Weekly detailed analysis of world shipping freight markets for all major routes for December 12 - 129 2010.
Capesize (Atlantic and Pacific)
Everybody was expecting Capesize market to fall further, but in the East there were few fixtures going up: BHP had to fix some very prompt positions and paid rates between $ 9 and 9.40 i.e. about 50 to 75 cent more than the spot market. Other areas remained very much under pressure with rates still falling with the exception of a single iron ore cargo fixed from Brazil to China by STX Panocean at $ 22 for 10/20 January. Atlantic market is still very depressed with 173,000 dwt tonner fixing from Bolivar to Continent on time charter basis at $ 26,500 daily. There is the exception of the iron ore stems from St.Lawrence being fixed for Port Cartier to China, outside IWL, at a good rate of about $ 38.00 per mt. Very limited period activity with few fixtures reported of New Buildings: prompt delivery ex yard in Far East for one year at index linked rates and another one for same period at about $ 25.000 daily.
Panamax (Atlantic and Pacific)
Both the Atlantic and the Pacific market suffered a sharp drop this week and the Baltic Panamax Index lost more than 300 points. In the Atlantic, the market trended down quickly due to the lack of fresh inquiries and growing number of open vessels in the first half of January. Trans-Atlantic biz was done in a much lower rate compared to last week and fronthaul was scarce in the second half of the week for few owners wanted to go east. The Pacific market can be described to have collapsed and lost all confidence. Rates for Pacific round voyage dropped down sharply day by day. Very few available cargoes could not cover a pile of tonnages. There remained some need for period but business also done at a low rate.
Handy (Far East/Pacific)
Charterers were reported fixing another huge number of vessels through the week with the major trades still being Southeast Asia/India and Pacific rounds, while the nickel ore run ex Southeast Asia to China kept quiet. Supramax rates for North Pacific rounds showed some improvement through the week, and it decreased again in the end. Indonesia coals to India kept fixing low mid teens daily, a larger rate was reported agreed at the end of the week but a large part of that was due to vessels delivering in the loading area. Period interest for larger sizes was available again with the 3/5 months rates ranging between high $15,000's and low $16,000's, and the 12 month showing a $750 daily improvement through out the week. As a custom smaller Handies kept doing better, showing a daily rate increase of about $1,000 both for trip and period business.
Handy (North Europe/Mediterranean)
Again very small business was available in this area; the sole reported fixture ex Northern Europe was just a correction to the last week's report. And a large modern Supramax was said to be fixed at mid 8,000's daily for a trip into the U.S. Gulf basis spot delivery in the Continent. Very scarce exports were available as well from the Black Sea and Mediterranean waters. A large modern Handymax fixed much better money from East Med to the Far East via Gulf of Aden, while Korean operators paid unattractive money to a larger boat delivering in the West Med for short period.Very limited activity was concluded all around the European coasts. Demand for loading scrap ex Northern Europe decreased and owners made strong fights to keep levels similar to last dones. No east bound business was reported concluded out of the Black Sea from where only a couple of deals to load cement into West Africa were reported done at quite unattractive levels. Some consolation was available for owners as the strong North America Atlantic market at least allowed a few vessels to book decent levels for loading across and a Supra got fixed at realistic levels with delivery Gibraltar.
Handy (USA/N.Atlantic/Lakes/S.America)
The U.S. Gulf was slower for Supramaxes, during first part of the week Trans-Atlantic rates managed to hold at last dones' levels while rates for trips to the East declined to the low $30,000 level. The week ended showing a Supramax reported fixed at a lower $29,000 daily for Trans-Atlantic trip. Handysizes kept a firmer trend during the week. More business was reported concluded from South America where the larger units could still not enjoy better levels neither within the Atlantic nor to the East, but their smaller sisters saw rates growing to low $20,000's daily for trips to Europe.
Handy (Indian Ocean/South Africa)
Supramax size iron ore rates from India to China stayed at reasonable enough levels for cargoes loading from east coast India while levels from the west coast collapsed. Fresh Supramax interest was seen for iron ore ex Iran to China where due to the applicable U.S. sanctions, quite firm Time Charter rates had to be paid in order attract owners into the business. The South African market was described as getting firmer although no fixtures were reported so far. Smaller Handies struggled to find any kind of employment.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it