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Thursday, 08 April 10
THE FAR EAST SHIPPING MARKET FIRMING SINCE THE LAST WEEK


Handy
Little  fresh  interest  early  this  week  after  the  holidays.  The  BSI  saw yesterday  a  positive  increase  of  26  points  which  bodes  well  for  the  rest  of the  week.  Today  we  see  more  activity.  Atl.  markets  remain  firm  and  our outlook  is  that  these  conditions  are  set  to  continue.  With  the  Grain  season kicking  off  ex  ECSA,  Supras  get  healthy  rates  of  usd  35k  +  500k  BB  bss  dely N.Brazil  to  F.East  or  usd  35k  bss  dely  S.Afr.  Trips  via  Baltic  to  E.Med  pays usd  33k  for  h.maxes.  A  quiet  USG  for  the  last  weeks  -  rates  fell  from  usd 50k+  levels  to  low  40´s  for  trips  to  the  F.East.  The  Bl.Sea  remains  firm  and tonnage  is  tight.  The  F.East  market  started  firming  during  the  last  week.  For Pac.  rounds  Supras  can  achieve  low/mid  20´s  -  NOPAC  mid  20´s,  for  Indo/ India  coal  trips  they  were  fixed  in  the  mid/high  teen´s.  For  short  period Supras  were  fixed  for  low/mid  20´s.  Iron  ore  trips  from  WC India  to  China  is quiet,  Supras  trading  in  the  very  low/mid  30´s,  for  Rich.Bay  rounds  Supras were  fixed  at  mid  20´s.

Panamax
The  activity  in  the  Panamax  market  came  to  a  halt  and  volume  was  low during  the  Easter  holidays.  Despite  the  softening  Cape  segment  Panamax levels  maintained  relatively  strong  with  Atlantic  r/v  done  at  low  30000s  and fronthaul  still  at  healthy  low/mid  40000/day.  Some  fresh  requirements  in  the Pacific  and  ECSA  grain  longhauls  kept  Far  East  positions  just  around  the 30000  mark  although  a  few  NOPAC  and  Far  East  positions  were  caught  at the  high  20´s  after  Easter.  With  a  period  market  still  alive  and  FFA  -  Q2  in particular   gaining  strength,  Panamax  may  still  have  potential  to  move  up short  term  forward.

Capesize
There  has  been  anticipated  an  improvement  in  rates  just  after  Easter  for  the last  couple  of  months.  But  we  are  still  waiting.  There  was  however  a  spike last  week  with  front haul  close  to  USD  28  and  Australia  r/v  close  to  USD  11 pmt.  Due  to  lack  of  activity  and  general  uncertainty,  rates  are  now  further down  and  front haul  rates  currently  in  the  26  region  and  Australia  to  China very  low  USD  10s.  The  news  that  China  will  stop  all  purchase  of  iron  ore from  the  big  three  creates  further  uncertainty;  whether  they  actually  will  go ahead  -  and  further,  what  will  be  the  impacts.  Although  there  is  more tonnage  around  and  lack  of  requirements,  the  general  sentiment  still  expects improved  rates  within  the  near  future.
Source: FearnreSEARCH



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