November 28, 2016 – December 2, 2016 Weekly market report.. Banchero Costa

Tuesday, 06 December 2016 10:16:59 (GMT+3)   |   Brescia
       

Capesize (Atlantic and Pacific) 

Rates softened in all basins due to a reduction of fresh cargoes appearing in the market.
In Pacific the standard C5 route W Australia/China stood in the low $6s/mt basis mid Dec dates whilst timecharter rates were fixed around $13,000/d. Saldanha Bay/Qingdao was fixed around $9.15/9.25/mt basis end of December dates. Pretty low activity out of Brazil with rates standing in the high $12s basis loading end of December. Some cargoes on the route Brazil/UKC were fixed in the very high $7s/mt. In Atlantic a lack of fresh cargoes forced owners to revise their ideas and the TransAtlantic RV remained in the high teens whilst fronthaul from N Atlantic was in the region of low $20,000/d and the standard C7 route was fixed around $8.75/mt basis mid Dec laycan. Some deals were reported for short period, mainly at index linked plus floor structure.

Panamax (Atlantic and Pacific)

Rates hold throughout the week both in Atlantic and F East despite a slowdown in the Capesize market. Strong levels were seen in Continent where a 87,000 dwt was reported for a trip via Baltic to Spore/Japan range at $21,850/d basis Lulea delivery. Kamsarmax vessels have been reported fixing at $18,500/d for similar trades and a 92,000 dwt fixed at $21,000/d for trip via Baltic and redelivery Passero basis Immingham delivery. From USG area a 82,000 dwt was reported at $13,500/d + 550,000 for 1 trip basis dely aps USG to Spore/Japan and a similar unit fixed with US EC delivery for a trip to ECSAm at $16,000/d + 300,000 bb. From ECSAm a 82,000 dwt fixed at $9,750/d + 475,000 basis COGH dely for one trip via ECSAm to F East and a 84,000 dwt with S Brazil dely achieved $15,500/d for one trip to Skaw/Gibraltar. Smaller tonnage, around 75,000 dwt, was fixed with the same delivery for one trip to Denmark at $13,500/d. Also from BSea area strong rates were seen with a Kamsarmax vessel reported at $20,000/d basis Port Said dely for one trip via BSea to S Korea. In F East rates remained strong with NoPac RV reported at $8,000/d on a 81,000 dwt basis redely India and a 80,000 dwt at $8,750/d basis redely S Korea with grains. An 82,000 dwt was fixed at $9,000 + 270,000 basis dely Port Kembla for one trip via EC Australia to India/Japan range and for 1 trip via Indonesia to S China a similar unit was fixed at $9,000 basis Qinzhou dely. On the period market a 77,000 dwt was fixed basis Machong delivery for 5/7 months at 9k daily.

Handy (Far East/Pacific) 

Demand remained quiet with coal exports from Indonesia were limited. Rates remained at the
unattractive levels of the previous week with a few spot deals reported at slightly better figures approaching the weekend. A Handymax with dely Spore was fixed at $6,200/d via Indonesia to EC China, on the same trade a 56,000 dwt with dely Taiwan got $5,200/d and, later, another Handymax was fixed at $10,000/d with delivery closer to the loading port. Another Handymax was fixed for a trip via Australia to China at $5,750/d with dely Vietnam and a nice 58,000 dwt with dely Japan achieved $6,250/d for a NoPac RV. Little interests for steels from F East to S Asia still allowed a few Supramaxes to get fixed at low/mid $5000s/d. A 56,000 dwt was booked for a trip to USG at $2,500/d for 65 days and $7,000/d balance. A similar vessel was committed for 11/13 months at 94% of BSI and a 58,000 dwt eco‐type with dely Indonesia got around $7,250/d for 2/3 laden legs and redely worldwide.

Handy (North Europe/Mediterranean) 

Market remained positive around European waters; charterers were keen to develop business also with Handysize tonnage. From N Europe a 32,000 dwt with dely Baltic was fixed for 2/3 laden legs at $9,500/d and redely Atlantic. A 37,000 dwt was booked with dely Atlantic Morocco for a trip via Baltic to W Africa at $10,000/d. On the Mediterranean side an eco 58,000 dwt with dely Piraeus was fixed at $15,000/d to NW Africa and, from the same area, a sister vessel got $8,000/d for a pig iron cargo from Marmara Sea to USG. A small Supramax agreed $9,500/d with dely E Med for 3 to 5 months TC and redelivery Atlantic.

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

An already strong market around all the Atlantic America coasts further boomed thanks to USG reflecting a larger positive impact also to Handysize rates. Charterers tried to keep rates confidential as much as possible. From USG an Ultramax was booked to Spore/Japan at $23,500/d and a similar unit achieved $23,000/d to carry wood pellets to N Europe. An Ultramax with dely Texas was fixed at $15,000/d + $400,000 bb for a trip to F East and a
Handysize got $15,000/d for a trip to EC Mexico. Charterers improved interest to take Handies for short period resulted into a 38,000 dwt fixed at $10,500/d for 4 to 6 months and a 33,000 dwt with dely Caribbs booked for a similar duration at $10,000/d. Both fixtures were based on Atlantic redelivery only. From S America a 55,500 dwt ballasting from S Africa got $14,500/d with dely Santos for a trip to Algeria. A 57,800 dwt with dely dop S Brazil
got $15,000/d via Recalada to S Africa and a 37,000 dwt with dely Angola was fixed at $10,000/d via Brazil to Norway.

Handy (Indian Ocean/South Africa)

Rates remained fairly similar to previous levels with a larger interest for short period commitments compared to single voyages. A 52,000 with dely MEG was booked for 4/6 months at $7,000/d, a 56,000 dwt with similar delivery agreed 2/3 laden legs at $7,250/d and a tess52 delivering Pakistan fixed 2 laden legs via MEG at $8,350/d and redely EC India/F East range. A standard 57,000 dwt was booked for iron ore ex Iran to China at $9,000/d and another one loading the same commodity from India was paid $7,000/d.

Banchero Costa and Co Spa 
Email: research@bancosta.it 
Internet: www.bancosta.it


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