22-29 April 2005 weekly market report..Banchero Costa

22-29 April 2005 weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) The week begun with a slow negative trend, which accelerated from Tuesday onwards after the fixture of “Lowlands Phoenix” between Cobelfret and Cargill for Bolivar/Rotterdam at $19.50, about $3 below market at that point. The BCI index lost over the week 712 points, equal to 11.2% of the total. The Capesize market in the Pacific has been moving downwards until Thursday after which on Friday has been a modest rebound. The 4 t/c routes closed at $63'316 with a drop of $10'295. Coal ex-Richards Bay for Rotterdam is returning below $18. Bunker costs keep rising, getting close to $250 per ton for IFO 380 cst in Continent/Gibraltar. Panamax (Atlantic and Pacific) The confluence of holidays this week and next have resulted in a very inactive market and there has been again relatively few reports of concluded business to emerge. Greek Easter holidays have begun, Monday is the May Day holiday in Europe and Japanese Golden Week holidays begin next week so all these festivities together induced the owners eager to cover their prompt positions at much lower rates in both basins. Atlantic rates are also under continuing pressure as owners ballast in ships from the east to take advantage of the great level of inquiry. Rates in the Pacific have yet to find bottom, with little reported done. There has been no activity at all on period as owners unwilling to lock theirs vessels at present market levels and charterers don't see the reason of paying premium in uncertain market. Handy (Far East/Pacific) In the week starting with a descending trend in almost the whole world, this has been the most affected area, with a still abundant availability of prompt tonnage to be covered and almost no fresh requirements available. In the first days handymax time charter rates have been losing around $1'000 daily on all trades. In contradiction with the forthcoming major holidays in the Far East, the end of the week showed signs of the rate fall stabilizing with some improvements as well. It will be very interesting to watch next week's developments with China and Japan close up. Handy (North Europe/Mediterranean) The decrease in rates has also affected the shipping business originating out of these countries, although levels are comparatively far better then in Pacific and middle eastern areas, with the Continent remaining more active both on cross trade and Middle/Far East destinations and tonnage lacking. Handy (US/N. Atlantic/Lakes/S. America) There has been some little ping-pong between the US Gulf and the South American markets. The first one looked more depressed in the first part of the week with South America keeping firmer. Afterwards, new interest to ship coal out of the US Gulf/ North Coast South America revived the atmosphere while South America called down. Several Far East available vessels start ballasting to South America in search for a better fixture, which could more seriously affect the future levels. Handy (Indian Ocean/South Africa) It is almost surprising how a marginal trade like the India/China iron ore can affect the world-wide shipping market trend. These shipments were supposed to calm down by end of May/beg June due to the monsoon season affecting Indian coasts, but Chinese traders shut down the import earlier in an effort to consistently push down the commodity price. The present over-stock combined with internal trading allows the Chinese to stop import for a while making this shipping leg disappear with a consistent negative trend to all the related areas. Some more activity has been concluded from South Africa at levels not easy to be judged but surely better than what some owners would have achieved from Pacific waters. Banchero Costa