Capesize (Atlantic and Pacific)
Another slide in the Capesize market this week: minus 1,462 points and minus Usd 17,896 daily on the 4 T/c routes. Business was just a bit smaller than the previous week, but this pushed shippers down to about Usd 13.50, the lowest rate done this week on the Iron Ore route from Western Australia to China. Atlantic market was softening as well with Transatlantic business at Usd 63,000 per day. Many operators expect market to continue drifting as there are several prompt Capesize, including few new building, that started to ballast from Far East to Brazil unfixed. Therefore expect market should have a surplus of tonnage in the South Brazil area at the beginning of next year.
Panamax (Atlantic and Pacific)
Market was affected by incoming Christmas holidays and some downward pressure was noted. Owners were accepting lower rates than their expectations in order to find cover before the holidays. In the Atlantic, fresh inquiry was limited and some fixing and failing was noted. In the East, the drop in rates was more evident, with charterers quickly seizing the advantage to push rates lower as a significant amount of available tonnage was weighting on the market.
Handy (Far East/Pacific)
Most of the Supramax spot activity was concentrated on local trips to move cargoes between the Singapore/Japan range with agreed daily timecharter rates staying well over the usd 20,000 mark, and on some fixtures even exceeding the usd 25,000 level. Supramax rates to India via Australia have now lined up a lot with these levels and have now attracted ballasters from the Indian Ocean due to some rate softening on the India/China iron ore trade. Some period interest was there for these sizes with large modern types showing to get fixed for short durations at the similar levels to the single local trip, and a modern type rumoured booked at usd 15,750 daily for 2 years. Activity for Handsizes was slower but so far there have been no signs of rates softening.
Handy (North Europe/Mediterranean)
A persistent flow of fresh enquiry kept rates quite firm. Tonnage availability for loading out of the Continent was stil short, and charterers tended to keep their requirements out of this area and their fixing as confidential as possible. The few reports emerging indicated that most of the activity this week was concentrated on Supramax sizes with acceptable rates agreed though far away from the American market levels. No reports were made available for business loading out of the Black Sea and Mediterranean but a Supramax delivering Port Said was rumoured to have fetched around usd 43,000 daily for trip East.
Handy (USA/N.Atlantic/Lakes/S.America)
Activity stayed large and fairly balanced between enquiries from USG/North America and South America. There was more demand for trans-Atlantic business which showed the larger Handies were worth close to the mid 20,000's daily level for this trade. The prevailing rate for Supramaxes on the Eastbound business stayed on the high 40,000's daily level for tonnage delivering on the loading coasts or proportionally smaller for dop deliveries on the other side of the Atlantic ocean. Some charterers still tried to make rates lower by taking tonnage for more than one laden leg. Demand for smaller Handies was quieter.
Handy (Indian Ocean/South Africa)
Very little activity in this area during this week where also the iron ore activity seemed to be calmed down and needed attracting the larger Handies to ballast into the South Pacific/Australian waters again in an attempt to award beter business. Handysize activity was quieter than usual and at this stage it is not foreseen to pick up again before the New Year.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it