SSY DRYBULK
FOR CAPESIZE & PANAMAX & HANDY/MAX MARKET
WEEK ENDING 13th August 2010
Simpson, Spence & Young, Lloyd’s Chambers, 1 Portsoken Street, London E1 8PH
Tel: +44 20 7488 9179, Fax: +44 20 7265 1945, Email: cape@ssy.co.uk / panamax@ssy.co.uk / chartering@ssyhandy.com
Website: http://www.ssyonline.com
Whilst every effort is taken to ensure accuracy this report is given for your guidance only without any guarantees. This report and the information
contained herein is the sole copyright of SSY and cannot be reproduced in whole or in part without our prior approval.
Capesize
Following on from the renewed confidence of last week, the market saw an
encouraging push in rates across the board - resulting in a $2.58 pmt increase in
Tubarao/Qingdao and the Average of the T/C's improving by circa $5,000 on
Wednesday's index. However this severe push caused Owners to back off so far
from Thursday onwards, that Charterers wanted to take a step back and try to
discover the exact source and extent of this rise, which caused the week to quieten
down early. The BCI Index increased over the duration of the week by 1016 points
upto 3210, whilst the Average of the Timecharter Routes also rose to $29,956 daily,
improving by 38.50%.
The Fronthaul market experienced a significant push which has continued on for the
past 2 weeks - Tubarao/Qingdao has risen from $18.98 pmt upto $26.45 pmt on the
Baltic Index (a 39.36% increase). As we begin to approach Q4 cargoes, Charterers
were looking to cover their September stems for Tubarao/Qingdao and were forced
to follow the rising rates of tonnage. Fixtures crept as high as $26.75 pmt basis
Tubarao/Qingdao for mid September dates in Brazil with the bid vs offer spread
closing the week at circa $26.25 pmt vs $27.00 pmt level basis September dates for
Tubarao/Qingdao.
The Iron Ore Majors were once again active this week looking to conclude on their
end August/early September stems in W.Australia. Vessels were being fixed at circa
$10.00/$10.25 pmt basis Port Hedland/Qingdao for Early September dates, whilst
the prompter cargoes within August dates were slightly pricier nearing the region of
$11.00/$11.25 pmt. Charterers ended the week bidding levels of around $10.00 pmt
level compared to Owners rating their tonnage at $11.00 pmt basis Port
Hedland/Qingdao for early September dates.
The Period market once again continued to spark interest this week as we move
closer to Q4 and the paper market strengthened at the beginning of the week.
Short period tonnage was being concluded at $33,000/$34,000 daily level for 4/6
months with delivery in the Far East. Charterers began to back off a touch at the
end of the week as the FFA Market softened and quietened down, in search of what
would be accessible next week. The 1 year period market level closed this week at
circa $30,000 daily for a BCI type vessel Delivery in the Far East.
SSY DRYBULK
FOR CAPESIZE & PANAMAX & HANDY/MAX MARKET
WEEK ENDING 13th August 2010
Simpson, Spence & Young, Lloyd’s Chambers, 1 Portsoken Street, London E1 8PH
Tel: +44 20 7488 9179, Fax: +44 20 7265 1945, Email: cape@ssy.co.uk / panamax@ssy.co.uk / chartering@ssyhandy.com
Website: http://www.ssyonline.com
Whilst every effort is taken to ensure accuracy this report is given for your guidance only without any guarantees. This report and the information
contained herein is the sole copyright of SSY and cannot be reproduced in whole or in part without our prior approval.
Panamax Atlantic
The lack of tonnage in the Continent is holding the Atlantic basin strong with rates
gradually picking up throughout the week.
Rates for transatlantic rounds picked up from the low $20.000's region to around
$24.000 daily, while interestingly there a clear premium for 2 laden legs atlantic
where for delivery in the Continent a baltic type was fixed around $28.000 daily
while basis delivery Passero an LME was fixed around $27.500.
Fronthaul rates hovered in the low $30.000's - apart from the grains we seeing an
fresh influx of enquiries out of Orinoco. Iron ore out of the Black sea is showing
interest as well with rumors of a ship open Port said being fixed in the high
$30.000's. On short period talks were done in the high $20.000's region.
Panamax Pacific
Monday brought with it a very pensive mood, both owner/charterers willing to watch
the market to ascertain their next move. With Japanese enquiry dominating ex
south east asia, rates soon started to increase with pac rv's fixing at around 19-
19500usd levels, with a 75/05 niihama 11-13aug employed for an aussie/china at
19500usd. With the paper market pushing through the first half of the week, the
number of takers for short period soon began to increase with rates at around mid
20,000usd.
The second half of the week saw a correction in the paper which in turn prompted
several fixtures to fail, this included a 75/07 haldia which fxd/fld for 1yr at 25250.
This was short lived, and come thursday confidence had returned, levels of fixtures
soon began to increase and by the end of the week levels for nopac rv's (petcoke)
were fixing at around 23,000usd ex japan delivery, with potential to increase
further.
Short period has been the dominating market this week in the pacific, with potential
for the market to once again to push further. There is still a healthy amount of
supply, so enquiry will have to be consistent, as has been this week, to keep rates up.
SSY DRYBULK
FOR CAPESIZE & PANAMAX & HANDY/MAX MARKET
WEEK ENDING 13th August 2010
Simpson, Spence & Young, Lloyd’s Chambers, 1 Portsoken Street, London E1 8PH
Tel: +44 20 7488 9179, Fax: +44 20 7265 1945, Email: cape@ssy.co.uk / panamax@ssy.co.uk / chartering@ssyhandy.com
Website: http://www.ssyonline.com
Whilst every effort is taken to ensure accuracy this report is given for your guidance only without any guarantees. This report and the information
contained herein is the sole copyright of SSY and cannot be reproduced in whole or in part without our prior approval.
Handymax Atlantic
After the tranquil market of last week, we saw a more bullish market this week with
rates pushing up across the board in the Atlantic market.The market was lead by
South America with rates for tonnage loading in South America pushing up first,
with supamax tonnage achieving levels edging towards the U.S.D. 30,000 level basis
D.O.P West Africa,for trips to the Indian Ocean and Far East.However for similar
delivery rates for the inter Atlantic trades did not show the same improvements.
As the week progressed we saw similar improvements fron the U.S.Gulf with
Supamax tonnage achieving rates in excess of U.S.D 35000 for trips to the Far
East, and around U.S.D 30,000 for trips to the Continent and Mediterranean.This
also has had a positive effect on rates from the Continent, with reports at the end
of the week of levels pushing into the upper U.S.D.20,000's for trip to the Far East.
The positive sentiment at the end of the week lead to an increase in short period
rates, with reports of 45000 tonners achieving U.S.D 23000 for 4-6 mths redel
worldwide, and 52000 deadweight units achieving a similar level for 3-5 months with
redelivery Atlantic only.
Handymax Pacific
A fairly active week given the time of year, with several ships being fixed for short
period at relatively healthy levels. Several large smax vsls were fixed for August
delivery on short period between the 21-23k lvl, and many owners still prefering
same over a single trip. Increased cargoes in Se Asia for end August and early Sept
saw more action in the region with trips to India fixing in the very high teens/low
20's for ships with good delivery positions, and nickle ore rounds being done in the
high teens.
Prompt cargoes from East Coast India were still in short supply, with several vsls
ballasting away or looking at Aussie/Indo rounds as an alternative. Those vsls that
did find cargo back to the Far East were able to achieve around the 20k lvl on
modern index type or larger vsls.
Several Nopac rounds were fixed at about the 18k lvl for ships open Japan mid
August with more stems coming into the market for early September dates.
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