May 31– June 6, 2014 Weekly market report.. Banchero Costa

Tuesday, 10 June 2014 14:49:23 (GMT+3)   |   Brescia
       

Capesize (Atlantic and Pacific)

The week closed with a positive sentiment after the usual very volatile trend characterized by a strong beginning, a slowdown by the middle of the week and again strong activity at the end. The Pacific basin saw rates ranging between $7.70 and $8.15/mt for the standard W Australia/China route with all the major miners active to take ships. The key of this week was certainly the presence of Vale in the market for the Tubarao /Qingdao which led to improvements of freight rates. The miner seems the taker of at least 6/7 vessels. Rates agreed were in the region of $21.50/22 pmt. Activity was considerable also from Pepel where a couple of vessels were fixed at $22.50/mt or usd $28,750/d on t/c basis. As a consequence, the Atlantic benefitted since the availability of vessels open prompt reduced drastically leading the TransAtlantic in the $15/16,000/d range with the fronthaul basis loading N Atlantic jumping to the mid $30,000/d range. Very few fixtures were reported for period business, however they were reflecting the better market with 8/11 months rumoured at $24,100/d.

Panamax (Atlantic and Pacific)

Very poor week for the Panamax market with rates dropping everywhere due to the vessels' lists getting longer and activity slowing. Fronthaul fixtures were made at around $13,500/d + 350,000 bb and TransAtlantic RV done at $10,000/d + 100,000 basis aps dely and very poor equivalents on dop basis. Some more activity was spotted for forward business with a few fixtures reported at around $50/mt for USG/China grain for Q4 2014. Activity was limited also in FEast where owners were facing modest levels mostly done on aps basis. Indonesia short RV was agreed at an equivalent of about $5/5,500/d basis dely dop S China. The same struggle was seen for Australia RV and NoPac RV with rates dropping day after day breaching the $7,000/d. The tonnage lists in the area are not narrowing because owners are not attracted by the ECSAm market where the returns compared to India or Spore dely are not showing interesting numbers. Some units are starting to temporize in strategic positions waiting for a better market.

Handy (Far East/Pacific)

The festivity in China last Monday further slowed an already slow market. Supramax TC rates lost around $1,000/d on all local trades, no fixtures are available for backhaul trades. No fixtures also in the Handysize sector, although the index remained basically unchanged. NoPac RV, trips to India, local voyages and 2 laden legs were all agreed around $9,000/d basis redely FEast. A nice 58,000 dwt grabbed got a firmer $12,000/d basis dely Indonesia and redely full India for spot dates.

Handy (North Europe/Mediterranean)

A moderate increase of demand was registered, however that was not enough to drive upwards rates with some exceptions due to positional reasons. From N Europe a Supramax agreed slightly better $8,900/d to carry scrap to E Med. A 31,000 dwt got $9,000/d to perform a trip from Baltic to W Africa, where local voyages were paying higher rates. Some activity from BSea, but rates remained unchanged: Canakkale was agreed at $11,000/d to Feast and $10,500/d to Persian Gulf.

Handy (USA/N.Atlantic/Lakes/S.America)

Market remained dull in Atlantic Americas. From USG demand was lacking and a 56,000 dwt was rumoured fixed at just $8,000/d for a trip to E Med. Far from attractive, but higher levels were available from S America to W Med for which Supramax rates ranged between $11,500/d and $14,000/d depending on specs and positional issues. On this trade a 41,000 dwt was fixed at $10,800/d and a fancy 34,000 dwt got $12,000/d basis redely Morocco. A Tess agreed $12,500/d + 250,000 bb to perform a trip to Spore/Jpn range.

Handy (Indian Ocean/South Africa)

Demand slowed further: enquiries from Middle East were decreasing and activity from S Africa was very limited.

Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it


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