Throughout the week we have seen increased activity across both basins but it
wasn't until the second half of the week that we saw levels pushing forward. With
support shown on the forward position, increased fixing helped to clear out some of
the tonnage in the pacific and fronthaul including columbia coal stems which
enhanced the market to end on a positive note. As the week ended we saw a stand
off from owners as they raised their ideas for fixing. The BCI Index improved up to
2194 at the close of the week, whilst the Average of the Timecharter Routes also
increased by 18.76% up to $18,422 daily.
Early week we saw a slight increase in the number of fronthaul stems being
marketed for second half August and some creeping into early September. With a
number of vessels still ballasting rates for fixing mwere relatively flat but in the
second half of the week the fronthaul market looked tighter and we saw levels
improve circa $1.50 from early week with $21.50 being concluded at the close. The
Tubarao/Qingdao bid vs offer spread closed the week at circa $21.50 vs $23.25
pmt level basis second half August dates in Brazil.
In the East early week tonnage far exceeded demand but as the week progress we
began to see this balance and levels appeared stronger as the week ended. The iron
ore majors took vessels at circa $7.50 for mid/end August dates. Charterers closed
the week bidding levels of circa $7.50 pmt vs $8.00 pmt basis Port
Hedland/Qingdao for early August dates.
The Period market saw much more activity this week as Charterers seeked tonnage
willing to consider mid usd 20,000 for 4/6 months, with the paper pushing owners
were more willing to work at these levels. The 1 year period market level closed this
week at circa $28,500 daily for a BCI type vessel Delivery in the Far East.
Panamax Atlantic
The market in the Atlantic basin started off fairly quiet and flat this week giving a
feeling that maybe demand is not so strong even though tonnage is still tight in both
the Continent and the Med. However mid-week fresh business especially mineral
cargoes out of the US Gulf 1st half of September heated things up and rates for
transatlantic rounds held firm around $23,000 daily. Rates for 2 to 3 laden legs
redelivery Atlantic pushed up bit more with a ship open Continent rumored to be
fixed around $28,000 daily.
Fronthaul business was less active because of less pressure for east coast south
American cargoes and with a couple of commited vessels in this region and the US
Gulf.
Period business was mainly done in the east but with delivery Atlantic 4 to 6 months
talks were being done in the high $20.000's. It was also rumored a ship being fixed
for 2 years with delivery Atlantic but no further details so far.
Panamax Pacific
We had the usual quiet start to the week where owners and charterers were willing
to watch and wait to see the true direction. Although tonnage was plentiful,
sentiment in the market place was positive throughout the week, rates remained
steady at around 18-19,000usd.
Come mid week, tonnage supply increased for the forward dates, tied in with the ffa
market coming off and a general lack of charterers willing to move, we saw a few
failiures, and owners willing to fix at levels. This was short lived as paper soon
rebounded, with the talk of russian wheat exports being halted, charterers were
keen to take vsls on short period in the hope of seeing longer tonne-miles. Rates for
short period hovered around 23-24500usd for the most part of the week, with a
few employed at around 26,000 ex mide delivery for abt 4-6 months.
The week ended on a strong note, aided by the paper trading strongly. looking into
next week, tonnage supply remains plentiful, however with sentiment very positive
would be difficult to see rates coming off.
Handymax Atlantic
It was a fairly uneventful week across the Atlantic basin, with rates sliding
marginally through-out and a generally flat/slightly weaker tone on both the handies
and supras, resulting in minor falls on the indices. There continues to be a distinct
lack of direction in the Atlantic market at present and although one may assume a
possible further slide into next week, yesterdays official declaration from Russia of
a ban in grain exports for the remainder of the year will clearly have an impact.
Rates in general continued to hold up reasonably well, with TA RV on index types bss
south Cont/Gib dely being concluded at levels around the usd 18k and very low 20's
being seen for those wiling 2ll with Atlantic redely. Again there's still a steady
supply of scrap, steels and ferts cargoes off the continent with levels for Cont/Usg
trips at close to usd 10k and trips to the Med in the high teens. It has to be said
that handysizes are holding up very well and attaining levels not dissimilar to these -
infact slightly above supras for Cont/Usg runs. From the Usg, levels in the high usd
20's for bsi types were being attained for trips back to the Cont/med with rumours
of usd 30k on a 56k for quick trip back to West Med with petcoke being concluded
on subs. Reported short period deals were thin on the gound but generally mid 20's
for 3/5 mnths bss US Gulf delivery and v.low 20's bss Cont/Med deliveries were
attainable. The East Coast South America market showed some resilience with a
considerable number of grains and sugar cargoes available with a level shade above
usd 25k being paid for trip to China bss favourable west africa delivery.
The market is still delicately balanced, and though there remains a number of early
vessels in the atlantic one would hope there's sufficient enquiry to absorb same,
howeever it remains to be seen what affect the Russian grain ban may have in the
short/long term.
Handymax Pacific
A slow start to the week in the pacific, which is not entirely unexpected in August
given that many people are on annual leave/Holidays.
Very few stems left ex Indo before mid August have left rates to come off in Se
Asia, with Smax vsls fixing mid-high teens bss dely S.China and low 20's dely
Indo/Phil for trips to India. East Coast India has faired better in maintaining rates,
with several modern supras fixing trips to china with I.Ore in the 18-20k rge for mid
August dates. Although no shortage of ships in the area, it seems the are more
cargoes available, partially due a small rise in the I.Ore price and increased buying
intrest. This has kept the supply/demand balance more or less in check. West Coast
India ships seemed to be valued a few thousand less than the East Coast ones for
trips to China and via RBCT. Short period enquiry was increased, with spot levels
coming off, chrts are starting to look at q4 where it seems both Charterers and
Owners are expecting a rise in rates, if only a modest one. The longer period market
was also active with quite a few vsls able and willing to do period of 1 up to 5 yrs.
Several modern supras were heard to have fixed for 11/13 months at 20-21k lvl for
ppt delivery India/Jpn Range. National Holiday in Singapore on Monday, so expecting
another slow start to the week.
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