March 13, 2017 – March 17, 2017 Weekly market report.. Banchero Costa

Capesize market registered an extremely positive week with rates keeping on improving in all basins. In Pacific the standard route from West Australia to China gained $0.30/mt in one week with $6.90/mt agreed on Friday for early April dates. Timecharter rates were fixed in the region of $14,500/$16,000/d, depending on vessels description/position, and trips from Saldanha Bay to Qindgao was traded in the mid/high $12's pmt for first half April dates. The key route C3 Tubarao/Qingdao seen noticeable improvement due to presence of Vale and several other operators in market, with rates went from mid $14's pmt to mid $16's pmt bss first half April dates whilst end April was done around $16/mt. Some tenders out of Pepel were done at around $17/mt. In the Atlantic some vessels were fixed for C3 so the TransAtlantic followed the positive trend and $8.40/mt was agreed for C7 bss first half April dates. The Timecharter went from mid teens to high teens ($19,000/d). Several period deals reported done mainly for 1 year and $15,000/d was agreed bss dely China prompt.

Market levels have soften throughout the areas during the week with 75,000 dwt vessel reported fixed for trip via ECSA to F East at $10,500/d + $550,000 BB. Similar sizes were also reported fixed basis Krishna for trip via ECSA to F East at $10,500/d. An 81,000 dwt fixed basis Haldia for trip via ECSA to Sing-Japan at $11,000/d while for trip to TA similar size being fixed around $15,000/d. From USG a 78,000 dwt was reported fixed at $10,250/d + $160,000 bb for trip to Continent, while an 81,000 dwt was reported fixed basis Gibraltar dely at NCSA to Sing-Japan at $14,750/d. In Continent an 82,000 dwt fixed trip via Riga to N Cont redely at $11,000/d, while a 79,600 dwt fixed trip basis Skaw dely via UST Luga to Fos at $6,500/d. A 79,000 dwt was fixed for trip via USEC to Cont at $7,150/d bss Ghent dely, while a 93,000 dwt fixed for similar loading at $9,000/d + $50,000 bb bss Azores dely for trip via USEC to Skaw-Gib redely. In F East an 82,000 dwt fixed trip via W Australia to Sing-Japan redely at $12,000/d basis Zhuhai while a 75,000 dwt fixed trip via Indonesia basis Quanzhou at $11,250/d redely Sing-Japan. NoPac RVs being reported on an 80,000 dwt fixing basis Dalian at $10,500/d basis redely Sing-Japan, while a 75,000 dwt fixed Zhoushan dely at $10,250/d bss Sing-Japan redely. On the period front an 84,000 dwt fixed 6-9 months period at $10,250/d basis Inchon dely while an 82,000 dwt fixed 1 year period at $10,300/d bss Zhoushan dely.

The increased spot chartering interest for larger vessels has been registered also this week, stimulated by additional demand to carry both raw materials and finished products to India and nickel ore to China. Rates showed a further little growth but the feeling is about a peaking market. An Ultramax delivering N China fixed $11,000/d for a trip with coal via Indonesia to WC India, a 55,000 loading steels from N China was agreed at $9000/d. The number of deals concluded for Indonesian coal to China was massive, a small Ultramax delivering Thailand was fixed at $11,000/d, a 56,000 non-eco delivering Singapore got $13,500/d, a fancy 43,800 dwt delivering at load port fetched $14,100/d. Nickel ore Philippines/China showed three un-fancy 57,000 dwt, 2 getting $9,500/d from EC China and last one fixed at $10,000/d delivery N China. A 53,000 dwt loaded sand from Vietnam to Singapore at $8,500/d and another fancy Handymax was done from C China back to N Europe at $6,000/d for the first 60 days and $8,750/d for the balance. Handysize rates increased on round trips and remained less attractive on local trades. A 37,000 dwt agreed $10,000/d for a trip from Indonesia via Australia to F East. A 28,000 delivering at Philippines got a less attractive $7,000/d via Indonesia to stay in the area.

Despite a slow activity in the area, some further interest for the scrap trade form N Europe to the E Med was reported with, proportionally, stronger rates for Handysize liftings. A 34,000 size was done at $10,800/d from UK and a 61,000 Ultramax got $13,000/d from Belgium. A similar vessel delivering at Biscay bay got $13,000/d for a trip to W Africa. Grain stems from the B Sea were said to pay better figures even if no concluded deals were reports. From this area a 60,000 size was fixed with dely Greece to N Europe at $9,500/d, a 32,000 dwt got $9,950/d from B Sea to W Africa and a 38,000 dwt was done from Marmara Sea to USG at $5,750/d.

In a generally softening chartering activity, the rates from USG didn’t show particular changes being more influenced by the low bunker price rather than by the physical demand. A non eco 56,800 dwt got around $19,000/d for a trip to India, and a similar type fixed to the E Med at $15,000/d. No reports for Handysizes were available but rates were generally described as quite firm. The trend from S America instead was actually driven by the slower demand for the larger types. A 57,000 dwt fixed $12,300/d from Recalada to the Med, and a non-eco 55,600 dwt got $13,500/d from same loading area to S Africa. It was also said that an Ultramax with same dely could have been agreed at $12,500/d plus $250,000 bb. Handysizes felt in a better shape with a 29,000 dwt getting $7,500/d to the further improving USG area, and a nice 38,000 size done at $10,000/d plus $150,000 bb for 2/3 laden legs and redely Atlantic.

Compared to other places there was a bit more interest for period chartering in these waters, an Ultramax delivering India got $11,100/d for around 4/6 months, a 58,000 agreed a similar duration at $10,000/d from Karachi and a 56,500 delivering India did 2 LL redely China t $9,500/d . Trips from India to China reported an Ultramax at $13,500/d from WC India and a non-eco 55,600 dwt agreed at $10,400/d from EC India. A fuel efficient 58,000 dwt delivering Bangladesh was fixed for EC India coastal trading at $17,000/d. From the MEG a 53,000 tonner got $9,250/d to EC India and another similar unit fixed a better $13,250/d to S India.

Banchero Costa and Co Spa 

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