Capesize
Another negative week for Capesizes with 5TC losing almost USD 3,000 with all basins under pressure. The benchmark C5 West Australia / China has seen rates ranging between low 6's and very high USD 5's pmt for 20th Feb onwards with timecharter rates eroding further due to increasing bunker prices. The Saldanha Bay / Qingdao had a more remarkable down trend with a low USD 11 pmt agreed end of the week, 1.90 pmt lower than in the previous week. Also out of Brazil due to few cargoes left for February the C3 progressively went down with USD 16.50 pmt traded for February dates. For forward position (March) the numbers seen were even lower in the region of high USD 14's due to the increasing number of ballasters able to make March dates. In the Atlantic another big decline was recorded with mainly the transatlantic route losing almost 6,000 USD in a week. The t/a was fixed in the region of USD 17000 whilst fronthaul closed the week at USD 29250, around USD 3000 less than in the previous week.
Panamax
In the Atlantic it was quite a positive week for Panamaxes with rates coming up considerably in ECSA and USG. The USG in particular was quite busy with coal cargoes to China which boosted rates up a lot. Some delays in Brazil for grains cargoes also made chtrs switch sources to USG (admi was def one of the most active reported taking 3/4 ships). North Atlantic remain a very balanced market even though last week there was a very limited number of fixtures done in the area. Baltic rv were reported around 20k with chtrs having to pay a premium for breaching IWL. Black Sea was not particularly busy both on grains and coal cargoes, and fixtures reported around 15k for rv to East Med and 26/26.5k for fhaul to China. Offers for longer tarv arnd USD 18k for grains and 20k for minerals bss dely gib/wmed ecsa remain strong but some ows had to reduce their rates to get fxd. There is a very mixed feelings about this week and what to expect especially seeing a tonnage list that is getting longer, will the exports maintain expectations ? Due to the forthcoming Chinese New Year, activity in the Pacific basin had gone slowly for most part of the week with sporadic enquiries coming out in to the market. Looking at the healthy ECSA market, owners tried to take advantage of a shorter tonnage list in the Pacific to increase their fixing level, however this wasn't enough and low market activity didn't allow it. PMXs open in South China paid in the 9,000 USD/day bss dop for a trip to China, while young KMXs still managed to fix in the 12,000-13,000 USD/day for a NOPAC round. In Australia, PMXs have been reported to fix in the mid 10,000- 11,000 USD/day for feast discharge bss dop SE Asia-S.China and KMX assessed at mid 11,000-12,000 USD/day for same trip.
Far East/Pacific
After a few weeks of positive trend, the Far East marked begun to decrease, especially on Supramaxes where indexes marked almost 1,000 dollars less than last week on all routes. Two 56,000 dwt delivering south China were reported to be fixed at USD 8,750 for a trip to South East Asia and a 47,000 dwt with the same delivery took 250 dollars less for the same trip. Regarding China direction, a 57,000 dwt delivering South China was done at USD 8,000/day for a trip via Indonesia to China and a smaller Supramax delivery mid China was rumoured to be fixed at USD 8,500/day for a trip via Indonesia to South China. Regarding West direction, a 56,000 dwt delivering Singapore was fixed at USD 8,750/day for a trip via Indonesia to West Coast India and a modern Ultramax delivering south Japan took USD 12,750/day for a trip via nopac to Bangladesh with grains. No fixtures were reported on Handysize.
North Europe/Mediterranean/Black Sea
The Handy segment has been able to resist to downturn pressure experienced by the bigger side. A 37k dwt fixed scrap from ice free port at USD 19,500 dop UK for redelivery EMed, while 28k dwt took USD 12,000 dely French Atlantic for scrap again into Emed Trip to USG/NCSA been done in region on low 14k dop ARA on a 34k dwt and Cont/rv in region of mid teens dep on size dely. Contrary to the smaller ships, Supramaxes have been under pressure with 57k dwt fixed scrap from ice free port at USD 17,500 dop ARA redel EMed. Cont r/v on tess 58 in region of 18k dop. Only ships able to break inl and call icy zone got decent rates: 3/4k USD more than what can be paid by ice free port. Trip into USG goes in low/mid teens while fronthul still in low 20's. The Black Sea market faced another positive week for all sizes and, apart the front haul ones, for all the routes. A slowdown is expected for the next week, with holidays in the Far East and tonnage start to pile up in Emed. The excitement of last week came mainly from charterers of Russian wheat, who willing to fix shipments before the imposition of export duty, but surely the Atlantic lanes did not give any sign of assignment anywhere and ownrs remaining very bullish. Handies for the trips to USG and ECSA are now getting USD 14,000, while Supramaxes and Ultramaxes accelerated to USD 15,500 if not 16,000, abt 2,000 USA more than last week. The fronthaul slowed down to USD 20,000 level on Handies and the Supramaxes/Ultramaxes are at USD 25,500/ 26,000, losing abt USD 1,000. On cross-Med, average Handies still fixing around USD 16/17,000, similar level of the Supras.
US Gulf/N.America/East Coast S.America
Supramaxes and Ultramaxes have continued a rise in sentiment and also in the actual fixed levels. The count of the vessels making the market remaining at these rates in combination with all the other Atlantic areas where demand is strong. No change in the next weeks during Feb is expected. Supramaxes around USD 20/21,000 and Ultras around USD 23,500 for tarv. On fronthaul, Ultramaxes are getting around USD 26,500 and Supras around USD 23,000. Small premium if petcoke loading. Handies are seeing the same increase in sentiment and better rates, which were already very high, thanks to the number of cargoes and limited tonnage. 32/35,000 dwt around USD 14,000s and the larger 36/39,000 dwt in the USD17,000's for tarv. 1000 dollars premium for petcoke loading. The market in East Coast South America during the week was positive on Handy and Supramax sizes. It was rumoured that a nice 30,000 dwt modern and geared was rating USD 15,000 basis dely aps south Brazil for one tct to Cont-Med with grains while a nice and fancy 35,000 dwt was rating USD 17,000 basis dely aps south Brazil to Cont - Med with grains. On Supramax and Ultramax levels were also positive and increased compared to last week. There were rumours that a nice tess 58,000 dwt was fixed at around USD 18/19,000 basis dely aps south Brazil for tct to Cont-Med. However, no fixture has been reported for fronthaul.
Indian Ocean/South Africa
The market remained firm in the Indian ocean last week. There was lack of tonnage in the PGWCI area for prompt dates pushing rates further high. From WCI dolphin57s were going arnd high13- 14k levels for trips to PG. From WCI a umx was understood to be fixed over 22k levels for trip to China with iron ore in bulk. An eco umx open in the Arabian Gulf was reported to be fixed for bhaul trip to WAfr at 14k levels. Whereas a 55k Supra in PG was heard to be fixed for China direction around 19k levels. In ECI though the market turned slightly soft as compared to the week before. A 53k tonner was heard to be fixed for SAfr trips to PG / WCI - Supras were heard to be fixed arnd mid 12k/mid 200k levels and Ultramaxes in low 13k + low 300k levels. Redel in China was garnering premium with Ultramaxes getting over 14k + 400k aps SAfr for such longer trips into feast. More period activity came to light with operators taking Supramaxes in WCI arnd 14/low14k levels for short period.
Banchero Costa and Co Spa
Email: research@bancosta.it
Internet: www.bancosta.it