January 13, 2020 – January 17, 2020 Weekly market report.. Banchero Costa

Tuesday, 21 January 2020 17:29:09 (GMT+3)   |   Istanbul
       

Capesize (Atlantic and Pacific)

The Capesize market kept decreasing during the week: the 5TC average lost more than $1,000/d in one week with most of the loss coming from the Pacific RV and the China-Brazil RV. Tubarao-Qingdao rates started the week at mid $ 18s/mt, but then lost almost 15 cents every day reaching $17,85/mt at the end of the week. W Australia-Qingdao rates followed a similar trend from $7/mt to $6,83/mt in seven days. Saldanha Bay-Qingdao rates had the same decline of TubaraoQingdao losing almost $1/mt and closing the week at very low $13s/mt. The Atlantic basin was a bit more stable with fronthaul rates swinging around $26,000/d all the week. TA rates remained stable at mid $14,000/d. Period activity was a bit more intense with some periods deals concluded, mainly index linked basis.

Panamax (Atlantic and Pacific)

A slow start of week in the Panamax sector: the Atlantic basin was characterized by bids on APS basis that confirmed the lack of fresh demand and the presence of a growing number of spot ships in N Atlantic. ECSAm kept improving for early February dates, but this trend had little influence on other loading areas. On Tuesday in the Atlantic basin ECSAm demand remained robust for February dates, but TA RV were still driven by charterers with a lot of fixtures concluded on APS + BB basis. The Pacific basin was still a bearish, but some resistance from owners was noticed. During the week the positive trend from ECSAm started to spread to other areas and in the Pacific basin some fixtures were concluded on dop basis for Australia showing some improvements. In N Pacific rates started to appear much firmer than in the South where some fixtures were concluded on APS + BB basis from Indonesia and Australia. TA activity remained thin all week with rates drifting due to demand lacking and a slow build-up of tonnage. At the end of the week NoPac rates were pushing up as a consequence of healthy activity and some stronger fixtures were achieved by well described tonnage with good delivery positions: someone doubts whether these levels were sustainable moving forwards.

Handy (Far East/Pacific)

Far East market kept decreasing especially on the Supramax and Ultramax sectors: rates on the most representative routes averaged around $3,000/d. Decreasing rates in the Handysize sector were not as bad as the decrease on the Supramax and Ultramax segments, but rates touched very low values. Not many fixtures were reported also due to the lack of cargoes: for China direction a 58,000 dwt unit with dely Indonesia was fixed at $6,000/d and a smaller Supramax with dely Spore was fixed at $4,300/d for a trip via Indonesia to China. A 63,000 dwt unit with dely Indonesia was fixed at $8,250/d for a coal cargo to WCI. A 55,000 dwt unit with dely East Kalimantan was reported to be fixed at $5,500/d for a trip to Vietnam. On the Handysize sector only one fixture was reported: at the beginning of the week a 31,000 dwt unit with dely Japan was fixed at $4,750/d for a trip to Indonesia with slag but after that the market decreased a lot.

Handy (North Europe/Mediterranean)

In Cont the market was stable during the week both on Handysize and on Supramax. A modern 32,000 dwt with dely Skaw was fixed at $7,000/d for a trip to Morocco with grains. At the end of the week a fancy 32,000 dwt unit with dely Cont was evaluated by charterers at $5,000/d for a trip to Brazil with fertilizers while owners for this trip were asking $6,000/d. Fronthaul rates on Handysize were unclear: some charterers evaluated fancy 32,000 dwt units at $9,000/d with dely Cont while owners were asking $12,000/d basis dop with dely Cont for a trip to Spore/Japan range. In Med another quiet week with no signs of a recovery: the TCE on some Handysize voyages from BSea were rumored around $3,000/d with dely Canakkale both to Central Med and to Baltic. A small 38,000 dwt unit was fixed at $7,500/d for a trip to the MEG. More action was seen in the Supramax and Ultramax sectors with a 63,000 dwt unit fixed at $17,000/d for a trip via BSea to Spore/Japan range. No big changes expected with the looming Chinese New Year.

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

Supramax rates lost a few hundred dollars with the index decreasing a few points every day. The market is expected to remain stable thanks to a balanced demand and supply moving forward. TA RV rates were around $15,000/d for Supramax and around $17/18,000/d for Ultramax. USG-F East had a premium of $2/3,000/d. Petcoke rates were some $2,000/d higher, especially for Fronthauls. Handysize rates remained low with 32/35,000 dwt units fixed around $7/8,000/d and larger, fancier 36/39,000 dwt units fixed in the $ 9,000s/d. Another quiet week from S America where rates remained in line with the last dones. Despite the sentiment is very negative, the collapse of rates at destinations helped at least to compensate rates on main routes. A 35,000 dwt got $11,000/d for a trip to Skaw/Passero, trips to F East were up from $14,500/d to $16,500/d and the coastal trip Brazil was around $12/12,500/d, slightly better than the previous week. Supramax were fixing around $11,000/d to Cont and $12,000/d to Med, Ultramax got $13,500/d to Skaw/Passero. Tess58 were getting $13,000/d + 300,000 bb to F East, Ultramax $13,500/d + 350,000 bb.

Handy (Indian Ocean/South Africa)

The market remained similar to previous levels with a slight dip through the week. A 56,000 dwt from MEG to WCI was fixed basis dely asp around $7,500/d, circa $750/1,000/d less than the last done. A 53,000 dwt with dely Fujairah was rumored at $4,000/d for a trip via MEG to ECI, not much activity came to light for MEG-India trades. Fom WCI to F East, rates for 56/58,000 dwt units went from high $6,000s/d early in the week to $6,000/d levels at the end of the week. From S Afr to MEG/India range rates were around mid $11,000/d + 150,000 bb on large Supramax units.

Banchero Costa and Co Spa

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


Similar articles

Turkey’s Tosyalı and Abu Dhabi-based AD Ports ink deal for logistics collaboration

26 Jan | Steel News

Latest freight rates from Banchero Costa - November 22, 2022

22 Nov | Steel News

Latest freight rates from Banchero Costa - November 15, 2022

15 Nov | Steel News

Latest freight rates from Banchero Costa - November 8, 2022

08 Nov | Steel News

Latest freight rates from Banchero Costa - November 1, 2022

01 Nov | Steel News

Latest freight rates from Banchero Costa - October 25, 2022

25 Oct | Steel News

Latest freight rates from Banchero Costa - October 18, 2022

18 Oct | Steel News

Latest freight rates from Banchero Costa - October 11, 2022

11 Oct | Steel News

Latest freight rates from Banchero Costa - October 4, 2022

04 Oct | Steel News

Latest freight rates from Banchero Costa - September 13, 2022

13 Sep | Steel News