Capesize (Atlantic and Pacific)
The week ended on a positive note with the market that gained again well especially in Far East. Baltic Index closed at Usd 42,242 on the 4 T/c routes which represents an increase of Usd 7,830 daily. There was some short period (about 4/6 or 5/7 months) activity for modern capes in the region of about Usd 45,000 daily. West Australia/China route jumped up again at about Usd 13.25 level, while Atlantic market remained quite silent if we exclude few Brazil/China cargoes concluded at about Usd 31/31.50 level. Tonnage in Atlantic remains short if we exclude all the ballasters coming from Far East which instead are still quite numerous.
Panamax (Atlantic and Pacific)
A very soft week with rates off in the Pacific and the Atlantic. No fresh inquiry and build-up of early ships kept rates lower. Next Chinese holidays might have some influence on the present market: in fact, in the Atlantic, early ships stil found limited opportunity but there was more interest for February loaders and expected growing demand for tonnage to load in South America. Chinese charterers were already booking March cargoes. In the long period business neendn't discounting their rates especially for delivery after February.
Handy (Far East/Pacific)
A considerable number of prompt Supramax enquiries for local trips showed time-charter rates were increasing rapidly as soon as the week began, and several vessels were reported fixed at healthy levels. The Nopac round had a positive trend which a similar sized vessel's rate was clearly over the usd 20,000 daily mark. It can be concluded that most of the Supramax class business were fixed by larger Handies with durations mostly ranging between the 3/5 to the twelve months and rates respectively ranging between the mid and the low usd 20,000 daily levels. Discounts were allowed only for trips with redelivery to India and larger discounts were seen for Atlantic bound business. The chartering frenzy came down during second part of the week, so most of the prompt enquiries were covered at that time.
Handy (North Europe/Mediterranean)
Less activity was seen around these waters where available business from Northern Europe was mostly scrap to Mediterranean and coal from the Baltic to the Continent, the volume could only manage rates to remain similar to the last done levels. The more quiet business environment started to allow charterers take tonnage from this area to load out of American waters. The chartering demand was also smaller from Mediterranean and the Black Sea waters where tonnage for single trips could be fixed at slightly better levels for charterers and some vessels could be booked for short period at lower rates.
Handy (USA/N.Atlantic/Lakes/S.America)
Activity from the USG was mostly oriented to the trans-Atlantic bound business, where charterers really showed to struggle in an attempt to keep rates from climbing further. Time-charter rates of latest Handymax and Supramax available were worth for owners to ballast in the area from the Far East and still end up with a better income compared to fixing business inside the Pacific waters. But if too many of them would play this game, the build up of available tonnage may quickly soften the rates. Market showed to be similarly active and positive for owners from South American waters where perhaps rates for the larger Handies were a little less firm than the USG. Smaller Handies kept trading in a market where much less rate peaking was seen, in exchange of a more stable and long-lasting trend.
Handy (Indian Ocean/South Africa)
The iron ore exportation from India to China kept leading the activity with the further rate increase reaching Supramax's fixing at usd 40,000 daily out of the West Coast and usd 39,000 East Coast. Charterers had to start fixing tonnage delivering in South East Asia at the good enough rates for owners Pacific levels where making the Indian round trip result more economical compared to rates collected by tonnage available in the loading area. But perhaps it was just a peak rather than a firm consolidation, as the end of the week it showed levels quickly decreasing to figures closer to the mid usd 30,000's.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it