April 18– April 25, 2011 Weekly market report.. Banchero Costa

Wednesday, 27 April 2011 12:03:35 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

The Capesize market was lousy last week awaiting the Easter Holidays which lasted from Friday till Monday included. Baltic Capesize Index remained almost unchanged until Thursday 21st April and the average of the 4 T/c routes closed at $ 6,547 daily which is about less than half of the Supramax Index and about 40 % of the Panamax index!!! In the Atlantic activity was almost halted and brought the route Tubarao/Rotterdam just above $ 8.25 at a corresponding T/C rate of only around $ 4,400. A little more activity in the Far East with Pacific round at about $ 6,600. Brazil/China iron ore trade is still at about $ 19/mt level which equates circa $ 19/19250 level. Will see what is going to happen next week, however China will start Golden Week from Friday 29th April and therefore there is the possibility that the market will suffer further.

Panamax (Atlantic and Pacific)

This was another negative week for the Panamax sector, no doubt also due to the forthcoming Easter festivities. From the Atlantic side, owners were eager to cover their spot/prompt vessels before the holiday while demand was still not enough to hold the market. As a result, fronthaul biz ex South America was being talked at low 20s and Trans-Atlantic biz at about $12,000. The Pacific market went down rapidly in the beginning but recovered in the end of the week because of some new requirements and limited availability of tonnage for cargoes in the 1st half of May. Indon round biz was once talked at $8,000 or less, but then climbed to over $9,000 or more to end the week. Nopac and Aussie round performed the same, closed at about $10,000. Charters didn't show much interest in short period with fixtures done at just $14,000.

Handy (Far East/Pacific)

The ratio between available tonnage and spot chartering demand was still un-balanced in charterers' favor. The active Supramax coal trade Indonesia to India showed some nice daily rates reported agreed although just for tonnage delivering very close to the loading places. The reality of this trade was more realistically reflected by the tonnage taken on delivery in the northern Far East, for which the ballast involved showed a discount between 5,000 to 8,000 usd daily. Demand for similar sized tonnage to load nickel ore from Southeast Asia to north China was still large, but very few reports were shown for this trade. Probably due to the premium which this commodity deserves, charterers kept their deals confidential to avoid inflating the market which was otherwise going into a negative trend. At the end of the week a 52,000 tonner was reported fixed at a better usd 14,100 daily for a Pacific round. Although the west coast Mexico loading prolonged the total duration considerably, bringing it close to a short period employment. Nevertheless it was afterwards rumored that another Supramax delivering Japan fixed mid usd 14,000's daily for a standard north Pacific round. Charterers slowed down their period interest but the sole fixture reported showed that the levels were similar to last dones. Activity for smaller Handies was slower with rates keeping at previous levels.

Handy (North Europe/Mediterranean)

The Easter holidays brought additional negative influence to this area. Scrap chartering interest out of the Continent fell asleep, allowing coal and fertilizer charterers to achieve lower fixtures both into the Med and for positioning business to the Americas. Demand for loading out of the Black Sea and the Mediterranean was even smaller allowing steel operators to book a large modern type at awfully low rates for Black Sea/U.S. Gulf biz. Inside this scenario, a major Italian operator booked a Supramax for short period at a lower usd 17,000 daily.

Handy (USA/N.Atlantic/Lakes/S.America)

Easter holidays decreased a lot of the activity also along the Atlantic Americas but some charterers managed to quickly take benefit from this situation. So far it has resulted in less concluded fixtures rather than a consolidated decrease of rates. A 48,000 tonner was reported fixed at usd 23,000 for a trip form the U.S. Gulf to India, while a Supramax delivering in the same area was booked at usd 30,500 daily for a trip into Singapore/Japan rge. Demand from South America was lower as well but a little more acceptable, smaller Handies suffered a downward trend while the larger units kept levels similar enough to last dones. It was also rumored that the Supramax iron ore rates from north Brazil to China were improving.

Handy (Indian Ocean/South Africa)

No fixtures were reported concluded from this area where the chartering demand was very scarce.

Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it


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