Weekly detailed analysis of world shipping freight markets for all major routes for June 06- June 12, 2011
Capesize (Atlantic and Pacific)
Although slowly, but Capesize market has started its falling off again unfortunately. The BCI lost 204 points, the 4 T/C routes ended the week last Friday at minus $2,453 daily. Especially the Atlantic lost interest because of very few iron ore and coal cargoes. New quotations have declined from about $13,000 daily to about $8,000 and might reduce even further by next week. The Pacific has shown great activity on the West Australia to China run. However in spite of the many fixtures done, the rates were still in the $7.50/7.60 region and the reason is still the high number of available Capes in such area. Period was less active with few fixtures of modern Capes in the region of about $10,250/10,500 for 4/6 and 12 months time-charter.
Panamax (Atlantic and Pacific)
The Atlantic market kept strong for the whole week due to the lack of tonnage in the Atlantic. Rate for fronthaul biz climbed up a little to the level of mid $25,000 plus $550,000bb; while trip in the Atlantic was fairly firm and an LME can gain $17,000 for a Trans-Atlantic or Baltic round. After being stable for several days, the Pacific market turned firm in the end of the week. Nopac biz was talked at $15,000 and a nice LME in mid China could gain very low $14,000 for an Indonesia round voyage. Owner still could get some premium for the Pacific round to India, roughly at $16,000 level. Rate for short period also climbed up due to the increasing need. Some charter can pay $15,500 for Singapore positioned LME.
Handy (Far East/Pacific)
The Handy-size market were back to the best levels and enjoying a reasonable amount of demand and steady rates, both for local single trips and short period employment. Charterers who need to cover backhaul business on these sizes were struggling to attract owners' interest. The Supramaxes' rates kept dropping showing lower levels agreed on all the Inter-Pacific trades and also bringing downwards effects to the India bound business. So owners were resilient to trade in this area, due to monsoon season seriously affecting the prospective of finding an adequate enough employments afterwards. Period interest for larger Handies was still available for shorter duration, but only as long as owners can agree at least a $ 1,000 discount on the daily rate. The larger chartering interest seen at the end of the week wasn't enough to bring any joy to rates, due to over-supply of available tonnage.
Handy (North Europe/Mediterranean)
The chartering demand was again very small all around the European and North African coats. The Black Sea to the East trade was quiet and no tonnage was reported booked on this route. A Supramax was said to get only a rate in the low $20,000's for a trip from North Africa to the E.Indian Ocean, but no further details were available. There was a little more interest for Handysize steel cargoes; positioning tonnage from lower Baltic to the Americas has remained so far to an enquiry level only. Slightly better rate was agreed for a Handysize taking a positioning cargo from the Black Sea to the U.S. Gulf, probably due to charters need for a prompt loader. Also Norwegian operator paid a nice rate for a 2/3 laden legs employment Ex Black Sea, considering that the first leg was likely to be into the U.S. Gulf, the vessel seems to be quite over-paid. Probably charters were confident to take advantage with the next loaded leg.
Handy (USA/N.Atlantic/Lakes/S.America)
Supramaxes kept going strong with firm rates agreed in the East to Europe business, for trip via the Black Sea with Mediterranean repositioning and inter Americas trade. Nice money was available as well for these sizes to take sugar from South America into the East, while a smaller Handy got a very reasonable rate in the high teens for a trip ex Latin America into Europe. A slow down in the demand for larger tonnage to load ex U.S. Gulf affected Trans-Atlantic rate which were said to be worth closer to the mid $20,000 level for tips to Skaw/Passero.
Handy (Indian Ocean/South Africa)
More tonnage was reported booked this week for the iron ore trade to India/China, in spite of the monsoon season affecting the Indian sub-continent. But the monsoon and the over supply of tonnage have generated further decrease for Supramax rates. And depending to positional reasons, the rates were ranging between very low teens to levels below the $10,000 mark. Not much news was available for the smaller Handies which was said to have a better market.
Banchero Costa and Co Spa
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