September 14, 2015– September 18, 2015 Weekly market report.. Banchero Costa

Finally a positive week for the Capesize market, with a sudden large improvement in rates registered on Thursday and Friday. In the Pacific the presence of the miners plus several operators combined with an increased number of cargoes out of Brazil absorbing several ships forced charterers to pay more on the C5 route W Australia/Qingdao a $5.75.mt and then $6.00/mt done for end September/early October dates. The Saldanha Bay/China followed the trend accordingly with high $10s/mt apparently done. As said, the key route was Brazil, with several players there to fix ships for the first half October bss Tubarao/Qingdao. Freight rates jumped to $14.00/mt and a TCE of $15,000/16,000 bss delivery Singapore. Even in the Atlantic, the market improved quickly with a sudden lack of available tonnage. The fronthaul via N Atlantic was done at $27,000 bss delivery Gibraltar and the standard C7 Bolivar/Rotterdam was fixed at $7.25/mt for mid October dates. Not much reported for short/medium period. 

 

Rates in Atlantic were steady and the market registered some movements only out of USG where vessels were fixed around $12,250/d + $225,000 bb for a trip to Far East while cargoes to Gibraltar/Skaw range agreed around $10,000/d. Trades from ECS Am were done around $12,125/d + $210,000 bb a nice Kamsarmax and the TransAtlantic RV was fixed around $8,000/d + $850,000 bb for a standard Panamax. In Pacific the market showed a bit more activity in particular during the second part of the week. NoPac RV was agreed at $6,750/d on a standard Panamax basis North China delivery whilst Indonesia RV coal cargoes were reported around $5,250/d. Australian RV was reported around $6,750/d basis dely China. 

The value of a Kamsarmax open F East was around $7,250/d for a period of about 4/8 months, and around $7,500/$7,600/d for 1 year duration.

While rates kept under further pressure throughout the week, a good portion of chartering interest was still to ship coal from Indonesia to India. The $9,500/d initially reported on an Ultramax with delivery Malaysia and redely EC India, was followed by a number of similar trips reported agreed at unattractive levels. Nickel ore cargoes from the Philippines to China showed a 56,800 dwt fixed at $6,250/d with delivery Vietnam followed by a similar type accepting $5,750/d for the same trip with delivery NW China. An Ultramax took a quite unattractive $7,300/d plus $140,000 bb to perform a round basis aps delivery NoPac. Backhaul business reported a fancy 58,000 dwt done at a poor $4,500/d for first 65 days, $8,000/d balance duration from NW China to N Europe and an awful $1,500/d for first 70 days, $7,750/d balance for a 52,000 dwt carrying steels from S Korea to the USG. Better rates were agreed for smaller handies. A 37,500 dwt fixed a trip from central China to the USWC at $6,000/d for first 30 days, $8,000/d balance, near to a 52,000 dwt doing only $4,000/d flat rate for a similar trip.

Lower rates were also seen agreed from this region, where N Europe showed to resist the negative trend a little more. A 55,970 dwt fixed $14,250/d with delivery Cont for a trip via Baltic to the F East. $11,750/d was the level for a large Handymax int clinkers from N Spain to W Africa and a 56,000 dwt $15,000/d with scraps from Poland to the E Med, repeating the rate already agreed one week earlier. More painful for owners was the trend in S Europe. From the B Sea a fancy larger Ultramax got $13,000/d delivery Cannakkale for a trip to F East and a 57,000 dwt agreed $11,000/d on a very similar run. Handysize grain voyage rates from the B Sea to the usual Med discharging area also showed to fall further. From the other side of the Med basin a Handymax delivering Algeria carried clinkers into W Africa at $9,500/d and a 32,000 dwt fixed Morocco/USG at $6,000/d.

There was a long list of reported fixtures for Atlantic Am. Loading ex S Am a large Ultramax was done at $12,000/d plus $200,000 bb to Spore/Japan. Another one was done at $12,500/d plus $250,000 bb with redely EC India-Japan range. A 55,600 dwt fixed at $10,250/d plus $130,000 bb and a 50,900 dwt going to Spore/Japan range fetched $10,000/d plus $130,000 bb. From the same area interest to move cargo into WCS Am ended up with a 58,000 dwt fancy type fetching $18,000/d and a 34,000 dwt agreeing $12,750/d to carry rice into WCC Am. Cross trade from S Am reported a 31,000 dwt done at $11,250/d with redely Setubal. Concluded activity from the USG/NCS Am range showed another fancy 58,000 dwt doing around $1,550/d for USG/Cont and a 56,000 dwt done at $14,000/d on the same trade. A 55,700 dwt was agreed at $1,530/d for USG/F East. A 56,000 dwt fixed USG/WCC Am at $14,250/d and a similar size got $16,750/d from the USG to Chile.

Some more reports of different trips fixed from these waters showed lower rates agreed by owners with the exception of the inter MEG aggregates trade, on which another vessel was again booked at $8,500/d. A very low $5,500/d was the rate for an 18 years old 47,000 dwt to move coal from S Africa to Morocco. On the S Africa/F East run a much lower $11,000/d was agreed on a fancy large Ultramax basis aps delivery and no bb. A fancy 58,800 dwt got $9,000/daily to move fertilizers from the R Sea to China and a 57,300 dwt fixed at just $7,250/d to do 2/3 laden legs with dely MEG and redely Muscat/Japan range.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it