October 9, 2017 – October 13, 2017 Weekly market report.. Banchero Costa

Friday, 20 October 2017 09:46:30 (GMT+3)   |   Brescia
       

Capesize (Atlantic and Pacific)

Mixed views on Capesize market with the Pacific Ocean basically stable and rates for cargoes from Brazil under pressure. In the Pacific basin the standard route from West Australia to Qingdao stood at very high $7’s pmt and low $8’s pmt for end October dates, with positive sentiment for the next shipments too due to some delays of vessels caused by bad weather in China/Japan range. Timecharter rates were fixed in the region of $19,000/20,000/d for the Pacific RV. The key route from Saldanha Bay to Qingdao was agreed in the mid $13's.

Out of Brazil, after some fixtures at around $18/17.95 pmt for early November dates, VALE took at least 12 ships in a single day all for mid November dates at around $17.75 pmt

In the Atlantic basin the route from Bolivar to Rotterdam was fixed in the very high $9's pmt and timecharter around $20,000/d for t/a. Some activity for fronthaul via North Atlantic with some deals concluded at around $30,000/d basis dely UKC bss standard BCI type.

Very slow activity on short period with $18,000/d possibly agreed basis 3/5 months duration and prompt dely F East.

Panamax (Atlantic and Pacific)

Panamax market kept rates high for the whole week with a big volume of period business concluded: charterers either took some cover for the future, or were forced to cover positional cargoes with owners in a position of strength; rates were almost $1,000 per day more compared to last week, in both basins. Grain from the USG to China helped to keep the positive sentiment with cargoes fixed around $43.50/$43.75 per metric ton for the second half of November, while timecharter rates are close to $17,000 daily plus $700,000 ballast bonus delivery US Gulf 1-10 November dates, which represented a really big improvement on rates from last week. TransAtlantic rates were considerably firmer with a 2007 Panamax fixing $14,000 daily for an Atlantic round voyage, more than $2,000 per day than last done.

In the Pacific basin the grains from US West Coast were the driving force with modern Kamsarmaxes fixing in excess of $14,000 daily for round voyages, last week rates were at $13,000 last week. While SE Asia Rates have to face the competition of large demand of ships ballasting to East Coast South America: Post-Panamax fixing at $17,000 daily from Taiwan for an Indonesia to Japan stem.

Handy (Far East/Pacific)

A considerable improvement on Supramax and Ultramax rates was recorded in the Pacific, while Handysizes showed a smaller increase. An initial $12,000/d bss dely S China was agreed on a non-eco type 57,000 dwt performing a trip with nickel ore from Philippines to China, followed by a similar vessel getting $13,000/d bss dely C China for a similar trip. Another vessel of this type was booked to load coal from Indo to China at $14,000/d with dely Spore. The “Dubai Galactic” 55,400 dwt built 2017 was fixed with fertilizers from C China to WC India at $10,500/d, a 47,000 dwt 21 years old delivering at Manila was paid $9,350/d for a trip with clinkers via Vietnam to Bangladesh. A 28,350 dwt built 2010 got a good $12,000/d delivery Indonesia for a trip via Australia to Singapore/Japan range

Handy (North Europe/Mediterranean)

The Continent market showed an increased activity both for Handy and Supra. A 28,000 dwt has been rumored to agree $11,000/d for a trip to WAF while, in the end of the week, same number was fixed on a similar vessel for a RV with coal. A very strong Supra/Ultra market in the area showed a good $14,500/d reported on 4/6 mos period deal with redely Atlantic bss dop Sauda. A usual scrap trade out of the Cont to the E Med was done at $15,000/d, a good improvement compared to last week. The B Sea recorded a relatively well balanced market, but excitements in the W Med are bound to impact also these waters in the next few days. Tonnage open in the Central Med is expected to wait for supply in this area due to the scarce interest in ballasting to F East.

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

As expected the USG market increased considerably this week, Supramaxes fixed $16,500/17,000/d fixed for trip from the USG to the Med and trades from the USG to F East moved up to around $23/24,000/d, about $2/2,500/d more than the previous week. The trend remains strong and further increase is expected for the last 10 days of October and early November. Even with a slow beginning, the ECSA had a strong improvement, both in the Handy and in the Supra/Ultra size. On Monday, the routes from WAF via ECSA to F East and to Skaw-Passero range opened with a loss. The average value for a standard Tess 58 type was at usd $15,264/d dop for trip East and $10,779/d for trip to the Cont or the Med. A 37,900 dwt was reported fixed at $13,000/d aps S America for trip to the Cont/Med. Already from Tuesday the situation drastically changed with both routes getting more than $200 per day. A 38,700 dwt reported getting a wonderful $15,000/d from Rio Grande for grains to the Cont/Med, gave a further positive feeling in the area. On Supra side, “Ocean Crown” concluded a fixture for grains to the Med at $15,500/d. Unfortunately not many fixtures were reported but, anyway, this week ends with an optimistic forecast for the end of October market and with many owners of Supramax asking over than $15,000/d + $500,000 bb aps for trip to East and $19,500/d aps for trip to the Med.

Handy (Indian Ocean/South Africa)

Also in these waters Supramax and Ultramax recorded some activity, but without the increase showed in other markets. Rates from India to F East remained substantially steady on the previous week’s levels. A standard Supramax on the route from East Coast India to China is estimated to agree $11,000/d, while the same vessel loading on the Western Coast is rumoured to agree $12,000/d.

Banchero Costa and Co Spa

Email: research@bancosta.it
Internet: www.bancosta.it


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