28 April – 05 May 2006 weekly market report..Banchero Costa

Wednesday, 10 May 2006 13:12:54 (GMT+3)   |  
       

Capesize (Atlantic and Pacific) The week has been extremely quiet mostly due to the Golden Week in China, Japan and South Korea which paralyzed activity in those markets. For that matter activity has been very scarce also in the Western hemisphere, which should assist to a slow recovery over the next few days. BCI indices mostly unchanged. Panamax (Atlantic and Pacific) In Atlantic, the week ended with positive feeling taking also into consideration the end of the holiday period in Pacific. The Atlantic is currently supported by the major grain houses taking tonnage for both Atlantic and Pacific destinations. Short haul runs were also prevalent with healthy rates being paid, especially for the larger, modern types. In the Pacific, despite the absence of activity from several charterers because of the holiday season the market has held firm throughout the week. Still a fair amount of uncovered tonnage might influence in a negative way; however, this can be offset by a steady volume of existing enquiry with expectations of more orders entering the market next week when everybody will be back to the desks. Handy (Far East/Pacific) With China closed for holidays the whole week and Japan for most of it, the week started very quietly but slowly a number of reported fixtures concluded at very good money showed that the absence of two major players is not enough to really affect this firm side of the market. Period interest remains alive at healthy money and charterers having to fix single trips into Atlantic and Indian Ocean still needs to show big money to induce the owners to consider. Handy (North Europe/Mediterranean) A handymax from the Continent to the Far East has been reported fixed at much better money, tonnage lacking in the area and although so far the chartering demand remains poor it appears the market is boiling up. The feeling was further supported by a handysize vessel seen fixed for short period at very good money. Black Sea and Mediterranean remain very quiet with charterers strongly pushing for low money. Rumors were circulated about a handymax fixed from Black Sea to Middle East at more than $1,000 over the previous one but so far no further details were seen charterers involved with fertilizer transportation from Morocco to Mexico where squeezed by positional circumstances to pay much better money and the fixture reported this week is already 7/9 days old. Handy (US/N. Atlantic/Lakes/S. America) It is now clear that the US Gulf market is picking up on the trans-Atlantic trade although the large amount of tonnage available in this area will require a constant flow of fresh demand to avoid any leakages. South American keeps playing reasonably good, but keeps getting some affection by ballasters from the Mediterranean. Handy (Indian Ocean/South Africa) The two previous week's rush for fixing iron ore stem resulted into congesting most of the Indian ports. This in combination with China's full week holidays and the forthcoming monsoons has almost paralyzed any fresh chartering activity. As a result only a smaller aged handymax was reported fixed at very small money. South Africa was even more quit than previously. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it

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