Capesize (Atlantic and Pacific)
Capesize market started to slow down after various holidays in the Far East but the end of the week was extremely busy with the market gaining again: Baltic Capesize Index was up 412 points, the average of the 4 T/c routes increased $ 5,075 reaching $ 43,686 last Friday. The Tubarao/China iron ore route is still captured generally by ballasters from the Far East. The voyage rate exceeded the $ 31.00 level which means an equivalent t/c rate of close to $ 70,000 daily basis modern Capesize with delivery in the Continent. Trans-Atlantic market has also risen with more enquiries, and reached the level of about $ 46,000, while in the Pacific the same modern Capesize could now get very close to $ 40.000 daily. Iron ore from West Australia to China is also quite active with the voyage rate exceeding the level of $ 12.00 per m/ton.
Panamax (Atlantic and Pacific)
both in the Pacific and the Atlantic with stronger rates and plenty of enquiries. As requirements were covered they were replaced with fresh business. The South America enquiry continued to draw on tonnage in Asia where tonnage is tight. The long term period market also supported the market bringing good effects on short/medium period.
Handy (Far East/Pacific)
Period business dominated the chartering activity this week. Daily rates agreed for Supramaxes on one year duration showed to improve through the week and a large modern eco type new building was reported booked for 5 years with delivery at the end of next summer at a quite realistic level. It was also rumoured that a modern Handysize was fixed at usd 18,500 daily for a 3 to 5 months employement. The spot market for the larger sizes showed to be more in line with last dones rather than improve, while the smaller Handies proportionally kept enjoying a better trend.
Handy (North Europe/Mediterranean)
A fresh ignition of chartering enquiry for loading out of the Black Sea and North Europe helped the Atlantic market to hold firmer levels and reduced considerably amount of tonnage available for loading within this month. The number of reported fixtures was said to be smaller than the actually concluded. A number of operators involved with afterwards business loading out of Atlantic Americas made large efforts to award trans-Atlantic positioning cargoes and fixed tonnage basis 2 loaded legs, in an attempt to make savings on the return trip. Supramax rates for trips into the East have become high enough to cool down owners' interest to look for business loading across.
Handy (USA/N.Atlantic/Lakes/S.America)
Both the demand and the agreed rates on fixtures kept growing through the week for the Atlantic and the East bound destinations. Besides the reported fixtures which were showing firmer enough rates agreed, it was rumoured that a large modern eco type fetched about usd 60,000 delivery dop West Coast Central America via USG for a trip into the Far East. A larger flow of fresh business quickly washed away the tonnage available in South America, with the European open units already busy in local activity, charterers had to attract their loaders in the Indian Ocean. Also due to the much smaller amount of tonnage remaining unfixed, the week ended showing a general optimism on the Atlantic market where it will last in the next few days.
Handy (Indian Ocean/South Africa)
The chartering demand was very large for loading iron ore from the West Coast India to China. A large number of vessels were reported fixed with agreed rates showing to grow on a daily basis which initially averaged in the mid usd 30,000's daily levels. Afterwards similarly sized tonnage was reported achieving high usd 30,000's and the week ended with rumours of low usd 40,000's daily being agreed. It was not clear whether the lower rates agreed on South African coal round to India was due to positional matters, or due to the owners' confidence about a further growth of the Indian iron ore rates.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it