Capesize (Atlantic and Pacific)
Capesize market pushed up following bunker upwards trend on both basins. For prompt dates in the Pacific Ocean, fixtures were reported up to usd 8.8 pmt basis West Australia/China route, while it was noticed less volume of coal from East Australia. Similarly, rates on the route from Brazil to China fixed up to usd 19.0 pmt basis the standard route from Tubarao to Qingdao in November dates. On the end of the week, market took a break and it was quieter. Big volumes were reported on short period employment with owners happy to fix out tonnage for 3/5 months in the very high teens and in the mid teens for about one year time charter.
Panamax (Atlantic and Pacific)
The market showed a general lack of activity and rates have dropped everywhere. The Atlantic Ocean started good enough with a Kamsarmax fixed at $16,000/d for a TransAtlantic round voyage but, during the week, the sentiment changed very quickly and rates went under pressure for the second half of the week, with similar types fixing in the $11,000's range for round voyages. From the USG grains to China have slowed down, while it seemed better situation in East Coast South America where rates dropped but not as severe as the TransAtlantic routes. The Pacific Ocean appeared to be very quiet and a long list of prompt Panamax tonnage saw rates dropped of around $2,500/3,000/d for NoPac/Australia round voyages: one spot vessel open at South Korea rumoured fixing around $9,250/d. Basically nothing to report for period activity
Handy (Far East/Pacific)
The negative trend for larger units in this area continued during the week. Chartering demand remained scarce while tonnage availability increased, adding pressure on the rates, and widening the distance between owners and charterers, with a consequent limited number of concluded deals. A 57,800 dwt built 2009 dely ppt at S China got $6,800/d for an Indo coal RV back to the same region, on a similar trade an Ultramax was said to be on subs at $5,500/d dely Ningbo end redely C China. A 42,700 dwt unit built 1998 fixed $8,050/d dely Philippines via Indo to China, while a 57,000 dwt dely S Korea carried nickel ore via Philippines back to China at $8,500/d. A similar unit went on subs at $6,000/d dely Taiwan for a trip via Indo to China. No Fixtures were reported on other trades. Tess 58 were said to lose about $2,000/d bss dely S China for trips via Indo to EC India and $1,500/d for NoPac and Australia RVs, for which the 28,000 dwt Hakodate type was said to be priced “only” $500/d lower.
Handy (North Europe/Mediterranean)
The market in the Cont showed a negative week with most of the activity on grains and fertilizers in Med. A cargo of fertilizers of around 30,000 mt has been fixed from the Baltic to Brazil at around $20 pmt, and a 32,000 dwt was fixed at $2,000/d bss dop the Cont for TCT to the Med with clean cargo. The Rouen/Algeria run showed a negative trend and has been fixed between $20.5/mt to a rumored $19/mt that, if confirmed, is a significant drop. Supra/Ultra size were active as well and, during the week, a 63,000 dwt bss dely Cont have been reported fixed at $14,000/d for trip to the R Sea redely Port Said. Scrap runs ex Cont were fixed at $16,000/d to the Med stable as last week. The West Med looked oversupplied and with lacking demand and Owner's expectations have also changed a little this week. They spent last week trying to convince themselves that the market was not on the slide and, now, are in general convinced of their error. Relatively good levels are still available for Supras in the USG and ECSA for scrap business and fronthaul. The B Sea has been quite difficult to read this week. On paper the tonnage list is thin and there seems to be a good flow of cargo but at the same time rates have not really moved that much, if anything for clean business within the Atlantic the rates have started to ease. Expect more next week.
Handy (USA/N.Atlantic/Lakes/S.America)
Despite the negative futures market, the USG market remained pretty firm with several cargoes available. Rates went up also due to an increase in bunker prices but, according to several operators, should go slightly down for later dates in Nov and Dec. Trip to the Med recorded a slight slowdown with modern Ultras fixing around $20/20,500/d, whilst trip to F East moved up mainly due to the drop of the F Eastern market. A modern Ultra carrying grains from the USG to F East agreed $24,000/d, while petcoke from the same place to India paid $25,000/d. The ECSA market continued its fall started at the beginning of Nov. A standard Tess58 dely W Africa agreed on Monday $11,664/d for a trip via ECSA to Skaw/Passero range and progressively decreased to $11,143/d on Friday, which equates about $15/15,500/d aps Recalada for Supras and $16,500/d for Ultras. The Handy market followed the same trend for TransAtlantic trips with a drop of about $500/d for the 28,000 dwt vessels and around $400/d for the 38,000 dwt type. The fixtures done and the rumours heard looking even lower than the values indicated by the Baltic Exchange. Also the fronthaul routes suffered an similar trend with Supra getting around $14,000/d + $450,000 bb aps ECSA and the Ultra $14,500/d + $475,000 bb, around $500/1,000/d less than what they were getting last week.
Handy (Indian Ocean/South Africa)
The Supra market in the MEG remained less active this week with rates plunging from dop to aps numbers and going further down. In the beginning of the week charterers were rating a 53,000 dwt mid $10,000/d bss aps Mina Saqr. The general dropping trend seems to have stabilized towards the later part of the week as a 55,000 dwt was fixed on subs at $12,000/d aps Mina Saqr for full India. The Iranian market is still looking strong to lead the way in the MEG. A Supra was fixed at mid $12,000/d for Iran to R Sea trip. Quiet week for S Africa market, less activity on the coal and not many reported fixtures. A standard Supra can get now in the region of $10,500/d + $150,000 bb bss aps for trip to F East and slightly more for trip to WCI/MEG range, on voyage the rates proportionally a bit less in view of the improved bunker price. Still a lot of ships available in WCI, but in this moment Owners prefer to try cargoes directly from there rather than start to ballast.
Banchero Costa and Co Spa
Email: research@bancosta.it
Internet: www.bancosta.it