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Thursday, 23 December 10
SANTA CLAUSE DID NOT COME EARLY THIS YEAR - FEARNBULK


Handy
Not  much  fresh  enquiry  this  week  and  quite  dead  in  Bl.Sea/Med. Nevertheless  large  Supras  are  achieving  USD  21/22k  for  TA  rounds  -  2/3 laden  legs  within  the  Atlantic  which  is  actually  not  bad  at  all.  As  advised the  pre-Xmas  rush  is  keeping  the  market  afloat  but  a  large  amount  of tonnage  is  pouring  into  the  Atlantic  (ballasters  from  India  etc.)  and  this  should exerce  downward  pressure  on  rates  by  end  Dec/1H  Jan.  USG  is  quite  active on  the  petcoke  side.  Outlook:  Flat.  The  FEast  has  been  under  real  pressure over  the  past  week.  With  the  holiday  season  here  owners  are  keen  to  just get  vessels  in  employment  with  quick  business  then  see  the  direction  in  the new  year. 

Vessels  are  fixing  for  Indo  rounds  in  the  low  10´s  and  even  hear of  a  large  Supra  fixing  sub  10k  opening  N.China  for  a  trip  to  India.  Nopac rounds  are  also  few  and  far  between  but  paying  a  tick  more.  Off  WC  India tonnage  has  been  somewhat  tight  and  the  level  seems  to  be  around  15/16k for  trips  back  to  China  with  iron  ore.

Panamax
The  Panamax  market  experienced  limited  activity  and  consequently continuous  softening  of  rates  in  both  hemispheres.  The  FFA´s  traded  steady arnd  USD  16k  for  Q1,  while  1  year  TC  period  in  the  physical  market  was pending  arnd  USD  16-17k.  Not  many  signs  for  market  recovery  last  days  of this  year,  especially  Pacific  has  an  oversupply  of  tonnage  and  lack  of  new orders  to  back  up.  Question  now  if  market  reached  a  level  where  owners  and operators  start  picking  tonnage  again.  Prompt  Atlantic  rounds  fixed  at  USD 19-20k  while  the  Pacific  rounds  sub  10k.

Capesize
Santa  clause  did  not  come  early  this  year.  Whilst  there  has  been anticipations  in  the  market  that  bottom  would  soon  be  reached,  rates continue  to  drop.  For  Australia  to  China,  chrtrs  are  now  targeting  below USD  8  pmt,  with  last  done  at  very  low  8s.  Tubarao/Qingdao  is  slowly approaching  USD  20s,  although  there  has  been  some  resistance  on  this  route. All  in  all  the  market  needs  a  Christmas  break,  and  hopefully  activity  will  be speeding  up  early  next  year.  However  as  it  looks  right  now,  expectations remain  poor.
Source: FEARNBULK



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