October 24, 2016– October 28, 2016 Weekly market report.. Banchero Costa

Capesize market registered a very volatile week with rates tumbling down on Monday from $5.25/mt to below $5/mt on the standard route from West Australia to China. On the closure of the week a change in sentiment was again registered with charterers chasing ships especially for cargoes on the customary trade from Tubarao to Qingdao. Rates on this route gained 75 cents on weekly basis. Volume of cargoes from North Atlantic for fronthaul or round voyages, was again very limited; prompt ballasters were reported fixing cargo from Trinidad. Mainly due to the registered volatility on the market near to the closure of the week, owners were willing to temporize before fixing any business in Pacific waters expecting market to rebound during the next week.

During last week the market has shown a slight softening towards the end of the week especially in the F East area. In the Atlantic area Kamsarmax vessels were still fixing around $11,250/d + $325,000bb for USG to F East, while for similar trip basis Gibraltar delivery 82,000 dwt vessels have been reported fixing around $12,250/d routing via COGH. In ECSA a 74,000 dwt was reported fixed at $8,250/d + $325,000 bb for ECSA/F East and LME vessels basis delivery S Africa are now rating around $7,250/d + $225,000 bb for a similar trip. For a trip basis delivery ECSA to Skaw-Gib an 85,000 dwt has been reported fixed at $12,500/d. From Cont an 82,000 dwt was fixed at $10,500/d for trip basis Antwerp delivery via Murmansk to Civitavecchia while Kamsarmax vessels are fixing around $13,000/d for trips bss ARA delivery to F East via COGH, similar levels were also seen reported on a 73,000 dwt fixing basis Canakkale delivery for trip via B Sea to India. In F East NoPac RV have been fixed on an 81,000 dwt at $8,250/d but there has been smaller size, 75,000 dwt, which were reported fixed around $7,000/d dwt for similar trip. For trips within F East a 77,000 dwt was reported fixed at $9,100/d basis Singapore delivery for trip via Indonesia to China while an 81,000 dwt was fixed at $8,500/d basis Nansha for trip via E Australia to India. On the period front an 81,000 dwt has fixed $9,500/d basis delivery Gibraltar for 5-7 mos period while basis dely Dalian an 84,000 dwt was reported fixed for 4-7 mos at $7,250/d.

Supramaxes registered a good activity on the route from Indonesia to China, while less interests were seen on the other trades and daily rates showed a drop through the week. On the Indonesia coal trade, a 56,000 dwt fixed at the beginning of the week bss delivery Singapore agreed $6,500/d for a trip to China, followed a few days later by a similar vessel paid $6,500/d on the same run. Nickel ore from the Philippines to China paid a better $7,250/d to a 55,000 dwt delivering S Korea, while a 57,000 size with delivery at Singapore loaded Indonesian coal to India at $7,700/d. A fancy Ultramax fixed a NoPac RV at $7,250/d basis delivery S Korea, two comparable vessels were fixed for period, one at $7,350/d for 5/8 months with delivery EC China, and the other at $7,300/d for one year and delivery ex yard EC China.

Charterers on the spot market loading from North Europe were more oriented to Handysize liftings. A 36,000 dwt agreed $9,500/d from Baltic to WCS America, a similar vessel performing a trip from N Cont to Brazil was fixed at $6,500/d for the first 50 days and $8,000/d for the balance. A 34,000 dwt agreed $8,750/d for a trip from Finland to Egyptian Med, and better rates were available for owners also from S Europe. A 56,000 dwt delivering B Sea was paid around $9,250/d for a trip to R Sea with redelivery P Said and an Ultramax with similar delivery got around $9,250/d for a trip to Turkey. A Tess-58 got $8,000/d delivery Canakkale via B Sea to Spain and another one with a similar delivery fixed $8,350/d to US. A lower $10,000/d was agreed on a 56,000 dwt moving clinkers from Spain to W Africa and a similar type delivering at Marmara Sea was fixed for 5/7 months period redely worldwide at $8,900/d. Although no spot fixtures were reported concluded, several units were loaded with grains from B Sea where a fancy 33,000 dwt was fixed for 3/5 months timecharter with Atlantic redely at $7,000/d

Good levels were seen for trades from S America and USG, particularly for Handysizes. A 56,000 dwt standard type was fixed for a trade from Brazil to India at $10,500/d plus $150,000 bb. Trades out of Argentina showed a 37,000 dwt agreeing $9,500/d to Baltic and a 34,000 size fixing the same rate for a destination in E Med. A trip from USG to WCS America was fixed on a 50,000 dwt at $15,000/d, a 56,000 unit from the same area was booked to Japan at $14,000/d. TransAtlantic trade from the area showed an Ultramax performing a trip to Turkey agreeing $14,250/d, another comparable unit fixed a similar trip at $15,000/d and a third Ultra agreed a 5/7 mos timecharter with redely WW at $9,500/d.

The activity from these waters continued to remain very limited, no concluded fixtures were reported and the market seemed quite absent from this area. Only a limited number of small sized fertilizer and steel cargoes were circulated for local trades. Supramax level for carrying coal from South Africa to India was around $12,000/d and around $5,000/$5,500/d for a Mediterranean destination.

Banchero Costa and Co Spa 

Email: research@bancosta.it 

Internet: www.bancosta.it