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Saturday, 28 January 12
WILL FREIGHT MARKET STABILIZE FROM NEXT WEEK?


COALspot.com - The markets continued to soften with BDI at 663 points down by 15.78 pct closing at 726 points and cape index was down by 5.73 pct closing at 1,465 points.

The biggest drop was in Panamax sector which dropped by 20.10 points closing at 815 points. The Supramax and Handysize also continued to drop by abt 13 pct closing at 695 points and 426 points respectively.

The BDI is almost close to the lows of Dec 2008 when BDI was at 663 points.

The markets seemed to have bottomed out and there are hopes that the market would stabilize from next week with Chinese new year holidays over. However as per reports there is huge stock pile of iron ore of about 94 mill tons in Chinese ports. The demand for iron may be weak for next couple of weeks, which may cause to affect the shipping market.

Supramax delivery South China for trips via Indonesia were reported around only US$ 5,500-6,000 per day. Short Period charter rates for Panamax and supramax was down to around US$ 6,000-7,000 per day with delivery Feast.

The average charter rates was at Cape/US$ 5,566 pday , Panamax/US$ 6,488 per day, Supramax/US$ 7,268 pday and Handysize/US$ 6,264 per day. The futures for three years (2012-2014) was at around Cape/US$16,000 per day, Panamax/US$ 12,000 per day, Supramax/US$ 11,500 per day , Handysize/US$ 9,250 per day.

The supramax index in the feast (S6 route) closed at US$ 5,231 pday (last week US$ 5,728 per day) and S7 route closed at US$ 5,569 per day (last week US$ 6,082 per day) . S6 and S7 route likely to remain steady next week.

The congestion in EC Australia increased to 90  vessels this week (last week 85). The vessels waiting at main coal loading ports were at Haypoint/4, DBCT/16, Gladstone/14, Abbot Point/4, New Castle/43, Port Kembla/11 vessels.

On the WC Australia iron ore vessels waiting was at 70 vessels (last week 53).

The brent crude oil prices closed at  US$ 111.53 per barrel and bunkers prices closed at US$ 739.00 pmt (last week US$ 740 pmt) for IFO 380 cst ex Singapore on 27th Jan 2012.

Click here for Vistaar’s forecasts (terms & conditions apply) for spot freight rates for coal & Iron-ore cargo for specific routes (cs)



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