September 28, 2015– October 2, 2015 Weekly market report.. Banchero Costa

Capesize market was more stable having reduced the volatility that was registered the previous week. In any case the holidays in China and S Korea did not help boosting the activity. After a slow start, rates remained at last done levels in the low $6/mt on W Aus to Qingdao routes and in the mid $5/mt for trip from Indonesia to India. Owners were willing to offer their vessels at lower rates in order to secure longer employments: rates from Tubarao to Qingdao were agreed around $13/mt bss October dates. Atlantic market was quite flat with decent activity for TransAtlantic rounds which stood in the high $6/mt for Bolivar/Rotterdam; fronthaul cargoes from the North were still scarce.

 

Holidays in China and Korea impacted on the F East market with rates dropped around $6,000/d for a 75,000 dwt bss China for No Pac RV. Market in South East Asia saw an 81,000 dwt agreed around $8,000/d bss Indonesia to EC India, meanwhile a 75,000 dwt was reported done around $6,000/d levels for a route from Indonesia to China. In Atlantic rates from ECS Am to F East were seen slight lower with a standard Kamsarmax fixed at $11,500/d + $150,000 bb and LBC Nature, a 71,000 dwt, being reported fixed with Cargill at tick more than $7,500/d bss + $75,000 bb bss ECS Am redely Skaw-Gibraltar. Spring Wealth, a 93,000 dwt vessel, was reported fixed at $6,000/d bss dop Germany via Baltic to Red Sea (redely Port Said) meanwhile Mediterranean market registered levels around $12,000/d for fronthaul and $5,500/d for Black Sea RV. The USG remained quite active with fronthaul done at $12,250/d + $225,000 bb and $8,000 + $75,000 bb for trip within Atlantic. Panama Canal suffered for congestion delaying vessels ETA in USG in ballast from F East.

Holidays in S Korea at the beginning of the week and in China at the end negatively affected the market removing further demand, especially affected were spot requirements loading out of SE Asia. The Indian market was steady and a fancy 58,000 dwt agreed $8,750/d for a trip from Indonesia to EC India, quickly followed by two smaller Supramaxes fixed at $7,000/d basis delivery passing Singapore to EC and WC India, and ended up into a 57,000 size delivering at Hong Kong which got just $6,500/d to move clinkers from Vietnam to EC India. Loading out of the same area a 51,900 dwt did a less bad $6,000/d bss delivery passing Singapore and redelivery S China but afterwards another fancy 58,000 size was done at just $5,250/d with delivery in the loading area to carry steels into China. A 52,000 size delivering dop Indonesia to go load a salt cargo at Australia for Japan discharge was fixed at $6,500/d, the 2/3 laden legs with delivery Indonesia and redelivery Muscat/Japan range agreed on a 34,000 showed how also handysizes are getting more hit by the negative market.

Demand was just enough to allow rates to reduce only slightly. Spot business loading ex N Europe paid better rates compared to Mediterranean and B Sea. From both loading ranges Handysizes kept better rates compared to larger sizes. Some clinker shipments to W Africa were registered with a 58,000 size booked at $11,500/d for a trip from Poland to Nigeria, a 55,000 dwt with delivery Spain agreed $10,250/d and a 58,700 dwt was paid $11,000/d basis delivery Portugal. From the same area an Ultramax delivering at Baltic got a lower $9,100/d for a trip from Baltic via R Sea with redelivery Port Said. Handysize fronthaul from Baltic showed a 34,000/d fixed at $12,250/d plus $125,000 bb for a trip into New Zealand, while timber was loaded from same area to Egyptian Med on a 33,000 size which got $10,000/d. More into the South a 32,000 dwt was booked with grains from B Sea to Italy at $8,000/d near to a 52,000 getting $7,750/d to E Med and a 57,000 dwt fixed from same area to N Europe at $6,000/d. Handysize backhaul showed a 37,000 size fixed at $6,250 daily from S France to the USG and a 33,000 dwt was done at $5,000/d with dely Gibraltar via Baltic to the same discharging range.

Slower demand pushed rates further down on these waters negatively affecting also Handysize. A fancy 58,000 dwt performing a petcoke cargo from the USG to N Europe agreed $10,500/d and in the same area a similar type booked a short trip from Caribs to the USG at just $6,000/d followed by an Ultramax getting a lower $5,500/d to carry pig iron from N Brazil to the USG. A smaller Handymax was done at $9,000/d from Texas to the Continent and, still from Texas, a 33,600 size fixed $10,350/d to carry grains into R Sea with redelivery at Port Said. Ex S America an Ultramax got $12,000/d for a trip into S Africa, another slightly smaller one did $11,250/d into the Med and a 63,000 size fixed into the MEG at just $11,700/d plus $165,000 bb, in closing, a 38,000 size got $9,500/d from Brazil to N Europe.

The local trade slowed due to the ongoing Arabic holidays. A 56,000 dwt carrying sulphur to China agreed a good $9,000/d, while a 33,800 dwt achieved $4,500/d on the same trade. Rates were still gloomy for spot business loading ex S Africa where a fancy 58,700 size got $11,750/d without any bonus for a trip to China, and a ‘sdari’ type was fixed at $8,750/d plus $50,000 bb to go back to India-MEG range.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it