November 30, 2015– December 4, 2015 Weekly market report.. Banchero Costa

The Capesize market was very fragile in both basins and turned weaker during the second part of last week. Owners were reluctant to ballast their ships to South Africa and Brazil. West Australia to China route lost around $0.70/mt to $4.20/mt on Friday. Volumes from Brazil reduced and rates bottomed at $9/mt levels, losing about $0.50/mt from the beginning of the week. Atlantic market was positional and overall more stable than the Pacific, but suffered as well some oversupply especially on cargoes from Brazil to Continent. Almost absent any period activity. 

 

Last week we still had a downward trend in the Atlantic market while the activity in the F East has not increased freight levels in the area seeing also vessels being fixed for short period basis dely China 4/9 months at $4,500/d. In ECS America a 77,000 dwt was reported fixing aps Tubarao tct to F East at $6,000/d + $185,000 bb. Atlantic trip registered a 82,000 dwt at $5,750/d basis aps ECS America redely Skaw/Passero. In USG levels still on the low side: fronthaul business levels around $9,250/d + $90,000 bb while for trip to Med a unit was reported fixed for 1 tct with Petcoke at $7,500/d. Vessels opening in Med are still looking at low mid $3,000/d basis Canakkale for tct via BSea and redely E Med. Orders loading in Cont the levels seen where around $4,500/d for Baltic RV and mid-low $8,000/d for fronthaul. In the F East no improvements yet. A unit was fixed basis dely Xiamen via Indonesia to India at $4,500/d and a Kamsarmax fixed for NoPac round at $3,100/d basis Busan.

The Supramax rates for single trip employments stopped falling and a few fixtures were done at slightly higher rates. A 58,000 dwt ecotype was fixed at $7,500/d dely Indonesia for a trip to China meanwhile an unfancy 57,000 dwt dely N China fixed at $6,750/d for a trip via Japan into Bangladesh. Nickel ore from the Philippines to N China on a 46,000 dwt paid $5,000/d basis delivery S China while a 56,700 dwt non eco type dely Spore was fixed for a trip via Australia to N China at $5,000/d with an option for redely S China at $5,600/d (a new trend: tonnage open N China more and more finds next business close to last discharging port, whilst from S China owners have to ballast to SE Asia or Australia). Backhaul to W Africa still showed bad figures: an Ultramax fixed at $3,000/d for the first 65 days and $7,000/d for the balance. A 56,500 dwt delivering Chile was agreed at $8,000/d to perform a trip to MEG, followed by a 55,800 dwt fixed at a better $6,000/d + $145,000 bb delivering NoPac for a trip into SE Asia. Period showed an unfancy 56,000 dwt agreeing only $5,000/d basis dely Japan for 8 months. Handysizes kept showing a better resistance to the negative market, a fancy 37,000 dwt was booked basis dely China at $6,250/d for about a year commitment, with an option for second year at $8,250/d.

The trend was still negative for larger units. An Ultramax fixed B Sea to India at $7,900/d when another one got $3,000/d for a backhaul from Morocco to USG, a similar rate was done on a 55,000 dwt performing a trip from B Sea to Spain. German scrap operators booked a 55,000 dwt at a slightly better $7,750/d dop UK via Cont to Turkish Med. From this loading range a larger interest to move Handysize cargoes to S European destinations ended up into a bunch of fixtures concluded between $6,500/d to $7,500/d depending on vessels intake, specifications and actual redely area.

The Supramax market showed enough enquiries basis loading S America where rates suffered a further negative trend and smaller demand for cargoes out of USG where instead the rates agreed were unchanged from previous or slightly improved. Basis dely S America a fancy 58,000 dwt was fixed at $9,700/d + $95,000 bb for a trip to MEG, an Ultramax got $9,000/d plus $90,000 bb to Indonesia, a 54,000 dwt carrying grains to Algeria agreed $7,250/d and a 56,500 dwt carrying grains to R Sea with redely at Port Said was paid $7,600/d. A similar size fixed $7,500/d from USG to Spain, where another similar size got $7,750/d with redely E Med and a 52,000 dwt did $7,500/d into the B Sea.

Supramax market still showed a calm week and even if a small amount of deals was said to be concluded at lower money, no reports were made available. Also in these waters Handysizes kept fixing at better rates; a 28,000 dwt fixed $5,250/d from MEG to Bangladesh, bringing the vessel closer to SE Asia at an acceptable level. A 32,000 dwt was reported done at a less good $5,000/d basis same delivery and redelivery EC India or Spore-China range in charterers option.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it