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Thursday, 21 October 10
CAPESIZE, A FANTASTIC WEEK WITH IMPROVED RATES IN BOTH BASINS - FEARNBULK


Handy Activity remains slow this week combined with a lack of fresh enquiry in the Atlantic. Indexes are all negative except Cape but it is worth noting the market remains nervous. Transatlantic rates are in the low 30´s basis NCSA/ USG delivery (Mv Armenia 48k dwt was reportedly fixed 31k to the Feast bss dely sw pass). Trips Bsea to Feast for handymaxes hovering around 30k. Outlook: falling rates set to continue. The market sentiment in both the Far East and Indian Ocean seems to be lacking any positivity. There seems to be no clear sign that the WC India market is firming with trips to China with Ore in the high teens level. Richards Bay rounds were seen fixing at the mid to high teens. Spot vessels in the Pacific are pushing rates down with owners reducing their rates in order to gain employment, market level for Pacific round and redelivery India seems to be around the 18k level. Short period on the whole remains quiet.

Panamax Lack of demand and too many ballasters took the Panamax market further down despite the strong Cape market. Charterers were in the driving seat and positions in the Atlantic now being fixed in the 16k-17k range. Some larger players like Vale using the opportunity to book vessels for fronthaul biz at levels around 27k-28k, but grain biz from USG gradually offered at easier levels. Pacific also remains weak with few new cargoes to support all open tonnage, but levels seems to have found some support around 18k. Low period activity and an almost flat forward curve is hovering around the 21k mark for short up to a year period. However, 2 years fixed at healthy 20k+. Mixed view for next year, but some operators focus on securing forward cargoes not far from current levels.

Capesize A fantastic week with improved rates in both basins; Vale have been active fixing ships for fronthaul in the very low USD 30s pmt, and levels seems to be holding steady. In the east present level for Australia/China round is around USD 12 pmt. This market has mainly been dominated by Rio Tinto and to some extent FMG and Chinese, whilst BHP has not been present at all. However interesting to see lack of period deals being concluded, despite a relatively good number of period ships around. It further becomes obvious that the huge gap between Capes and Panamaxes cannot last for too long, indeed creating some uncertainty among Cape owners.
Source: FEARNBULK

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