April 20, 2020 – April 24, 2020 Weekly market report.. Banchero Costa

Tuesday, 28 April 2020 16:50:12 (GMT+3)   |   Istanbul

Capesize (Atlantic and Pacific)

The Capesize market was again under pressure: after a quick recovery mainly due to the crash of bunker prices, it was totally in free fall with 5TC average that lost $1,500/d form Friday to Friday. Tubarao-Qingdao route was definitely unstable: it lost $1.5/mt in 7 days for second half May laycan going from $12/mt to mid- $10/mt. Brazilian RV was still quite high losing $1,000/d and closing the week at $9,000/d. Saldanha Bay-Qingdao followed a similar path losing $1/mt and closing the week at low $8/mt. W Australia-Qingdao route lost $0.80/mt reaching very low $4/mt level for mid-May laycan. Pacific RV went as well down losing $2,000/d and going from $8,500/d to mid $6,000/d. The market in the Atlantic basin was a bit more stable: Fronthaul lost $500/d remaining at $21,000/d level. On TransAtlantic RV instead the market was a bit more under pressure and rates lost more than $2,500/d. BolivarRotterdam route went from low $6/mt to $5.40/mt. Backhauls quickly recovered reaching almost positive levels. Not much activity reported on period due to physical and paper markets softening: only some deals were reported and concluded index linked basis.

Panamax (Atlantic and Pacific)

After a slow beginning of the week, rates generally maintained similar levels of previous week in the Atlantic basin and for SE Asia positions, although in the Pacific basin a lack of fresh cargoes was reported. There was a lack of TransAtlantic demand in the North with the position list that visibly increased in Cont and in W Med basins. Activity out of ECSAm was remarkably quiet with limited movements reported, whilst in Asia many charterers hesitated about fixing with the belief that market would further soften. A 82,000 dwt was fixed for a trip via Murmansk with redely Cont at $4,000/d and another 82,000 dwt was fixed at $13,000/d + 250,000 bb basis dely aps Houston for a trip with redely China. A 74,000 dwt was fixed for a trip via River Plate at $12,100/d + 210,000 bb with redely F East.

Handy (Far East/Pacific)

After the long period of negative trend, the market in F East seemed to stop decreasing. Rates remained more or less stable compared to previous week, both on Ultramax/Supramax and on Handysize segments. A 56,000 dwt with dely S China was fixed at $4,000/d for a trip via Vietnam to China with clinker, while bigger Supramax units with dely Philippines took the same rate for the same trip and a 53,000 dwt with dely Spore was done at $2,200/d for a trip to China. A 56,000 dwt with dely Indonesia was rumoured at $4,000/d for a trip to Thailand, while a 55,000 dwt with dely Vietnam was reported to be fixed at $3,250/d for a trip via Thailand to China. As regards West direction, a 58,000 dwt with dely Spore was fixed at $4,500/d for a trip via Indonesia to WCI. No fixtures were reported in the Handysize segment.

Handy (North Europe/Mediterranean)

The market in Cont still showed weakening rates both on Supramax and on Handysize units. In the Handysize segment, a nice 34,000 dwt was fixed on voyage basis with one fertilizer cargo from Baltic to F East at the equivalent of $10,000/d basis dely passing Skaw with redely Spore/Japan range, 55 days duration wog. In the Supramax segment, at the end of the week, some owners evaluated fancy 52,000 dwt units basis dely dop Antwerp at $5,000/d for quick trip with coal cargoes to W Med, while charterers’ evaluation was around $5,000/d. Rates on Fronthauls were still around $8,000/d basis dely Cont with redely Spore/Japan range. Another depressing week in BSea and in E Med basins, even though some improvements were reported. Backhauls to USG were fixed on Handies close to $5,000/d basis dely Canakkale; similar levels were rumoured for trips to Cont and to Morocco. In the Supramax and Ultramax segments was reported even less excitement: some charterers evaluated 63,000 dwt units at $12,000/d basis dely dop Canakkale for trip to Spore/Japan range.

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

The Supramax and Ultramax remained stable at low rates: activity was not too bad and the few cargoes in the market were covered by a short position list. On TransAtlantic RV Supramax units were still in the $5,000/d while Ultramax were fixed around $6,500/d. On Fronthaul, rates on Supramax were around $11,000/d and on Ultramax were rumoured at $13/13,500/d. Still a negative trend was reported in the Handysize segment: several spot units were still reported for April and that cannot improve the sentiment. On TransAtlantic RV, 32/35,000 dwt units were fixed around $5,000/d while larger 36/39,000 dwt were in the $6,500/7,000/d. The market in ECSAm still suffered a very critical period: charterers tried booking forward cargoes at favourable rates, but many of these cargoes were not fully firm and this did not help operators in the area. Rates for trip to ContMed further decreased: 38,000 dwt units were fixed around $5,000/d. Trips to F East were fixed at $9,000/d, a rate well representing the current market situation. Rates on Brazilian coastal trips were still around $4/4,500/d. Supramax and Ultramax segments followed the same trend: for trips to ContMed, rates on Supramax were rumoured at $5,000/d while rates on Ultramax were around $6,000/d. Rates on trips to F East were rumoured in low $11,000/d + 110,000 bb, for the few cargoes reported in the market during the week.

Handy (Indian Ocean/South Africa)

The market showed a positive trend across all the areas within the Indian Ocean. Rates on MEG-India deals were more or less in line with last done or slightly better, with an improvement of about $500/750/d that led rates at $5,500/6,000/d. From WCI, rates on Ultramax units for trips to F East were around $7,500/d basis dely dop, with an increase of over $1,000/1,200/d. Rates from ECI jumped more than $1,500/2,000/d too: iron ore cargoes from ECI were fixed at $4,500/5,000/d to China (depending on vessel’s specs and position); units were rumoured to be fixed around high $5,000/d level. Also rates form SAfr seemed to increase: a 58,000 dwt was fixed for a spot biz at $9,000/d + 90,000 bb from SAfr to F East.

Banchero Costa and Co Spa

Email: research@bancosta.it
Internet: www.bancosta.it

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