route from Tubarao to Qingdao. Fronthaul from North Atlantic stood around $8,500/d for modern tonnage open in Continent. The number of idled or laid‐up ships keeps increasing, now around 50 vessels, which, so far, had very little impact on the market.
Panamax (Atlantic and Pacific)
The Panamax market was mainly active in the Atlantic especially in ECSAm where an increase in the freight levels was registered on fronthaul. A 82,000 dwt was fixed for a trip basis dely ECSAm to F East at $6,750/d + $175,000 bb and similar levels were also seen on a 77,000 dwt unit which fixed mid/upper $6,000/d + $175,000 bb bss aps ECSAm for h. For ECSAm trips to Atlantic owners ideas were close to mid 5,000/bss aps and redely Skaw/Passero. From USG levels remained stable close to $5,000/d bss aps for trip Atlantic and $6,500/$7,000/d + $70,000 bb for trip to F East. Owners ballasting towards Gibraltar were looking at ECSAm cargoes as a standard Panamax was reported to Norden at $6,500/d bss Gib for trip F East via ECSAm. From the B Sea area an 84,000 dwt was reported fixed on a trip to Spore/F East in the mid /upper $6,000/d and similar levels could also be achieved for trips to F East via Baltic basis Cont dely. Activity in the F East was reduced due to the holidays in the area and levels remained on the low side as seen reported on a 75,000 dwt fixed basis dely Busan trip via E Aus to India at $2,500/d and a 77,000 dwt fixed for NoPac round basis Yosu which was reported at $2,500/d. An 82,000 unit was reported fixing $3,500/d + $80,000 for trip bss aps Newcastle to Taiwan for end February cargo while for Indonesia RV levels are close to $2,000/d + $30,000 bb on a 75,000 dwt.
Handy (Far East/Pacific)
The Chinese New Year holidays, celebrated by most Far Eastern countries brought the already slow local market near to idleness. The limited number of reports however still showed Supramax owners getting further squeezed. A 57,000 dwt fixed $1,800/d from Indonesia to South China. A more fuel efficient 52,000 dwt delivering Singapore was paid $1,950 for a longer duration trip with grains via Australia to Korea. Near to the close of the week, another 57,000 dwt was reported agreed at a better $3,000/d basis delivery Indonesia and redelivery the Philippines. There were also rumors of similar types getting fixed with the same delivery in the mid/high $3,000s for trips with coal into India.
Handy (North Europe/Mediterranean)
With further drying up of front haul enquiries and Supramax activity getting frozen, the already dramatic freight rate trend got closer to a tragedy. A handysize booked from Morocco to South America got bunkers only for the 1st 30 days and $3,500/d for the balance duration. Another delivering Black Sea was fixed to move grains to the Spanish Med at $1,250/d. A slightly better $2,250/d was paid to another one loading Northern Europe to the USG, even if the level probably included some compensation to owners for delivering their vessel to the Baltic. The sole reported Supramax fixture showed a 57,000 dwt delivering Marmara sea to perform a trip to West Africa for a daily time charter rate of only $2,250/d.
Handy (USA/N.Atlantic/Lakes/S.America)
More Ultramaxes were seen fixed both loading out of the USG and South America, which allowed charterers to achieve further savings on rates. Basis delivery South America, a 63,000 dwt was done at $4,350/d for a trip to Europe and another one at $6,900/d plus $70,000 bb to Singapore/Japan range. From the same delivery area a 55,000 dwt was fixed at $4,500/d for a trip to Algeria. After a 64,000 dwt Ultramax was reported done basis delivery inside the river plate at $7,000/d plus $70,000 bb for a trip to Japan. From the USG a 61,000 dwt agreed to load petcoke to India at $7,300/d. A 45,000 dwt fixed $6,500/d for a trip to west coast Central America and two Handies were done at $3,500/d basis redelivery north Europe and $6,000/d for a trip to the MEG.
Handy (Indian Ocean/South Africa)
Similar to what was happening in the Pacific, owners of available tonnage were seen waiting for Chinese operators to return from their holidays and hopefully bring with them better news for owners. Only one fixture was reported of a fancy Ultramax fixing at a quite low $5,750/d basis delivery South Africa to perform a trip to China.
Banchero Costa and Co Spa
Email: research@bancosta.it
Internet: www.bancosta.it