Capesize (Atlantic and Pacific)
Another week with an explosive Capesize market. All historical records of the BCI index have been bitten, exceeding the 9,000 threshold and the 4TC average over $106.000. In the Atlantic, there have been fixtures around $100.000 for vessels of 150.000 dwt, equivalent to about $110.000 for an index-type vessel for a round voyage, whilst for trip Far East we have reached $126.000. The Pacific market has also followed a rising trend with the round voyage at around $105.000 and the trip back at over $80.000 which is reflected in Richards Bay at over $30.00. Also extremely bullish the period market, with fixtures for 5 years delivery 2007 at $56.000 daily, 2 years at $70/71.000 and one year delivery Atlantic at an incredible $92.500.
Panamax (Atlantic and Pacific)
Period business remaining strong and are affecting eventually also the single trips in both basin, charterers are hoping for a stall in markets climb to new heights, but probably will not happen. The few vessels failing are refixing rapidly at better numbers. In the Atlantic, there was said to be slightly less inquiry, but rates firmed again. A trip out from the Continent fixed at $53,000 daily. A trans-Atlantic round voyage earned $50,000 daily, and another took $48,500 daily plus a ballast bonus. In period business, 6-7 months trading was said done at $50,000 daily, and 5-7 months at $48,000 daily. Out of the Pacific, an India/Far East run took a very firm $52,000 daily. An east coast Australia round was heard done at $46,000 daily, and a NoPac round fixed at $43,000 daily. In short period business, 6-7 months trading earned $46,000 daily, while periods of about 1-year took rates in the $42,500-$43,000 daily range. Longer period businesses of 5-years trading are now seeing rates in the high-$20,000's daily.
Handy (Far East/Pacific)
The charterers attitude of last week was confirmed through the new week by a new bunch of concluded period fixtures. The preference is now to take tonnage for one or two years employment, the agreed rates kept progressively climbing up and charterers are now looking as well to aged tonnage for long term commitment. The spot activity has been sufficiently active, with the Far East/Indian Ocean route showing a progressive decline on rates. Next week both China and Japan will celebrate long holidays and prompt tonnage starts to pile up, are we going to see some further decrease on the spot market?
Handy (North Europe/Mediterranean)
Activity volume turned upside-down with more business form the Continent and a more quiet demand out of the Black Sea. A couple of supramaxes got booked for short period with delivery north Europe at very good money and this market was pushed further up by the huge chartering demand out of US waters which compelled charterers to chase and fix continent-open tonnage. A couple of very healthy period fixtures based on delivery Mediterranean still managed keep these waters alive enough.
Handy (USA/N.Atlantic/Lakes/S.America)
Concluded fixture for tonnage loading ex the US Gulf have been rocketing on a daily basis all week long. Agreed rates have reached unpredictable levels and owners keep pushing to increase them further. South American business couldn't manage to be kept so much confidential any longer and the few emerged fixtures showed how firm the market is.
Handy (Indian Ocean/South Africa)
A huge wave of fresh demand for tonnage to load iron ore from India to China lead to a large number of concluded fixtures with a daily rate increase through the week which is putting these waters on fire. In spite of the above a couple of charterers booked handymax and handysize tonnage for period, probably because there is no longer any market area left where these deals could any case be finalized at better money for. South Africa was mostly quiet, mostly just watching the Indian Ocean frenzy.
Banchero Costa and Co Spa
Mail: research@bancosta.it