Capesize (Atlantic and Pacific)
Contrary to most expectations Capesize market, after a few days lowering, showed bullish attitude for the rest of the week and the index closed at a positive +65 points. The average of the 4 T/c routes was almost even, Brazil/China iron ore route, Brazil/Cont and the respective T/c were following this break even average while an improvement was seen on the Australia/China voyage and consequently T/c route. Voyage rate West Australia/Beilun+Baoshan got one dollar while the T/c improved of about $ 5,000 daily. It seems BHP was short of iron ore and decided to go on market to take several ships in the hope to get cheaper vessels instead wait next week when they expect market to improve considerably after all the Chinese returning to work after the New Lunar Year Holidays. Backhaul rate were also following this trend with the coal to Continent, both from Richards Bay and from East Coast Australia.
Panamax (Atlantic and Pacific)
Good end of the week for both basins: Atlantic with rates firming up and fresh inquiry appearing regularly. There is plenty of interest for trans-Atlantic rounds, and even some for trips to the East despite the premiums. Pacific little better than last week and the trend might continue, despite Chinese New Year celebrations some charterers saw an opportunity to make some good deals. There is steady demand for long-term period fixtures and rates reported had also moved up.
Handy (Far East/Pacific)
Contrary to the expectations, the Chinese lunar holidays started without bringing any further negative influence to the rates. The Handymax spot market still showed low rates agreed for single trips, but it hasn't reduced further and during second half/end of the week some increasing trend started building up. Period chartering interest remained alive assisting the market at last fixtures levels and afterwards started increasing again. The week ended up showing a modern fancy Supramax booked for 1 year employment at a daily rate well over the Usd 50,000. Smaller Handies kept struggling with the present market unable to support them enough.
Handy (North Europe/Mediterranean)
A little more activity from the Black Sea did not bring yet good enough rates for owners, especially the smaller handies showed to get lower money from this area. Supramax positioning business from the Mediterranean to the US Gulf keeps paying low whilst 2/3 laden lags Handymax employments starting from the same area showed owners fetching better rates. Activity from the Continent is still driven by the scrap trade although some fixing and failing seen through the week brought some worries to the owners. On this trade Supramax fetched a nice rate for an employment to the Middle East.
Handy (USA/N.Atlantic/Lakes/S.America)
A slow start of the week in combination with Brazil carnival celebrations showed a further weakening of the US Gulf and South American markets. Luckily for owners, there has been fresh chartering interest for short period, which similarly to what happened in the Pacific, is said to get fixed at better money compared to the inter-Atlantic spot trade. Unfortunately very few reports of concluded business where available. Rates registered a further decrease at the end of the week but at the same time a larger volume of fresh enquiry was off.
Handy (Indian Ocean/South Africa)
In spite of the very scarce available reports it is clear that rates for the India/China iron ore Supramax trade are quickly recovering to much better levels. The present levels in the area still allow charterers book fancy tonnage for period at rates that are over 10pct cheaper than what would be paid for similar tonnage delivering in the East. Little activity for Handysize was seen from the area at unexciting rates.
Banchero Costa and Co Spa
Mail: research@bancosta.it