A sharp spike in rates… Dry cargo market report for week to Aug 13By james tweed • Aug 13th, 2010 • Category: Dry Cargo
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We start our review by looking at the Capesize market and there was a sharp spike in rates this week, largely focussed on West Australia and Brazil. The peak came on Wednesday when the BCI rose over 400 points and the four timecharter average index finally exceeded the panamax average. The demand in the east focussed on early ships with rates climbing over $11 for 20th August loaders, with $11.50 agreed but then failed. Further forward the market was in the $10 range, but this was enough to bring out a few more ships that had been unwilling to fix when rates were under $7.
The rumour mill was in full swing as the week drew to a close as some talked the market down, but in essence the stronger sentiment was just diluted. There was short period fixing with rates near the mid $30,000 daily range for 4 to 6 months trading. Charterers sourced tonnage from the east for Brazil/East runs with rates in the low to mid $30,000 daily range. Voyage rates hovered around the mid-high $20 range, depending on the load port. However, there was little transatlantic business reported with just a few cargoes covered and rates so far kept under wraps.
Looking at the Panamaxes and short period fixing dominated in the east with paper values rising mid week and this prompted a surge of activity. Rates for 4 to 6 months rose to the mid-high $20,000 daily range with premiums being paid for ships willing to transit the Gulf of Aden. However as the paper corrected towards the end of the week, some business failed. Spot activity was limited: rates have climbed, but they remained significantly under period levels. Round voyages for grain from NoPac approached the low $20,000 daily range with higher numbers agreed for sulphur and petcoke cargoes. The Atlantic market was in a stand-off as the week ended. The talk of firmer rates ahead prompted owners to ask high numbers for longer runs with charterers backing off. The round voyage rate was hovering close to the mid $20,000 daily range and low $30,000 daily for trips to the east. Russian and Ukrainian wheat export bans continue to fuel the hope of increased activity from the US Gulf.
It was a firmer week for the supramaxes in all areas although ‘benchmark’ fixtures in the North Atlantic were difficult to come by. There was little doubt however that sentiment was better, with a modern 56,000 deadweight unit ready in the US Gulf end August saying that she was seeing rates in the ‘low $30,000’s’ for trips back to the UK Cont-Med. It was a similar picture for the handys with stronger levels in the offing, including from South America where quality handys secured around $23,000 a day for trips from the Plate to Cont/Med.
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