16– 21 December 2007 Weekly market report..Banchero Costa

Tuesday, 25 December 2007 13:52:06 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

A very slow week with little activity in all the Shipping Market mainly in view of the coming Christmas holidays. However Capesize market was falling down quite considerably also due to lack of requirement in Far East after the recent fixing run by the major Australian Iron Ore operators. The Atlantic was also down in view of the shippers VALE (The former name of CVRD) are withdrawing many stems probably in view of the expected increase of the iron ore prices which should be declared soon. Coal from South Africa was also lowering and being fixed below Usd 100,000 for trip back equiv to about $ 42/mt for the Richards Bay / Rotterdam run.

Panamax (Atlantic and Pacific)

Week started very slow in the Atlantic basin with rates dropping due to prompt ship available and fewer fresh orders, also many owns are under pressure to cover their ships before holidays arriving. In Pacific many ships are seeking 'positional'' voyages and looking for short trips however the demand for short period candidates is still quite good.

Handy (Far East/Pacific)

Rates kept lowering further in the area with some owners willing to fix before Christmas holidays contributing to same. Now also the timecharter rates agreed for pacific round voyages started showing a little more consistent decrease. Charterers remain quite interested in taking tonnage for short period with delivery next January, and these are the deals where the best money is paid, leaving a reasonable confidence that market in this area will start recovering after the new year starts.

Handy (North Europe/Mediterranean)

Even if indexes related to these areas were seen on a descending trade, good enough rates appear to be still agreed for Black Sea loading business, which as usual since the last months is mostly bound to Middle East destinations. The scrap charterers have been quieter from Continent but the never ending demand for tonnage to load from Atlantic Americas, which still commands good rates for tonnage delivering ex Continent, has so far kept this side of the market quite firm.

Handy (USA/N.Atlantic/Lakes/S.America)

Even if Christmas holidays got so close, there was no affection to the US Gulf and South American activity which kept washing away the remaining prompt tonnage at higher rates compared to the previous week's ones. Apparently still not satiated from this, charterers started quoting out requirements for January loading, showing at the same time their willingness to pay decent enough rates for same. But owners of later available tonnage are playing the hardball and may hold tight until the New Year comes before doing any fixing. Short period chartering interest was alive as well, with very good rates agreed.

Handy (Indian Ocean/South Africa)

East Coast Indian iron ore loading showed to be going through some crisis, the volume of requirements from this side of the country considerably diminished, the few available were fixed at lower rates with some tonnage ballasting to the Western side. Form here rates are keeping well but it starts being questioned if the available cargo volume may be sufficient to feed a possible overlap of tonnage. The Indian Ocean as well saw a revived chartering interest for short period employment for which charterers are paying attractive money.

Banchero Costa and Co Spa

Mail: research@bancosta.it
Web: www.bancosta.it


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