Capesize (Atlantic and Pacific)
Capesize market dropped significantly last week, but there was some resistance from the owners side to invert the trend from Thursday to limit loss on the index to a minus 331 points and minus Usd 4,212 on the 4 T/c routes. Iron ore from West Australia to China went down to very close to Usd 7, but then increased to Usd 7.80 at the end of the week. Iron Ore from Brazil to China decreased from about Usd 24 down to just below Usd 22, but with very few activity notwithstanding Vale back again on market for few cargoes: rumours say they already covered at about $ 21.00 level. Atlantic market was showing very little activity with one fixture of Oldendorff who took one cape ballasting from China at Usd 10,500 to cover one iron ore cargo from Tubarao to Continent.
Panamax (Atlantic and Pacific)
Not really a good week either on the Atlantic or the Pacific: in the Atlantic rates were on low side even if the number of not prompt tonnage remained tight, the fresh business was limited. Ships faced limited employment from the US Gulf and South America, fronthaul rates were under pressure. In this trade rates had been hovering around $30,000 daily and at these levels charterers were sourcing US Gulf cargoes with tonnage ballasting from the East. In the pacific rates dropped even more with reports that numbers of vessels were fixed and failed as charterers were expecting lower market. However capesize market which seemed improving brought a more positive sentiment by the end of week.
Handy (Far East/Pacific)
Supramax rates showed to remain as last dones levels, some contradictory fixtures were reported on the inter-Far East trades where the better agreed rates proved to be linked with positional matters. The situation became more stable through the week when a general consolidation grew to slightly better levels, and was further assisted by a few units fixing to Indian Ocean at more reasonable levels. An additional demand for tonnage delivering in the Far East for USG rounds showed charterers agreed nice rates with large modern eco type, which should bring a little more stability to the local trades. Even if the North Pacific round is nowadays commanding daily t/c rate in the usd 17,000's, it remains a few thousand u.s. dollars less compared to what the same vessel could earn by loading from the USG.
Handy (North Europe/Mediterranean)
A stable demand for tonnage to load grains and fertilizers out f the Black Sea, assisted by some new steel enquiry, led to a new bunch of concluded fixtures, mostly into Middle East destinations. Nice rate was agreed on top of the transit via Cape of Good Hope and the redelivery passing South Africa. A supramax was taken on delivery India for a Black Sea round voyage at a rate plat to what a tonnage is achieving by delivering in the Far East for USG rounds. Handysize owners kept enjoying the regular flow of fresh grain and fertilizer stem loading out of the Continent and a couple of units delivering in the Mediterranean waters here were committed for short period at nice rate.
Handy (USA/N.Atlantic/Lakes/S.America)
Weaker activity from South America led to a number of handy-sized fixtures reported concluded at lower rate, with no reports available for handymaxes and supramxes. The USG kept showing a much stronger attitude. And even if in the middle of the week rates for forward positions were described lower compared to the spot market, the market strength in this area was reconfirmed shortly afterwards with higher rates still being agreed on the trans-Atlantic trade and a supramax tonnage rumored fixed at usd 25,000 daily for 3/5 months employment.
Handy (Indian Ocean/South Africa)
Most of the charterers' demand was concentrated on loading iron ore out of the East Coast India where supramax daily t/c rates have consolidated to levels well in excess of the 20,000 usd mark. 20,000 usd was also paid to a smaller supra loading on the West Coast where the rest of the trades showed to stay quiet. With South Africa showing its idleness again and instability at present, the excess of tonnage available is now only able to look at the Black Sea loading chances.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it