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Wednesday, 24 September 14
CAPESIZE: ACTIVITY IN BOTH BASINS WAS UNIMPRESSIVE

COALspot.com: The end of the week prior seems to have marked the tone for the days that followed, with the Dry Bulk market giving up a significant portion of its recent gains and sentiment softening as the BDI moved closer to the 1,000 points mark once more and concerns for the performance of the freight market started mounting again, said Intermodal in its latest weekly report.

The broker further said, as this week kicked off, things appear slightly more stable, although we haven't yet seen any significant fresh enquiry that can substantiate a better week ahead.

In recent news, China appears set to ban the import of high sulphur coal, and the new regulation, set to come into effect in the beginning of next year, is expected to affect imports to a substantial degree, Intermodal noted.

According to Intermodal, in the case of Capes, rates for which noted the biggest decreases across the board and practically were the ones weighing heavily on the rest of the market, the average rate shed a whopping 21%, erasing the gains from the week before. Activity in both basins was unimpressive, with the absence of Brazilian cargoes setting the negative tone, while the period market also noted significant downward corrections.

The broker also said, the Atlantic Panamax was also weaker as the volume of fresh business was overshadowed by tonnage supply in the region, with rates elsewhere moving sideways for the bigger part of the week, while things remained quiet elsewhere.

Rates for Supras and Handies on the other hand, managed to note modest increases on the back of steady inflow of business, while sentiment for the smaller size segments still remains fairly positive compared to Capers and Panamaxes, Intermodal concluded.



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