May 1, 2017 – May 5, 2017 Weekly market report.. Banchero Costa

After a quiet start of the week, mainly due to holiday in most part of the world, Capesize market lost some confidence and traded down on the main routes. West Australia/China fixed down to $5.50/mt for mid/end May dates while Tubarao/China cargoes were fixed at an equivalent of low $13/mt for similar dates. On the end of the week it was clear market was about to bottom out and better expectation were already confirmed by higher fixtures reported both in Pacific and out of Brazil. It was worth to note that many ballasters heading to Brazil were either fixed for trip to Continent or even for cargoes with Colombia loading; that's partially due to a lack of ore cargoes from Brazil to Far East and, partially, to try to get advantage by possible better Atlantic market in a month time or so. Period relatively quiet as owners were not willing to follow spot downturn of rates and preferred holding their levels time being.

Since last week the N Atlantic is under severe pressure and unfortunately this trend seems to continue also for next the week. TransAtlantic rates for a standard Panamax remaining under $8,000/d and no end in sight in the near term. The ECS American routes showed a bit more activity, however rates remained finely “as last done”: vessels achieving in the low $11,000’s plus $500,000 ballast bonus for fronthauls. In Pacific rates remained again under pressure. An 81,000 dwt 2012 built was fixed for a NoPac RV basis delivery Kunsan at $8,250/d, while Post-Panamax market suffered even more with a 93,000 dwt 2012 built vessel reported fixed basis delivery Yosu mid-May for a trip via Gove and redelivery China at $6,150/d. The period market remained very quiet with nothing being discussed or rumoured.

The market showed a reduced activity with rates generally affected by the holidays, and a trend continued for the whole week. Indonesia/China coal trade reported an Ultramax, with delivery Hong Kong, done at $8,350/d. Charterers were a bit more active on Supramax nickel ore shipments from Philippines to China, with rates decreasing through the week. A 55,000 dwt fixed $10,500/d delivery in the loading area, afterwards two 57,000 size were done at $8,750/d and $8,000/d respectively. A similar type delivering at N China was paid $6,500/d for a trip to the Philippines. Handysizes showed again a better resistance to the negative trend with a 38,000 dwt booked from Japan at $8,000/d for a NoPac RV back to Japan and a 33,000 size was paid $11,000/d aps S Australia for a trip with grains and minerals to Spore/Japan range.

Handy (North Europe/Mediterranean) 

Clinker trade to W Africa showed a 50,000 dwt done at $11,000/d with delivery Turkey, followed by another one fixed at $10,500/d. A Supramax delivering aps Portugal was rumored to have been fixed, for a similar trade, at around $12,000/d. A 56,000 size delivering at W Morocco was taken for 4 to 6 mos period and WW redely at $12,000/d. Activity for larger sizes from this area was otherwise quiet, Supramax fronthaul trips from B Sea were said to be payed around $1,000/d less. From this area, a 37,800 dwt delivering at Piraeus fixed grains ex B Sea to Tunisia at $8,000/d, and a 28,000 size delivering Bulgaria was agreed for 2 ll redely Atlantic at around $8,750/d. No fixture were reported concluded from the Continent, a Supramax delivering at N Spain was said to be fixed at a lower $10,500/d with dely N Spain for a trip with scrap via N Europe to Turkey.

Also the Atlantic American market showed some activity with a fancy 58,000 dwt size done from the USG to Japan at $19,500/d. Afterwards a couple of Ultramaxes were rumored having fixed to the same area in the low $20,000’s per day. TransAtlantic trip from this area showed two 57,000 dwt, carrying respectively grains and petcoke, agreed at $12,250/d and $12,500/d. A 33,400 dwt delivering in this area got only $7,000/d for a trip to Brazil. From S America a 50,000 unit was fixed to Bangladesh at $13,000/d plus $320,000 bb. Supramaxes were said to be fixed around $12,000/d from ECS America to Skaw/Passero range but, so far, no confirms were available.

A strong lack of demand interested this area. Almost all the Muslim charterers have booked earlier their enquiries and are expected to come back in the market after the Ramadan celebrations. India was very quiet as well, with no news emerging about additional coal imports, and very small export enquiries circulated. An Ultramax fixed a small $9,000/d delivery WC India and redely China.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it