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Wednesday, 27 July 16
RATES FOR THE SMALLER SIZES OVER-PERFORMED THE MARKET LAST WEEK - INTERMODAL
PanamaxThe decline  the  BDI noted last week was somewhat expected given the fact that the market has been overall firming for almost a month now, while despite the general slowdown that earnings for all sizes have been witnessing during the past days, were iterate our opinion that the improvement witnessed in rates and consequently in sentiment among owners since the beginning of the summer season should act as a valuable support in August, a month during which the market is expected to slow down anyway.

According to Intermodal brokers, the period market at the same time continues to witness revived activity, with owners showing a preference towards shorter term contracts as their expectations for a steady performance of the market from September onwards have been steadily building up. Capesize rates lost considerable steam last week as owners competed heavily for the few fresh orders that came up, says Intermodal in its latest weekly report.

There have been some healthier numbers reported in the Atlantic but should the weakness in the  Panamax market persists this week as well, we expect the negative spillovers to  further affect Capesize earnings.

The Greece based broker further noted that, there was a noticeable slow  down in Panamax orders from USG  and North  Atlantic  last week, while East Coast South America rates manage to  hold  around last dones. In the Pacific,  earnings were trending sideways throughout the week despite the considerable pressure charterers were exerting,  while everyone is expecting the end of this week to better assess whether the momentum built up during the past weeks can turn things round.

Rates for the smaller sizes over-performed the market last week, with Supra earnings in the Atlantic  regaining  their balance and activity in the Pacific seeing an unexpected increase, while the recent revival of the Black Sea market kept supporting Handysize rates in the region, said Intermodal.


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