Capesize (Atlantic and Pacific)
Another strong week in the Capesize market: the Atlantic showed signs of strong recovery especially for ships fixed on cargoes from St.Lawrence to Far East where tonnage is fixed in the high $ 60,000's range on 178/179,000 dwt tonnage and there were cargoes still to be covered for November dates. In the Far East rates remained more or less unchanged with the iron ore from West Australia to China fixed at levels of about $ 12.00 range with the time-charter equivalent at about $ 40,000 daily. Period remained quite active but particularly on the 4/6 months t/c where ships achieved rates stil in the $ 36//37,000 daily and about $ 30,000 level for one year.
Panamax (Atlantic and Pacific)
After dropping for days, rates for Panamax business has bottomed up in the end of the week and overall sentiment becomes positive. In Atlantic, rates still remained loose, but with many vessels on sub to end the week.Pacific market saw a flood of new fixes, thus pushing up the rates.Southeast Asia were suffering with low rates only till the end of week.It seems most of the spot vessels have been covered,which possibly will improve the rate of short haul. Short period rates were still higher than spot ones with a considerable number of charters chasing period tonnage.
Handy (Far East/Pacific)
The small chartering demand compared to the volume of tonnage still to be fixed did not allow any market recovery. The best paying route remained the nickel ore trade from Southeast Asia to North China, as long as the vessels are open close enough to the loading place. That is a benefit which is no longer applicable for similar positions taking coal to India. Charterers showed as well to lose consumer confidence on period deals, as the 3 to 5 months commitment initially worth low $ 20,000's daily, at the end of the week fixed twice in the high teens (a rate which less than a week before was achievable for a longer 12 months commitment). Korean based charterers were rumored to have booked a Supra for back haul business with steels to the continent at $ 14,000 daily, as compensation to the long duration.
Handy (North Europe/Mediterranean)
Reasonable money is still available for Supramaxes fixing ex the Black Sea to the East via Gulf of Aden. Owners unable to trade in the piracy affected area are instead struggling to find their way out, either they have to take discounted money for delivery in the Med for trips via U.S. Atlantic to the East, or they ballast across hoping to see the demand from U.S. north and South Atlantic could increase. Chartering from Northern Europe was much quieter this week with smaller demand for scrap loading which ended up into a modern Handysize reported fixed for West Med discharge at a quite insipid Time-Charter rate.
Handy (USA/N.Atlantic/Lakes/S.America)
Activity from Atlantic Americas remained quite slow with Supramax and Handymax owners going through some struggle to achieve levels similar to last dones on Trans-Atlantic employments. No increase of the demand was seen through the week but luckily a few eastbound requirements helped Trans-Atlantic rates to collapse. The U.S. Gulf activity ended the week showing owners of large Handies under pressure while smaller tonnage found it easier to keep booking at previous week levels. Trans-Atlantic activity fro South America was mostly limited to smaller Handy-sized stems paying decent rates to owners for trips to Europe. Transatlantic activity for Supramax and Handymaxes showed a very limited demand but a 52,000 tonner delivering in was Africa fetched better money for a trip into the East via South America.
Handy (Indian Ocean/South Africa)
A fresh cargo flow of Supramax sized iron ore stemmed from India to China was not large enough to avoid Time-Charter levels to decrease again. The on-going shortage of business out of South America and South Africa is almost obliging owners to fix out of India and just be happy to take whatever they manage. In this scenario it is still nice for owners to see that longer duration employments to same direction are paying higher money to compensate. Smaller Handies keep struggling to fix from this area with trips to East paying around $10,000 daily or slightly more for fancy vessels.
Banchero Costa and Co Spa
Mail: research@bancosta.it
Web: www.bancosta.it