Capesize (Atlantic and Pacific)
The optimism seen during last week already faded away. Rates on the Tubarao/China iron ore route quickly tumbled down from the Usd 30.00 down to about Usd 26.00 while in the East the iron ore route from West Australia to Qingdao went from about Usd 13.50 to just below Usd 11.00. There has been some period activity with the MV Nord Kraft been bought by Greek Owners and to be renamed "Aurora" 171,199 mt dwt built 2000 being reported fixed to Rio Tinto for 3 years at Usd 27,000 daily. The Baltic Cape Index lost 806 points and the average of the 4 T/c routed decreased from Usd 41,877 down to Usd 32,157 per day.
Panamax (Atlantic and Pacific)
A strong week for Panamaxes in the Atlantic, and a bit less so in the Pacific. South America continued to draw tonnage from the Pacific even from as far afield as North China and Japan. Period trade has been active mainly in the Pacific but also in the Atlantic, with charterers seeking cover for short and longer term.
Handy (Far East/Pacific)
Charterers showed to still have more interest in short period deals. A large number of Supramaxes was reported fixed for 3/5 or 5/7 months employment at rates in the high 20,000 usd dollar daily level and a handysize was rumored to have been fixed usd 18,000 daily for one year. The spot market gave an impression that the amount of activity was small, but it proved that this was only charterers' attempted to slow down the rate increase. The few reported fixtures showed that Supramaxes were worth 30/31,000 usd daily and even positioning business to India was agreed at 25,000. There was some slowdown in the inter-Far East trade due to loading congestion which led to uncertainty and postponing of the loading dates for next requirement. Reports for Handysize activity were limited but the usd 20,000 agreed on a NoPac round for a modern 33,000 tonner showed that owners of these units were still going through an enjoyable market.
Handy (North Europe/Mediterranean)
The fixture reports showed that there were much interest for 2 laden legs Atlantic round voyage employments or 3/5 months period charter. Also demand for loading scrap out of the North European ports was very alive again, in connection with the on-going cement trade from this area, it was said to be bringing further strength. No activity was reported concluded out of the Black Sea, although the area was said to be still paying healthy rates for East bound business. There was also a large volume of activity for Handysize grain loading to the Atlantic and East destinations which built up loading congestion at some of the Ukrainian ports.
Handy (USA/N.Atlantic/Lakes/S.America)
The market stayed very firm on Atlantic Americas' coasts. A large volume of activity out of the USG showed that modern Supras easily achieved daily t/c rates in the usd 50,000 mark for Eastbound trips in which charterers interest was larger this week. Fresh demand for Handysize grain stems showed the smaller modern types fetching usd 30,000 daily for trans-Atlantic employment, on all sizes charterers showed a lot of willingness to entertain short period. There was even more pressure on South America loading and a lot of Eastbound Supramax sized stems pushed rates up for the larger unites. Tonnage delivering in the West African ports was reported fixed near to usd 45,000 daily for grains via South America to Spore-Japan range while other charterers paid a rate in the high 30,000's daily for a similar size delivering at East Africa. The week ended with healthy numbers paid also for the smaller units and some slowdown of chartering demand from the USG while an additional flow of enquiry was expected from South America.
Handy (Indian Ocean/South Africa)
Rates for the West Coast India/China iron ore Supramax run remained firm showing improved levels in the middle of the week with some units booked at 45,000 daily t/c rates. The week ended with rates back to the low 40,000's levels, but it should only be a small interval and it is rumoured that on the forthcoming week rates will go back to similar levels and firm up further. Rates for loading out of the East Coast showed to progressively get closer to the ones from the West, contrary to the previous week where there was a 5/7000 usd gap.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it