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Dry cargo chartering report August 26

By • Aug 26th, 2011 • Category: Dry Cargo


Thank you for downloading the dry cargo market report from Coracle and the Baltic Exchange for August 26th. This report looks at the Capesize, Panamax, Handy and Supramax sectors.

Starting with the Capesizes and there was a spike in rates this week due to a shortage of tonnage in the North Atlantic; fewer ballasters heading to Brazil and increased demand in the East. A 175,000-tonner was rumoured to have gone for retro-active delivery 20 August Dunkirk for a trip via Brazil to the East at $38,000 daily with an option of a round at $18,000 daily. The Tubarao/Qingdao rate climbed to just over $27, but that seems to be the peak as rates have already eased with a Cosbulk relet 179,000-tonner and another similar sized Chinese-controlled vessel both spot fixed for round voyages at $15,000 and $14,500 daily.
In the East the key West Australia/China run climbed to the low $10 range and a 171,000-dwt 1999-built ship open Kashima fixed a full round at a stronger $17,000 daily – a rate some said equated to $10.25 basis West Australia load. However, by later in the week the picture changed again with rates once more in the $9’s and talk that $9.25 was done for 12 September onwards.
The upturn did cause a spike in period activity with a 176,000-tonner booked for one year with end September delivery China at $14,000 daily. There was talk of Swiss Marine possibly taking a 206,000-dwt Newcastlemax for delivery 2012 for three years trading at $18,000 daily.
Now the Panamaxes and here rates strengthened in the East with period demand and increased business largely from Indonesia. Some coal from east coast Australia also lent support. The market looks to have peaked as charterers who were less pressed for prompt tonnage saw tonnage lists growing and so a significant volume of new business will be needed to maintain levels. Short period rates ranged from $12,500 to $13,000 daily and a year at around $12,500 daily.
In the Atlantic, transatlantic cargoes dwindled over the week and rates eased. The single round voyage rate is barely in the mid teens but charterers were paying a premium for a couple of laden legs. Rates did go over $16,000, but eased back to nearer $15,000 as the week progressed. There was very little fronthaul business reported and ballasters from India and Southeast Asia continued to absorb east coast South American business with rates, for now, steady with $14,000 daily paid for a good 75,000-tonner open Haldia.
It has been another good week for the Supras, although the week ended quietly and some were of the opinion that rates may have reached a plateau in the East. In the Atlantic some strong rates were being recorded as reports emerged of a Tess 52 type being fixed for a trip from the USGulf to Singapore-Japan at a good $31,000 daily. The South Atlantic also saw plenty of activity with a 2009 built 55,700 dwt vessel being booked for a trip delivery Lagos spot via east coast South America to the Far East at about $21,000 daily. From the Continent a 1994 built 45,000 dwt unit was covered for a trip via the Baltic to the USGulf at $7,250 daily.
As always, reports of Handysize activity are generally shrouded in secrecy, a modern 28,000 tonner open on the Continent went for a trip East but details were undisclosed, in the Black Sea where there has been good grain activity, details are slow to emerge, if they do at all. Although there was talk of a vessel open in the East Mediterranean obtained $13,000 daily for a trip via Black Sea with redelivery in the Med and a grain house was closely working a voyage to Portugal.
In South America, a modern 28,000-dwt, open Up River, fixed on private voyage terms. However, a modern 32,000-dwt, open South Africa, fixed delivery Recalada trip Morocco/Algeria at $18,000 daily.
In the East, holidays in Indonesia contributed to a quieter feeling towards the end of the week and there seemed to be fewer of the important coal stems being circulated. A stronger back-haul rate did emerge however when a Tess 52 type open spot in Taiwan was fixed for a trip back to the Continent via the Cape of Good Hope with steels at $9,000 daily for the first 60 days and $15,000 for the balance. The Indian Ocean was once again very quiet although a 2010 built 55,000 dwt vessel open Chennai spot was reported to have been fixed for a trip to China with iron ore at about $12,000 daily.
Handysize levels in Asia have continued to gain ground, a 30,000-dwt open Malaysia obtained $11,500 daily for a trip via Australia with salt redelivery in the East and a modern 31,800-dwt secured $12,500 daily for a trip Indonesia to the Philippines, the vessel is ideally open Surabaya a good position. Otherwise on short period a 28,000-dw Imabari type, open China, went for 3/5 months at $11,100 daily.