Capesize (Atlantic and Pacific)
A strong week for the Capesize market, which stopped earlier because of major holidays in Europe. Most of the people gathered that market got to the top and was expected to come off next week, which was supported by the FFA. There was a big consensus on the gains reached this week especially with the Brazil/China route reaching and surpassing the $31.00, and the corresponding t/c rate reached about mid $ 70,000 level which was equivalent to even close to $ 33/34 per m/t. In the Pacific the West Australia/China run reached $ 13.00 level which corresponded to about $ 45/56,000 and the backhaul also took few dollars with one fixture from Dalrymple Bay to Giion and Rotterdam being fixed at $ 22.25. Short period tonnage (4 to 6 months) has been fixed at a level in the low $ 40,000 range in the meantime. The Baltic Cape Index gained 456 points and the 4 T/c routes $ 6,245.
Panamax (Atlantic and Pacific)
A still strong week with solid and firm rates in the Atlantic, and in the Pacific: the Ascension Day holiday in most Europe countries gave a welcome pause for some charts, but rates remained in high levels. Also for trips to the East, rates have moved very little, much of the South American business has been covered using ships coming from the East. In the East, period activity and South American demand continued to underpin the market and rates remained very solid. Basically for Australian/NoPac rounds rates were moving closer to the mid $30,000 daily range as were East Coast South American rounds. Short period rates in the east remained firmly around the low $30,000 daily range.
Handy (Far East/Pacific)
Charterers showed to be quite interested in booking Handymax and Suparamax tonnage for short period. Achievable rates for durations between 3 to 6 months kept growing through the week which ended up showing the large/modern eco types being paid in the very high 20,000's daily. The spot market showed to benefit from same with the larger Handies now worth around usd 30,000 for North Pacific rounds and mid 30,000's for inter-Far East trade. Less interest was seen for the smaller Handies.
Handy (North Europe/Mediterranean)
A large volume of tonnage positioned to load out of the Black Sea connected with reduced cargo enquiry has softened the Black Sea rates. The number of owners refusing to trade through the MEG was still very large, but the demand to load Eastbound cargoes was not large enough to bring a large enough upbeat to the rates. The Northern European market was much better, allowing owners of tonnage open in the Mediterranean waters to position their tonnage there and achieve quite firm fixtures. A Supramax was rumoured to have agreed usd 36,000 daily for 4/6 months trading with delivery in the Mediterranean, but no further details were available.
Handy (USA/N.Atlantic/Lakes/S.America)
The very firm start of the week in the USG supramax market was shortly followed by a standby which gave an impression of a possible rate decrease. Owners' worry quickly faded away with a fresh ignition of trans-Atlantic enquiries which kept allowing owners to fetch mid 50,000's usd daily rates on this trade and may anticipate that these rates could grow closer to the usd 60,000 mark in a short while. The trans-Atlantic trade showed to pay very nicely, also the handy-sized vessel achieved similar benefits from the South American market. Supramax business from Latin America was very strong for the larger units as well, more business managed to be kept confidential but the firm rates achieved, tonnage open in the Indian Ocean for business via this area to the East is still emerging.
Handy (Indian Ocean/South Africa)
Activity suddenly dropped from this area. The India/China iron ore trade suddenly fell into a very quiet trend with West Coast affected by the monsoons and East Coast lacking business. The few charterers having requirements from the area stil to be covered have been undercutting the rates considerably but owners so far are resisting from fixing lower levels. Interest for smaller tonnage was very small as well.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it