Capesize (Atlantic and Pacific)
Again another disappointing week in the Capesize market which is now significant below Panamax and little above the Supramax one. Delays at Chinese and Brazil ports have reduced and remain only at East Coast Australian coal ports where it is still about 30 days. The result is more tonnage, especially new buildings, on the market, and therefore a lot of unfixed tonnage in ballast from Far East looking initially for Australia cargoes and, failing it, ballasting towards Brazil to look at Iron Ore from Brazil back to China. Atlantic market was also basically dead with very few cargoes quoted. The average of the 4 T/c routes of the Baltic Capesize Index fell down to Usd 25,115 daily.
Panamax (Atlantic and Pacific)
Still a healthy market both in the Atlantic and the East over the week.
In the Atlantic tonnage remained tight on the Continent but early ships in the Mediterranean were finding that it was more difficult to be fixed. Some charterers suggested fewer cargoes from South American, but other believed there would be more business to come. Certainly this market has been more favourable for ships in the East and it had a good impact on NoPac and Australian rounds. There has been short period activity this week with rates back to the low $30,000 daily range for five to seven months trading, $27,000 daily for one year and allegedly around $24,000 to $24,500 daily for two years.
Handy (Far East/Pacific)
Activity showed to resume quickly at the start of the week. After an initial lack of news, a number of concluded fixtures were reported, showing that this market still had to find its way before getting to a serous improvement. Charterers were stil interest to fix period tonnage, a vey modern 34,000 tonner agreed at usd 16,500 for one year commitment. Large modern Supramaxes were fixing daily rates from low to mid 20,000's usd on the 3/5 months employments. At the end of the week a 57,000 dwt N/B was reported fixed at high usd 27,000 daily for 6/8 months, the higher rate should also be influenced by charterers needing to trade Aden and cement cargoes. A similar unit was rumoured to have fixed usd 26,250 daily for an Australian round dely Japan/redely Spore-Japan range. The owners of these larger units showed to be still agreeable to fix discount rates for India bound business. The spot market was good for Handysize owners with 16,750 usd daily agreed for a North Pacific round and realistic rate paid to owners for backhaul employments.
Handy (North Europe/Mediterranean)
Reported activity from the European waters was very small this week. Some interest to load scrap and coal from North Europe to the Mediterranean kept the chartering talks alive in this region. The number of concluded fixtures appeared to be small and agreed rates were lower than the previous week. The chartering interest from the Black Sea and Mediterranean waters was on standby with a lot of talking and very little business concluded. In a generally softening Atlantic market, the Continent proved to be a better spot for the owners who enjoyed attractive rates for Scraps into Med and Grains into Africa. The situation from the Med waters showed a more contradictory trend with several vessels fixing and failing even though some decent rates were agreed on business originating from the Black Sea, but limited to owners of vessels who were able to trade the Gulf of Aden.
Handy (USA/N.Atlantic/Lakes/S.America)
The initial larger demand from the USG quickly faded away leaving the area in a more quiet atmosphere. Rates for larger unit on the trans-Atlantic fell below the usd 40,000 daily mark with no fresh enquiry into the East. The large amount of activity from south America allowed a few Supramaxes to fix rates in the high 20,000's/30,000 usd level for West or South Africa delivery, via East Coast South America to Cont-Med. Tonnage taking East-bound business was more easily agreeing aps deilveries with time-charter rate plus ballast bonus, a typical sign of charterers who were able to make resistance against owners.
Handy (Indian Ocean/South Africa)
The forthcoming monsoons coming from the West to the East already affected considerably time-charter rates from West India which in a week's time rates showed to decrease by almost usd 10,000 daily. In connection to this, East Coast India rates started to grow and now both coasts are paying similar money. At the closing of the week the Chinese advised they wish to stop importing of Indian origin iron ore due to its low quality, it still has to be seen if it will actually bring a severe damage to this market or just end up with Chinese buyers obtaining a commodity price reduction in exchange of still sourcing the commodity from India.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: http://www.bancosta.it/