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The week in Dry cargo chartering: report from Coracle and the Baltic for Aug 5

By • Aug 6th, 2011 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Aug 5, 2011 in association with The Baltic Exchange

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Thank you for downloading the dry cargo market report podcast from Coracle Online and the Baltic Exchange for August 5th 2011. This report will look at the Capesize, Panamax, Hand and Supramax sectors and if any of the terms used are unfamiliar to you, please do look for a maritime course on CoracleOnline.com

We start with the Capesize sector and Rio Tinto was the driving force in the East this week, taking anywhere from 8 to 10 ships from Dampier to China, with the rate rising to $8.25. Its neighbour BHP Billiton was reported to have booked tonnage for a fairly early position from Port Hedland to Qingdao at $7.95. A 179,000-tonner coming from Jintang was close to fixing a Newcastle round at $7,750 daily. There was also a report of a 20-30 August 150,000-tonne 10% coal cargo being covered from Richards Bay to Algeciras at $8, and an option of Rotterdam discharge at $9.

There were mixed views in the Atlantic with around $9,000 daily agreed for a transatlantic round midweek, however some sources suggested that there was a firmer tone to the market as the week closed, with a 177,000-tonner open on the Continent claiming to have seen $10,500 daily for the round voyage. Fronthaul business was limited, although from Brazil, NCS covered a 20-30 August 160,000-tonne 10% ore cargoes from Tubarao to Qingdao at $20.30.

Now the Panamaxes and Atlantic rates continued to drift lower with the market having the feel of an ‘old fashioned’ summer lull. The volume of fixing slowed and new business was spasmodic, both for fronthaul and transatlantic business. Rates for trips to the east were down to the low $20,000 daily range and teetering around $14,000 daily for transatlantic business.

There was little prompt business in the US Gulf and ballasters from the Pacific were undermining rates. A 2004-built 76,000-tonner allegedly fixed a trip from the Mississippi River to Spain at a low $13,500 a day, plus a $375,000 bonus. There was a trickle of September grain business from the US Gulf filtering into the market, while forward business from South America was less visible.
Rates for August cargoes from east coast South America have so far held fairly steady, but this market remains in the hands of ships coming from southeast Asia.

In the East a long list of ships overwhelmed the market and rates dropped sharply. The focus of the business over the week was largely on quick Indonesia trips, but there were a few Australia and NoPac cargoes appearing. Rates hovered in the mid $8,000 daily range for round voyages with reports of as much as $9,000 a day being paid for a ship from Xingang for a NoPac round.
Lastly we look at the Handy and Supramaxes and it has been a fairly steady week in the Atlantic, with a significant amount of activity being reported from the south Atlantic. This area seemed to be the salvation of a number of vessels in ballast from the Indian Ocean.

A 2008 built 57,000 dwt vessel was reported to have fixed delivery passing Cape Town for a trip via east coast South America to the far east at $19,000 daily. It didn’t appear quite so busy further north although some good numbers were being paid to tonnage in the US Gulf for trips to the east, possibly reflecting owners’ reluctance to commit tonnage to that area.

Messages were more mixed from the east as reports emerged of Tess 45 type tonnage being fixed for NoPac round at about $10,000 a day. By contrast a new-building 56,000 dwt vessel open spot in Japan was booked for a trip via Nopac to the Philippines at not much over $9,000 daily. A low rate although the redelivery area was more beneficial.

The Indian Ocean was still bereft of enquiry as tonnage on the east coast of India looked towards south-east Asia for employment.

Thanks for listening