Capesize (Atlantic and Pacific)
A very strong week in Capesize market with the high jump of the Baltic Exchange index by 27% from 1361 to 1728 points. Market had more activity in both basins especially due to the considerable numbers of cargoes of iron ore to China. Vale continued to book tonnage to transport iron ore from their ports (Tubarao, PDM) to China, whilst a good number of cargoes had been fixed by Chinese with loading CSN Terminal in Sepetiba. Considering the present economic crisis, Pacific market is still very strong. A few period fixtures had been reported with charterers paying a premium on the spot.
Panamax (Atlantic and Pacific)
Atlantic market showed a better week with more fresh inquiry for grain cargoes from ECSA/USG to China; owners demanding a premium for taking their vessels to depressed places where current rates are at all-time low. Pacific is one of these regions and market are very weak, many prompt tonnage are there and owns basically taking any numbers fm charts just to move their tonnage while others decide to lay up the vessels. Rates are still under severe pressure and Pacific rounds will not see much more than $2,000 daily, if that. Little movements seen for 1 year or short periods with dely Atlantic especially.
Handy (Far East/Pacific)
The holidays further slowed down the chartering activity even if same were not celebrated as widely in the Pacific based countries. The basic problem is that physical market is very poor of activity in these areas, so even if the volume of the tonnage still to be employed decreased a little bit, there was not enough activity to allow any bettering. Rates decreased further and also the worldwide resumption of activity has so far not brought any benefit at all to this area. Much better money was seen agreed on ½ year duration period fixtures for Supramaxes.
Handy (North Europe/Mediterranean)
In a general very slow chartering activity all around the waters of the Cont, a little pressure was seen in the Black Sea area for tonnage able to secure December canceling at loading ports. End of the year contractual reasons in combination with a risk of carrying charges levied at loading ports as from the first of December on the grain cargoes, allowed some owners to achieve a little bit better fixtures. The dream was quite short as the New Year brought also this area back to its original crisis.
Handy (USA/N.Atlantic/Lakes/S.America)
Contrary to the Far East, Atlantic market was active more on Transatlantic and Atlantic trades than in Far Eastern trades, both from the USG and South America. Unfortunately in view of the huge surplus of tonnage this cannot bring so far a real benefit to rates. Only a marginal improvement could be seen on a few fixtures. A bit better levels were also agreed for short period commitments on Handymax Supramax tonnage.
Handy (Indian Ocean/South Africa)
Iron ore from India to China kept leading the activity in this area. At the end of last year rates for single trips were generally better than in other areas. This was due to the afterwards negative position, in Pacific waters, where the market was so poor for owners, and it was confirmed by the lower rates agreed for trips to USG or short period. The more recent fixtures on this trade were concluded at quite lower levels whilst a small over-aged Handymax was booked at acceptable money for a trip from S. Africa to the Cont, but again to end up in an area which at least for the time is very poor of business.
Banchero Costa and Co Spa
Mail: research@bancosta.it
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