September 7, 2020 – September 13, 2020 Weekly market report.. Banchero Costa

Tuesday, 15 September 2020 18:41:39 (GMT+3)   |   Istanbul
       

Capesize (Atlantic and Pacific)

Another pretty negative week in the Capesize market: 5TC average lost $1,000/d in 7 days closing at $15,250/d. In the Pacific basin, the standard W Australia-Qingdao route was in the high $6/mt for end September dates, closing on Friday at a better $7/mt with time charter rates in the $15/16,000/d. Saldanha Bay-China route instead was a bit under pressure: rates went from high to low $12/mt. Out of Brazil, Vale was pretty active taking several units at mid/high $15/mt for early October dates and at $16/mt for later dates: as a consequence, Tubarao-Qingdao route closed the week at mid-$15/mt. Backhaul remained stable at very high $6/mt-low$7/mt as benchmark on Tubarao-Rotterdam route. Very quiet week in the Atlantic basin where rates softened also due to strikes out of Puerto Bolivar which reduced cargoes availability: TransAtlantic lost $1,000/d closing at $13,000/d whilst Fronthaul lost $2,000/d touching $31,250/d.

 

Panamax (Atlantic and Pacific)

Limited activity in the Panamax segment both in the Atlantic and in the Pacific basin. Softening trend in Cont due to very few fresh cargoes and some spot units in the area: rates were lower compared to previous week both on intra Cont and on Cont-F East biz. The market showed some good activity only in BSea area with a good number of cargoes to F East that maintained rates stable well over $20,000/d. The market in ECSAm kept showing rates similar to previous week. In the Pacific basin instead the situation was not exciting: owners got lower rates but still closer to previous week. Some good grain activity is expected for later cargoes from NoPac or even from USG where owners tried to ballast their ships since now.

 

Handy (Far East/Pacific)

The market in F East remained more or less stable compared to previous week: it was recorded only a small decrease of $2/300/d less on Supramax units. A 63,000 dwt with dely Cambodia was rumoured at $12,000/d for a trip via Indonesia to Thailand, a similar size vessel with dely N China was fixed at $9,950/d for a trip via Australia to Korea with grains and a 57,000 dwt open mid China took around $7,000/d for a trip to Vietnam. Regarding West direction, an Ultramax with dely S China was done at $6,750/d for a trip via Indonesia to WCI, a 57,000 dwt took $11,000/d basis dely aps E Kalimantan for a trip to the same direction and a 56,000 dwt with dely Indonesia was done around $10,000/d for the same trip. No fixtures were reported on Handies.

 

Handy (North Europe/Mediterranean)

Firm week in Cont both on Handysize and on Supramax units. A 28,000 dwt (2008 built) was fixed at $8,800/d basis dely Skaw for one trip with grains via Baltic with redely Algeria. A nice bigger 35,000 dwt was rumoured at $12,000/d basis dely passing Skaw with one coal cargo from Baltic to Morocco, 25 days duration wog. In the Supramax segment, there were rumours of a fancy 55,000 dwt fixed at $15,750/d basis dely passing Skaw for one trip to E Med with scrap while in the Ultramax segment instead there were rumours of another fancy 63,000 dwt fixed for one trip into USG at $13,700/d basis dely passing Skaw with clean cargo. According to most of the operators the market seemed pretty steady in BSea and E Med areas: some brokers reported a negative feeling coming to the fore in the zone. In the Supramax segment, a 56,000 dwt asked $23,000/d on Fronthaul, to try something less, while some charterers were willing to pay Supramax units in the $22,000/d region ships in BSea for trip to MEG. No big changes reported on smaller units: a 34,000 dwt in Iskenderun was rumoured at $11,000/d on inter Med or at $10,000/d on trips USG basis dely dop. A 32,000 dwt eco type was rumoured at $6,500/d basis dely aps for a trip ex Algeria to Cont/Baltic.

 

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

Despite the slow activity reported in the Supramax and Ultramax segments, rates did not soften yet. On TransAtlantic RV, rates on Supramax units were in the $15,000/d and on Ultramax were around $17,000/d. On Fronthaul, rates on Ultramax units were still in the mid/high $20,000/d and on Supramax were close to low $20,000/d. Rates were stable in the Handysize segment thanks to a decent activity: on TransAtlantic RV, 32/35,000 dwt units were fixed around $10/10,500/d while larger 36/39,000 dwt in the $13,000/d. In ECSAm, Handies kept showing the negative trend started last week while Supramax and Ultramax units changed their trend to negative. Rates on trips to Cont/Med went from $12,000/d to $11,500/d on Handies, but at the end of the week rates were around $11,000/d if not less. Rates on 32/33,000 dwt units on trips to F East remained still flat at $16,000/d and on Brazilian coastal trips in the $10,500/d aps/dop range. Rates on trips in the Atlantic were around $17,000/d on Supramax units and around $18,000/d on Ultramax; rates on trips to F East lost at least $500/d touching $14,500/d+450,000 bb on Supramax units and $15,000/d + 500,000 bb on Ultramax.

 

Handy (Indian Ocean/South Africa)

The market remained soft in the area with only Premium paid for trips towards Pacific basin. From WCI, a 58,000 dwt was fixed at $16,000/d basis dely dop for trip to SE Asia. Another 58,000 dwt was rumoured at high $13,000/d basis Fujairah for a trip via Oman to SE Asia. A smaller 53,000 dwt was fixed at mid $14,000/d basis dely aps Fujairah to Bangladesh direction. There were few repositioning biz as well in the area with a Ultramax fixed at $7,000/d basis dely dop Pakistan for a trip via Red Sea with redely SAfr. Another Supramax was fixed at low $9,000/d basis dely Fujairah with MEG redely. The market in ECI was very slow with not many cargoes moving out: smaller Supramaxes were fixed at $10/mid $10,000/d basis dely dop ECI for a trip to China with iron ore; standard 56/58,000 dwt units were fixed at $11/mid $11,000/d for similar trips. In SAfr Ultramaxes were fixed in the high $12,000/d + high 200,000 bb with redely Pakistan. As the week progressed, a Ultramax was fixed at mid $13,000/d + 350,000 bb for trips to FEast basis dely aps SAfr.

 

Banchero Costa and Co Spa

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

 


Tags: Europe Freight 

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