January 30, 2017 – February 3, 2017 Weekly market report.. Banchero Costa

Capesize market has been largely influenced by Far Eastern holidays and no activity has been reported before Tuesday. The general trend of the market was negative both in Atlantic and Pacific waters. Also trades from out of West Australia followed the same negative trend showing iron ore cargoes fixing from low $5/mt on Tuesday to high $4/mt on Friday. 

The tone was similar for iron ore trades from South Africa and Brazil to Far East: the key route from Tubarao to Qingdao lost more than $1 per mt and settled in the high $10’s for March dates loading. Period market was still active and levels also remained stable despite spot market was coming off mainly due to the presence of some resourceful charterer.

During last week market levels were seen stable throughout the week with Kamsarmax vessels being reported fixed for ECSA trip to F East at around $9,750/d + $475,000 BB with a slight reduction in levels for 75,000 dwt being reported at $9,500/d + $450,000 bb for similar trip. An LME vessel was reported fixed at $8,100/d basis Sri Lanka delivery for trip via ECSA to F East, while an 84,000 dwt was able to fix close to $10,000/d for similar trip basis Singapore delivery. From Continent area an 81,000 dwt has been reported fixed basis Rostock delivery for trip via Red Sea with redelivery Passero at $9,250/d and a 77,000 fixed Ijmuiden trip via Baltic to UKC at $9,000/d daily while a 79,000 dwt was reported fixed basis Aughinish delivery for trip via USG to F East at $13,250/d. A Kamsarmax vessel was reported fixed basis USEC delivery for trip to Jorf Lasfar at $10,000/d + $150,000 bb while a 76,000 fixed basis Newport News trip to Continent at $10,250/d + $100,000 bb. In Med area an 82,000 dwt fixed basis B Sea delivery trip to Spore-Japan range at $16,000/d and similar size was reported fixed basis Gibraltar for 2LL redelivery Skaw-Passero at $8,700/d. In F East NoPac RVs have been reported fixed on a 76,000 dwt at around $6,000/d basis Japan delivery while for trip via Australia an 82,000 dwt fixed at $7,000/d basis N China and redelivery Japan. Trips to India have been reported fixed on a 76,000 dwt at $5,500/d basis Hong Kong delivery via Indonesia while on the period front a 75,000 dwt was reported fixed for 9- 12 months at $7,200/d for the first 90 days and $7,050/d for the balance.

An already very depressed freight market has been further hit by the downturn in activities due to the celebration of the Chinese New Year holidays. The absence of the major trade drivers of this area paralyzed the flow of fresh enquiry and only a limited number of fixtures have been reported to be concluded at low levels. The daily timecharter rate for a standard 57,000 dwt type delivering at Indonesia was around $5,000/d, both for discharge in China and India. A Tess-52 delivering U.S. NoPac got $5,000/d plus $185,000 ballast bonus for a trip to Japan with coal, while an Ultramax delivering at HK was fixed at $6,250/d for a trip with grains via Australia to China.

The chartering enquiry remained still insufficient to employ the large number of available vessels and, consequently, rates slid further down. No details of concluded Supramax size fixtures were reported for spot employments from N Continent. In these waters a fancy 34,000 unit was fixed for a trip from Germany to the Spanish Med at $8,500/d. The increased demand for trading in iced waters, allowed a 22 year old 24,000 dwt delivering N France to get $8,000/d for a trip via Russian Baltic to the Continent. Looking to the South, a 55,000 dwt Supramax delivering B Sea straits was fixed for a 75 to 140 days duration at $10,550/d and redelivery WW, she was rumored to perform 2 laden legs, the first on to ECSA. From the same area a 30,000 size got $7,500/d from Georgia to the Egyptian Mediterranean. A fuel efficient 58,000 size fixed a fronthaul with gypsum from S Spain to NCSA at only $4,000/d.

Despite the USG remained the most active and profitable area of the market, further signs of lowering rates were noted this week, currently affecting more strongly the Handysizes. Charterers still showed a good interest for larger size fronthaul trade with two Ultramaxes delivering USG got $19,000/d. On the same trade fuel efficient Supramaxes were getting $17,500/18,000/d. For loading in this area a larger Ultramax was booked with grains to S Africa and a 61,000 size fixed 4/6 months WW redely at $11,750/d plus $250,000 bb. A 57,900 dwt dely USEC was fixed to load grains from USG to Israel at $12,250/d and a slightly smaller one with same dely agreed a 3 to 5 mos timecharter with redely Atlantic at $11,000/d. A 34,000 dwt was done with grains from Texas to Turkey at $10,500/d, while a 37,000 unit getting $10,000/d from the USEC to Morocco. The lowering rates trend in the S American market had a larger impact on TransAtlantic and Handysizes trades even if the fronthaul business was seen affected too. A 61,000 Ultramax delivering N Brazil was fixed to the MEG, likely to carry alumina, at $12,250/d plus $335,000 bb, a larger vessel dely at Sao Francisco do Sul loading grains to China got $12,000/d + $200,000 bb. A Japanese 58,000 dwt was fixed from N Brazil with alumina to Norway at $10,600/d and a 37,000 fixed $6,800/d from S Brazil to Morocco.

A lack of interest from charterers pushed rates low. A 55,000 size fixed a trip from the MEG to WC India at $9,750/d. A 50,000 dwt with a similar delivery agreed $8,250/d performing a short trip with limestone in the area. A 23,500 dwt delivering passing Cape Town was fixed for a trip via Mozambique back to S Africa at $6,000/d.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it