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Thursday, 18 July 13
DRY BULK MARKETS RETAINS RECENT GAINS, MOVES SIDEWAYS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS


The dry bulk market has kept on moving sideways this week, as evidenced by the latest trends of the industry's benchmark, the Baltic Dry Index (BDI). The BDI was relatively unchanged during yesterday's session, as has been for the most part of this week. The index ended at 1,151 points, down one point, with the Panamax market posting the biggest retreat by 17 points, to 1,153 points. The Baltic Capesize Index was also down by 10 points to 2,034, while minor downwards shifts were also evident in the smaller ship classes.

According to the latest weekly report from shipbroker Fearnley's, "the Cape market appears to be holding firm, with the 4TC number holding at a steady and healthier USD 13,920 at the time of writing, marking almost no change w-o-w. West Australia has been actively fixed at steady rates between USD 7.70 and 7.80 pmt. Cargoes from Brazil to China have appeared over the last few days – hopefully helping to absorb the increasing number of ships ballasting toward the Atlantic basin. Meanwhile tonnage in the North Atlantic remains tight – with a reported TA round fixed at good 17k per day. August and September FFA contracts have pushed slightly to USD 11,190 and 11,490 respectively, indicating improved sentiment for the remainder of Q3. Consistent period numbers have also been concluded this week, with USD 15,500 and 14k per day reportedly paid by charterers for 3 and 2 years respectively", said the shipbroker.

Similarly, in the Panamax market, Fearnley's noted that "after a dull week we finally saw some improvement in the Atlantic. Rates increased USD 1000 from last week after prompt cargoes entered the market, making the Cont positions quite attractive. Fronthauls followed the positive trend with an increase of close to USD 2000 with higher export from US Gulf and USEC. In the Pacific the rates climbed close to USD 1000 due to an active Indian market. No change at backhauls, close to zero", it said.

Finally, in the smaller Handy class, the shipbroker mentioned that "in the Pacific, market maintained similar levels during the week. There is several Indo coal orders in the market, ships passing Singapore fixed at around 11k for trips to China and between USD 10-10.5k for trips to India. WCI remains quiet with no stems being circulate. Tonnage spot in ECI fixed APS S.Afr for trip to Feast at high 8k+280k gbb. More cargos from S.Africa expected for 1st half August. For short period, owners targeting around 10k whereas charterers are aiming lower", it concluded.

In a separate report, shipbroker Intermodal had noted that the past week's surge, "may well be the last one before the summer lull, so owners are hoping that they can keep the momentum for as long as they can in the hope that they will keep rates fairly buoyant in August", it said.

Providing an additional and different viewpoint, Commodore Research & Consultancy noted in its most recent Weekly China Report, how China has been experiencing a very active typhoon season. "Tropical Storm Soulik, which made landfall over the weekend, marked the third tropical storm to hit China during the current 2013 Pacific typhoon season. Up until July 15th of last year, only one tropical storm had made landfall in China. Another new tropical storm is now developing off the coast and is expected to make landfall. Tropical Storm Cimaron is gaining strength and is expected to make landfall in southern China by Friday.  Afterwards, the storm will head north and bring a great deal of additional rainfall to parts of an already saturated Chinese mainland. As a result, Chinese hydropower production is set to receive an even great boost and additional Chinese crops could also suffer a damage", it noted.
Source: Nikos Roussanoglou, Hellenic Shipping News



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