Freight Market Report. November 25, 2002.by a U.S. Chartering Company
Panamaxes
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The Atlantic market continued to be strong throughout October. The Chinese fertilizer season with imports from Tampa coupled with increased grain exports, especially from Black Sea resulted in $14000 level from this area for trips to
Far East and $13000 per day from the Continent. Besides, increased mineral
trading kept the trans-Atlantic rates at $10000 level. Although the rates declined somewhat towards the very end of the month, the trend is still firm.
In the
Far East the market also continued to be firm with a similar development pattern, although at lower levels.
Far East rounds paid mid $8000 and trips back to Continent stood at mid $6000. With the firm present market and prevailing optimism for next year, Charterers have to pay up for period timecharters. Going rates are mid $9000 level for medium period of say 4/6 or 5/7 months in the
Far East, with abt $1500 more in the Atlantic. However due to the political and financial uncertainty in major countries such as USA/
Japan/
Brazil, only a few charterers are so far there to repeat the $10000 levels for 1/2 years timecharter seen last month, and then preferably 1 option 1 year.
Handysizes
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The positive trend seen in September continued in October. Most areas saw a continued lift, except trips Pacific to Atlantic, which moved very little, probably since Atlantic market was still better than the Pacific. The Baltic Handymax index rose further 8pct during October.
The steel run Black Sea/Continent to
Far East saw same nice activity and numbers as last month, i.e. $14/15000 ex-Black Sea and even upto $14000 for super handymaxes ex-Continent. The inter
Europe market also picked up nicely, with modern 40/50000 tonners obtaining $10/11000 for trips Continent/Mediterranean and even upto $12/12500 for trips to West
Africa. It was also interesting to note that the trade Continent-Mediterranean to Usgulf was paying close to the same as the return trade i.e.abt $9500/10500 for modern tonnage.
Smaller/older ships also experienced a nice lift, with 27000 dwt, 1984 built, fixed as high as $12000 for trip Continent/
Far East as Charterers picked good-paying cargo. Lakers also obtained 'end-season' premiums for lakesrounds at $9000 plus for 28/35000 tonners.
The South American market witnessed solid activity with tonnage able to obtain over $9000 delivery MEG via South
Africa to
Far East. Trips South
Africa to
Europe were hovering around $7500/8500 for modern tonnage.
The Pacific market was moving slower with good/modern tonnage seeing above $8000 for Pacific rounds and trips
Far East/Atlantic holding at around $6000.
The period activity still focused on upto 6 months with modern 45000 tonners being fixed at $8500 delivery Pacific and about $9500 delivery Atlantic with the super handymaxes obtaining a premium of $1000/1500.
U.S. Chartering Company