Capesize (Atlantic and Pacific)
It was yet another really bad week: bunker prices were skyrocketing following the uprising in Libya, and Rio Tinto declared force majeure at their West Australia iron ore loading ports because of a new hurricane. There was very little to do for the Capesize market other than fall further down by $1,796 on the 4 T/C routes, which represents another 27% correction. The Atlantic market is no exception: there were very few employments, and the extremely high number of ballasters from the Far East has enormous problems to find decent employment either to the Atlantic or back to the Far East again which anyhow equates to negative time charter equivalent. In the Far East a new hurricane approaching West Coast is adding more concern to an already weak market. There were even rumours that Cosco is thinking of laying-up their Capesize fleet and wait for better times!
Panamax (Atlantic and Pacific)
The market turned firm towards the end of the week, partly driven by the positive trend in the paper market. In the Atlantic more activity has been seen in the second half of the week. Trips to the East were discussed at $25,000 level and Trans-Atlantic biz was done at mid teens or more. For grain biz many vessels in the Pacific and Indian Ocean are heading to South America, expecting more enquiries in the coming March and April. Southeast Asia-positioned LME was talked at mid high teens level for such kind of biz. For the Pacific market, rates for Nopac or Aussie round climbed up a little to around $14,000 to $15,000 in the end of the week. Influenced by lifting FFA and more positive expectation on South America grain, rate for short period went up to about $17,000.
Handy (Far East/Pacific)
The larger number of reported fixtures was more due to charterers taking advantage on low rates caused by the huge volume of tonnage available rather than to an improved demand. At least owners managed to keep rates similar to last dones and some earned a bit more by taking advantage of some positional situations. The "premium" trade is still the nickel ore from Southeast Asia to China. Although the very high teens T/C rate paid for Supramaxes delivering at north China is mostly to induce owners agree to load this commodity without having the customary protective clauses required. Market was otherwise quite similar to previous week's levels with Supramaxes getting fixed at $14,000 for north Pacific rounds, slightly below mid teens for Indonesia/India coal if delivering in the loading area and very low tens if delivering ex China. Owners can fetch low teens for coal via Australia to India trip and $16,000 daily for 3 to 5 months commitment. Again smaller Handies were fixing beter levels proportionally to their size.
Handy (North Europe/Mediterranean)
The market was still very quiet in this area with the scrap from the Continent to the Mediterranean paying lower levels and frequently fixed and failed. The prevailing piracy risks at Gulf of Aden further reduced owners' willingness to trade through this area; consequently rates from northern Europe to the Far East got further decreased due to the prolonged duration arising from the Cape of Good Hope routing. The Mediterranean activity was even slower with just a small amount of trade from the Black Sea to West Africa. Still, Supramaxes delivering in this area are said to be getting $17,000 daily for 4/6 month Time-Charter commitment.
Handy (USA/N.Atlantic/Lakes/S.America)
Activity was very slow in the beginning of the week, then it showed to grow a bit with fresh chartering interest for Supramaxes to perform Trans-Atlantic business out of the U.S. Gulf with agreed rates below $25,000 daily for tonnage delivering near to the loading plc or on aps. That showed Supramax Time-Charter levels were quite similar to the previous week. South America was more active with smaller Handies fixing Trans-Atlantic grain business on voyage basis, although at unattractive levels. The small amount of Supramax business from this area was bound to the Far East destinations with daily rates till in the very low $20,000's basis delivery West Africa or same rate plus equivalent ballast bonus for delivery South America.
Handy (Indian Ocean/South Africa)
The iron ore trade from India to China kept steady to previous week's volumes showing a proportional increase from both coasts. The market was probably also influenced by the stagnant trend in the Pacific. It was rumoured that some vessels choosing to ballast to avoid positioning in the Far East were caught by charterers at low money for trips from South Africa to Europe
Banchero Costa and Co Spa
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