Capesize (Atlantic and Pacific)
The Capesize market had a huge drop during the week: 5TC average lost $10,000/d closing the week at $19,900/d. Tubarao-Qingdao route lost almost $4/mt closing on Friday at mid-$16/mt for early November laycan. Brazilian RV was under pressure as well: rates went from $24,000/d to $17,300/d. Saldanha Bay-Qingdao route went progressively down losing $3/mt and closing the week at mid-$12/mt. W Australia-Qingdao route was in free fall losing more than $2/mt and closing on Friday at mid-$7/mt for very end October/beginning of November laycan. Pacific RV lost almost $2,000/d closing the week at mid-$18,000/d. Not many fixtures reported in the Atlantic basin: the market was affected by negativity and Fronthaul lost $12,000/d going from mid-$48,000/d to mid-$36,000/d. TransAtlantic RV followed the same path losing $12,000/d as well and closing the week at low $20,000/d. Backhaul lost more than $6,000/d too during the week and closed on Friday at $6,000/d.
Panamax (Atlantic and Pacific)
The Atlantic basin faced few changes in tone: ECSAm volume was quite low with levels around $14,500/d + 450,000 bb for fancy Kamsarmax units and rates on TransAtlantic RV equivalent to $15,000/d basis dely ECSAm. USG came off a bit both on Fronthaul and on TA RV: a Kamsarmax was fixed at $15,750/d + 575,000 bb on Fronthaul from USG and a Panamax at $12,000/d + 200,000 bb on TA RV from USG. Activity in the Baltic basin was not astonishing and rates on standard Baltic RV were rumoured in the $10,500/11,000/d. In the Pacific basin, the market was influenced by political conflicts between Australia and China. The Chinese government along with local mills stopped purchasing Australian coal and started purchasing Indonesian one, reflecting higher rates. A Panamax was fixed at $16,000/d for a trip from Indonesia to China basis dely dop Manila. Australian coal was directed towards India and SE Asia: a Kamsarmax was fixed over $12,500/d basis dely dop Japan. Limited activity on limestone and other MEG cargoes, also from Richards Bay: a nice Kamsarmax was rumoured at $13,000/d + 300,000 bb basis dely aps Richards Bay with cargoes from SAfr to India.
Handy (Far East/Pacific)
The market remained more or less stable in the area, both in the Handysize and in the Supramax segments. A 55,000 dwt with dely Japan was reported at $9,000/d for a trip via Philippines to China, a 53,000 dwt took $250 more for the same trip and a 56,000 dwt with dely CJK was fixed at $7,900/d for a trip via Indonesia to N China. A 56,000 dwt with dely Koh Sichang fixed a spot cargo via Indonesia to Vietnam at $9,500/d. Regarding West direction, a 56,000 dwt with dely S China was rumoured at $8,750/d for a trip to WCI. No fixtures were reported in the Handysize segment.
Handy (North Europe/Mediterranean)
In the Handysize segment the market was stable and firm in Cont: 35,000 dwt units were fixed at $16,500/d on trips to Med and Fronthaul was at $21,000/d. Rates on trips to USG/ECSAm were at $14/15,000/d basis dely ARA range. Rates on inter Cont trips were in the $12,000/d. In the Supramax/Ultramax segment the market was healthier than on Handies because the list was shorter: Tess 52 units were fixed at $17,000/d basis dely dop France for a trip via Baltic to full Turkey with coal cargoes. Ultramax units were fixed for trips via Baltic at $21,000/d with redely N Spain. Rates on Fronthaul were at $24,000/d on Supramax units and at $25/26,000/d on Ultramax units. Improving market in Med/BSea area. The lack of units in the area started bringing Red Sea tonnage into Med together with some of the vessels opening in the Western part of Med that looked at the BSea market again. Rates on trips to the East needed to improve its levels in order to convince Atlantic minded owners for that destination. On 35,000 dwt units, rates on inter Med were at $11,500/12,000/d while on trips to Cont were at $11,500/d. Rates on trips to ECSAm and USG were at $12,500/13,000/d while on trips to F East went up to $20,000/d if not more. Rates on trips to F East increased in a constant way both on Supramax and on Ultramax units: Supramaxes were fixed at $24,000/d basis dely Canakkale and Ultramax units at $25,000/d. Rates on intra Med biz were at $13,000/d on Supramax units and at $13,500/d on Ultramaxes, still $1,000/d more than rates on trips to Cont. Rates on trips to ECSAm and USG improved to $13,500/d.
Handy (USA/N.Atlantic/Lakes/S.America
Stable rates in the Supramax and Ultramax segments with no decreases recorded. Activity was balanced with the number of cargoes/units. On TransAtlantic RV, Supramax units were still fixed in the $15,000/d and Ultramax units in the $17,000/d. On Fronthaul, rates on Supramax units were closer to $20,000/d/low $20,000/d and on Ultramax units were in the mid/high $20,000/d. Levels seemed stable also in the Handysize segment: 32/35,000 dwt units were fixed on TA RV at $12,500/13,000/d and larger 36/39,000 dwt units in the $16,000/d. The market in ECSAm was stable both on Handysize and on Supramax units during the week. In the Handysize segment, a nice 35,000 dwt 2012 built was fixed at $10,250/d basis dely dop Recife for one trip via ECSAm to UK, showing a slight decrease in rates compared to previous week. A fancy 38,000 dwt was fixed basis dely Fazendinha at $12,750/d for one trip to Norway with alumina. Not a lot of fixtures rumoured in the Supramax segment: a good level in line with last done was rumoured for a Tess 58 fixed on Fronthaul to Spore/Japan range at $14,000/d+400,000 bb basis dely aps Santos.
Handy (Indian Ocean/South Africa)
Rates in the Supramax segment remained more or less similar to last done. Rates on 56,000 dwt units from MEG to WCI were around $11,000/d basis dely aps Fujairah. Rates on WCI-Bangladesh remained under pressure around $11,000/d basis dely dop WCI with aggregates and clinker to Bangladesh. Rates from ECI slightly improved at the beginning of the week, standard 56/58,000 dwt units open in ECI were fixed around $11,000/d to China. During the second half of the week, rates around $10,000/d were rumoured for similar Supramax units with iron ore cargoes to China. The market in SAfr remained more or less flat: rates on Supramax units were around mid-$11,000/d + 150,000 bb for SAfr coal on MEG-WCI and around low $12,000/d + low 200,000 bb on Ultramax units to the same direction.
Banchero Costa and Co Spa
Email: research@bancosta.it
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