Capesize (Atlantic and Pacific)
After two weeks of upward trend, the market ended still positive, but quite flat last week. In Pacific, key route West Australia/China was reported at slightly higher levels at the beginning of the week being fixed at $8.00, but then settled at $7.95 because charterers were unwilling to pay more than $7.90 on the closing. Out of South Africa volume was quite thin: trip from Saldanha Bay to China was done in the high $14. Atlantic market was more active especially from Brazil where more enquiries were reported from Colombia to fix for the week ahead. The fronthaul voyage levels were closed to the mid $21 and in the mid 20k for end of April loading. The Atlantic round was reported in the high $3,000.
Panamax (Atlantic and Pacific)
The market in general got some rate improvement thanks to the increasing number of cargoes. In the Atlantic side, East Coast South America grain was the focus of the market and rates were well supported and rose to high teens for those candidates in Skaw-Passero range. Charterers were trying to take every vessel in Indian Ocean and SE. Asia. By the end of the week, an LME was talked at about $12,000 daily delivery Malaysia / passing Singapore. The Transatlantic round was not that active, but rates still climbed up to $9,000 daily level influenced by fronthaul business. The flourish of Indonesia coal boosted the confidence in the Pacific market with short period reaching $10,000 daily level again. For a single Pacific round the number of candidates with prompt delivery S.China was extremely small and rates were talked at $9,000 daily dop S.China. Candidates in N.China also benefited from the firm market and were done at $8,500 daily for the Nopac round.
Handy (Far East/Pacific)
The on-going demand to load nickel ore ex Indonesia to China kept Supramax rates firm with improved fixtures. The rumors about a previously predicted export ban for nickel ore as from year 2014 to be advanced to 7 May 2012 has placed some significant pressure on the market. Charterers were forced to pick up as much as possible within April 25th. It looks quite surprising that such a ban would come in force with such a short notice, which could generate huge inconveniences to the on-going contractual delivery obligations and to the industry itself. This situation pushed slightly up the market in general, also for those owners rejecting to load this commodity. The positive sign was also shown on short period rates, reported improved by $1/2,000 daily. Good rates were agreed also for Handysizes that charterers were more interested to fix for short periods. A small Handysize over 25 years of age was fixed at a daily rate well over $8,000 to carry bagged rice from Vietnam to West Africa. Even though the long duration (around 70 to 90 days) deserved a rate premium, it was still remarkable that this old lady booked at least $2,000 daily over what a modern large Supramax would achieve for a 50/60 days trip to the Atlantic.
Handy (North Europe/Mediterranean)
Business originating from European and North African ports was very limited. It was rumoured that an Handysize scrap stem was booked from Continent to Turkey on voyage basis, at a rate of $30.00 pmt, but no further details emerged. Backhaul enquiries were scarce both from Black Sea and West Med/Morocco ranges. Rates from Black Sea to East were described similar to previous week, but there were no fixtures reported.
Handy (USA/N.Atlantic/Lakes/S.America)
South American market was lacking of prompt enquiries which allowed charterers to induce owners to fix their tonnage for end April positions. Supramax grain cargoes were fixed on the Transatlantic run at unexciting levels, while an Handysize delivering West Africa was booked at "not bad at all" $12,000 daily timecharter rate for a trip via Brazil to Far East. That level was then confirmed by a slightly smaller vessel fixing at $11,500 basis delivery dop East Coast United States. By end of the week the South American market improved further. Fresh sugar enquiries absorbed most of the available April tonnage and leading to improved rates for May loaders. Rates for Supramaxes trading out of the US Gulf were still low.
Handy (Indian Ocean/South Africa)
Activity in these waters was still small with the iron ore trade from India to China being very limited. The on-going demand for loading nickel ore ex Indonesia and coal ex South Africa however helped to reduce the amount of tonnage in the area. Charterers involved with short trip with aggregates inter Persian Gulf have been compelled to book a Supramax coming open in Pakistan.
Banchero Costa and Co Spa
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