Capesize (Atlantic and Pacific)
It was positive at end of the week for Capesizes with the Baltic Index up for the 3rd consecutive days which was making the week ending at plus 272 and plus $ 3.457 on the 4 T/c routes. Front haul voyage rates were at about $ 21.50 last Friday and especially the iron ore rates were rising up to $ 7.60 with good signs of further improvement expected for the next days. The Atlantic market had shown more strength in the last days of the week and the activity was mainly confined in the Brazil cargoes to the Far East. Not much activity on the period even if few short period fixtures were concluded in the $ 27,500 level.
Panamax (Atlantic and Pacific)
The market eased mid week with paper values off and period charterers side-lined. In the East short period rates hovered just under the mid $20,000 daily range while round voyages were just holding near to the upper teens. The Atlantic has been very slow for most of the week and to an extent some equated this to an easier market. When business finally came to light rates still looked very steady in the low $20,000 daily range for trans-Atlantic business. A slowdown in South American trades combined with committed tonnage kept front haul rates in check with around $30,000 or the low $30,000 daily range.
Handy (Far East/Pacific)
The initial rate recovery seen for the larger Handies is now becoming fictitious with charterers' interest for round voyage business disappearing. A new flow of coal available for loading ex South East Asia has taken away a few spot Supramaxes fixed to India at lousy rates. Most of the material was shipped into China in handy-sized stems, proving once again a better vitality for the smaller ships to fetch rates quite similar to their larger relatives. The 25/35,000 dwt tonners were put aside by the larger market operators as they were considered "out-of-fashion" in market where the majority of the trade was predicted orient towards larger units, which are showing a much better resistance in this world-wide market instability.
Handy (North Europe/Mediterranean)
Rates from Northern Europe resisted to acceptable levels for owners, but a smaller demand was seen anticipating some downward trend unless a new flow of demand shall come out quickly enough. Mediterranean market was getting closer to a crisis; grain business ex the Black Sea has disappeared. In connection with last week's ban out of Ukrainian ports, the ongoing huge fire alarm affecting huge territories in Russia has paralyzed all the inland distributions to any of the Black Sea ports. With the leading export commodity no longer available for loading, activity dried up and tonnage coming open, the area is now competing on the few cargoes available for loading out of Mediterranean ports.
Handy (USA/N.Atlantic/Lakes/S.America)
Activity from the USG remained unstable. Conventional trans-Atlantic business was not enough and available rates remained unexciting, better rates were seen paid to a couple of Supramaxes due to a bit more "exotic" trades connected with the West Coast South America or ending into West Africa. Here was a bit more business pushed for lading South America, but the larger amount of tonnage available for lading didn't allow rates to increase from previous dones. Similarly to the Pacific waters, smaller Handies have been doing quite better from both areas, compared to the larger sizes.
Handy (Indian Ocean/South Africa)
The chartering demand was dramatically quiet for loading in the Muscat West Coast India area where the Supramaxes can at least compete with each other on the South Africa-India coal run. On the other hand, the smaller units beside some occasional local trades had just no business to go with. East coast India/China iron ore showed to pay a little better rate to large old eco types, with no jobs in this area either for the more standard units.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: http://www.bancosta.it/