Weekly detailed analysis of world shipping freight markets for all major routes for May 23- May 29, 2011
Capesize (Atlantic and Pacific)
The Capesize market was strong for most of the week. The upward trend was mainly due to a shortage of tonnage in the Atlantic basis and increasing demand. Now the Trans-Atlantic round was paying modern Capesizes about $ 12,000 daily. Voyage rates were also rising with the Tubarao to Rotterdam run reaching about $ 10.00 level. Brazil/China iron ore was fixed at high $ 19s with a corresponding T/C rate of about $ 20,500/20,750 daily. Far Eastern market was largely flat, but with demand increasing on the usual iron ore trades, rates moved up a little to about $ 7.50/7.60 on the West Australia / Qingdao route. Period interest was limited but improving with a 177,000 dwt, the M/v Skithia fixing about 4-7 months time charter at a firmer $ 11,100 daily.
Panamax (Atlantic and Pacific)
The Baltic Index rose daily during last week even though the market tended to be softer by the end. In the Atlantic, by the end of the week, front haul biz ex East Coast South America have shown a downward trend. Agreed rates slid to $25,500 plus $550,000 bb while trip in Atlantic was still talked firm at $16,500 or even higher, due to limited tonnage. The Pacific market increased during first half of the week while charters refused to pay more during second half. An Indonesia or WC Aussie round was talked at 12k to 13k for a LME in S.China and Nopac at about $14,000 for a Japanes, positioned vessel. Now vessel can get some premium for the trip to India due to the coming rainy season. Interest about short period still exist and rate rose to $14,000 or even higher.
Handy (Far East/Pacific)
There was fresh chartering interest in the market that improved agreed rates for Supramaxes. Several vessels of this size got fixed for short period in the mid $ 15s daily level. A 56 kdwt delivering dop Japan was said to be fixed at $ 13,500 for a NoPac round, but no further details were available. Coal from Southeast Asia to India was active again with few vessels fixed at slightly better rates. This positively affected the North China bound stems loading from the same area. Nickel back to China showed again a substantial premium compared with coal. Far less reports were available for the Handies, but rates were steady. Fixtures reported at good levels both for short period and long duration backhaul business.
Handy (North Europe/Mediterranean)
The owners of Handy size tonnage available in Northern Europe started to enjoy better market as rates firmed for trips from the Baltic to the Far East. The trend was even better than what was showed, considering that the vessels shall be redelivered in a good market area for their sizes. On the other hand Cont to Med agreed rates maybe are a little more "fake" considering that afterwards owners will have troubles to employ vessel for the next leg. To the contrary firmer money was agreed for a 52,000 tonner fixing short period from this area.
Handy (USA/N.Atlantic/Lakes/S.America)
Many Supra stems for Trans-Atlantic business together with less tonnage available in prompt position brought tension up in the US Gulf. As a resut, the daily rates quickly lined up to the East bound business allowing owners to fix trips to Far East well over the $30,000 mark. Supramax spot business from South America was dealt with less rush but also rates from this area remained steady and quite fruity for owners. Activity was quieter for Handies.
Handy (Indian Ocean/South Africa)
A little more demand for iron ore loadings from India to China ended up in some fixtures concluded at low levels with Handies showing to work out much better than Supramaxes. Additionally it was also rumored that a 52,000 grabless tonner and heavier in consumption compared with the Tess 52, fixing well below $ 10,000 for EC India/China run. A great $ 32,500 daily was agreed to induce a 57,000 dwt to load South Africa and "turn back" to the Far East, instead of keep going straight and take some nice business ex South America.
Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it