January 23– January 29, 2012 Weekly market report.. Banchero Costa

Tuesday, 31 January 2012 15:31:04 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

The market was rather quiet last week since most part of the Far East was on holidays. Rates kept sliding on all routes giving negative Time Charter equivalents on the backhaul business. In the Pacific there was little to report: $7.75 was fixed for W-Aus/China round at similar levels compared to the week before. In the Atlantic, fronthaul business was concluded at very low $19.1 while Time Charter for a round was reported at about $5,000. By the end of the week some more cargo requirements emerged in the Atlantic for late Feb dates, even though owners were reluctant to offer anything as they were waiting for better market. On period market 5/9 months del Far East was fixed at $11,800; charterers were still looking for taking tonnage on long period basis.

Panamax (Atlantic and Pacific)

During last week the Atlantic market finally collapsed and charterers were able to fix vessel on voyage bss equivalent to tct hire. Fronthaul business was dropping with few cargoes available in the market. Moneywise, fixtures were done at high teens plus about $400,000 ballast bonus. Far Eastern business was fairly limited due to the long holiday and handful vessels were there struggling to find employment. The Pacific round trip was talked at several thousand daily and many charterers were there to secure vessels on aps del only. The backhaul was talked at negative rate while some owners were still chasing such business. For short period business, charterers could do $9,000 daily but few owners would consider such rate for period.

Handy (Far East/Pacific)

The Chinese Lunar New Year holidays slowed down and further weakened the market in the Pacific. The smaller demand for Supramaxes was mostly for single trip requirements loading from Southeast Asia where the rates were sliding further. That made it more and more difficult for owners with tonnage open in Northern Far East to compete with the units open in the vicinity of Singapore. The persisting negative trend was quickly reflected on short period business. Supramaxes open at the Far East were fixed in the region of just $6,500/7,500 daily. Fewer fixtures were reported for smaller Handies which were still said to maintain a slightly better market.

Handy (North Europe/Mediterranean)

The Atlantic market was declining further and the Time Charter rates were seriously affected. Supramaxes doing Black Sea/Far East business were concluded $17/18,000 daily at best. That also reduced about another $1,000 daily for positioning trip into the Americas and brought very lousy fixable levels to the cement trade from the Black Sea to West Africa. The atmosphere was directly reflected to the smaller Handies which got lower voyage rates for grains into the Mediterranean destinations. The lack of fresh demand from Northern Europe worsened with only scrap cargo reported booked into the East Med at unattractive levels.

Handy (USA/N.Atlantic/Lakes/S.America)

Chartering interest was more oriented to the smaller Handies for grains and coal business. However vessels were reported fixed at slightly less compared to the previous week, both for loading ex the United States and South America. The only trade still paying some premium was the west coast South America destination. The Supramax Trans-Atlantic rates were said to be similarly lower and only $18,000 was agreed for a prompt 53,000 toners fixing a trip from the U.S. Gulf to the Far East. A Handysize was booked for one year period at $8,100 daily with delivery West Africa.

Handy (Indian Ocean/South Africa)

The long lasting holidays at China also froze the iron ore India/China trade on which no tonnage was reported fixed. There was some more interest from charterers to move coals from Southeast Africa into India for which two Supramaxes were reported booked basis aps delivery plus ballast bonus. That showed owners demanded some premium to take business with India redelivery. The rates reported for the Continent to Europe business stayed at very unattractive levels.

Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it


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