September 7, 2015– September 11, 2015 Weekly market report.. Banchero Costa

The Capesize market registered a steady week and volumes in the second part of the week were affected by Singapore and Geneva holidays. In Pacific, rates for standard route from W Australia to Qingdao were reported between $5/mt and $5.5/mt while very little evidence of coal cargoes from E Australia was recorded. Rates on the standard route from Tubarao to Qingdao dropped from $12/mt to just below $11/mt at the end of the week. In the Atlantic market very slow activity was registered and ships open in these waters started looking at Brazil loading cargoes as possible alternative for trip to East. Period activity was similarly quite limited and the premium showed by FFA for forward months did not help in narrowing gap between charterers’ offers and owners requests.

 

Rates in Atlantic were very tight with a Kamsarmax RV rumored to be agreed around $5,000/d basis Gibraltar delivery. Trades from ECS America softened further with around $12,400/d + $240,000 bb agreed on a nice Kamsarmax and cargoes from USG were fixed at $12,500/d + $250,000 bb on the same size. The TransAtlantic RV was fixed around $9,000/d +$90,000 bb on a LME Panamax, meanwhile Baltic RV accepted around $7,000/d for similar vessels. In F East the scenario was not so different: a standard Panamax on the No Pac RV basis N China delivery was fixed around $6,000/d while Australia RV agreed around $6,500/d. Indonesia RV was still fixed around $7,000/d for Indian discharge and $5,500/d + $50,000 bb for China delivery. Period on a nice Kamsarmax was around $7,300/d for short period and $7,750/d for 1 year duration.

A number of reported fixtures reconfirmed that prevailing rates are still sort of owner’s expectations. A little more interest was shown for spot enquiries of WCS Am with a 53,000 dwt fixing a trip from Peru to the F East at $12,000/d. A small Ultramax was reported fixed at $10,000/d plus $200,000 bb basis same dates, it was rumored that the latter one failed and the cargo was carried on a smaller unit. For loading ex NW Pacific a 54,000 dwt agreed $7,600/d plus $150,000 bb for a trip into Se Asia. F East loading cargoes were mostly bound to the EC India-MEG range. A 53,000 dwt got $8,000/d for delivery Thailand via Australia to Indian Ocean. A 17 year old Handymax fixed at $6,700/d from Indonesia to India and a fancy 63,000 dwt basis similar delivery got $10,500/d into WC India. On the SE Asia- China trade a 58,000 dwt saw a low $5,000/d. Backhaul rates also suffered with a 52,000 dwt taken from N China to Med at only $4,000/d for the 1 st 65 days and $7,250/d for the balance. A 53,500 dwt delivering in China fixed at a miserable $1,500/d daily for the 1 st 70 days and $7,700/d afterwards.

Demand out of the B Sea was limited to grain stems into N Africa and European destinations. The absence of chartering interest helped rates to decrease, a 56,000 dwt was fixed at $7,500/d into the W Med and a slightly smaller Supramax got $6,000/d basis redely N Spain. A 32,170 dwt was done at $7,900/d to Morocco reconfirming the better results handy size tonnage keeps achieving in a number of trades. There was a lot of noise about activity and improving rates from N Europe, which ended up with just a Supramax reported done for scrap out of the Baltic to E Med at a good $16,000/d. A 15 year old 46,000 dwt delivering at Morocco grabbed decent a $9,000/d for a 3/5 month commitment with redelivery Atlantic.

Demand kept smaller vessels for single voyages loading out of the USEC and from EC Mexico/NCS Am range. While more activity was seen from ECS Am. A 53,000 dwt was fixed at $14,100/d from the Mississippi River to the Med. The lower market in the M East coupled with owners preferences for longer employments resulted into 2 vessels fixing trips via S America to the F East with dely at Durban. A 57,800 dwt fixed at $10,750/d basis a more attractive redelivery at SE Asia and a 61,000 size fixed at $12,000/d with redely Japan. On the front haul towards the end of the week a 53,000 dwt was fixed at a lower $11,750/d plus $175,000 bb from ECS Am to the MEG. More interest was shown on the TA trade with a 58,000 dwt done at $11,500/d to Europe, a 52,000 dwt at $14,100/d + $175,000 bb int. B Sea and a 55,000 dwt to Med was agreed at $13,159/d. Some handysize vessels managed to be fixed on S Am to Cont/Med destinations basis delivery W Africa, with rates ranging from $7,000/d to $9,500/d depending on redely range, vessels size and specifications.

The $10,000/d plus $150,000 bb reported on a 52,000 dwt delivering S Africa for a trip with coal back to EC India, was less shocking then the $12,000/d + $200,000 bb reported last week on a similar trip. These fixtures show that this trade is going better compared to other employments available in the area. With a slightly northern delivery in the same area a 51,000 dwt was fixed at $7,000/d to Turkey. A miserable $2,600/d was paid to a 56,700 dwt from the MEG to the USG while on a shorter trip from the same area with a much worse redelivery a 46,500 dwt got $4,000/d into Sri Lanka.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it