Capesize (Atlantic and Pacific)
Another relatively active and positive week with improvements moderate, but regular. Mostly we have seen operators returning to the market with fixtures for short/medium period up to one year whilst Cargill extended two capes for two years t/c. The transatlantic round is still worth around $30/32,000, the fronthaul about 43/44000 and the Pacific round more or less equal to the Atlantic round. The BCI index climbed by 106 points whilst the average of the 4 t/c routes has improved by 1484 points closing at $33,626 a day.
Panamax (Atlantic and Pacific)
In the Atlantic, the week started with still healthy levels, pushed by the route from the East Coast
South America which achieved levels in excess of $23,000 for an end June loader but thereafter a lack of July cargoes and an abundance of available tonnage stopped the market in its tracks. Also the Atlantic round voyage rate had earlier eased over $20,000 daily but by the end of the week for both routes with July loading had dropped back. By the end of the week rates dropped considerably closing the week with an evident soft tone. In the Pacific, the market started showing very little differential between the single trip and the period, inducing charterers to choose the second one and speculating on an expected continuous increase in the market. But by the middle of the week market eased, rates went down and a considerable number of fixtures failed changing completely the direction of the trend.
Handy (Far East/Pacific)
With a good activity going on around all Pacific areas the chartering trend remains linked to the short period fixing which looks the smoothest solution for people in need to move cargoes and overcome owners reluctance and more expensive rates for single trips. A fresh chartering interest for Supramaxes on 12 months period employments shows operators looking positively into the future.
Handy (North Europe/Mediterranean)
The Black Sea remains short of chartering interest and fails to go after the positive growth of other market areas. Operators involved with contractual shipments are positioning their tonnage to cover same; the Handymax tonnage getting open there has either to choose between direction East at a timecharter rate just over the mid teens or direction Americas at a couple of thousand dollars less. The continent still appears quiet on the surface but is actually more active and firmer, younger Supramaxes are said to achieve close to $20,000 for trips from Baltic to the States and charterers are trying to grab the available tonnage off market before rates should rise further.
Handy (US/N. Atlantic/Lakes/S. America)
The US Gulf is short of June Handymax positions and pet coke charts involved with transatlantic trades are struggling to cover their business. Time charter rates have improved and recently similar money is paid either for employments toward the East or the West. Period chartering interest is also alive at rates which are getting closer to the ones achievable in Pacific waters. South American market remains sound and healthy with fresh interest for sugar business to
Middle East.
Handy (Indian Ocean/South Africa)
South
Africa has brought a good lead to this market with increased activity and good fixtures concluded showing that now owners are more easily able to achieve delivery from where they are ending out of previous employment rather than ballasting to load port. Reported fixtures on
iron ore trade showed contradictory levels but always good enough agreed money.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it