November 16-21, 2007 Weekly market report..Banchero Costa

Tuesday, 20 November 2007 17:55:16 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

Up and down. This is the trend on Capsize market. Last week down and this week up again with good gains on BCI (plus 984 points) and on the 4 T/c routes, but especially the Atlantic was very much under pressure because of the Panamax market was on downwards trend and some Capesize stem started splitting when possible. The 4 T/c route overpassed the level of $ 190,000 with the T/c at $ 203,000, the fronthaul at abt $ 253,000, the backhaul at $ 133,000 and the Pac R/v at $ 184,500. Period interest was also quite active with a 175,000 tonner being fixed at $ 180,000 daily with delivery prompt in Atlantic. However at the end of the week we have seen the market weakening again, perhaps also driven by papers that may bring probably to another fall during next week.

Panamax (Atlantic and Pacific)

Both in Pacific and in Atlantic the early tonnage suffered of big pressure, which has resulted in rates and indices tumbling downwards. Although some of this prompt tonnage found employment and some new orders come out, there was a good volume of prompt fixing. During the week Atlantic appeared to be more stable, with less prompter tonnage and some Capesize orders splitted in Panamax size. Although there have been reports that many suppliers are rejecting Capesize cargo splits .The Pacific was quite nervous as confidence has taken a significant blow with the losses seen this week. The Pacific has suffered more with the Nopac round voyage losing $11,351 to finish at $83,175 whilst the backhaul eventually finished at $82,400 down $12,000 on the week.

Handy (Far East/Pacific)

Chartering trend for Handymaxes and Supramaxes remained quite soft even if demand for single trip employment has increased. A large number of prompt available tonnage kept rates weak until the last part of the week when some firmer deal were concluded. Charterers' interest for period remained quite low. A large Supramax fetched Usd mid 70,000's for a Pacific round while a smaller vessel nicely got a similar rate for a trip to Med. Rates for similar size to Us Atlantic is abt Usd 10,000 less. Handysizes enjoyed a better market, although also in this sector there was no period interest, but a good volume of demand combined with not that much of prompt tonnage kept rates fancier. An aged 30,000 tonner open in Thailand was fixed at Usd 45,000 for a trip via Aussie to China, a modern 28,000 tonner available in the same area got an identical rate for a similar biz. Furthermore this rate is only a few thousand Usd over what is paid to go to Europe.

Handy (North Europe/Mediterranean)

A couple of fixtures were reported from Mediterranean and Black Sea showing that these markets are still keeping good enough from owners. The chartering demand is not that large but the limited amount of available tonnage managed to keep healthy rates. From Continent the irregular charterers' interest for scrap loading is not enough to define this area as attractive, the volume of tonnage seeking employment is a little larger, but luckily, tonnage demand from Atlantic Americas, and for loading out of Us Gulf are going back to full steam, allowing several vessels to get fixed at good rates on DOP delivery.

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

Panamaxes became too expensive for charterers involved with Us Gulf / Far East grain trade, so wherever possible, stem sizes have been pushed down to Supramax size. This resulted in nice rates being agreed for Supramaxes delivered Europe for loading Us Gulf to Far East with rates ranging between Usd 70 to 75,000, also depending on the respective vessel's intakes. Although no fixtures were reported on the Supramax Transatlantic trade it remained quite firm with a rate well in excess of Usd 70,000 daily paid for a vessel basis delivery North Spain, loading Us Gulf and discharging Spain again. Handysize market followed this trend even if South American market appeared firm but unstable due to some on going fixing and failing.

Handy (Indian Ocean/South Africa)

The India/China iron ore trade registered a little more activity so far confirming last week rates. This area appeared to be otherwise quiet; it was interesting to see that in view of the bit lousy Indian iron ore activity. Charterers needing to carry coal from South Africa, needed to pay a firm rate to compete with enquiries loading out of the Atlantic.

Banchero Costa and Co Spa

Mail: research@bancosta.it
Web: www.bancosta.it


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