Capesize (Atlantic and Pacific)
Capesize market kept a strong trend. Some Chinese ports kept on being quite congested and bad weather forced even their closure: charterers were consequently obliged to substitute vessels previously fixed, and which caused a jump on rates for prompt loading dates. West Australia/China cargoes loading for early December dates were reported covered up to usd 12.50 pmt while market for mid December dates were close to usd 10 pmt! Iron ore price up kept on boosting cargoes from West Australia and Brazil. Most of the vessels were fixed in the Pacific, hence ballasters heading to South Africa and Brazil were scarce: the standard route from Tubarao to Qingdao market pushed up to usd 21 pmt for December dates and in the mid usd 19 pmt for first half January dates. North Atlantic market was, similarly, very promising as very thin of tonnage available and with cargoes still need to be fixed for mid/end December dates. Transatlantic round was fixed up to mid usd 13 pmt bss the key route from Bolivar to Rotterdam while TCE for a vessel with delivery Continent to make fronthaul is now over usd 40,000/d.
Panamax (Atlantic and Pacific)
After a slow start of the week, which was predictable after last week's finish, Capesizes opened strongly and owners were waiting for this to impact on the Panamax market. From Tuesday onward the market appeared stronger. Rates from the USG for December dates jumped considerably in only 24 hours and TransAtlantic rates too but the market from East Coast South America remained lacklustre. In Asia sentiment alone appeared to be supporting the market with stronger Capesize rates prompting the optimism. Owners were generally holding firm on their rates but others suggested fundamentally the market should be softer. Atlantic market during the week remained extremely active with numerous reported trades. The week ended with rates firmed in all areas including East Coast South America which had been lagging behind. Sentiment remained very positive with continued Cape strength and the return of grain stems to compliment the mineral demand. Rates improved in the Pacific, although general sentiment is that more fresh enquiry is needed to maintain these levels, as the market still remain driven by the Capes and the Atlantic market. In the Atlantic an 81,000 dwt 2015 built with Bordeaux dely agreed $19,500/d for a trip via the USG to COGH and redely Spore/japan range. In the Pacific an 81,500 dwt 2012 built delivery Huangpu fixed a spot trip via EC Australia and redelivery India at $11,250/d with Norvic.
Handy (Far East/Pacific)
The considerably improving trend seen on Supramaxes during the previous week slowed down through the week, ending up with a further gain on the trades from Indonesia to China and from Indonesia or Far East to India. Other trades for similar sizes recorded marginal improvements or have been agreed at similar levels to previous done. The spot chartering demand was large for Handysizes, although the recently reported fixture didn’t show levels so different from the past ones. A 56,800 dwt standard type delivering South China agreed $9,500/d for a trip to WC India while, for a similar destination, a 60,500 dwt 2017 delivering prompt S Korea fixed a trip via Gladstone to the MEG at $10,000/d. A round trip was reported concluded with another 56,000 size standard type at $8,650/d delivery CJK via North Pacific and back to Singapore-Japan range. The standard coal trades from Indonesia to China showed a 58,000 dwt 2016 reported at $13,000/d delivery E Kalimantan and a 56,250 dwt 2010 fixed for the same trip at $11,500/d delivery Singapore. Fresh cargoes were seen from Philippines, where a 58,550 dwt 2011 built was paid $11,000/d for a trip to Singapore. Stable activity for Handysizes with a 38,800 dwt reported fixed from CJK to Japan with petcoke at $9,650/d, while a 32,000 dwt carrying clinkers from Vietnam to North China agreed $8,100/d and a 28,350 dwt 2010 built delivering North China got $8,200/d to carry steels to Indonesia.
Handy (North Europe/Mediterranean)
The market in the Continent recorded a quite stable week both for Handy and Supra. In the Handysize market a charterer has been rumoured to have fixed a 30,000 mts stem of grains from Rouen to Algeria on timecharter bss at the equivalent of $20/mt on voyage basis. Another similar stem reached $30/mt for around 30,000 mts of wheat from the Baltic to the E Med. On the Supramax/Ultramax size few fixtures have been reported with rates moving in sideways for trip to the E Med. A nice 55,000 dwt has been reported to have fixed a trip via the Baltic to E Med at $17,000/d, and a 63,000 dwt was reported to have fixed scrap at $16,100/d for the same destination. Supramax owners in the B Sea are trying to push the market to higher levels but the number of vessels available in the area seems to be enough. Handysizes remained relatively steady although there is some tightness in supply in the Continent and looks like levels could edge up there. A few mixed fixtures are emerging from the area, a 39,000 dwt agreed $12,500/d for a trip to the MEG, which seems poor, but a trip from Rouen to Algeria has been covered at $20.75/mt for 25/5 size which is firmer than a week ago.
Handy (USA/N.Atlantic/Lakes/S.America)
The USG/USAC market showed a firm week with several cargoes fixed to Europe or F/M East and no changes expected in the near future. Rates for petcoke on the USG/Turkey route reached $21/mt, while NCSAm/Turkey with the same commodity is around $1/mt less and the USG/India averaged around $38/mt. After the long declining trend started in the beginning of November, the market had a positive, even if modest, turning bringing again the rates back to the level of the week before. Supramax rates on the trip from ECS Am to Skaw/Passero range opened the week around $10,000/d reaching $10,170/d on Friday, while Handysizes on the TA route, with dely Brazil or Argentina, improved even better from $13,064/d on Monday to $13,440/d on Friday. Also on the fronthaul market the situation has been similar with Tess58 with delivery West Africa for a trip via ECS Am to China increasing from $13,543/d to $13,750/d. A 56,000 dwt fixed $13,600/d + $600,000 bb aps ECS Am for trip to SE Asia. Supramaxes going to F East got $14,250/d + $400,000 bb, while Ultramaxes agreed $14,500/d + $450,000 bb.
Handy (Indian Ocean/South Africa)
The market in the MEG-WCI remained strong with enough cargoes to support the tonnage in position. A 63,000 Ultra was understood to be on subs for trip to India at $13,000/d. A Supra was reported to be fixed at $12,000/d dlosp WCI ports carrying salt to China and, with more cargoes in the market, owners have raised the bar and have started asking rates in lines with $14,000/d for the trip. The period market showed good results in the area with a 63,000 dwt agreed at low $12,000/d dop MEG port early in the week. Activity out of Iran slowed a bit this week, while the standard trades with coal from Rchards Bay to India and with iron ore from Saldanha Bay to ECI/China have been keeping the ballasters busy with the hire improving.
Banchero Costa and Co Spa
Email: research@bancosta.it
Internet: www.bancosta.it