Capesize (Atlantic and Pacific)
The Capesize market was quickly moving up for most of last week. The market closed the week at Usd 28,390 on the 4 T/c routes i.e. an increase of Usd 6,296. There was a lot of activity driven by Vale, BHP Billiton and Rio Tinto who dominated with the iron ore trade from Brazil and Australia to China. Brazil to China rates reached the Usd 23/23.50 level, although done on time-charter; West Australia to China was above Usd 9 and Atlantic Market followed this trend in view of the large activity of Vale, and in fact the trip from Cont via Brazil to China rose upto $ 42,500 daily.
Panamax (Atlantic and Pacific)
Atlantic market showed rising rates and very tight supply of tonnage which looks even tighter next week: many vessels have been fixed and demand was still strong so charterers were still drawing tonnage from the Pacific, particularly for ECSA cargoes. As a consequence demand for period tonnage grew as the week progressed and sources reported ongoing demand with rates reportedly in the low-$20,000's daily range for short periods. Pacific basin was under a bit pressure again as many charterers, as said, were still chasing ships from this area to cover ECSAM or B.Sea cargoes. Again short period businesses were active this week.
Handy (Far East/Pacific)
Activity remained slow and limited due to some countries celebrating local holidays. Inter-Pacific and Indian Ocean bound trips kept getting fixed at the similar levels to last dones. Better rate was seen paid for the Pacific rounds. Backhaul trips into the much firmer Atlantic market paid very low levels and owners were much more inclined to fix round voyages via the USG back to the East for which charterers showed to pay quite better rates than what the same vessel could achieve on the North Pacific round. Charterers attempt to take advantage by chasing Supramax tonnage delivering in these waters for one year period didn't show owners willingness to give any discount on rates compared to rates called for in the Atlantic basin.
Handy (North Europe/Mediterranean)
A fresh flow of additional business loading out of Northern Europe clashed with the tight availability of tonnage and compelled charterers to book tonnage becoming available in the Mediterranean, which pushed up rates in both areas. Black sea stayed quite firm as well even if a little more tonnage was seen available for employment. Owners generally showed a strong resistance to give up on rates and chose to run spot rather than agree any discount. Recent reports of additional piracy action in the Gulf of Aden makes life very difficult for charterers involved with stems bound to the Red Sea, and most of the owners fixing direction Middle or Far East come to terms only basis transit via cape of Good Hope. A Supramax was rumored having fixed one year period basis delivery Black Sea at a nice usd 16,000 daily and generally a good volume of period enquiry was seen for tonnage available in Atlantic waters.
Handy (USA/N.Atlantic/Lakes/S.America)
The week opened showing a further firming up of rates in the USG and U.S.Atlantic waters with a Supramax reported fixed in the mid 30,000's for a trip to the Far East. Charterers involved with this trade were more actively fixing tonnage delivering in the Singapore/Japan range area for USG round voyages, with agreed rates rumored between usd 14/16,000. The quiet start of the South American market didn't last long with activity growing up again. The lack of tonnage available on the coast required charterers to fix basis delivery West Africa, South Africa and MEG. West African positioned tonnage was able to achieve a time-charter rates in the mid 20,000's daily for a trip via South America into the East. Owners however may have to be a bit cautious about their excitement; a larger volume of tonnage was predicted to be available by next June including Indian Ocean positions affected by the start of the monsoon season, making the present market applicable only to prompt positions.
Handy (Indian Ocean/South Africa)
Iron ore trade from India to China keeps stable with rates showing similar or slightly better levels compare to last dones. For the moment in spite of the next month the start of the moonsoon the demand for tonnage was not increased. Charterers who involved with liftings from the MEG or South Africa into Atlantic waters were said to manage to squeeze rates considerably.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it