Freight market report,May 22..by Densay A.S.
May 22, 2002
Baltic Handymax Index : 7791 (Up by 5 points)
All below basis 45,000 DWT ship, built 1995 onwards
Description
Delivery Antwerp/Skaw range Trip Singapore/Japan
Weighting Average Movement
12.5% USD 10,605 USD 94
Delivery Canakkale Trip Singapore/Japan range
Weighting Average Movement
12.5% USD 11,517 USD 16
Delivery Japan/South Korea / North Pacific or Australia round voy.
Weighting Average Movement
25% USD 6,021 USD 4
Delivery Japan/South Korea range Trip Gibraltar/Skaw range
Weighting Average Movement
25% USD 5,485 USD 32
Delivery Antwerp/Skaw range trip US Gulf
Weighting Average Movement
12.5% USD 6,823 USD 14
Delivery US Gulf Trip Skaw/Passero range
Weighting Average Movement
12.5% USD 10,374 USD 6
The Far East handy/handymax market is still "pretty poor," with very little activity reported,many ships are ballasting towards
Australia and US North Pacific and owners are forced to accept very poor rates. Some shipowners with ships open in Red Sea area are even ballasting Suez Canal and position their ships in Eastern Meditarrenean so as to make themselves available for the strong Meditarrenean market
The Mediterrenean/Black sea market is very strong and there are clear signs that the market will remain stable during summer months. The general
opinion from shipping sources is that the Chinese import duties will have adverse effect on the trade side, and consequently the
freight rates will fall as a result of reduced trade activity. We do not share this
opinion in the short term as the import duties were very much well known to traders who have been doing business in the area and those traders advise that the trade to
China will not be too much effected. Moreover the trade activity for non-steel related cargoes such as bulk cement/grain/fertilizers etc is also very strong which will keep the demand at very high pace.
The Continent handysize market is also very active and there are many uncovered stems to various destinations. Our general view is that; there is a certain shortage of ships for short terms but the supply of ships from beginning of june onwards will definitely have an impact on the
freight rates and the rates may a little ease off. Presently one producer has just fixed 35,000 mt HMS I/II from
Germany to Nemrut Bay at $12 pmt and there are two different stems for early June to
Turkey
The Southamerica market is not too strong as it used to be and very little activity reported.
Coaster market in Medittarrenean, is again showing some signs of improvement and the Black Sea
scrap stems are the leading force behind this demand. The rates will remain firm in the short term.
Our recommendation to producers/traders for Handymax stems: Do not circulate the cargoes widely and wait for fixing as much as you can afford to enjoy the benefit of having spot ship.
DENSAY DENIZCILIK VE TICARET A.S
ATASEHIR BULVARI 42 O BLOK KAT 16
ATASEHIR 81120 ISTANBUL / TURKIYE
TEL : + 90 216 455 35 95
FAX : +90 216 455 35 99
COMTEXT A45TR651 TLX : 36897
e-mail densay@densay.com