August 10, 2020 – August 16, 2020 Weekly market report.. Banchero Costa

Tuesday, 18 August 2020 18:22:56 (GMT+3)   |   Istanbul
       

Capesize (Atlantic and Pacific)

The Capesize market during the week recovered on Tubarao-Qingdao route but it lost ground and then it recovered quickly on W Australia-Qingdao route: as a result, 5TC average remained from Friday to Friday at $19,900/d. Tubarao-Qingdao went up progressively from very high $16/mt to $18/mt, then it remained stable in the last two days of the week. Brazilian RV increased as well gaining $1,000/d and closing on Friday at $19,000/d. Saldanha Bay-Qingdao route followed the same path: after gaining $0.70/mt it closed the week at low $14/mt. W Australia-Qingdao route was a bit swinging: opening on Monday losing $0.35/mt and $0.15/mt more on Tuesday, then it recovered quickly closing the week at $8.43/mt. Pacific RV was a bit weaker: it lost $500/d and it closed on Friday at $21,800/d. The market in the Atlantic basin seemed quite stable at mid-$9/mt on Bolivar-Rotterdam route; rates on TransAtlantic lost almost $1,000/d at the beginning of the week but then they remained stable at low $18,000/d. Fronthaul followed the same path: rates reached mid $34,000/d on Tuesday and then remained stable during the whole week at mid/low $34,000/d. No activity reported on period.

 

Panamax (Atlantic and Pacific)

A ramp up in rates was recorded in N Atlantic thanks to a short position list of units among charterers had to choose. A Kamsarmax was rumoured at $22,500/d for a quick Baltic RV. Rates on Fronthaul from S America maintained healthy levels: a Kamsarmax was fixed at $15,000/d basis dely dop Taichung while a 2001 built Panamax was rumoured at $12,500/d from Spore for the same trip. The market in the Pacific basin showed some increases: it benefitted from a shorter position list created by an increasing demand for units for USG and ECSAm grains. A Kamsarmax with S China dely was fixed at $15,500/d from EC Australia to Japan. As regards grain activity on NoPac, rates boosted too due to a short position list: a 77,000 dwt was rumoured at $13,000/d basis dely dop Shanghai on NoPac RV. A Kamsarmax was rumoured at $18,000/d basis dely dop Manila to India with Australian coal. Limited activity from SAfr with only few bids recorded. On period, a fancy eco-Kamsarmax was rumoured at $14,500/d basis dely dop CJK for 5/8 months, while another nice new building scrubber-fitted unit was fixed a tick below $15,000/d for 4/7 months with redely S Korea.

 

Handy (Far East/Pacific)

Rates seemed to stop falling on all sizes in F East. A little growth on demand for Supramax and Ultramax units together with fresh demand for shipments from N Pacific brought hopes to owners: it seemed that rates may start improving in the near future. A crown 57 unit with dely N China was fixed at $8,750/d for a trip via Portland back to China and a Tess58 got $9,500/d for an Australia RV with dely Shangai and redely Vietnam. A 57,000 dwt with dely Thailand was fixed at $6,750/d to load clinkers via Indonesia to Bangladesh and a large Ultramax was on subs for a trip from central China to N Europe at $4,500/d for first 68 days and thereafter at $11,000/d. A bit of period activity reported: a 61,000 dwt was rumoured at $10,500/d from F East for a 4/6 months biz. A 32,000 dwt with dely Port Klang was fixed at $6,500/d for a trip with alumina via Indonesia to Malaysia.

 

Handy (North Europe/Mediterranean)

In Cont no fixtures were reported, at least it seemed that the interest was all on smaller sizes. A 32,000 dwt was fixed at $12,000/d for scrap down to E Med and a 34,000 dwt was fixed passing Skaw at $10,000/d for clean Cargo into Med. The market was stronger on big Handies as demand of such size was higher than tonnage availability. Rates on Baltic RV were rumoured at $9/9,500/d. Owners of fancy Handies open in Cont saw rates around $14,000/d for trips into USG and $16,500/d for trips to SAfr. The market in BSea/Med area pushed a little in owners’ favour both on Supramax and on Handysize units. Rates on Fronthaul were at the end of the week approximately at $24,000/d on Supramax units basis dely Canakkale while rates for Atlantic business were around low teens equivalent for Constanza-Terragona. A 35,000 dwt was rumoured at $11,500/d for a trip to Cont.

 

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

Despite the expectations rates in the Supramax and Ultramax segments maintained decent levels, even if not too much activity was recorded. On TransAtlantic RV rates were pretty unchanged: on Supramax rates were still in the $15,000/d and on Ultramax still in the $18,000/d. The same happened on Fronthaul: rates on Ultramax were still in the mid $20,000/d while on Supramax were still close to $20,000/d like previous week. Rates in the Handysize segment maintained the top reached some weeks before: on TransAtlantic RV, 32/35,000 dwt units were around $10,000/d while larger 36/39,000 dwt units were in the $13/14,000/d. Upwards trend in the Supramax and Ultramax segments: rates on Ultramax in fact were very close to rates on Panamax units, on same biz. At the beginning of the week, a 63,000 dwt was rumoured at $14,250/d from Brazil to Spain, another one was fixed from Santos to S China at $14,000/d + 400,000 bb while a third one was rumoured at $24,250/d + 425,000 bb. A 62,000 dwt was rumoured at $15,000/d + 500,000 bb to F East and a 66,000 dwt was on subs at $15,500/d + 550,000 bb. Near the weekend, a 61,000 dwt was rumoured at $17,000/d for a trip to Turkish Med. In the Handysize segment in ECSAm the market showed a quite different tone: owners struggled to achieve rates similar to previous week. A nice 28,000 dwt was rumoured from Rio de Janeiro for a trip to Ecuador/WC Guatemala range at $13,250/d.

 

Handy (Indian Ocean/South Africa)

The market kept increasing in the area, following the upwards trend of previous week. A 56,000 dwt was rumoured at $12,000/d for a trip via MEG to SE Asia. After a slow Monday, numbers from ECI started pushing up: rates on Supramax units were around $14,000/d early in the week and on Ultramax at $17,000/d towards end of week. Rates on Ultramax units from SE Asia as well seemed to be over $12,000/d for trips via ECI to China with iron ore cargoes. Demand was still healthy going into the weekend: Supramax units were fixed over $15,000/d for ECI-China. Few Supramax units were fixed around mid $12,000/d + 250,000 bb for trips to F East from SAfr, towards end of week similar levels were rumoured on Supramax units with redely in SE Asia. Also towards end of the week, Ultramax units were fixed in the region of $12,500/d–high $12,000/d + 250/275,000 bb for SAfr coal cargoes to Pakistan/WCI range.

 

Banchero Costa and Co Spa

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


Tags: Europe Freight 

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