July 4, 2016–July 8, 2016 Weekly market report.. Banchero Costa

The Capesize market registered a negative week with rates softening both in Pacifc and Atlantic. On the standard c5 route owners were forced to fix lower levels with $ 4.60/mt done at end of the week for the 20th July onwards whilst timecharter basis $6,500/d was reported done for West Australia round voyage. The Saldanha Bay/Quingdao was fixed in the low $7's/mt for very end July / early August dates. The Brazil/China was traded in the region of mid $9's/mt with Vale quite active taking at least 4 ships for end July / early August. In the Atlantic the Bolivar/Rotterdam was fixed at $5.20/mt whilst a front haul via Port Cartier to China was done at $13.35/mt for end July dates. Period activity was negligible.

Last week the Panamax market maintained strong Atlantic rates throughout the week with levels seen in ECSAm for fronthaul stable around $8,000/d + $300,000 bb on a Kamsarmax vessel basis aps delivery, for similar trip an 82,000 dwt was reported basis India delivery at $6,750/d, while for trip to Skaw-Passero a Kamsarmax was fixed at $9,250/d basis ECSAm. Owners ballasting towards ECSAm are also considering USG as loading area where a 74,000 dwt fixed from Mississipi River to India at $10,100/d + $250,000 bb while a 76,000 dwt was reported done at $13,000/d basis delivery Rotterdam for trip via USG to F East, which is also a result of the low number of tonnage opening in the Continent area. A 74,000 dwt was reported having fixed $11,500/d basis Rotterdam for trip via Murmansk to F East while for trip to Med a Post-Panamax was fixed at $9,900/d basis Rotterdam for trip via Murmansk to Israel with redelivery Passero. In the F East area, NoPac RV have been fixed on a 76,000 dwt at $6,000/d bss delivery CJK and same levels were also seen reported on an 82,000 dwt fixing a trip via Australia to EC India with delivery Zhoushan; tick less was done on a 76,000 dwt basis Hong Kong for trip via Indonesia to S China. Strong increase was seen on the period front where a 80,000 dwt was reported having fixed 9-12 months at mid high $7,000/d basis delivery CJK and also a similar size vessel was done at $6,750/d for 5-8 months period basis Qinzhou.

Despite a slowdown of the fresh chartering enquiry, the Supramax timecharter rates on the spot trading showed an increase of approximately $200/d on all trades. Coal from SE Asia to China was fixed on an un-fancy 57,000 dwt vessel at $6,250/d and a 52,000 dwt with delivery Philippines agreed $8,000/d for carrying nickel ore to the same destination. A 35,000 dwt got $5,650/d from Thailand to China, a 61,000 dwt Ultramax delivering Singapore fixed a trip via Australia to China at $6,500/d while another similar vessel with the same delivery was fixed at $7,000/d to carry coal to WC India. From the F East a 52,000 dwt unit did a trip from Japan to SE Asia at $6,000/d, meanwhile a 55,000 delivering N China was fixed at $6,350/d for a trip viaMyanmar with redelivery at Penang.

The market showed some positive signal form N Europe where a fancy 58,000 dwt delivering at N France fixed a trip with fertilizers via Baltic to India at a good $14,500/d. From Skaw a 24,000 dwt was done for a trip to SE Asia at $7,750/d via Cape of Good Hope, with an option to perform the voyage via the Suez Canal at $9,350/d. The positive reflection was evident on the scrap trade from this area to the E Med where a Handymax delivering at Belgium got $9,250/d, a good increase compared to the previous $8,250/d agreed on a 53,000 dwt delivering at UKC. From S Europe the only reported fixture is for a Handysize fixed for a long duration backhaul trip with steels from B Sea to the USG at $2,900/d for the first 50 days and $6,500/d for the balance. More deal were rumored to have been concluded, mostly basis B Sea loading from where the rates were described improving on all trades.

A reduced demand for tonnage loading from Atlantic Americas quickly affected the Supramax rates whilst Handysizes, supported by a larger interest, registered fixing levels similar to the previous week. An un-fancy 57,000 dwt delivering at Brazil fixed a trip to the F East at $9,000/d plus $100,000 bb, while another one with similar delivery was done to the E Med at $9,600/d. A cargo of 50,000 tons of bulk sugar from Brazil to the M East were agreed on voyage basis at $17,50/mt basis discharge Jebel Ali with an option for Iran at $21,50/mt.

Handysizes booked for trips from this area to Europe were done in the $7,250/7,500/d levels, and a 26,000 dwt got $7,750/d for a trip to Senegal. From USG some cargoes of petcoke were reported moving to the Med; on this trade an Ultramax was paid $12,850/d with redelivery full range Italy, and a 57,000 dwt was fixed at $12,000/d to Turkey. A Handysize delivering at Texas Gulf did a trip to the F East at about $8,000/d, and a non-ecotype Supramax delivering at NCS Am was committed for 2 laden legs at $10,750/d basis redelivery worldwide.

Because of the Eid, the period when the Ramadan rules are more strictly observed, the chartering activity controlled by the Muslim countries almost disappeared taking away a good portion of the trading from this area. A 58,000 dwt eco-type fixed a trip with iron ore from Iran to China at a stable $5,300/d. A 60,000 dwt delivering India was fixed for 7 to 10 months period charter at a more interesting $7,000/d.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it