Capesize (Atlantic and Pacific)
Capesize market kept a strong pace supported by a good demand and bad weather factors in China which forced charterers to substitute the vessels previously fixed. Vessels involved on the route from West Australia to China gained close to usd 30,000 per day hitting the highest levels of the year and leaving just a small portion of tonnage ballasting towards South Africa and Brazil. The North Atlantic market was again quite thin but strong and supported with round voyage in the Atlantic Ocean fixing in excess of usd 30,000 per day for modern vessels with delivery in the Continent. Period activity was evident as charterers wished to take advantage by lower rates for longer duration compared to spot (1 year was trading around usd 17,500 per day while short period with prompt delivery in the low usd 20,000’s.
Panamax (Atlantic and Pacific)
Panamax market recorded a start of the week with rates bit soft but, as the weekend approached, especially in Atlantic rates improved leaving good hopes for incoming week: the North Continent and North America coal draw this positive trend and rates in this area were very solid albeit on shorter duration. Instead grains from EC South America are bit behind and rates are weakening slightly. In the Pacific, coal demand from Indonesia and Australia was quite active again near to the end of the week, with rates appearing to show some resistance while North Pacific grain activity was lousy and owners struggling to cover on prompt positions. Period demand remained healthy, as a consequence the positive FFA market, with a 2006-built Kamsarmax on subjects at $12,500 daily delivery India.
Handy (Far East/Pacific)
The ongoing surplus of available tonnage in the area penalizes Supra rates. The week started showing rates on a decreasing trend which, up to now, was limited by owners resistance. Daily hire decrease was seen on all trades, backhaul was said to stay at same levels of the previous week, but no backhaul fixtures reported. Traders rumored that China has large material import program but same are not supposed to start before the 2H of January. On Monday a nice 57,900 dwt dely Spore was reported done at $12,000/d for a trip via Indo with coal to India, whilst the week ended showing Tess58 at $9,575/d. Several vessels were fixed to load same cargoes from this area to China; a 56,000 dwt built 2013 got $9,000/d dely at Thailand and a 39,600 dwt fixed $10,000/d with dely Indo. A 57,000 dwt carrying bauxite to China was fixed at $9,700/d dely S China via Vietnam and another one got $10,000/d dely Thailand via Indo. Short trips via Indo inter SE Asia showed rates in the $11,500/d on 53/55000 tonners. On trips loading from the northern range a 56,800 dwt delivering CJK performed a trip via CIS Pacific to Myanmar at $9,750/d, a 34,400 tonner built 2010 was fixed at $7,250/d with delivery S Korea for a trip with slag via N China to Spore.
Handy (North Europe/Mediterranean)
Continent market remained steady with some activity recorded on the usual run from North France to Algeria where charterers wanted to repeat the $20 pmt fixed last week on an equivalent TC bss for around 30,000 mts of wheat, while Liepaja to Ravenna fixed at $21 pmt bss same quantity. There were still a good activity of fertilizers stems recorded ex the Baltic and on TC bss basically round trip for Handies was around $12/13,000/d bss dop ARA range. Supra market was steady as well with rates for scrap run stable at $16,000/d for TCT to the Med. Feeling a bit squeezed for tonnage on the Cont as the week ends. Supras in the B Sea have been maintaining their levels despite being very well supplied for December dates but some discounting could be seem next week as owners try and avoid the holiday slow down. Handies showed a slightly different trend with fewer ships and some enquiry around. A 53,828 dwt dely Annaba ppt agreed $17,000/d for a trip redely India int fertiliser, while a 56,600 dwt heard fixed on subjects at $15,800/d bss dely Ghent for a scrap trip to the E Med and a Supra got $16,000/d bss DOP UKC for a trip to the E Med. A 32,000 dwt agreed $10,500/d bss dely Canakkale for a fertilizer trip to Brazil and an old 28,000 dwt vessel was fixed at $11,500/d bss APS Yuzhny for a trip from the B Sea to Tunisia.
Handy (USA/N.Atlantic/Lakes/S.America)
The market from these waters continued to perform at good levels with several cargoes available for December dates and charterers trying to cover that before Christmas pushing rates slightly higher than the previous week. The usual petcoke trade form the USG to Turkey reached around $21.5/mt, with cargoes starting from NCSA paid $1/mt less and the USG/India route with the same commodity done at $39.0/mt. ECSA market continued with its positive trend. The usual trip for Supras via ECSA to Skaw/Passero range gained around $20/40 per day during the whole week. A 61,400 dwt with dely Santos agreed a strong rate for a trip to N France at $18,500/d but in the end of the week the smaller Supras were already trying to get $18,000/d for the same trip. Handies got the stronger benefit from this market since increased more than $100 per day on the TransAtlantic route from $15,770/d to $16,150/d. On the fronthaul the situation has been similar, on Monday rates for a Tess 58 dely W Africa were $13,750/d for a trip via ECSA to China and, on Friday, $16,100/d have been reached.
Handy (Indian Ocean/South Africa)
The market in the MEG-WCI softened a bit, with number of cargoes available falling short. A 56,000 unit was fixed at dop MEG port for inter MEG steel pellets from Iran to the UAE at $13,000/d. Another 56,000 dwt unit was offered $12,750/d bss aps Mina Saqr port for limestones to WCI. Period activity in the region showed a downward trend with charterers early in the week offering mid $9,000s for a 55,000 dwt Supra slowing down to around $9,000/d levels. Not many cargoes came out of Iran for this week but same cargoes are expected for mid-end of December giving to the Iran callers an advantage and with owners of a 58,000 dwt asking $14,000/d for the Iran/UAE steel billets trip. S Africa remained bit cold with fewer cargoes to offer. On Friday a 61,000 Ultramax was reported to be fixed at $12,000/d + $200,000 bb bss aps Richards Bay for coal to India. But for now, the market for S Africa seems to slowing down. On the Red sea front, the lack of Supras, pushed owners of a 58,000 dwt ship to ask in the region of high-teens dop R Sea for a trip to India with fertilizers.
Banchero Costa and Co Spa
Email: research@bancosta.it
Internet: www.bancosta.it