September 5, 2016–September 9, 2016 Weekly market report.. Banchero Costa

Last week the Capesize market traded up pushing at the highest values in this year and spreading some optimism after months of gloomy rates. As seen in the previous week, the Brazil/F East was the most active route: the highest level fixed was $11.70/mt for Tubarao/Qingdao for second half October dates. Great activity from Brazil dried up list of ballasters and this will probably force charterers to pay up from South Africa. Vessels from North Atlantic started fixing cargoes out of Brazil (from Ponta Da Madeira preferably), but this did not stop rates to increase. In Pacific, the West Australia/China route settled in the high $5’s/mt (registering an increase of almost $1/mt compared to the previous week), while the volume of coal cargoes from East Australia was still negligible. Given the actual push, more period businesses were discussed but with still a wide gap between bids and offers.

During last week the market in the USG area maintained stable levels at around $10,500/d + $250,000 bb for fronthaul trips and around $10,250/d basis Gibraltar delivery for trips via USG to China. Trips via USG to W Med were fixed on Kamsarmax vessels at around $9,000/d for basis redely Morocco. On the other hand, the ECSAm market has been softening for transatlantic trips with Kamsarmax fixing in the region of $7,000/d basis aps for Skaw/Passero redelivery while for fronthaul business 82,000 dwt vessels were fixing still around $8,000/d + $300,000 bb and LME closer to mid $7,000/d + $250,000 bb for same trip. South Africa area was firming up with Post-Panamax vessels fixing $7,000/d + $200,000 bb for trip basis delivery S Africa to China while Kamsarmaxes fixed around $6,500/d for India RV via S Africa loading. Continent area also maintained stable levels with Kamsarmaxes still fixing for fronthaul trips at $10,500/d basis delivery Rotterdam while for the same delivery trip via Murmansk to Med levels seen on a 75,000 dwt were close to $5,250/d. In F East market NoPac RV were fixed on a 82,000 dwt at $5,800/d basis CJK delivery while a 73,000 dwt has been reported fixing similar business at $5,250/d. Trips within Indonesia maintained levels on Kamsarmax vessels around $6,000/d basis delivery Vietnam for trip via Indo to S China, a tick more, $6,250/d, was done on a similar size for a trip basis N China delivery via W Aus with redelivery Spore-Japan range. On the period front a 82,000 dwt was reported having fixed $7,000/d for 1 year period with option of 1 year further at $8,000/d and on a similar size a 5/8 months period was reported fixed in the high $6,000/d basis delivery Vietnam.

Despite activity remained pretty much unchanged Supramax timecharter rates decreased around $100/200 pmt. A growing number of fixtures were reported from Far East to SE Asia. Steels from N China were fixed on a fancy 58,000 dwt at $6,350/d and on a standard 56,000 dwt at $5,800/d. From the same area a 56,000 dwt achieved $6,250/d to carry a sand cargo to Spore. Another cargo of steels was booked from the area at $7,500/d to Red Sea. Philippines remained active on their nickel ore export to China, a trade on which a few Supramax were booked: a standard 56,000 dwt got $5,600/d with dely CJK and an eco 58,000 dwt achieved $7,250/d basis dely Spore. With the same delivery an Ultramax was fixed via Indonesia to China at $9,000/d with coal. From N China a 55,700 dwt was fixed on a TA RV via Alaska at $7,750/d, the rate includes some premium for trading the loading port. Short period activity was still thin, but still active, with an eco-type 58,000 dwt fixed at $8,000/d for 4/6 months with dely Vietnam and a non-eco 57,000 dwt agreed at $7,000/d for 3/5 months basis dely EC China. No fixtures officially reported for smaller sizes that were rumored at levels close to those available in Atlantic.

Little news from Black Sea and Med waters, a 55,000 dwt got $10,250/d from Marmara Sea via B Sea to Spore/Japan range. A nice 28,000 dwt fixed a trip from Greece to Egypt Med at $6,500/d, smaller tonnage keeps performing relatively better in these waters. From Continent two similar Supramax, non-eco, were booked to load scrap to Turkish Med at $9,000/s and $8,500/d. A 55,000 dwt achieved $9,250/d basis dely UK for a trip via Baltic to Spain with grains and with the same dely a 38,000 dwt got $6,250/d for a trip to Brazil, not too distant from the rate achievable on the reverse trip.

Demand from Supramax stem slowed in USG and put pressure on rates. A large Ultramax was fixed at $12,000/d with petcoke to Spain and a Supramax to E Med showed a decrease of at least $0.50/mt. A 57,000 dwt got $8,000/d for a trip to Brazil . No fixtures were reported on fronthaul despite charterers were active and rates were rumored as firm. Some optimism was observed in S America, but so far rate improvements were not registered; a 57,900 dwt agreed $10,250/d + 130,000 bb for a trip to F East and a Tess 52 with dely Brazil achieved $9,000/d to Red Sea and redely Port Said. A 28,000 dwt got $6,600/d from Recalada to Spore/Jpn range. On TA trades only two Handymax were fixed, both from Argentina: the first one got $6,500/d to Cont and the other $7,300/d to Algeria.

Middle East was basically shut down due to imminent festivities. Trading was limited to small interests to load in S Africa where a Ultramax was fixed basis dely S India back to WC India/MEG range. A 38,000 dwt got $7,000/d with delivery Durban for a trip with mineral to Spore/Japan range.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it