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Sunday, 25 October 09
THE FUTURE FREIGHT MARKET IS EXPECTED TO HAVE POSITIVE DIRECTION - VISTAAR


COALspot.com (Singapore): According to Vistaar Shipping an experienced ship operator in Singapore, the BDI shot up this week (19-24 October) by about 11 pct to 3,043 points. The cape size index moved up quite sharply by about 20 pct this week (19-24 October) to 5,842 points and the Panamax index was up by 11 pct to 3,048 points.

The supramax and handy size index did not change much and was almost at same levels at 1,852 points and 895 points. The average charter hire was at Cape / US$ 50, 688 per day, Panamax / US$ 24,471 per day , Supramax / US$ 19,360 per day and Handy size / US$ 12,751 per day.

The supramax index in the Far East (S6 route) at US$  17,870 per day. The ECI / China (S7) route was slightly firm at US$ 19, 254 per day. However the Far East / SE Asia market was quite firm due to shortage of ships.

Quite a Supramax period charter reported this week (19-24 October) . Short period rates were at US$ 17,500 / 18,000 per day for vessels opening Far East / SE Asia.

The futures for three years for 2010-2012 is around Cape / US$ 26,000 per day, Panamax / US$ 16,000 per day, Supramax / US$ 14, 000 per day, Handy size / US$ 11,000 per day says, Capt. Reddy, MD, Vistaar Shipping, Singapore

The World Steel Association forecasts that world apparent steel use (ASU) will rebound by 9.2% to 1,206 Mt in 2010, recovering from this year’s 8.6% decline to 1,104 Mt, mainly due to sustained strong growth from China. PRC demand is set to grow 18.8% to 526 Mt this year. In contrast, consumption in the world excluding China is forecast to fall

24.4% to 577 Mt. The WSA expects China’s steel consumption in 2010 to rise by 5% to 553 Mt, with demand in the rest of the world rising by 13.1% to 653 Mt.

Based on the above if the steel demand is good, the freight market is expected to have direct positive effect. However the effect of new buildings also is to be seen with quite lot of ships being delivered in next two years.

The congestion in Australia was slightly less at 94 in EC Australia and 19 iron ore vessels waiting WC Australia.  The berthing delays at DBCT continued to be around 30 / 40 days and New Castle at 10 days. The congestion in Paradip and Haldia continues to high and uncertain.

The crude prices moved up sharply this week and brent crude was at US$ 78.15 per barrel and the bunker prices was around US$  466 pmt for IFO (380 cst) prices ex Singapore.

Click here for Vistaar’ s forecasted (terms & conditions apply) spot freight rates for coal & Iron-ore cargo for specific routes
 (cs)



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