August 24, 2020 – August 30, 2020 Weekly market report.. Banchero Costa

Tuesday, 01 September 2020 18:26:13 (GMT+3)   |   Istanbul
       

Capesize (Atlantic and Pacific)

Mixed views in the market: rates from Pacific and from Brazil to China improved whilst on TA the market was under pressure with a lack of fresh cargoes and some spot units that struggled to find employment. W Australia-Qingdao went up by almost $1/mt going from $7.23/mt to $8.10/mt: even $8.30/mt was rumoured for 10/12 Sept laycan. This spike was mainly due to the typhoon approaching Chinese ports delaying vessels: units had to wait before discharging with a consequent lack of units for prompt positions. Time charter rates on Pacific RV reached $21,500/d before slightly softening down to $20,275/d on Friday. On Saldanha Bay-China it was recorded an increase of $0.50/mt with rates at $13.195/mt. Out of Brazil, Vale, other miners and operators were all in the market for any September dates plus early October: rates were in the midhigh $17/mt for prompt positions and at $18/mt - low$18/mt for later dates. Tubarao-Qingdao closed on Friday at $18.12/mt. Opposite trend in the Atlantic basin: some ballasters competed with Atlantic tonnage for Colombian cargoes. As a consequence, two cargoes from Drummond to Turkey with mid-September laycan were fixed at $9/8.75/mt equivalent to Bolivar- Rotterdam terms. Rates on Fronthaul remained quite stable with few EC Canada to China deals fixed at $34/34,500/d.

 

Panamax (Atlantic and Pacific)

Rates in the Atlantic basin experienced some recovery after the drop recorded during previous weeks. A strong activity from the Baltic area maintained healthy levels: a Kamsarmax was fixed at $16,250/d for a trip Baltic-Passero. Longer TransAtlantic biz from USEC were rumoured in the $14/15,000/d basis dely dop Gibraltar. Grain cargoes from BSea were also a driver throughout the whole week with units fixed over $25,000/d basis dely dop Port Said. Grain activity from ECSAm remained relatively high with Panamax fixing in the $15,000/d from Indian region. It was reported also a mineral parcel from ECSAm to Med which was fixed at the equivalent of $16,000/d basis dely aps ECSAm. Also in the Pacific basin rates experienced healthy levels during the week: Kamsarmax units were fixed in the $14,000/d for Australia RV with coal, while grain cargo from USG were rumoured in the $16,000/d for Kamsarmax open in N China. Indians, after purchasing Australian coal cargoes in past weeks, started buying again from Indonesia: a 81,000 dwt with dely Philippines was fixed at $14,000/d for a trip Indo-India.

 

Handy (Far East/Pacific)

The market in F East remained more or less stable compared to the previous week, with rates very similar to last done both on Handysize and on Supramax/Ultramax units. A 56,000 dwt with dely Vietnam was fixed at $9,000/d for a trip via Indonesia to Thailand and a smaller Supramax with dely Taiwan was rumoured at $8,500/d for a trip via Indonesia to Taiwan with steels. Regarding West direction, a 60,000 dwt with dely Philippines was reported to be fixed at $9,000/d for a trip via Indonesia to WCI and a bigger Ultramax with the same delivery took $1,000/d more for the same direction. In the Supramax segment, a 56,000 dwt with dely Vietnam was rumoured to be done at $7,000/d for a trip via Indonesia to full India and a 54,000 dwt with dely S China was fixed for a trip to ECI at $9,300/d for the first 45 days and $10,250/d thereafter. No fixtures were reported in the Handysize segment.

 

Handy (North Europe/Mediterranean)

The market in Cont was still strong both on Handysize and on Supramax units. Some improvements were recorded in the Handy size segment: a nice 38,000 dwt was rumoured at $20,000/d basis dely Rotterdam for one trip with scrap to E Med via Baltic, 35 days duration: this fixture remained an exception because the charterer was particularly stuck on dates. A nice 35,000 dwt was fixed at $17,500/d basis dely UK port for a trip via Cont/Baltic to WC Mexico with fertilizers: this fixture was more in line with market levels. On forward business, there were rumours that a charterer fixed 30,000 mt of fertilizers loading out of the Baltic to one N Brazilian port at $23/mt on voyage basis, showing an equivalent of $4,500/d basis dely Skaw on a nice 30,000 dwt: this fixture was very low compared to spot rates. Not so much fixtures in the Supramax and Ultramax segments, apart for a fancy 63,000 dwt fixed at $15,000/d basis dely Cont for a trip via Baltic to E Med with scrap that showed how strong the market was in the area. It was another week of strong market in BSea area, especially in the Handysize segment. Despite the index showed $13,500/d for trips back to USG, there were rumours of Handies fixed in the $16,000/d on that route. Supramax units instead were fixed in the $10,000/d region for the same direction. The inter Med market seemed to be less firm with rates in the $10/11,000/d on Handysize units. Rates on Supramax and on Ultramax on trips to Cont and on Fronthaul were pretty much unchanged, stable respectively at $12/13,000/d and at $24/25,000/d.

 

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

Rates in the Supramax and Ultramax segments kept following the upward trend seen in August showing pretty unchanged values from previous week. On TransAtlantic RV, rates on Supramax units remained in the $16,000/d while on Ultramax in the $19,000/d. On Fronthaul, rates on Supramax units were still close to mid $20,000/d while on Ultramax were in the high $20,000/d. In the Handysize segment the excitement seen together with healthy rates seemed to be softening, even if latest numbers were still decent: 32/35,000 dwt units were fixed around $11/12,000/d while larger 36/39,000 dwt were still in the $14,000/d on TransAtlantic RV. The market in ECSAm started decreasing during the week with charterers running to book forward cargoes at current levels, if not less. Handies owners offered $13,500/d during the week: fixtures were rumoured at $12,500/12,600/d for trips to ContMed. Rates to F East on this size remained pretty stable at $16,000/d or something less. The Supramax and Ultramax segments followed the same trend in the Atlantic getting respectively $13,000/d and $14/14,500/d. On trips to F East rates were still around $14,500/d+450,000 bb on Supramax units and around $15,000/d+500,000 bb on Ultramax.

 

Handy (Indian Ocean/South Africa)

In the Indian Ocean, the WCI/MEG area and SAfr showed some gains whereas from ECI huge drops were recorded. Supramax units from Pakistan/WCI were fixed at $13,500/14,000/d for trips via MEG to ECI/Bangladesh. From WCI to MEG a smaller Supramax was rumoured at $11/11,500/d with salt. Few Supramax units were even reported on period: a Mitsui 56 open Pakistan was rumoured at mid $13,000/d early in the week and towards end of week a Dolphin 57 was fixed at mid $12,000/d for short period from similar position. The iron ore market slid much during the week with monsoon in ECI and also port delays in most of the ECI ports. Many Supramax units were quoted at mid $12/12,000/d for trips via ECI to China, while previous week rates were at $15,000/d. More ships were ballasting towards SAfr direction: SAfr coal to MEG-WCI and biz to China saw strong numbers in the week. Supramax units were rumoured at $12,500/d+250,000 bb for SAfr-Pakistan/WCI biz and over $13,000/d+300,000 bb for longer trips via SAfr to China.

 

Banchero Costa and Co Spa

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


Tags: Europe Freight 

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