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Wednesday, 22 October 14
CAPESIZE MARKET REMAINED UNDER PRESSURE

COALspot.com: The Dry Bulk market closed on the red for yet another week although following Friday sentiment has started to improve on the back of firmer performance of the Capesize market, said Intermodal in its latest weekly report.

"As we mentioned in our last week’s report, a correction was long overdue and it seems that we are about to experience one, as this week has also kicked off in a very positive tone as well. The duration of such reversal is without a doubt key here. Our industry has been trained to become more optimistic with even a couple of weeks of good freight performance but it is our feeling that this time round we will need to see more of that before we pop open the champers," broker said.

According to Intermodal, the Capesize market remained under pressure for yet another week, while rates for the segment once more noted the biggest declines across the board. The Atlantic Cape showed no signs of improvement and period numbers took another hit. As things started to improve somewhat in the Pacific towards the end of the week, sentiment improved marginally across the market.

As commenting on Panamax, broker said, rates for Panamaxes firmed last week, outperforming by a lot the rest of the market. Continent business together with a much improved Pacific resulted in unexpected gains for the segment, which saw its average T/C finally climbing back up above $7,500/day and giving a much needed breather to owners.

Broker said the small sectors such as Supras and Handies were also down this past week, with a further drop in fresh inquiries in the Pacific. Things in the Atlantic weren’t any better either, while too many ballasters in the USG region meant no stellar performance of rates there either, broker concluded.



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