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Friday, 23 December 11
SPOT PACIFIC CAPESIZE VESSELS HAVE COMMANDED HIGH PREMIUMS - FEARNLEYS


Handy
Rates in the Atlantic kept stable from last week, with a touch of negativity closer to the end.  Less spot cargoes seen, and owners are keen to fix their tonnage before Christmas. Continent/Us Gulf fixed at USD 6500, and US Gulf/Continent at USD 24700.  Fixtures to the east reported around USD 24-25k.  The Pacific market remains quiet.  Indo-India rounds are fixed dop 5000. Iron ore activity from India also remains quiet, especially from EC India.  WCI China rates are now around USD 11k and from ECI around USD 8k.  Red Sea fertilizers to India are fixed in the low 20s.  RBCT rounds are also fixed close to USD 10k dop WCI.  Short period activity is less and rates are around USD 11k for large eco Supras.

Panamax
Limited fresh business appearing in both hemispheres as Christmas is getting closer, causing the market to slide slowly.  As the majority of December cargoes have been cleared out and the list of open positions is growing, expectations for the coming days and weeks are not over enthusiastic.  15k for TA, 25k for trip out, and 11k for Pacific rounds represents market levels this week.  2011 seems to end where it started, with a BPI on about 14000 and on a downward trend. Fluctuating from lowest 10372 Feb 2nd to highest 17115 March 11th the year is about to close with an average BPI also at 14000.  With a descending forward curve passing 11500 for 2012 it may be highly relevant to wish all market participants a Merry Christmas and a Happy New  Year!

Capesize
The Cape market has remained strong in the near term, but sharply dropping off for slightly forward dates. Spot Pacific vessels have commanded high premiums with an extreme high of USD 17.20 being paid, for WestAustralia  to  China, at the end of last week for very tight dates.  End December cancelling has demanded USD 14.50,  while second half January is being fixed at a much lower USD 11.25. January front haul positions are very tight with few or no ballaster, and recent rumours indicate rates for Brazil/China being paid well over USD 30.00 (perhaps  even  USD  32.00). The one-year period market has now been done at a new high of USD 18500.  Although the curve has moved, the sentiment is still pessimistic and the forward market is discounted heavily.
Source: FEARNLEYS AS



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