July 13, 2020 – July 19, 2020 Weekly market report.. Banchero Costa

Tuesday, 21 July 2020 17:18:19 (GMT+3)   |   Istanbul
       

Capesize (Atlantic and Pacific)

The Capesize market went down quite a lot during the week losing more than $2,000/d on 5TC average that went from $27,600/d to $25,000/d. Tubarao-Qingdao route lost $0.50/mt from Friday to Monday and then it went down progressively until Thursday touching very low $18/mt; at the end of week it gained again $0.20/mt and closed at $18.30/mt. Brazilian RV kept decreasing too losing $2,000/d and reaching $20,100/d. Saldanha Bay-Qingdao route followed the same path closing on Friday at low $14/mt after losing $0.80/mt. W Australia Qingdao route was a bit swinging: it went progressively down from Friday to Thursday going from high $8/mt to high $7/mt but then it closed the week at $8.15/mt. Pacific RV was under pressure too: it lost $5,000/d closing the week at $21,400/d. The Atlantic basin lightly went down as well: Fronthaul lost $3,000/d closing on Friday at mid $45,000/d. TransAtlantic followed the same path going from mid $32,000/d to very high $30,000/d. Not much activity reported on period.

 

Panamax (Atlantic and Pacific)

Subdued days in the Panamax market with rates easing in all areas throughout the whole week. The bids/offers range was wide with fixing volumes down as the week progressed. In the Atlantic basin a limited activity was recorded from ECSAm while demand for longer duration TransAtlantic trips was significant. At the beginning of the week, rates on Baltic RV were rumoured at $20,000/d and towards the end of the week they decreased reaching levels close to $15/16,000/d. There was less of a decline in rates out of the Pacific basin but it was still a slow week in that area. Easier rates were certainly concluded over the week: for instance, a 82,000 dwt with dely China was fixed at $12,500/d for a NoPac round trip while on Friday rates for a similar trip were closer to $11,500/d.

 

Handy (Far East/Pacific)

The market started showing some improvements during the week, especially on Supramax and Ultramax units were rates saw an increase of around $1,000/d. In the Handysize segment instead rates remained more or less stable as per previous week, without significant increases. A 58,000 dwt with dely Spore was done at $10,750/d for a trip via S Afr to Vietnam, a similar size vessel with dely Thailand took $8,500/d for a trip via Indonesia to SE Asia and a 52,000 dwt with dely Taiwan was rumoured at $9,200/d for a trip via Indonesia to mid-China. Regarding West direction, a 55,000 dwt with dely mid-China was fixed at $4,250/d for a trip via Indonesia to WCI.

 

Handy (North Europe/Mediterranean)

The market in Cont was stable with good levels recorded mainly on Supramax and Ultramax segments. On Handysize units instead not a lot of activity was reported during the week: most fixtures recorded were with coal and scrap cargoes. A nice 35,000 dwt was rumoured around $9/10,000/d basis dely Cont for one trip with scrap into E Med. In the Supramax and Ultramax segments instead, more activity was recorded compared to the Handysize segment. Most of the fixtures reported were done with scrap and fertilizers. A fancy 56,000 dwt was fixed at $12,500/d basis dely Cont for one trip with scrap into E Med. In the Ultramax segment a nice 63,000 dwt was fixed at $16,500/d basis dely Cont for one trip into E Med with scrap again. On Fronthaul, a fancy 64,000 dwt was fixed at $21,000/d basis dely Cont for one trip via Baltic to Spore/Japan range with fertilizers, 65 days duration wog. Interesting week in BSea/Med area: some ups and downs were reported but the week finished with improvements on all routes. Rates on Handysize units were in the $8,000/d for trips to Cont and in the $5,500/6,000/d for backhauls to USG and ECSAm. Period rates offered by owners seemed to be a bit too high for charterers to consider: they were around $9/10,000/d basis redely Atlantic. Supramax units were fixed over $22,000/d for trips to FEast with clean cargoes and the market seemed to be quite stable for upcoming weeks. Rates for backhauls to USG were in the high $7,000/d.

 

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

Supramax and Ultramax segments showed levels similar to previous weeks. On TransAtlantic RV, Supramax units were fixed in the $15/16,000/d while Ultramax were in the $19/20,000/d. On Fronthaul, rates on Supramax were close to low $20,000/d and on Ultramax units were in the high $25,000/d. The Handysize segment kept showing a trend similar to previous weeks gaining day by day few points: on TransAtlantic, 32/35,000 dwt units were fixed around $9/10,000/d while larger 36/39,000 dwt were in the $12,000/d. As regards ECSAm area, the market remained pretty strong in the Atlantic basin while routes to FEast stopped increasing during the week: anyway, the sentiment remained bullish. Rates on Handysize units in fact improved on all routes: rates for trips to ContMed went from $11,500/12,000/d to $12,500/d while rates on trips to FEast went from $16,000/d to $17,000/d. Rates on Brazilian coastal trips peaked reaching $14,000/d from the low teens recorded during last week. Supramax units were fixed at $14,500/d for trips to Cont and at $15,000/d for trips to Med. Fronthaul remained stable at $14/14,250/d + 400/425,000 bb. Ultramax units were fixed at $15,000/d + 500,000 bb for trips to FEast while for trips to Skaw/Passero range numbers exchanged were rumoured in the $17,000/d.

 

Handy (Indian Ocean/South Africa)

The market was stronger compared to previous week and rates increased on all routes in the area: a Ultramax open in Pakistan was fixed at mid $13,000/d on MEG-WCI and a Supramax open MEG was fixed at levels close to $16,000/d with ECI/Bangladesh range. From WCI, units were fixed at $14,000/d to FEast direction; early in the week a 53,000 dwt was fixed at mid $12,000/d. Skyrocketing rates in ECI area: Supramax units were fixed at $11,500/12,000/d level early in the week while at the end of week they were rumoured at $14,500/15,000/d depending on vessel’s specs and open position in ECI. Similarly, the Ultramax segment pushed as well: early in the week rates were rumoured at $13,000/mid $13,000/d and at the end of week they were at $17,000/d. In SAfr area, the market remained more or less similar to previous weeks: rates on Supramax units were at mid-high $11,000/d + 150/175,000 bb for SAfr coal Cargo to WCI and Ultramax units were rumoured over low $12,000/d + 225/250,000 bb.

 

Banchero Costa and Co Spa

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


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