Capesize (Atlantic and Pacific)
Very healthy week especially in Atlantic where the Capesize market has seen a lot of new requirements and/or new orders for lifting of iron ore and coal coming under various contracts of affreighments. In view of the usual lack of Capesizes availability in the Atlantic basin the market improved of about Usd 10,000 daily with the Tubarao/Rotterdam up to about Usd 16.30 and Bolivar/Rotterdam up to about Usd 17.25; the Transatlantic round reached very close to Usd 50,000 and the fronthaul about Usd 58,500. Pacific market instead remained quiet and with the absence of the major operators was more or less unchanged with the average of the 4 routes remained at about Usd 40,711.
Panamax (Atlantic and Pacific)
Rates held up during the week and trended sideways into the weekend. Although activity was slower in the Atlantic basin, tight tonnage from the North Continent helped to keep rates under pressure. The South America, on the other hand has been very slow. Levels in the Pacific have shown to be resilient with strong demand from Indonesia and Australia. Pacific Panamax business closed the week on a strong note, with continuing demand for ore and coal cargoes from China supporting much of the market. Demand for period tonnage also demonstrated the general sense of optimism pervading the market these days.
Handy (Far East/Pacific)
A sufficient amount of demand for supramax and handymax sizes was available in this area. But with the excess of tonnage available charterers still can book single trips at low levels. For these sizes the interest showed to be stronger for period with a variety of vessels getting booked for durations between 3 to 5 months and two years. Agreed rates were reasonable enough for upto 12 months employment whilst the longer commitments were agreed at quite unattractive levels. Activity for handy-sizes became very quiet.
Handy (North Europe/Mediterranean)
The chartering demand suddenly slowed down all around the European coasts. The Black Sea was the sole small exception, rates kept firm for this area more due to the less tonnage available combined with owners' unwillingness and reluctance to trade cargoes to or through the Red Sea waters, where most of the available business were bound for. Even to these areas, agreed rates became no longer as strong as they were during the previous week. More tonnage available in the East Med and North Europe started ballasting across.
Handy (USA/N.Atlantic/Lakes/S.America)
The Columbus Day holiday in U.S.A. on Monday froze the start of the activity but Tuesday market showed that in spite of the smaller volume of business quoted rates were holding nicely. Slightly better rate were agreed for a supramax performing a trip from East Coast South America to the Red Sea with redelivery in the Egyptian Med. Supramax and handymax still fetched quite decent rate both for trans-Atlantic employments and trips to the East. This market experienced a negative shake in the closing of the week with some spot tonnage getting "caught" by charterers at easier money. Only the ballasters showed resistance to the lower rates, waiting to see what the following week will bring. Activity for smaller handies was very limited.
Handy (Indian Ocean/South Africa)
A gradual return of the India/China iron ore chartering activity initially allowed charterers to book the spotter tonnage at lower rates, but through the week rates started to progressively climb with fixtures concluded higher levels and owners with tonnage still to be covered hoping to get even better levels in the short run. The interest for coal loading from South Africa into India faded away this week.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it