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Some firmer Capesize rates, but have they peaked? Dry report Aug 12

By • Aug 13th, 2011 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Aug 12, 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 12th 2011. This report looks at the Capesize, Panamax, Handy and Supramax sectors.

Starting with the Capes and it is still a massively over-tonnaged market, but in some areas charterers have been boxed in and conceded firmer rates. In the East the West Australia/Qingdao rate rose to $8.25 but brokers suggested that this could be the peak. A baby cape fixed to Atlas for a Utah Point, Port Hedland/Qingdao 100,000-tonne 10% cargo for 24-29 August shipment at $12 whilst NYK secured a Newcastle/Japan tender and took a 1996-built 158,000-tonner from Taiwan at $10,800 daily. Period activity has been very limited with short period rates hovering around the mid $10,000 daily range, and a year is closer to $12,000 daily.
In the Atlantic volumes remained low and there were mixed views on the market. The 176,000-dwt 2011-built DS Charm open Tarragona 20-22 August went to Daiichi for a trip to the East at something around $22,500 to $23,000 daily. A 177,000-tonner did achieve $27,500 a day, but this was delivery Hadera for a Black Sea/China run via the Gulf of Aden.
There was limited Tubarao/China activity : the rate hovers around $20.
Now the Panamaxes and despite the wish for rates to strengthen for transatlantic rounds there really has been little reported to suggest a firmer tone. There was little fresh mineral transatlantic business and more than enough ships to absorb the current level of business. Transtlantic rounds were hovering around $14,000 daily although charterers with a couple of laden legs to cover were likely to concede a touch more. However, a kamsarmax was rumoured to have agreed something close to $14,000 daily for two legs basis Barcelona delivery with the first leg from Trombetas. Fronthaul rates remained steady at around $20,000 a day and brokers were suggesting that there were fewer ships ballasting from the Pacific into the US Gulf likely to impact on the nearby positions. South America once again was largely served by Asia ballasters, but the pace has slowed.
The East saw an upturn in fortunes for prompt tonnage although reported rates varied widely. A 77,000-tonner open Kinuura was reported to have been booked for an east coast Australia round at $9,500 daily, but no charterer was disclosed. A fall in bunker prices resulted in Kamsarmaxes becoming candidates for short period business, with an 82,000-tonner open south China achieving $12,800 daily for 4 to 6 months.
Lastly we look at the Handy and Supramaxes and there was more activity in the US Gulf as the week closed. A 57,000 dwt 2011 built vessel was booked for a trip to the East Med at about $24,000 daily and a 2008 built 59,000 dwt vessel was booked for a trip from the US Gulf to the Continent at $28,000 a day: a good rate, albeit for a quick duration. In the south Atlantic, there was more grain enquiry and all in all it was a better picture for the Atlantic.
In the East, there was also more activity, especially in the south-east Asian area where coal and nickel ore enquiry provided enough basis for rates to show some improvement. A Tess 52 type open in Chittagong was reportedly fixed for a trip via Indonesia to India at about $12,000 daily. Period enquiry also re-appeared this week as reports surfaced of a 2007 built 56,000 dwt ship open Thailand that was fixed for a year at $12,500 daily.
Handysize levels however generally slipped, earlier in the week a modern 31,000 tonner fixed a trip from Indonesia to China at a $12,500 daily, although the ship was open Semarang, a good position for this run. Latterly a one year old 28,000-tonner, open Singapore, was reported to have agreed just $8,000 daily for a trip via West Australia redelivery SE Asia.
Thanks for listening