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Thursday, 11 August 16
CAPESIZE THE PACIFIC SIDE IS LOOKING MORE POSITIVE, DRIVEN BY AUSTRALIAN IRON ORE - FEARNLEYS
FearnleysSupramax
Rates continue to be under pressure with index ending up with 639 points and average TC value at USD6,680, said Fearnleys. Fearnleys A/S  has over 130 years of dry cargo brokerage experience. Supply of vessels within Continent/Baltic has increased and although the preference is to stay in the Atlantic, there are more owners willing to rate to the Far East.

It went on to add that, Fertilizer business among 30,000dwt have seen rates around USD19 from Baltic to Brazil. Rates out of ECSA are definitely softening while the USG is uncertain. In addition, slow start for the week in Asia with national holidays in Singapore and Japan. Rates in South East Asia are generally moving sideways, or softening. Most trades are concluded on a leg basis with owners absorbing the ballast. The period market is quiet for now.

Panamax
The Oslo based dry cargo broker Fearnleys noted  that, the sluggish tendency from last week has been temporized by early week holidays in the East and muted activity. Fresh Atlantic requirements and increased USG fronthaul activity lifted the sentiment from mid week though.

According to Fearnleys, T/A rounds now paying above 5.000 on T/C, although voyage rates not showing same improved results yet. Fronthaul from Cont alt USG stand well above 10.000 bs Cont/Med delivery, and Owners are reluctant to move. ECSA fronthaul still alive and done above 7500 + 250 mid week. In the Eastern hemisphere rates have been more shaky, but rates seem to hold in a 5.000 market on average and moving north. Period activity a bit scarce with levels in the mid/upper 5’s for Panamax for short up to about 1 year.

Capesize
Commenting on Cape size ships Fearnleys says, the Pacific side is looking more positive, driven by Australian iron ore. The increased activity by the Australian miners has improved rates by 30 cents so far this week and owners are convinced the trend will continue. In the Atlantic however the situation remains as per last week with a surplus of spot ships and hardly any spot cargoes. The five tc average is presently USD 5500.


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