October 17, 2016– October 21, 2016 Weekly market report.. Banchero Costa

Another negative week was registered for Capesize market with rates quickly dropped in all basins. In Pacific waters, despite all the majors were in the market, rates lost almost $0.65/mt with the standard route from West Australia to China agreed around $5.10/mt eta 7/8 November. The Pacific RV was reported done in the region of $10,500/d on timecharter basis. The increasing number of ballasters heading towards Brazil forced owners to fix their vessels at lower levels with $11.10/mt agreed in end of last week. The standard route from Tubarao to Rotterdam was done around $6/mt. In the Atlantic basin a sudden lack of fresh cargoes allowed charterers to get cheaper rates and the customary route from Bolivar to Rotterdam was agreed in the mid $6's for early November date, whilst the fronthaul was fixed in the region of $15,000/$16,000/d bss dely UKC prompt dates. The market trend registered during last week caused an activity for the period almost absent.

A strong Atlantic market has kept increasing throughout the last week with Kamsarmax vessels being fixed at $11,500/d + $350,000 bb for trips via USG to F East via COGH, while a 75,000 dwt was reported fixed around $11,300/d + $230,000 bb for similar trip. For vessels ballasting towards Gibraltar a 74,000 dwt was reported fixed at $8,000/d bss passing Gibraltar dely for trip via USEC to Gib-Skaw redely range, while a Kamsarmax was fixed with same dely at $13,900/d for trip via NCSA to F East. In Cont a 93,000 dwt was reported fixed at $9,250/d bss Rotterdam dely for one trip via Baltic redely Gib, similar size was also seen fixed bss Immingham for one trip via Orinoco to China at $13,100/d, while a 95,000 dwt has fixed basis dely Oxelosund for one trip via R Sea redely Gib at $10,250/d. In Med a 75,000 dwt was fixed basis Passero dely for one trip via B Sea to Japan at $13,750/d. From ECSA levels kept increasing with Kamsarmax fixing around $8,750/d + $275,000 bb for trip via ECSA to F East while, for trips to Skaw-Gib, an 82,000 dwt being fixing around $12,300/d. Bss S Africa loading a 92,000 dwt was fixed at $9,250/d bss Ennore dely for trip via S Africa to India. In F East an 82,000 dwt fixed bss dely Japan trip via EC Aus to India at $8,500/d while, for 2 laden legs redely Spore-Japan range, a similar size was fixed at $7,750/d bss Taizhou dely. Also for trip via Indo to India a Kamsarmax was fixed at $10,250/d bss Surabaya dely. On the period front an 82,000 dwt was fixed at $7,650/d for 5- 8 months period dely Mundra, while an 82,000 dwt was fixed bss Spore for 5-9 months at $8,000/d with WW redely.

During last week these waters showed an increased interest to load cargoes from F East to India/MEG range, with a large number of fixtures reported concluded. An Ultramax delivering at N China was fixed at $8,000/d for a trip via CIS Pacific to India and a similar vessel agreed $7,600/d form EC China to MEG. A 57,000 dwt non-eco type was paid $7,000/d for a trade from S Korea to WC India, while a Tess-52 delivering EC China was fixed for a trip via Australia to WC India at $6,500/d. From the same loading area some steel cargoes were moved to SE Asia; on this trade an Ultramax got $6,500/d from N China while a 56,700 dwt got $5,800/d for a similar trip. The coal trade from Indonesia to China was quite active, with an Ultramax delivering near to the loading port agreeing $8,150/d and a 56,000 dwt delivering Hong Kong reported done at $5,600/d. A similar vessel delivering N China was fixed for a trip to W Africa at $5,500/d for the first 65 days and $8,250/d for the balance and a comparable unit with same delivery and redelivery worldwide was done for a 5/8 months timecharter at $7,600/d. Timecharter rates remained on almost unchanged levels.

Rates for Handysizes carrying grains from B Sea to Med-Cont range were again under pressure showing a 38,800 dwt delivering Ukraine fixing $10,250/d for a trip to Adriatic and redelivery passing Otranto, a 37,400 dwt agreeing $9,000/d with delivery passing Canakkale via B Sea and redelivery Egypt and a 33,000 unit delivering Bulgaria fixed at $9,250/d to Israel. From the same loading area a 32,000 vessel loading Sulphur was agreed at $9,000/d basis delivery Canakkale and redelivery Morocco. The positive trend in the area influenced also the larger sizes with a 56,800 dwt non-eco type delivering Canakkale fixing a grain cargo to Mombasa at $10,000/d and a similar vessel agreeing $12,750/d for the first 40 days and $11,250/d for the balance for a trip to India- Bangladesh range. Almost no news of reported fixture were available for the N European market where the rates were described as slightly better than the previous week with only a modern 37,000 dwt delivering Baltic was fixed for a trip to Florida at $7,000/d.

Ultramaxes and Supramaxes loading out of the USG showed better rates with a 55,000 dwt fixed to WCSA at $7,700/d plus $220,000 bb, an Ultramax booked to Spore-Japan at $15,000/d and a 57,000 unit non-eco type agreed at $12,250/d for a trip with petcoke to India. Rates for TA trades were said to have improved but most of the concluded deals were kept confidential. A 61,000 dwt was reported done with petcoke for a trip to Spain at $10,150/d. An Ultramax was booked for a 4/6 mos with redely WW at $10,000/d. Rates from S Am showed a positive trend in particular on the TA trade, where a non-eco Supramax fixed $10,000/d to Algeria and a similar unit got $9,500/d for a trip to the Med. A 38,000 dwt agreed for a trip to the Cont $8,000/d, a 37,000 unit got $8,500/d to B Sea and another one fixed $8,000/d to the USG. Fronthaul fixing from this area showed a 53,000 dwt done with sugar at $8,500/d + $85,000 bb to Jebel Ali and a Supra got $10,400/d + $160,000 bb to Pakistan.

Another week with scarce activity from these waters, with only few fixtures reported done. A 57,000 dwt delivering MEG fixed a short trip in the area with aggregates at $7,300/d, from the same area a 55,000 dwt was done for a trip to China at $5,000/d and a Tess-52 booked a trip with limestone to SE Asia at $6,100/d.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it