June 22, 2015– June 26, 2015 Weekly market report.. Banchero Costa

The Capesize market registered a positive week with rates improving sharply in all basins. In the Pacific basin all the miners were in the market booking tonnage and rates reached $5.80/mt for early July dates. The Saldanha Bay/Qingdao followed this trend and a strong $9.80/mt was agreed. A timecharter via S Africa to China basis dely Qingdao was agreed at $10,800/d.  The lack of ballasters pushed the market upwards for fronthaul despite VALE was not in the market. A classic Tubarao to Qingdao voyage for mid July dates was fixed at $13.65/mt meanwhile $6.90/mt was agreed for a trade from Tubarao to Rotterdam. The TransAtlantic was done at a good $12,500/d whilst the fronthaul improved reaching around $16,000/d with some cargoes fixed ex Seven Islands to China at $15.85/mt. Period activity followed the positive trend and one year and a half bss dely F East for mid July dates was done at $13,500/d, whilst nice cape dely mid July was fixed at $14,500/d for 4/7 months.

 

Atlantic market registered a steady week, except for the South American trades where decreasing rates were seen. For July dates the classic trade from East Coast South America into the F East was fixed at $12,500/d + $250.000 bb if aps, otherwise over $7,000/d bss dop Middle East/Singapore range (on voyage basis was equivalent to $24.00/mt), and the general feeling is that freight will decrease in the next few days. Atlantic businesses were reported at rates similar to the last week: long duration transAtlantic rv was done around $8,000/d while quick trip as Baltic round voyage saw rates around $7,500/d. The Black sea market registered another quite week. The Pacific basin was still influenced by the South American enquiry but, despite that, more fixtures on aps bss were seen in the area in the F Eastern market. The NoPac was fixed at around $6,000/d on a standard lme and a nice Kamsarmax agreed $6,500/$7,000/d. Nice Kamsarmax on Australian rv were fixed around $7,500/$8,000/d levels bss dop China dely and standard Panamax agreed around $7,000/d. Coal trip from Indonesia to China were fixed around$5,500/d meanwhile for Indian redelivery were agreed $6,500/d. Not much activity for the period trading with short duration reported in the high $6,000/d on lme. 1 year duration can be evaluated round $8,000/$8,250/d on nice Kamsarmax.

After a firming week the market started to show some contradictory trends. A 57,000 dwt agreed a strong $10,250/d to perform a steel cargo via Indonesia to India, but was probably fixed the previous week and it is unclear how fresh was the report for a fancy Ultramax getting $6,350/d basis delivery S India to perform a nickel ore via Philippines to China. Afterwards two Supra dely Spore were done at $6,150/d and $6,000/d to carry coal via Indonesia to China. A 55,000 dwt was reported at a better $8,300/d for 4/7 months period bss dely at N China. In the Handysize segment a 28,600 size fetched a quite reasonable $7,750/d dely Korea for a trip via CIS Pacific to China, which included some premium to trade during the gipsy moth season.

Trading around the European waters was more active again. Another Supra was fixed for short period basis delivery Scandinavia at $9,250/d, a 35,000 dwt taken at $9,500/d with delivery Continent to load timber ex Baltic into the East Med was followed by a similar vessel fixed via Denmark at a much firmer $12,000/d with scrap to the East Med. An increasing trend was seen also from the southern basin were a 32,000 dwt agreed a better $6,400/d for a trip via Black Sea to Adriatic and a 53,000 size delivering at Greece agreed $8,500/d for 2/3 laden legs redelivery Atlantic. Fronthaul ex Black Sea to the Far East showed considerably firmer numbers, with a 61,000 dwt done at $11,500/d and a 52,000 dwt fixed at $10,000/d, both basis delivery in the East Med.

Despite Supramax suffered some weakness on TransAtlantic trades ex USG, the large amount of reported fixtures showed that owners were still enjoying fairly good numbers in the area. An Ultramax was done with petcoke aps USG to Turkey at $14,750/d; two 53,000 dwt were taken on delivery dop EC Mexico to the Med, the one loading out of the USG was fixed at a still good $11,000/d. Fronthaul from the USG to F East kept strong with an Ultramax done at $16,000/d and two Supramax fixed at $15,250/d and $15,900/d on the same run. Supramax fixing ex S Am enjoyed good rates on TransAtlantic trades with a 58,000 dwt fixed at $14,250/d and a 52,000 size to Med fixed at $12,000/d. Smaller sizes showed low rates agreed by owners to carry steels from Brazil to Cont while from same area a 30,000 dwt got $10,000/d to go into the W Med.

A 53,000 size delivering at Richards Bay for a trip to India fixed a good $10,500 plus $175,000 bb for trip into West Coast India, which was actually much better for this owner who had the vessel coming open at the charterers loading port. Supramax rates ex MEG for local trades showed a non fancy 56,000 size basis redelivery east coast agreed at an improved $7,500/d meanwhile the previous week a better vessel fixed same rate basis West Coast India. Afterwards a fancier type was reported done at a higher $10,000/d basis same trip with a better delivery for owners.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it