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Friday, 23 July 10
THE PANAMAX MARKET HAS CONTINUED ITS SLOW CLIMB - FEARNLEYS


Handy
Continued flat Atlantic markets and over-supply of tonnage across all segments on spot basis. Nevertheless there is more fresh enquiry on Continent and  Black Sea for the end of July / beginning August which means that rates should stop falling in a  nearby future. The Feast market has stabilized over the past week, although market direction  is  still  unclear  with limited  activity. Tonnage in SEASIA is tight so owners are standing  firm on their rates. There is a little more activity off ECI  into  China  with  rates  in  the mid  teens,  similar rates being seen for Indo RV´s and NOPAC  business  would be the same but there  is little to report. Short period market rates seem to be in the high teens with more enquiries coming out.

Panamax
The Panamax market has continued its slow climb upwards after the long lasting decline experienced the last month. We´ve seen a steady growth of fresh cargoes entering the market for August dates, and this have made owners more confident and are holding back to see a rate increase. This goes especially for the Atlantic basin but we also see steady demand for coal worldwide which in turn helps the rates in the Pacific and Indian Ocean. TARVs are fixed at ard 17/18k and trips Feast with Cont delivery in the high 20´s. In the Pacific the rounds are fixed in the mid/high teens.

Cape size
Combined, summer doldrums and continued Chinese steel-related slowdown give little reason to cheer for cape players. Iron ore volumes in particular remain  low, with the resultant WAust/China rounds standing at present USD 6.50 pmt - barely covering operational expenses. Despite this, and despite no short-term recovery evident, major players keep picking tonnage for short/ medium period at huge premiums to spot: 180,000 dwt/blt 2005 done for 4-6 months at usd 20k, 181,000 dwt/blt 2010 done for 4-6 months at USD 20,500 and also reportedly 180,000 dwt/blt 2009 concluded for 4-6 months at around usd 24k (!)  - a clear indication of expected upswing for  q3/q4 no matter how  many n/b´s expected to enter this segment in the very near future.
Source: FEARNBULK



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