February 22– February 28, 2014 Weekly market report.. Banchero Costa

Tuesday, 04 March 2014 12:04:07 (GMT+3)   |   Brescia
       

Capesize (Atlantic and Pacific)

Positive week for the Capesize market both in Atlantic and Pacific. In Pacific the usual W Australia/Qingdao route saw big improvements with rates reaching around $9.65/mt for beginning/mid March due to the presence of the three majors (BHP, Rio Tinto and FMG) in market with several requirements. In addition Vale and others were very active on Brazil/China and freight rates quickly rose upto $22/mt which is 3.50 dollars more than the previous week. In Atlantic a sudden lack of vessels for prompt positions forced the few charterers around to pay over $10,000/d for TransAtlantic round voyages and the week ended with reports of $11,250/d agreed and even $14,000/d, but it was due a better delivery point. Activity was good also for period business with a couple of fixtures reported for one year at a steady level of $27,000 /d.

Panamax (Atlantic and Pacific)

Last week the Panamax market was really slow with dropping rates all over the board. Vessels from Continent were trying to fix quick round voyages in order not to lose their position, but rates were still at low levels. Trip via Baltic were done at around $5,000/d with redelivery Med and around $4,000/d for Continent redelivery (mainly fixed on voyage basis). Not so much activity from USG with rates still around $12,000/d + 200,000 bb level basis Passero redelivery. Same situation from ECSAm with a still high offer of tonnages looking and waiting for fresh April stems. The latest fixtures for March dates were done a tick below $15,000/d + 500,000 bb (on voyage basis around very high 30's), a bit higher for first half April, with numbers closer to the $41. The Market in the East was characterized by owners willing to fix short round voyages or trips to India in order to obtain a better position for forward grain business from ECSAm. Indonesia RV was done at around $9/10,000/d from S China and rates are even lower, around $8/9,000/d, for India redelivery. Period market is still stronger then the spot one: a very nice Kamsarmax Newbuilding was reported at $15,500/d for short period.

Handy (Far East/Pacific)

After a very slow start the market slowly started to show some new fixtures with rumors about a good number of additional deals which after fixing failed on subjects. With a slow demand the best deals for owners were still for trips loading out of Indonesia. From this loading area an Ultramax got a nice rate at $17,000/d basis delivery Singapore and redelivery at EC India. A 56,600 dwt got $13,000 and a 58,000 $14,950 basis same delivery and redelivery S China. A backhaul with sand to Singapore paid $10,000/d to a 53,000 tonner delivering dop S China. NoPac RV was less attractive at $10,000/d on a 57,000 dwt dely S Korea. Short period business was active with large Supramaxes reported at $13,000/d and $13,850/d.

Handy (North Europe/Mediterranean)

A 55,000 dwt agreed a very poor $3,500/d for a backhaul trip via BSea to USG, this fixture clashes with a 42,000 dwt achieving $14,000/d basis dely Atl Morocco for a trip with Clinkers via Med to Algeria. A 55,000 dwt got $20,000/d from N Europe to Feast especially considering the SE Asia redely.

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

A general slowdown quickly negatively affected Supramax rates. Again the smaller Handies were more resilient. Supramax size scrap from USG to Turkish Med was fixed at $19,750/d. From the same area another Supramax $18,000/d basis redelivery WAfr. S America market was even worse with an Ultramax getting $11,100/d for a trip to Cont followed by another fixture at $9,750/d for the same trip. On fronthaul Supramax business, a 56,000 dwt agreed $12,500/d + $ 200,000 bb basis delivery aps Brazil for a trip to Spore/Jpn. For smaller sizes a 28,500 dwt from same area got a nice $12,000/d for a trip to Continent and a 36,700 dwt agreed a $14,750/d with delivery NCSAm for 2/4 months and redely FEast.

Handy (Indian Ocean/South Africa)

Business ex AG was still lacking, but apart from that demand was slowly growing and lead to the fixture of an Ultramax at $13,000/d + 300,000 bb basis delivery dop Madagascar for a trip via S Africa to Spore/Jpn. A fancy 37,000 tonner was booked at $10,750/d with delivery Bangladesh for a trip via EC India to China. A fancy 34,000 dwt agreed one plus one optional year at $11,500/d for the 1st 9/12 months and $12,500/d for the optional period.

Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it


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