Capesize (Atlantic and Pacific)
After Christmas and the end of the Year holidays when market was silent we assisted, in this 4 days week, in a great start of the New Year with basically all areas and all periods jumping up considerably.
The T/C average gained more than $3.500, the T/A round being the most under pressure sector jumped from $69.273 to $74.040 daily while Pacific rounds from $67,773 to $70,136. Fronthaul business from $79.477 to $84.795 while backhaul from $55,918 to $58,264 daily, a progress of about 4.2 percent in just 4 days: not that bad. Capesize period T/c increased as well: modern 175.000 dwt have been taken for 2 years by Transfield at $57.000 daily with prompt delivery in
Far East. Prospects for the short time are expected to be still very firm. On the
Brazil/
China voyage basis run it has been reported one fixture that may boost the market further: Sepetiba/Beilun for 1/10 Feb fixed at $37.50.
Panamax (Atlantic and Pacific)
The Atlantic Panamax sector still very busy, with rates said to have good upward potential. January remaining with good numbers of fresh inquiries, notably from the South
Africa region and not that much tonnage available before early February, which is pushing rates up. The Indian Ocean is said to be hot, with cargoes requiring prompt tonnage and a dearth of same. Overaged tonnage has been seeing very firm rates of $32,000-33,000 daily from the region. The Pacific bit quiet, with traders in
China and
Japan on holidays for a while.
Handy (Far East/Pacific)
A smaller volume of activity was generated only by the holidays and there still seems a lot of business to go. The “real” market will probably start to be seen by next Tuesday when also the Japanese shall be back to work. In the meantime operators have reconfirmed their trust in a long-lasting stable firm market by booking a couple of supramaxes for 12 and 24 months employment at high enough money. Although no fixtures have been reported the spot market levels have suffered a remarkable decrease, a fancy supramax was rumored to have fixed low 30,000's for trip with clinkers from
China to Persian Gulf, which over 15pct lower than what she would have achieved before Christmas.
Handy (North Europe/Mediterranean)
Spot activity from Black Sea and Mediterranean areas remains quiet even if the number of available tonnage in the area is reduced since last year. There is few fixable business ex-Black Sea, mostly to the mid-east and handymax owners managing to fix their tonnage at $22/23,000 daily Canakkale delivery must consider themselves lucky, although most of vessels decide ballast cross to take advantage of the
US Gulf market. It was interesting to see that Cosco in spite of the lousy spot trend in this area had to pay good money to owners for booking two handmaxes for 24 months period.
Handy (USA/N.Atlantic/Lakes/S.America)
Christmas and New Year's holidays didn't prevent the
US Gulf market to remain firm and perhaps to strengthen little further. Tonnage coming available in the area is seriously lacking and the ongoing demand for transatlantic business combined with some Pacific pausing is increasing rates to the East. The sole fixture reported on this trade is too old to be a guideline. But more recently similar size vessel is said to have grabbed mid 20,000's delivery back in the Central Mediterranean for the same trip, and another one appears to have fixed 45,000 basis delivery
US Gulf redelivery
India. Business from
South America is still quite.
Handy (Indian Ocean/South Africa)
Here also the lower spot market levels ruling on the customary
India/
China iron ore trade did not allow long term period interested charterers to achieve discounts with their fixtures, and this diffused Long period interest pushes a lot of comfort around the shipping people. But also the spot trade looks to become more positive in the short run as much less tonnage available been Persian Gulf and
India, and charterers demand for moving clinkers,
iron ore and aggregates is growing.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it