Weekly detailed analysis of world shipping freight markets for all major routes for June 20- June 26, 2011
Capesize (Atlantic and Pacific)
The Capesizes Atlantic market woke up again for July loadings and rates improved proportionally with the T/a round being fixed above $ 13,000. The East market saw a rise as well for the beginning of July requirements from West Australia, just reported fixed at $ 8.40/mt. The BCI improved by 150 points during the week, the average of the 4 T/c routes increased by $ 1,451 daily. In general new business seen in Atlantic and in Far East pushed up the rates on the route from Tubarao to Qingdao which moved up to about $ 20.50. West Australia to Qingdao went up to about $ 8.30, Brazil/Rotterdam and the coal routes improved considerably as well. Period activity was limited and restricted on short 4/6 months with one modern 180,000 dwt reported fixed at $ 10,950 daily for 4/6 months with delivery in China end of
June.
Panamax (Atlantic and Pacific)
The market kept going soft in both sides due to the limited enquiries. Atlantic: rates for a Trans-Atlantic voyage slid and are now talked at 16k. Fronthaul ex East Coast South America was not bad: charters were still willing to pay $25,000+500k bb or even more. The Pacific market kept a significant downward trend for the whole week especially when most of the cargo were covered in the first half of the week. Charters were talking 11-12k a South China vessel for Indonesia round and a little higher for a Japan vessel for Nopac biz. Owner still can gain some premium for biz back to India, at about $15,000 level. Some charters were taking short period but rate was now talked at $13,000.
Handy (Far East/Pacific)
The market was still gloomy for owners at the beginning of the week with reports of Supramax tonnage getting fixed slightly over $9,000 daily for NoPac round and Indo round basis delivery/redelivery India. The $10,000 daily rate was agreed for a small Handymax performing a trip from South Korea to a more favorable loading area such as Southeast Asia. That must have been caused by charterers suddenly running spot with their requirement and in need to book what was available. An increased interest to load Supramax size coal from Indonesia to India firmed up rates, but it didn't reflect that much on other trades so far. A large Supra was booked for 3/5 months employment at a slightly improved $13,500 daily rate.
Handy (North Europe/Mediterranean)
It's not easy to identify what was actually going on around the European coasts as reports of concluded activity were totally missing. The volume of fresh enquiry for large Handies was very small. More interest was seen for smaller Handies mostly for Trans-Atlantic positioned employments since charterers were trying to put rates under great pressure. Grain and scrap activity from Continent was very quiet and so was the Black Sea, where owners' were awaiting anxiously to see if the predicted grain export will actually resume from July.
Handy (USA/N.Atlantic/Lakes/S.America)
Rates kept stable at previous levels both for Trans-Atlantic and fronthaul business from U.S. Gulf and South America. Activity was not as strong as it was during the last few weeks. A mid-week demand slowdown quickly allowed a few charterers to book at discounted rates from both loading areas, but rates soon recovered with fresh enquiry before the weekend. Smaller Handies were stable at good levels and higher rates for business loading South America.
Handy (Indian Ocean/South Africa)
With India hit by monsoon, there was no reported fixtures to load iron ore to China but only rumors of sliding rates. Firmer rates were seen again for Supramax tonnage delivering in South Africa both for trip to the East and short period. That attracted owners to fix instead of taking advantage from the South American market. A A 53,000 tonner delivering in Bangladesh agreed an unexpected healthy rates for 3/5 months commitment.
Banchero Costa and Co Spa
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