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Dry cargo report Aug 19

By • Aug 21st, 2011 • Category: Dry Cargo


Thank you for downloading the Dry Cargo market podcast from Coracle Online and the Baltic Exchange for August 19th. This report looks at the Capesize, Panamax , Handy and Supramax sectors.

We start with the Capes and the big ships saw some improvement over the week as China stepped up iron ore buying and charterers turned to the spot market for cover. This, combined with some congestion meant rates nudged $9 for the West Australia/China run. BHP Billiton and Rio Tinto both featured.
As fewer ships headed to the Atlantic, rates firmed with tonnage becoming tighter, particularly in the north Atlantic. Transatlantic rounds reached $15,000 daily and fronthauls hit $30,000 daily , and with cargoes still to be moved, charterers are now talking considerably higher numbers. One major charterer fixed a 200,000-tonne 10% ore cargo from Tubarao to Qingdao for second half September at $23.

Rates for Panamaxes improved in the East, but it was a very positional market, with Indonesian activity largely the driving force. Tonnage was tight in Southeast Asia, but more plentiful further north. A Kamsarmax was reported on subjects for Qingdao delivery for a NoPac round at $10,500 daily while a 74,000-tonner open Guangzhou fixed for a trip from east coast India to China at $11,500 daily. Short period business underpinned some of the optimism, with rates for LME’s for 4 to 6 months being in the mid to high $12,000 daily range. Looking forward however, we note that there remains a long list of tonnage.

The Atlantic perked up briefly but with much of the transatlantic business covered as the week closed rates eased. Round voyage rates flattened to around $14,000 with premiums being paid for a couple of laden legs. Fronthaul remained fairly steady. Ballasters continued to absorb east coast South America/Far East business with charterers taking tonnage from the Indian Ocean area at rates ranging from $12,500 to $13,500 daily.

It has been a positive week for the Supras, with gains being registered in most areas. In the Atlantic well described 56,000 deadweight types were being paid $27,000 a day for trips to the East Med from the USGulf, while over $30,000 daily seemed to be the going rate for similar types for trips to the East. Rates in South Atlantic were also on the up.

It was a slow week in the Atlantic but there were signs that activity was picking up as the week drew to a close.

In the East the market appeared to be largely driven by short period business, and there were some significant improvements being recorded. On the spot market, in addition to the usual run of quick duration mineral business from Southeast Asia, a smattering of ore cargos from India were appearing.
Handysize rates in the East were creeping up, with a number of charterers seeking period cover. As an example, a modern 37,000 tonner fixed a year at $11,000 daily.

Thanks for listening