Capesize (Atlantic and Pacific)
Even if there were no sign of congestion easing or reasons other than a slight over supply of tonnage, especially in Far East, the market lowered last week. Chinese ports are still congested with delays up to 20 days, East Coast Australia Dalryple Bay maintains his congestion of about 25/30 days. In the meantime the significant newbuilding program is starting to have some impact on the rates and the key question is to whether the Chinese demand would be sufficient to keep all the new and old tonnage employed.
Panamax (Atlantic and Pacific)
A difficult market with some positive feelings by the end of the week but not all players convinced that the market was as good as some would like it to be. The Atlantic remained very mixed with ballasters still evident and not so strong demand. In the North Atlantic, tonnage and cargoes were well balanced but increase in the South American where cargoes were largely being serviced by tonnage coming from the East. In the East, most of vessels were fixed for short period as a result of the East coast South America demand. Short period rates for modern tonnage crept over $30,000 daily with owners now asking at least $33,000 daily for 5 to7 months trading while one year period rates were said to be close to $24,000 daily. Spot rates remained a bit lousy as many ships were attracted to ballast either in the USG or South America.
Handy (Far East/Pacific)
Activity was more quiet all around the area but on some trades rates showed their on-going strength and kept at good levels. The spot market proved to be firmer for the North Pacific rounds where Supramaxes were paid in the usd 23,000 daily level and Handies were getting 15,000. Short period interest was still in Handies, achieving slightly over the Nopac round trip rate and large modern Suprmaxes were worth over the usd 25,000 mark. Local trips still showed to get fixed at reasonable levels while owners were agreeing discounted rates for business from the South East Asia to the Indian Ocean.
Handy (North Europe/Mediterranean)
The on-going interest from operators to award tonnage for loading fertilizer cargoes from lower Baltic to the East and South America turned down to be indefinite business which kept a lot of talks alive without leading to any concluded fixtures. Still, the charterers in a more serious need to book tonnage from this area to the Middle East ended up agreeing good deals for owners. From the North Europe the leading activity focused on local short trips from the Northern area to carry coal into the UK/Continent range. Scrap to the East Med was still alive although reduced in volume, with a number of owners avoiding get involved with it due to the afterwards incapability to trade their tonnage through the Gulf of Aden, which most of the Black Sea originating business nowadays demands. Activity was also softer from Mediterranean and black sea waters.
Handy (USA/N.Atlantic/Lakes/S.America)
The week started with a softer demand from the USG and the owners' attempt to keep rates high led to a series of number of fixtures failed on subs. Trans-Atlantic round rates for larger vessels are now oriented to the low 20,000' s levels and a large supra was reported fixed for a trip to the East below usd 40,000. Rates were stronger from the South America where tonnage was lacking and charterers had to take tonnage from the other side of the ocean, even if tonnage not from the East Med can still get strong enough rates.
Handy (Indian Ocean/South Africa)
The chartering demand was smaller on the India/China iron ore trade, rates suffered some downward trend and supramaxs were getting figures in the upper 30,000's, which remained satisfactory levels for owners. The area was otherwise frozen on other trades.
Banchero Costa and Co Spa
Mail: research@bancosta.it
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