Capesize (Atlantic and Pacific)
Last week the Baltic Capesize Index closed at Minus 473 points. Negative sign also on the 4 T/c routes ending the week at $148,426 (minus $ 7,488) and also on the main routes T/Atlantic or Pacific. The main reason is probably due to the fact that main Chinese plants have to shut down their activity to improve the quality of the air in Beijing for the time of the Olympic Games, but also because of the real lack of activities also in other areas of the world because of the Summer holidays period. The only sector who maintain good strength is the long period Time Charter, in particular we have noted one Wuhan Steel new building 180,000 dwt due ex yard Daewoo for October-November 2010 fixed for seven years t/c at a rate of about $ 53,000 net or gross for account Crownland.
Panamax (Atlantic and Pacific)
In Atlantic, the market is still negative: quite a number of spot/prompt ships and available tonnage still exceeding demand; but very few numbers of fresh cargoes. Nobody can see a recovery in the near future. A collision in the Mississippi River causing an oil spill also led to some fixing and failing delayed from the start. In the Pacific, the situation was a bit better with the rates increased and activity getting more.
Handy (Far East/Pacific)
A huge number of Supramax and Handymax tonnages were still available for employment, but a generally quiet chartering interest led rates to fall down during the week. Part of the few agreed fixtures were said to be failed on subjects. Charterers' interest for period deals declined. Smaller sizes are said to go through a more positive trends but supporting details are still not available.
Handy (North Europe/Mediterranean)
The tonnage demand was generally small in this area but the few fixtures reported showed that rates were still strong enough for owners. Very small demand from the Continent compared with the nice enough rates agreed for a modern 52,000 dwt tonner into the Med Sea showed that most activity from Northern Europe was kept under wraps. As the Med market was quiet, the Black Sea was mainly loading tonnage for Middle-East directions.
Handy (USA/N.Atlantic/Lakes/S.America)
The week started showing a further decrease on the chartering demand. Luckily for the owners, the amount of tonnage open on American coast was small but enough to keep the charterers' interest for period. At mid-week the rates were seen further decreasing and the period interest vanishing. A fresh amount of South American business was said to be in the market, details of which were not available. But the week ended showing the latest fixtures were concluded at the last-done levels.
Handy (Indian Ocean/South Africa)
A good number of fixtures were reported in this area. Market in South Africa and India were active whilst outbound business from the MEG looked dead. Rates for the trades from India to China and South Africa to Atlantic were on a very low level. Higher rates were paid for the trades from South Africa to the East, which seemed a little contradictory. Charterers should have to pay more to send tonnage to East due to the subsequent poor market, then why the India-China iron ore trade should not be paid a better rate as well?
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it