Capesize (Atlantic and Pacific)
Next Chinese holidays are already affecting the market? It seems so. The market had a very slow start last week and gradually lost further. Rates slipped quite sharply towards the end of the week. A lot of iron ore from Western Australia to China was fixed, but a lot of business is still there. In the Atlantic there was little activity and market is slowly but constantly dropping. Baltic Capesize Index lost 667 points and the 4 T/c routes Usd 8,125.
Panamax (Atlantic and Pacific)
In both basins owners were discounting rates which went down quickly for all the week. New business has been very limited and the low Capesize market had a negative impact on the Panama market. The Atlantic was still absorbing many ballasters from the Pacific; owners were starting to fix on voyage basis rather than on time charter, and charterers were taking much more profit. The Pacific was in a Nervous and easier tone with rates slipping again and no fresh business entering, many charterers were watching paper with values falling alongside sliding Capesize rates. There was some period interest and owners have reduced rates, but charterers seemed to be taking time and waiting for some stability to return to the market.
Handy (Far East/Pacific)
The decrease of the chartering demand quickly affected the rates downwards. Most of the activity left was concentrating on Supramax coal stems from South East Asia to China, where there was still an extra demand for this commodity to fight against the heavy winter season. But the volume of this trade was not sufficient to prevent the tonnage building up, large Supras were easily booked well below usd 20,000 daily for the North Pacific rounds. No reports of concluded business were available for local trip or trips into India for the larger Handies. As usual the smaller sizes, even if experienced some rate depression, have kept the market levels much better than their larger size relatives. Supramax short period business was seen as the only positive card in this area, with lme types still booking well over usd 20,000 daily levels.
Handy (North Europe/Mediterranean)
The enlarging amount of vessels unwilling or unable to trade the Gulf of Aden has allowed charterers involved with steel and fertilizer trades to Americas to fetch some cheaper fixtures both for Supramax and Handy-sized tonnage. In connection, a smaller demand for loading to the East managed to bring some rate decrease also on this trade, in spite of the piracy problems. Activity from the Continent was still led by the scrap cargoes, but volumes to be carried were smaller which made rates become lower.
Handy (USA/N.Atlantic/Lakes/S.America)
A more quiet demand all around the Atlantic Americas generated an on-going fall on rates through the week which ended up with very limited trading. Trips to the East for large modern types were to be in the mid 40'000's daily with deliveries near to the loading place, but no fixture was reported concluded. Charterers showed to keep holding back in order to try to take further advantage from the slower demand. Also in this area period interest was quite alive with rates for Supramaxes ranging from mid 20,000's for 3/5 months, down to low 20,000's for a year.
Handy (Indian Ocean/South Africa)
The interest to load iron ore from India to China kept fading away with an immediate reflection on the daily time-charter rates which started to agree low 30,000's daily levels and ended up in showing vessel reported fixed with figures starting with a "2" in front. Activity on other trades was otherwise irrelevant.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it