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Saturday, 04 December 10
OFF WEST COAST OF INDIA TONNAGE IS SEEMINGLY QUITE SPARSE - FEARNBULK


Handy
The  Atlantic  markets  are  weak  and  remained  unusually  calm  after  the Thanksgiving  holidays.  A  57k  dwt  was  lucky  to  get  usd  25k  per  day  bss dely  Continent  to  Far  East.  Grain  movements  are  low  and  USG  markets  are expected  to  drop  further,  but  handymax  tonnage  open  USG  are  achieving usd  28k  per  day  to  Far  East  for  petcoke.  The  Black  Sea  is  simply  ´dead´. Outlook:  softening.  The  market  in  the  East  has  been  rather  slow  over  the past  week.  Having  seen  a  couple  of  fixtures  around  the  14k  and  15k  level for  modern  Supramaxes  opening  mid  China  via  Indo  to  India  owners  are aiming  for  these  levels,  however  charterers  are  happy  to  sit  tight  as confidence  that  the  market  is  going  to  firm  remains  weak.  Off  west  coast  of India  tonnage  is  seemingly  quite  sparse  and  we  have  seen  vessels  fixing around  the  15k  level  for  trips  to  China  -  remains  to  be  seen  whether  there  will be  steady  cargo  requirements.  Short  period  remains  week  with  charterers unable  to  meet  owners´  ideas.

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Panamax
Fueled  by  some  fresh  orders  and  lack  of  prompt  tonnage,  the  Atlantic  market maintained  a  positive  trend  this  week.  TA  rounds  going  in  the  low  20´s  and Continent  positions  even  able  to  reach  mid  20´s.  Fronthaul  fixed  at  healthy 29k  via  Cape  of  G  Hope.  In  the  eastern  hemisphere  there  is  oversupply  of tonnage  and  despite  a  fair  amount  of  fresh  coal  requirements  the  market  is sliding  in  the  mid  teen  area.  Short  period  market  not  very  active,  typically 4-6  months  fixed  at  18500.  The  sentiment  has  lost  some  optimism  by  the recent  downturn  in  the  Cape  market  and  a  slow  decline  on  FFA´s  -  despite some  signs  of  a  recovery  mid  week.  A  relevant  question  is  whether  we  are already  facing  a  slow  down  for  the  coming  X-Mas  season.

Capesize
Hard  times  for  owners  as  levels  -  physically  as  well  as  derivatives  -  have dropped  drastically  across  the  board.  Spot  demand  is  simply  not  enough  to absorb  the  massive  number  of  new  entries  that  come  in  addition  to  the existing  fleet.  Average  spot  earnings  down  close  to  25%  w-o-w,  coming  in at  around  usd  26k.  Pacific  is  hard  hit  in  particular,  with  rates  for  rounds falling  by  almost  35%  to  usd  18k.  Atlantic  is  holding  up  better,  as  the ballasters  from  Far  East  take  most  of  the  general  beating  -  the  North Atlantic  tonnage/cargo  balance  is  healthy  in  comparison.  A  few  brave operators  dare  to  book  period  tonnage  despite  the  overall  trend,  with  usd 28500  done  just  before  diving  into  the  abyss  on  180kdwt/2009  for  12  months delivery  China  5/15  Dec,  also  172kdwt/2001  done  for  3-5  months  at  usd  25k delivery  retro  China  14  Nov.  Uncertainty  as  to  whether  market  about  to  find a  floor  or  if  this  is  turning  into  a  complete  collapse.
Source: FEARNBULK



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