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Thursday, 24 July 14
HANDY: SOUTH AFRICA SOFTENED A BIT, HERE RATES ARE AT AROUND 8K +150K BB FOR TRIPS EAST - FEARNLEYS AS

Handy
The handy market in the Atlantic is going sideways and a tick down on low activity. Levels hoovering around USD 5k on Supras. The SMX market in Feast is stable but on a low level we can see some fresh cargos entering the market but still not enough to absorb the huge tonnage supply.

Vessels open Spore trading around USD 7-8k for SE Asia R/V, for trips to India vessels can achieve around USD 9.5k. NOPAC, rates firmed up a bit and are at low 9k+325k BB bss APS. South Africa softened a bit, here rates are at around 8k +150k BB for trips east. Period, a Supra open WCI got fixed for short period at around high 8k where an Ultramax ex yard China could achieve around 12k for same duration.

Panamax
Week started with some more cargoes in the Atlantic hemisphere giving a small push to an already depressed market. We do not foresee that this will kick off rates, but at least lift the levels a bit in positive direction. In the east, the list of open vessel still huge and with limited trading we saw small dip in rates. Atlantic and Pacific rates are now almost even at around USD 4k per day. Fronthaul is still around USD 12k daily. Period activity limited these days and little reported, some shorter periods at 4/6 months concluded around 8500 daily, while 1-year should pay in the low to mid 9k.

Capesize
Mixed picture, but overall negative w-o-w as average earnings soften further to some USD 9300/day. All major Australian miners are picking ships, with resultant marginal improvements on the key West Aust/China route to a still miserable average of USD 7.85 pmt basis voy or some USD 10k/day for Pacific rounds. Atlantic remains the area of pain, with next to no transatlantic and very limited fronthaul action.

The Tubarao/Qingdao conference trade is down to USD 18.40 pmt, general tc-trip value from Continent to Feast down to USD 25k/day and transatlantic rounds pay some USD 5500/day on good modern tonnage if at all available. Apart from seasonal doldrums coal trading appears at a particular low. Period activity reflects FFA values, having taken a hit along with spot levels for some time.
Source: Fearnleys AS



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