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FFA sell off for Capes despite higher activity levels. Dry cargo podcast Sep 16

By • Sep 16th, 2011 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Sept 16, 2011 in association with The Baltic Exchange

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Thank you for downloading the dry cargo report podcast from Coracle Online and The Baltic Exchange for September 16th 2011. This report looks at the Capesize, Panamax, Supra and Handymax markets.

Starting with the Capesize sector and the market took a hit as the week drew to a close after what appeared to be a sell-off in the paper causing jitters in the market. This sell off was despite BHP Billiton taking about 10 ships from West Australia to China this week and with some activity from Rio Tinto. However, on Friday FMG took 2 relatively early ships from Port Hedland to China at $11.25 and $11. Cargill took a Grand China Shipping relet for 1-10 October from Dampier to Qingdao at $10.50. The Atlantic rates had been holding, with tonnage being very tight: transatlantic rounds were done at $30,000 daily and fronthaul was around $50,000, but then on Friday came a report that a 170,000-tonner 2002-built open Rotterdam did a north coast South America round at $23,500 a day.

Moving to the Panamaxes and there has been a clear out of early ships on the Continent, and for now it is difficult to assess October cargoes. Things did point towards a steadying to a possible firming in rates. Rates are currently around the upper $13,000 daily range to low $14,000 daily. Fronthaul rates have been holding in the low $20,000 daily range for the longer durations although there was talk that the Triton Hawk, a 78,000-tonner open Liverpool fixed, possibly from the Continent, to the east at over $25,000 daily. Meanwhile a 76,500-tonner open Hamburg did a short period at a firmer rate of over $19,000 daily.

In the East, holidays earlier this week curtailed trading, but there was limited volume as the week progressed and we saw rates ease. There was talk that a ship fixed and failed for a NoPac round at $13,500 daily.

Now the smaller ships and it has been a good week for the supras, with plenty of activity. A 2006 built 56,000 dwt vessel was booked from the US Gulf for a trip to the Far East at a healthy $32,500 daily. On the European side, a 2008 built 54,000 dwt unit spot Gibraltar was booked for a round voyage via the Orinoco at a good $15,000 daily. There was also a lot of action in the east running up to the weekend after the holidays on Monday and Tuesday. Again there were some healthy numbers being paid as a Tess 52 type was fixed from south-east Asia to India at about $19,500 daily.

It was much more of a mixed bag for the handies. In the US Gulf the market was very quiet with reports of a 1997 built 28,000 tonner being fixed for a trip to Morocco with pet coke at a low $9,850 daily. On the other hand, in the East, a 2010 built 33,000 tonner open Penang spot was fixed for a short period $13,100 daily.

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