October 5, 2020 – October 11, 2020 Weekly market report.. Banchero Costa

Capesize (Atlantic and Pacific)

The Capesize market was again under pressure: 5TC average lost $4,000/d from Friday to Friday decreasing down to $29,500/d. Tubarao-Qingdao route had the biggest drop: at the beginning of the week it was at mid-$23/mt and on Friday it reached low $20/mt, after losing more than $3/mt in seven days for early November laycan. Brazilian RV decreased as well losing $5,000/d and going from very high $20,000/d to $24,500/d. Saldanha Bay-Qingdao route went down as well: it lost $2/mt overall closing on Friday at mid-$15/mt. W Australia Qingdao route a bit more on a rollercoaster: previous week it ended at high $9/mt, then last Monday rates jumped at low $11/mt and during the week they progressively went down again to high $9/mt for end October dates. Pacific RV followed the same path: rates lost more than $5,000/d in few days going from mid $30,000/d to $28,700/d on Friday. The Atlantic basin was influenced as well from this positive wave with some high fixtures on Fronthaul done at mid $50,000/d but, later in the week, with FFA down rates decreased as well down to $48,000/d on Friday. Rates on TransAtlantic RV went from a peak of $40,000/d to $34,000/d.

Panamax (Atlantic and Pacific)

Rates in the Baltic basin increased due to a limited supply of tonnage: Kamsarmax units were fixed in the $13,000/d and towards end of week a Kamsarmax was fixed at $16,000/d for a quick Baltic RV. On longer hauls, a Kamsarmax was fixed for a trip from USEC to India at $24,000/d basis dely dop Gibraltar. Rates on TA RV from ECSAm were at $15,000/d basis dely aps ECSAm on Panamax units and at $15,500/d on Kamsarmaxes. USG was still the main driver in the Atlantic basin: Kamsarmax units were fixed at $17,000/d + 700,000 bb on Fronthauls and close to $13,000/d + 300,000 bb on standard TA RV to Skaw/Gibraltar. The market in the Pacific basin remained strong and rates increased due to several reasons. Firstly, few owners decided to ballast their units from the Pacific because a strong demand for iron ore from Chinese users that usually should be shipped by Capesize units was split into smaller cargoes attracting owners ‘attention. Besides, few parcels of minerals were purchased from SAfr and were shipped with units taken from Indian Ocean/SE Asia range. Ultimately, USG grains also played a role as some owners opted for such trips: Kamsarmax units were fixed at $13,000/d for Pacific RV and slightly less for Panamax size. Strong demand for coal from India generated healthy rates for units in the Pacific: a Kamsarmax was fixed at $13,000/d from EC Australia to India and at $13,250/d basis dely dop Manila from Indonesia to India.

Handy (Far East/Pacific)

The market in F East seemed to have suffered the Chinese Golden week as rates decreased on all routes, especially on Supramax and Ultramax units. In fact, activity was very poor with not too many fixtures reported. A 63,000 dwt with dely Spore was fixed at $13,500/d for a trip via Indonesia to China and a 53,000 dwt with dely Thailand was rumoured at $8,000/d for a trip via Indonesia to SE Asia. Regarding West direction, a 56,000 dwt with dely Manila was rumoured at $9,000/d for a trip to WCI. A 63,000 dwt open Jingtang was reported at $11,000/d for a short period deal with redely worldwide.

Handy (North Europe/Mediterranean)

Steady trend on Handies in Cont: a 35,000 dwt was fixed for a trip to USG at $15,000/d basis dely dop UK. Rates on Cont RV were in the $12/13,000/d, depending on delivery. Rates on trips to Med reached the higher level of the year: a 38,000 dwt was fixed but then failed at $18,900/d basis dely dop Cont for a trip to Med with scrap, albeit the deal was not done the upward trend was confirmed. Still on Handies, rates on trips to F East were at low $20,000/d and on trips to ECSAm were at $14,000/d. The Supramax and Ultramax segments had healthy levels as well: Tess 58 units were fixed at $19,000/d for trips to Med with scrap. Rates on Fronthaul were at $24,000/d, for intra Cont biz at $12,500/13,000/d and for trips to USG at $13,000/d. The BSea market was stable because, despite the lack of tonnage, the offer of cargoes was very limited. 35,000 dwt units were still fixed at $11,000/d on intra Med biz while rates on trips to Cont were still at $9,500/d. Rates on trips to ECSAm and USG were still at $12,000/d while on trips to F East remained in the high teens at $18,000/d. In this segment, rates did not explode as on Supramax segment where a lack of cargoes for this destination was recorded. Rates on Supramax and Ultramax units had a slow but constant growth on trips to East: Supramax units were fixed at $23,500/d basis dely Canakkale and some Ultramax units at $24/24,500/d. Rates on intra Med biz softened down to $10,750/11,500/d for Supramax and down to $12,000/d on Ultramax units. Rates on trips to ECSAm and USG were around $13,000/d even if some Ultramax units asked more than $15,000/d.

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

Handy (Indian Ocean/South Africa)

53,000 dwt units were fixed around low $11,000/d for trip via UAE to WCI and around low $9,000/d basis dely dop Pakistan/WCI for trips via MEG to Bangladesh. Units of similar size were rumoured at $12,000/d from MEG to China. In ECI, despite a decent demand, rates remained soft due to a long position list. A 56,000 dwt was fixed at mid $7,000/d basis dely dop Chittagong for ECI-China and another similar unit was rumoured at mid-$9/10,000/d for similar trips; rates on Ultramax units were around $12,500/d. Ultramax units on SAfr-China route were fixed around $13,000/d+300,000bb. A 61,000 dwt was rumoured at $12,000/d+200,000/d for redely Sri Lanka from SAfr. A 56,000 dwt was fixed around low $12,000/d+200,000 bb for a trip via SAfr with redely Bangladesh.

Banchero Costa and Co Spa

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