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Friday, 12 December 14
LIMITED TRADING AND AN OVERSUPPLY OF TONNAGE PUSHED HANDY SIZE SHIPS TO DOWN IN USG

Handy
We have seen the TA spot market come down this week lead by limited trading and an oversupply of tonnage in the USG, Fearnleys said in its latest week report.

According to Fearnleys, the signals are mixed but less pet coke out of USG causing rates to slip together with owners wanting to fix out their positions before the Christmas holidays. TA´s are down some US$ 1,000 w-o-w while the Fhauls bss Continent delivery are fixing at pretty much the same levels as last week, ie low US$ 13k. In the Pacific we see a much more balanced market with about the same levels as last week. Indo/India coals are being fixed in region of US$ 13k while the SE Asia rounds are seeing around US$ 9k.

The short period market is still fairly active and Supras are being fixed at around US$ 10-11k depending on delivery while the bigger Ultras are being fixed at 12k, Fearnleys concluded on Handy size ships.

Panamax
The Panamax market has continued its slow sliding tendency since last week. Still not a dramatic decrease in rates, but we see the TA market being fixed in region of US$ low 10k which is down some US$ 200 w-o-w, the broker Fearnleys continues. The breaching of INL season is approaching and we see charterers with such cargoes all ready now have to pay up a bit as a premium to owners willing/able to do same. We do see fresh cargoes entering the market and it seems pretty well balanced with tonnage in the Atlantic, so the reason for rates sliding could be caused by the bigger Capes which have seen rates coming off hard.

Fearnleys  further noted that, some Cape owners are even offering in on Panamax stems which again putting pressure on the rates. In the Eastern hemisphere we noted that India is importing record amounts of coal and building up congestion in the ports. This has not put pressure on the rates and with lack of other Pacific cargoes, the Pac round rates has come off some 7- 800k w-o-w.

Capesize
Imploding on a close to total absence of prompt demand, with coal as commodity and Atlantic as region being the most painful spots, said Fearnleys.

An abundance of Owners falling over each other to secure the very few available cargoes coming almost exclusively ex Australia, with resultant rate levels in free fall. According to Fearnleys , w-o-w, freight for the conference trade Continent/Far East is down 25% to US$ 18500/day, pacific rounds down 45% to US$ 6800 and average earnings down some 40% to come in at US$ 7300/day. What little period is being concluded is on index-linked basis, as neither present/predicted coal/ore volumes nor FFA values are even close to support necessary fixed levels.



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