August 28-September 3, 2010 Weekly market report.. Banchero Costa

Tuesday, 07 September 2010 14:34:30 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

A very positive week in the capesize market: BCI improved 488 points, the 4 T/c routes gained $ 5,989. Tubarao/China fixed close to $ 29.00 equivalent to about $ 62,400 daily. The Atlantic was under pressure for the usual shortage of available tonnage in position although there were some more business quoted. In the East the West Australia to China also has picked up from $ 11.00 to about $ 12.00 with the Pacific round being around $ 35,000 daily. There was also some activity reported on the short period with modern capes being fixed at about $ 37,000 daily for 4/6 months and one report for NB 181,000 dwt fixing at $ 33,000 daily for one year period.

Panamax (Atlantic and Pacific)

Activity was good enough in the Atlantic for the whole week, with rates firming and fresh inquiry heard in the market especially from US Gulf while South America remained quiet. Rates for quick intercontinental cargoes reached $30,000 level. The Pacific Panamax basin was more active than the Atlantic as were the gains in rates. Very good demand for short period tonnage and rates rose to about $28,000 and mid $30,000s in Atlantic. This is reflecting the good feeling for the last part of this year.

Handy (Far East/Pacific)

The large number of reported fixtures was more due to owners trying to grab an employment for their tonnage before running spot, rather than from a market growing positively. Supramax rates were inflated by the large amount of tonnage available, in connection with the depressed Indian Ocean situation pushing owners to ballast out from the area and fix Indonesia and west Australia loading businesses. Short period interest was still alive but the weaker agreed rates cooled down owners' optimism. A fair amount of larger tonnage available in the East is ballasting to Panama Canal to try their luck on the U.S. Gulf, North Coast South America businesses. Some firmer rates were still agreed due to positional reasons while the smaller Handies were showing undercut levels.

Handy (North Europe/Mediterranean)

Rates showed to better remain in this area where a little more business was seen available from Continent Med and Black Sea, areas which at least are not suffering from the competition of the tonnage ballasting from other weaker market areas. Supramax scrap business from the Continent to East Med was still worth mid $20,000's daily for the larger units and even if the amount of the requirements available was not that huge, rates kept steady. Because the owners who were able to afterwards trade via GOA can constructively look at this direction, while others try grab positional cargoes to the U.S.Gulf even undercutting their rates. The Black Sea was mostly active for business to the East on which Supramaxes were worth high $30,000's daily, a level very much in line with previous week's rates which may anticipate some further improvement. Interest for smaller units was limited to short period deals concluded at fair enough levels.


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

Some business from S.E. America remained available but the amount of same was not enough to feed the available tonnage, especially now that in connection with the recent Indian Ocean crisis ballasters were coming to bother the market from that area. Owners who failed to take fixing chance at the right moment see their tonnage running spot and often have to afterwards agree weaker fixture due to waiting time loss in connection with required loading notice. The U.S. Gulf/North Coast South America market showed to be more resisting to this negative trend, although towards the end of the week weaker levels were agreed for Trans-Atlantic runs due to the interference of a fair amount of tonnage ballasting to this area from the Far East.

Handy (Indian Ocean/South Africa)

Due to an iron ore export ban from one of the Indian regions, the market in this area suffered another negative interval. Even if a few boats were reported fixing at low but still acceptable levels for this trade, the very limited amount of business available locally in connection with a shorter demand for loading coal in South Africa back to India has induced a large number of vessels to ballast out towards Indonesia/Australia or South America.


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