March 28, 2016–April 1, 2016 Weekly market report.. Banchero Costa

The Capesize market had a very positive week with rates quickly improving in all basins.

In Pacific the presence of all the miners in the market and bad weather (fog in particular) that affected a number of Chinese ports causing delays on vessels discharging operations created a lack of spot tonnage and pushed freight rates up. At the end of the week a fixture was agreed at $4.25/mt for very end April dates, which represents a gain of at least $0.60/mt compared to the previous week. As a consequence the Saldanha Bay/Qingdao route was traded around mid $5/mt at beginning of the week and almost a dollar higher on Friday. In Brazil, the smaller amount of ballasters available forced charterers , to improve their ideas and rates quickly went from $7.50/mt to $9/mt basis first half of May. The Atlantic marker improved as well with a fronthaul via BSea to F East basis dely aps end of April agreed at $17,500/d and a Seven Island/Qingdao at $12.8/mt, around $15,000/d on TC basis. TransAtlantic business was concluded around $6,5/7,000/d and the C7 was traded around $4.90/mt at the end of the week.

Last week the market remained strong in the Atlantic Continent side. This marks a new trend with Northern Atlantic market stronger than ECSAm. Kamsarmaxes have been fixing basis Continent at $12,500/d for trips via ECSAm to F East while port of Kamsar to China a 82,000 dwt was reported at $11,500/d. / 1‐YR TC BCI TC Stronger levels were also registered from USG were a 81,000 dwt was fixed for a trip via USG and Gibraltar/Skaw redelivery at $11,000/d basis Mobile dely. ECSAm market slightly decreased on the fronthaul with Panamaxes fixing around $7,500/d + 250k bb and owners slowly reducing their ideas. A 82,000 dwt was fixed on a trip to Continent at slightly better levels, owners were rating mid/high $9,000/d for trips with redelivery Skaw/Passero whilst a 75,000 dwt was reported around $9,000/d basis ECSAm. In F East rates for NoPac RV remained stable with a 75,000 dwt fixing around $5,000/d and 80,000 dwt reported at 5,500/d: close to the levels seen fixed for trips via Australia to India basis Xingang. On the period side a 75,000 dwt was reported fixed for 5/7 months at $5,800/d.

The surplus of tonnage available in the area together with a slow chartering activity prevented rates from growing. Coal exports from Indonesia showed a 57,000 dwt fixed at $6,500/d basis delivery Singapore and two different redelivery options: within the Indian Ocean or Bengal Bay range. A smaller Supra with better consumptions and same delivery was done at $6,000/d basis redelivery full India only. A similar unit got $6,600/d basis dely Hong Kong for the same trip. A 55,000 size carrying clinkers from North China to Bangladesh got $5,500/d and another one with dely SE Asia fixed a backhaul to Cont at $2,250/d basis 75 days duration. Two Supra were booked for short periods a 58,000 dwt at $5,850/d basis delivery Singapore and a 52,000 dwt at $5,500 /d basis dely Japan.

Very good activity showed higher rates all around European waters. A standard 57,000 dwt got $10,000/d from Cont to WC India and a smaller Supra was fixed to move scrap to E Med at $8,750/d. A 32,800 dwt was fixed for a trip to USG at $7,500/d basis dely lower Baltic and a 38,000 dwt was fixed from Cont on a similar trip at $8,500/d. Another Handy agreed $6,000/d for a trip via Continent basis dely Gibraltar and redely N Spain or USG/EC Mexico in charterers’ option. Grain from N Europe was booked on a 32,000 dwt basis dely Tunisia and redely Algeria at $5,250/d. A Supramax was fixed from BSea to F East at $8,000/d and another similar unit got $8,500/d basis redely Bangladesh. Approaching the weekend a standard 57,000 dwt got a much better $10,000/d basis redely SE Asia. Backhaul to US was reported on an Ultramax at $4,000/d, a 33,000 dwt got the same rate for the same trip.  Cement and clinker trades to WAfr showed a 53,000 dwt done at $5,750/d basis delivery Greece and $6,000/d with dely Spain. A 50,000 dwt with dely Marmara Sea was committed at $5,500/d to perform 2/3 laden legs within the Atlantic and a 37,000 dwt dely Alexandria got a better $6,100/d for a similar short period employment.

Higher demand from USG and NCSAm was reported. A 58,000 dwt fixed at 10,000/d to India, an Ultramax dely Caribbs was done at $8,500/d via Venezuela to Italy, a Supra was fixed for USG‐Egypt Med at $7,000/d and two other units fixed to WAfr at $9,250/d and $7,750/d respectively. In any case most of the demand was from South America which slightly prefers larger units: a 66,000 dwt was booked to USG at $10,250/d, a 63,000 dwt to Bangladesh at $10,250/d + $110,000 bb. A trip to Med was agreed at $9,850/d and a trip to F East at $10,000/d + 110,000 bb. Supramaxes were less active, but still agreed at good rates: a trip to WAfr was agreed at $10,000/d and to Algeria $8,750/d. A 56,000 dwt was fixed to F East at $8,500 daily + 85,000 bb.

Higher activity was seen also out of Middle East. From MEG the week started with a Supramax fixed to EC India at $6,000/d, then a similar unit got $7,000/d and at the end of the week an Ultramax got $10,000/d. A 60,000 dwt was fixed from Richards Bay prompt at $9,000/d basis redely MEG or $9,650/d WC India option. From S Africa an Ultramax got $10,000/d for a trip to F East . A 57,000 dwt g p got $5,000/d basis dely WC India to F East. A 58,000 dwt agreed $6,300/d for 2/3 laden legs basis dely MEG and redely F East.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

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