After the rush to fix by Vale and Rio Tinto from Brazil and West Australia to China charter rates continued to slide. The Baltic Capesize Index lost another 105 points last week with the average timecharter rate losing Usd 1,533. Brazil/China was fixed below Usd 16.00 and West Australia/China between Usd 6.75 and 7.00 without any exciting movements notwithstanding the fair amount of cargoes moved by both Rio Rinto and BHP Billiton.
Panamax (Atlantic and Pacific)
The expectations for this week were positive. But as from the beginning of the week this feeling rapidly changed as new expected cargoes didn't come out and rates for trans-Atlantic rounds had dropped back to the $15,000-$16,000 daily range including rates for the trips out which fall back as the week progressed in the $16,000-$18,000 daily range. This situation has also negatively influenced by Argentinean strikes which kept going despite were promised to conclude quickly. Pacific Panamax business showed negative trend as well for whole week: Atlantic cargoes which represented for the last weeks good covering for Pacific ships becoming poor. Rates for Pacific rounds via the Atlantic did pay more than an intra-Pacific round, but that was not saying much. Lack of activity for periods has been noted.
Handy (Far East/Pacific)
Even if no concluded fixtures were officially reported, the chartering interest remained larger for smaller Handies, which were able to achieve rates on spot business that were not penalized as much as for the larger sizes. Period chartering interest revived for large modern Supramaxes, with a few fixtures concluded on confidential basis for durations between the 3/5 months and the 2 years, always at rates almost double of what owners could have achieved on local single trips. Backhaul trips which finalized at lower rates even if Atlantic rates still much better than pacific ones, were no longer as attractive as they were a couple of weeks ago. The week ended up in a very quiet atmosphere which was predicted not to change in the short run.
Handy (North Europe/Mediterranean)
The Black Sea market appeared a little bit mysterious this week, with a limited volume of enquiry, not much tonnage available and charterers in need to cover their stems to the Middle East not being able to drive any interest from the available vessels'. An ordinary over-aged Supramax was fixed with delivery Muscat to load in the Black Sea for a cargo back to India, at a rate she would have hardly achieved for a trip via India to China, although duration of the fixed business shall be much longer. Mediterranean was quiet with some attempts from charterers to push around low-paying positioning business towards the USG. Northern Europe stayed active but even if the requirements enlarged and not much tonnage was available, the rates agreed showed to considerably bend downward between the beginning and the end of the working week.
Handy (USA/N.Atlantic/Lakes/S.America)
Market has been a little lousy around the Atlantic America where a considerable drop of East Bound enquiries brought trans-Atlantic rates into a daily decrease. A short period fixture reported concluded only at a few thousand dollars daily less than what the same vessel would have earned by delivering in Pacific waters. The week concluded in a quite sleepy atmosphere which was predicted to last into the coming one. Rumors anticipated new enquiry to come during April with a consequent benefit to rates.
Handy (Indian Ocean/South Africa)
A larger amount of Supramaxes and Handymaxes was reported fixed from India to China on the customary iron ore trade showing a little bit higher rates agreed in return. India round voyage via South Africa reported concluded at a lower rate may suggest that owners instead of diving straight into pacific basin at a higher rate prefer to buy some time in the area and feel confident that India/China rates shall pick up further in the future. Also in this area smaller handies proved to be doing better.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it