Freight Market Report. December 03, 2002.by U.S. Chartering Company
Market Report
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Panamax
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The Baltic Panamax rose 13% in November. Both the Atlantic and the
Far East market saw continued rate increases and at month end,
Far East rates for round voyages and medium periods matched those in the Atlantic. We have seen $14'000 levels for short roundtrips in the
Far East and similar levels for trip out from the Continent to the
Far East. For medium period, both areas have seen about $11'000 per day. For longer period, of say 12 months, modern tonnage has now been fixed at low $10'000 and for new buildings at mid $10'000 for the first year with about $750 extra for optional year. With this positive trend, Owners are now asking longer periods of say 2/4 years at $10'000 net. However, although Cosbulk is reported to have fixed the Andhika Lourdes, 73'800 dwt, built 1997, for 3 years at $9'700 with Charterers option for further 1 plus 1 years with delivery
Far East, February/March, there is still reluctance from most Charterers to go for such long period at these rate levels, having already passed the $10'000 barrier for 1 year. There is still optimism for next year with only 32 panamax newbuildings scheduled for delivery in 2003, and the high economic activity in Asian countries with
China leading the way. Prospects are enhanced by nuclear stations in
Japan closing down, increasing the need for coal imports, but most Charterers still feel that they need to see better financial and political prospects in the ’heavy' countries like USA,
Japan,
Brazil etc. to justify these rates for longer periods.
Handysize
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The firmness in the market was maintained also in November, with the handymax index up 5%. The lift in the Pacific market has been significantly better than in the Atlantic for the first time in a long time, even if the level in the Atlantic is still better. The Baltic handymax index went further up, except for the first week of November. The index rose over 300 points over the last 3 weeks. Nice activity and rate levels were seen for the steelruns Continent, Black Sea/
Far East. Levels ex-Black Sea has been steady at $13/14'500 for 40'000 tonners upto 52'000 tonners. An ex-Continent fixture for a 52'000 dwt, built 2001, was reported at extremely high $15'000. Otherwise, the levels have been holding at $12/14'000 for modern /geared handymaxes, and maintained at $10/12'000 for intercontinental trade. Interesting to note was a modern 49000dwt fixed at $10000 for a transatlantic round, as it has been sometime since we have seen five digits for such trade/this size. Trips USGulf to Continent-Mediteranean moved upto $11/12000 for modern/large units, while direction
Far East went even upto $12500/13000. It was rumoured that modern 46000 tonner was fixed at $14750 delivery USGulf for trip
Far East or maybe
Australia.
The Pacific market moved up steadily through the month. Pacific rounds improved from low/mid $8000 to above $9000 for well equipped 45000 tonners. The super handymaxes were seeing even above $10000 in certain grabbed trades. Trips Pacific/Atlantic were basically unchanged at $6/6500 for modern 45/50000 tonners.
The period market upto 6 months moved to about $9/9500 delivery Pacific and $10/10500 basis delivery Atlantic for about 45000 tonners. The super handymaxes still obtain a premium of $500/1000 above this. For longer period we have noted an interesting fixture basis delivery March 2003 at $9400 for 12 months for a 52000 tonner delivery ex-yard
Japan, indicating that not all Owners have same strong belief in the next months to come.
US Chartering Company