Capesize (Atlantic and Pacific)
The Capesize market registered another negative week, with business once again more and more focused on West Australia. For example, a modern 180,000 dwt fixed and failed on Monday for a West Australia round and fixed again at $9,000/d on Friday. Saldanha Bay/China fixed at about $8.30/mt and prompt vessels in Brazil were able to fix sub $11.00/mt. Overall the picture is still characterized by an oversupply of tonnage, as the cargo flows from miners is still large. Unless South American shippers need to suddenly ship more, it will be difficult to see any significant improvements by end of the year. The oversupply situation will be exacerbated by the high number of vessels becoming open in China, previously carrying Brazilian September iron ore shipments.
Panamax (Atlantic and Pacific)
Panamax rates in ECS Am were holding towards the end of the week as owners were considering also USG orders for fronthaul, where the Ocean Forte, an 81,000 dwt vessel, was fixed for a tct at $12,750/d + $275,000 bb bss USG. Marielena, another 81,000 dwt vessel, was reported fixed at $8,000/d + $200,000 bb with Cargill for a tct via ECS Am to F East while rates for transAtlantic RV were around $8,250/d bss aps ECS Am with no bb; Velsheda, an 82,000 dwt size, was reported also fixed via ECS Am to S Korea at $6,750/d bss PMO.
In BSea a 75,000 dwt ship was fixed for an IntraMed business delivery Canakkale tct via B Sea at $6,000/d bss redely Passero, while levels for fronthaul via BSea were agreed around $11,500/d on a 75,000 dwt, seeing tick more for tct loading from Baltic direction F East. In Far East owners were reluctant to ballast towards USG, discouraged by the amount of cargoes in the area and the congestion seen at Panama Canal resulting in lower rates also for NoPac round where Feng Huang Feng, a 75,000 dwt vessel, was fixed for NoPac RV at $6,500/d.
In South East Asia rates also on the low side seeing around $6,000/d for Indo/China business on a 75,000 size, while MV Georgia T, an 80,000 dwt, was reported fixed with delivery Hong Kong via Indo to India at $6,500/d.
Handy (Far East/Pacific)
Rates seemed to stop falling despite the huge amount of tonnage open. A large number of vessels were reported fixed at the low levels of the previous week. The core of the activity was still SE Asia, in particular enquiries for coal from Indonesia to China. On this trade a 58,600 dwt got $5,250/d, curiously a very similar unit was reported at the same level for a trip from China to SE Asia. A 57,000 dwt with China dely achieved $6,000/d for a RV via Philippines with nickel ore, a 58,000 dwt with dely SE Asia got $7,000/d on the same trade. Coal trade on the Indonesia-India routes was active and Supramax were booked in the $7/7,500/d range, while a trip from same area to Pakistan was fixed at $8,000/d. Backhaul to N Europe showed an Ultramax getting $5,250/d for the first 80 days and $8,000/d for the balance, while a fancy 58,000 dwt fixed aps NoPac for a trip back to F East at $7,250/d + $125,000 bb. A 28,500 dwt was fixed at $5,000/d + $130,000 bb on the same trip, while another similar Handysize got $4,500/d for an Australian RV basis dely Spore.
Handy (North Europe/Mediterranean)
The market in Continent was the one that managed to hold firmer compared to the other areas. A nice 58,000 dwt was fixed basis delivery Netherlands for a trip via Baltic and R Sea at $9,000/d and redely Egyptian Med. A 54,000 dwt got $10,750/d for a trip via N Europe and R Sea to MEG basis dely Gibraltar. From E Med a non-eco 56,600 dwt agreed $12,000/d from B Sea to Bangladesh, a similar unit with similar delivery got $9,100/d for a trip to NW Pacific, not bad considering the longer duration.
Handy (USA/N.Atlantic/Lakes/S.America)
Demand slowed considerably both from North and South Atlantic Americas affecting rates available in the area. A fancy 58,000 dwt got $15,750/d to load petcoke from Mississippi river to India; this was the sole fixture officially reported, other deals remained p&c. From South America a 57,000 dwt achieved only $9,500/d for a trip to E Mediterranean including Lebanon. An Ultramax with a similar delivery was fixed to F East at only $11,500/d plus $150,000 bb.
Handy (Indian Ocean/South Africa)
Activity was still slow in this market due to very slow trades. A Handymax was fixed at an extremely low $2,000/d for a backhaul with fertilizers from MEG to USG. From the same area a fancy 58,000 dwt was fixed at an higher $7,250/d to move petcoke to India; the higher rate includes the difficult redelivery.
Banchero Costa and Co Spa
Email: research@bancosta.it
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