Capesize (Atlantic and Pacific)
Sharp drop in all routes for Capesize market during last week: Baltic Index dropped 1,939 points while the 4 T/c route of $ 23,411 daily, Iron ore route Brazil/China lost about $ 7 to reach $ 68.00 and about $ 166,000 on time charter basis. The East reported heaviest falls especially on iron ore route West Australia to China. The slide started early in the week despite one of the major Australian iron ore trader was taking upto 4 ships in one day. No particular changes in the long period time charter which appear to be relatively isolated from the current drop with one 174,000 dwt reported fixed for three years with June/July delivery this year at about $105,000 daily flat rate.
Panamax (Atlantic and Pacific)
The market slowed down for the whole week and everybody is awaiting next week to see which is the ''real'' trend of the market: Atlantic seems a bit stronger to support good rates, while in the Pacific rates are more subject to rebates. However Indian Ocean still showing very good market
Handy (Far East/Pacific)
The week started showing the very prompt tonnage still facing some difficulties to achieve the proper employment, with forward positions enjoying better rates, both for single emloyment and period charter. Mid week showed a reflection of this improving market with much better fixtures for owners of the spot tonnage and period chartering still going firmly irrespective of being short,
medium or longer duration. The evidence of better rates paid for handymaxes and supramaxes wasn't follwed by many reports about concluded deals for smaller handy tonnage, although owners of these sizes are said to be similarly enjoying this further market increase in the area.
Handy (North Europe/Mediterranean)
Spot trade around European coasts is again mostly linked to the scrap export from Continental area, that is washing away most of the available tonnage at firm rates mostly for Eastern Mediterranean destinations. Firm rates were also reported for smaller handies fixed out of the Mediterranean waters, while a small mystery still pervades the Black Sea area where some business was concluded under the table. The feeling remains that this area is still trading at levels, which are far below the ones ruling the North European market.
Handy (USA/N.Atlantic/Lakes/S.America)
Most of the prompter available tonnage for South America loading was fixed without bringing an increase to market levels. Only the few spot units left started seeing some small increase that progressively brought rates to frmer levels. There was as well a lot of fixing and failig both from this area ad for US Gulf loaders. But the final result leads the market to a general increase both for spot employments and peroid deals.
Handy (Indian Ocean/South Africa)
The charterers fixing frenzy for tonnage to perform iron ore cargoes from India to China grew up all along the week, the initially agreed $70,000 daily time-charter rate, which was considered already a quite firm level, ended up showing a vessel reported fixed at $100,000 daily for the same trip, while the week was finishing. Owners of large modern Supramaxes are said to be asking even $120,000daily for tonnage delivering on the coast, while charterers started chasing tonnage even coming open in northern Far East for performing trips out of India back to China. With the present firm Pacific market it will end up in quite a fight that may increase rates even further
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it