Capesize (Atlantic and Pacific)
Capesize market had a slow start and remained under some "selling" pressure in the first part of the last week. In Pacific charterers from West Australia managed to shave some cents out of owners which conceded their vessels down to $5.80/mt. Later in the week a floor was finally found and fixtures for early June dates were reported in the low $6.0/mt. Similarly in Atlantic some more coal cargoes were noticed and several prompt ships spot in Brazil were reported still free of employment; although market improved in the course of the week when Vale stepped in taking out some prompt ships and giving some boost to operators which took vessels up to mid $14.0/mt for Tubarao/Qingdao. Period market was quieter even if still supported.
Panamax (Atlantic and Pacific)
During last week Panamax market registered a general slowdown that affected rates in several areas. Rates from ECS America came under pressure mainly due to few fresh cargoes in the market and with charterers starting to fix cargoes for the first half June dates at lower rates. Generally rates dropped considerably in all the areas: in the Atlantic basin rates slowed down, despite some activity registered and several ships fixed, this has yet to be reflected in rates and possibly a floor has been reached. A 76,000-tonner fixed from Ijmuiden for a Riga/Ijmuiden run at $6,500/d. A Kamsarmax open Hamburg 23 May onwards agreed $6,300/d for a trip via Itacoatiara with Skaw-Gibraltar redelivery at $6,300/d. In East some owners decided to stop heading in ballast to S America due falling rates, and in turn they struggled to achieve last done for Aussie or NoPac rounds. NoPac activity was limited, with rates struggling to hold around the mid-$8,000s for Kamsarmaxes and considerably less for Panamaxes.
Handy (Far East/Pacific)
Far Eastern market showed limited spot chartering activity with rates being agreed at levels very similar to previous week. Some Ultramax has reported fixed for NoPac RVs; a 61,000 unit dely CIS Pacific redely Spore/Japan range was agreed at $9,500/d, two 60,000 dwt were booked with redely SE Asia at $8,000/d from N China and $8,500/d from Japan. Two non-eco 55,000 vessels carrying coal from Indo to India were respectively fixed at $8,600/d dely Spore and at $8,750/d with dely in the loading country. Nickel ore trade from Philippines to China was covered with two similar vessels agreed at $6,750/d dely Yellow Sea and $9,750/d from Manila respectively. Another 55,000 dwt was done for a trip ex WCS America to F East at $14,500/d dely Peru. Some period deal was concluded again, and a 63,500 dwt Ultramax delivering F East was committed to a 12 mos period at $10,250/d and a 56,000 size dely Japan got $8,100/d for 4/6 mos.
Handy (North Europe/Mediterranean)
Despite the spot rates for trades out of the Black Sea remained still unattractive for owners, a 55000 non-eco type unit delivering very promptly at Marmara Sea fixed a firm $17,000/d for a trip to F East. On the other hand a similar type got only $8,250/d for a trip to the E Mediterranean. Clinker trade from W Med to West Africa was still going on, a Supramax with delivery Algeria was done at $11,000/d and a 57,000 dwt got $9,500/d from Spanish Med. A similar vessel with Gibraltar delivery carrying the same commodity from Spain to Texas was fixed at $6,250/d. Very limited reports were available for deals finalized from N Europe where rates continued to decrease for larger sizes and keeping touch better for Handies. A 33,600 size delivering at lower Baltic got $11,000/d to carry scrap to the E Med.
Handy (USA/N.Atlantic/Lakes/S.America)
The scarce number of the fresh enquiry continued to affect negatively the rates with a larger impact for spot business loading from S America. An Ultramax with aps delivery Santos got $12,000/d + $200,000 bb redelivery Muscat/Japan range and another vessel was paid same hire rate plus only $175,000 bb with redelivery Spore/Japan range. TransAtlantic trade showed a non-eco type 56,600 dwt with sugar from Santos to Algeria paid just $9,000/d while, to confirm the usual better trend for smaller sizes, a 37,000 dwt from the same area was agreed at $9,250/d to Egyptian Med. USG market was still trading on fronthaul business; a 63,000 Ultramax fixed $22,000/d and afterwards a 60,500 unit got $20,500/d. A 55,600 dwt did $18,000/d plus $100,000 bb for a longer duration trip with petcoke to India, while a similar size carrying grains to Japan was booked at $18,500/d. No reports available for TransAtlantic business where the daily rates for 58,000 size Japanese built were described to have reduced of around $500/d.
Handy (Indian Ocean/South Africa)
The area was again extremely quiet with additional hindrance brought up by the monsoons hitting Indian Ocean and Bengal Bay. The coal trade from S Africa to India was almost absent and several Turkish operators were reported in the market with Supramax size coal from Richards Bay to Turkey at around $7,000/d with aps delivery. Basis a similar delivery other charterers in the market for Handymax manganese shipments to China were evaluating vessels around $8,000/d, while owners continued to require $10,000/d.
Banchero Costa and Co Spa
Email: research@bancosta.it
Internet: www.bancosta.it