Capesize (Atlantic and Pacific)
The Capesize market was quiet during the holidays. As expected, from the 1 st January 2020 rates started to decrease also due to the implementation of IMO 2020 and the quick increase of compliant bunker prices. MEG-Japan rates in the last 3 weeks lost almost $5,000/d. Tubarao-Qingdao rates at the end of the year closed at $19/mt, but in the first 7 days of 2020 lost 70 cents: on Wednesday and on Thursday there was an uncertain recovery and rates touched $18,60/mt, but on Friday lost again 20 cents. W AustraliaQingdao rates followed the same trend: at the end of the year rates were rumored at $7,40/mt and then lost 30 cents at the beginning of 2020. Between Thursday and Friday rates became a bit more stable gaining more than 40 cents and closing the week at $7,43/mt. No much activity on the Atlantic side: both Fronthaul and TA lost respectively $3,000/day and $1,000/d although tonnage availability seemed tight. Saldanha Bay-Qingdao rates were fairly stable, probably due to the general slowdown of the market. Period activity remained quiet with a couple of vessels reported fixed for 1 year at index basis dely prompt China and short period was fixed in the $10,500/d range.
Panamax (Atlantic and Pacific)
A slow start of week due to ongoing holidays in many European countries: rates kept decreasing and a long list of spot tonnage in Asia limited any significant improvement. The Panamax market was under pressure everywhere with rates falling in both basins. By Tuesday ECSAm grain activity increased, but rates were still flat. At the end of the week TA activity was thin and consequently rates weakened. The Pacific basin was fairly active, but with many early vessels available: charterers were able to push rates down and several fixtures were concluded on APS basis in Indonesia. Some period activity was reported, this might offer.
Handy (Far East/Pacific)
The Far Eastern market was already low at the end of 2019 and kept decreasing also in 2020 both on Supramax and Handysize.An Ultramax with dely Spore was fixed at $6,000/d for a trip via Indonesia to China. Some Supramax units were fixed at similar values for similar trips: a 56,000 dwt unit with dely Indonesia was fixed at $7,200/d for a trip to S Korea, a 56,000 dwt unit with dely Indonesia was fixed at $7,000/d for a trip to China and a 55,000 dwt unit was rumored to be fixed at $6,500/d for the same trip. A 55,000 dwt unit with dely Kalimantan was fixed at $7,500/d for SE Asia redelivery. Two fixtures were reported to Western destinations: a 55,000 dwt with dely Indonesia was rumored at 4,000/d for a trip to WCI and a 56,000 dwt unit with dely S China was rumored at $2,000/d for a trip via Indonesia to Maldives. No fixtures were reported on Handysize.
Handy (North Europe/Mediterranean)
In Cont the market was quiet for Supramax and Handysize: not much activity due to holidays. In the Supramax market a 56,000 dwt unit with dely Cont was rumored at $9,000/d for a coal cargo to Turkey and a fancy 58,000 dwt geared with dely UK was fixed for one trip with scrap basis to Eastern Med at $10,000/d. In the Handysize sector no fixtures were reported, a 33,000 dwt with dely Skaw was offered at $8,000/d for one trip with coal to Turkey, charterers evaluated her $5,000/d. These levels showed how the Handysize market was weak in the area and there was a similar trend in the Med market on this size. The number of spot ships and a lack of enquiries hit rates hard: Handysize rates for BSea CrossMed were reported in the $4,000s/d and Supramax rates for clinker to WAfr were reported in the $8,000s/d. The situation might not change significantly before the Chinese New Year at the end of January.
Handy (USA/N.Atlantic/Lakes/S.America)
The Supramax market in USG remained stable, but in early January rates softened on a less positive sentiment. Supramax rates for TA RV touched $15,000/d and Ultramax rates were around $17,000/d. USG-F East rates had a premium of $2,000/d. The Handysize market suffered during all December reaching the bottom at the end of the month: no recovery is expected soon. For Atlantic trades 32/25,000 dwt units were fixed around $8,000/d and the large 37,000-39,000 dwt units were fixed in the $9,000s/d. During the holidays the ECSAm market remained low and pretty much stable on all routes: this stability seemed to derive more from the general weakness affecting in particular Med and Far East. Units around 35,000 dwt were fixed at $11,000/d for trips to Skaw/Passero, and $14,500/d to Far East; the Brazilian coastal trips were done at $12,000/d.The Supramax and Ultramax rates were fixed around $11,000/d to Cont and around $12,000/d to Med. Ultramax rates were fixed around $13,500/d for trips to Skaw/Passero. Tess58’ units were fixed at $13,000/d + 300,000 bb for a trip via Brazil/Argentina to Far East and the Ultramax rates were around $13,500/d + 350,000 bb.
Handy (Indian Ocean/South Africa)
Not much activity during the week: a Supramax from UAE with a mineral cargo to WCI was fixed APS basis at low $8,000/d, rates to ECI were rumored at similar levels. Supramax rates from WCI for trips to F East were fixed around $7/7,500/d and Ultramax rates were around $9,000/d. From ECI to F East a Supramax was fixed around high $5,000/d and for a similar trip an Ultramax with loading port in ECI was fixed around $7,000/d APS basis while another one around high $6,000/d APS basis. A 63,000 dwt unit from SAfr to MEG-India area was fixed around high $11,000/d + 100,000 bb.
Banchero Costa and Co Spa
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