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Thursday, 10 July 14
HANDY: SMALL INCREASE; PANAMAX: POSITIVE TONE; CAPESIZE: PAPER VALUES REMAIN WEEK

Handy
It is a general increase in activity in both hemispheres whereas rates have just experienced a small increase. In the Feast we see stable and further signs of improvement. Vessels open Spore can achieve around USD 11,500 for trips to India. A large unit open Thailand was trading at high 7´s for trip via Aussie back to Feast. The South African market is holding stable with rates around USD 8.5-9k + 150,000 GBB for trips to Feast. The period market has been more active and the NB Ultramaxes are able to fix at around USD 12,500 bss delivery ex yard for 1 year trading.

Panamax
The positive tone from last week continued with rates improving in both hemispheres early week. More activity and fresh requirements gave the owners room to fix above 6k for rounds in the Atlantic, 14 + 400 from USG and 13 + 300 ECSA to Far East. However, as both the Caper and the paper turned sour mid-week, the Panamax players headed for the door leaving only silence and lower levels behind. In the Eastern Hemisphere, rates increased to hover in the 8k range early week, short period in the 9k and one year low 10k.

Capesize
The summer mood has reached the market with less cargoes and lower rates. Fh rates are dropping every day due to a lack of demand, whilst the activity in the Pacific remains ok although rates are not moving. Paper values remain week, which in turn results in few period fixtures being concluded. The state of our market can be explained by high iron ore inventories in China and inactive iron ore traders.
Source: Fearnleys A.S



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