July 24, 2017 – July 28, 2017 Weekly market report.. Banchero Costa

Wednesday, 02 August 2017 16:02:57 (GMT+3)   |   Istanbul
       

Capesize (Atlantic and Pacific)

After a quiet start of the week, a bearish sentiment influenced some Capesize owners which decided to concede some discount on the last levels done. In the Pacific Ocean the charterers were able to agree some vessels in the low $5’s pmt for the route from West Australia to China and, similarly out of Brazil, the market dropped to the high $12’s for the August dates. During the second part of the week, the market has finally found a floor and some positive feeling has been registered. On the standard route from Tubarao to Qingdao an increased activity was reported with rates in the low $13’s for dates in the first half of September, while the trades from West Australia to Qingdao have been agreed at around high $5’s. Volumes out of the North Atlantic Ocean remained low but also the tonnage list was short enough to allow the market to increase considerably during the week.

Panamax (Atlantic and Pacific)

Throughout last week, the Panamax market suffered from a negative trend, with rates falling in almost all areas. In the South Atlantic an 81,800 dwt 2015-built was fixed basis delivery East Coast South America for a trip redelivery Continent at $14,000/d and a 77,700-dwt was fixed for a South America fronthaul at $10,500/d plus $550,000 BB; in the North Atlantic an 84,700-dwt 2016-built was fixed basis delivery Immingham for a trip via the Continent and the Baltic to the Red Sea with redelivery Port Said at $12,000/d. Even in Asia rates remained under pressure, a 79,300-dwt 2015-built was reported fixed basis delivery China, end of July dates, for a trip via East Coast Australia with redelivery India at $7,500/d and an 81,400-dwt 2010-built open Xingang was fixed for NoPac RV at $8,750/d. Period activity remained quiet with a 75,000-dwt 2007-built open China fixed for short period with rates between $8,000/d and $9,000/d. However, by the end of week, the paper market moved up a bit so some positive changes in the near future could be expected

Handy (Far East/Pacific)

The market in the Pacific basin remained at good levels compared to the previous week, with rates for coal trades from Indonesia to China showing a 46,000 dwt fixing around $10,800/d basis delivery Philippines, and a 56,000 dwt getting $12,000/d basis delivery SE Asia. A good activity was also registered on the Australian RV where Supramax rates reached around $8,000/d basis delivery S China/SE Asia. The Handysize market in the Pacific showed signs of an improved activity as well, and the “Yangtze Grace” built 2012 was reported to be fixed for a repositioning business at $7,750/d basis delivery SE Asia for an Australian RV back to China.

Handy (North Europe/Mediterranean)

The Supramax market in the E Med/B Sea area remained stationary during the week with some grain cargo reported fixed for the intra-Med trade basis aps Black Sea at around $11,500/d for a trip to Spain. A 55,000 dwt basis delivery the Turkish Med agreed $11,500/d for a trip to Spain with the same commodity. The nickel ore trade showed a fronthaul trip, basis delivery Egypt via the E Med to China for a duration of around 50 days, agreed at $18,500/d on a nice Ultramax. Supramaxes in the Continent registered a little slowdown compared to the previous week with a scarce activity reported and only a Supramax rumored to be fixed basis delivery in the Continent for the usual run with scrap to the Med at $8,000/d. While a 28,000 dwt Handysize has been reported fixed basis delivery in the Continent for trip via the Baltic to the B Sea at $8,500/d. The Handysize market remained stable in the E Med/B Sea area with not so much to be reported. In the end of the week a 28,000 dwt was reported to have been fixed at $7,000/d basis the B Sea for a trip with steel to the E Med for a duration of around 25 days wog.

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

In the USG the market for Ultramaxes and Supramaxes remained steady with a 61,000 dwt agreeing $12,000/d basis delivery the Texas Gulf and redelivery in the E Med for a trip with petcoke, while in USEC a 63,000 dwt was reported to have fixed a trip with wood pellets to the E Med at $13,500/d. On voyage basis , a 50,000 tons cargo of petcoke have been rumored to have paid $14.5/mt basis discharge in the E Med. Handysize showed a very quiet week in this area with rates for the USG/Cont-Med trade still registered around $8,500/9,000/d depending on the specs and delivery of the vessel. The market in ECSA registered a slowdown with just a few fixtures reported. A 58,000 dwt has been fixed basis aps Recalada st $11,500/d, while during the previous week for the same run Supramaxes agreed at least around $12,000/13,000/d basis aps Recalada.

Handy (Indian Ocean/South Africa)

The market in the Indian Ocean registered a quite active week with an Ultramax fixed at $10,500/d for a short period of 4/6 months basis dely India and redelivery WW. A Handysize in the MEG was fixed at $6,400/d on T/C basis for a trip to SE Asia with clean cargo. Despite the South African market remained at good levels during last week, the rates in the area dropped a bit and a Supramax was reported fixed at $9,000/d basis delivery India for a trip via Saldanha Bay to Spore/Japan range.

Banchero Costa and Co Spa

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


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