A solid week in the Dry Cargo Chartering markets. Oct 14By james tweed • Oct 14th, 2011 • Category: Dry Cargo
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This podcast is sponsored by FutureShip and Capital Link
See you at the CSR conference on 27 October
Thank you for downloading the dry cargo market report from Coracle Online and The Baltic Exchange for October 14th 2011. If you’re interested in learning more about the dry cargo shipping markets, please look at the Dry Cargo Chartering course on CoracleOnline.com and use promo code PODCAST to save yourself 10%!
This podcast looks at the Capesize, Panamax, supra and handymax markets
Before we start, we want you to know that Capital Link will be hosting a Shipping Forum on Corporate Social Responsibility in London on 27 October. The objective is to help raise awareness about the practice and benefits of CSR in the shipping and offshore industries. CSR is an increasingly important issue that shipping and offshore companies cannot afford to ignore. This event is sponsored by the maritime consultancy FutureShip, a subsidiary of Germanischer Lloyd. For further information, contact Vicky Siabani via email email@example.com, or by telephone at +30 210 610 9800, or visit forums.capitallink.com And if you are going, say hello to James Tweed from Coracle!
We start with the Capes and it has been a solid end to the week for the big ships, with West Australia extremely active during the week and a significant volume of business being done for October and the first half of November. There was a rumour on Friday that Rio Tinto fixed at $13.25 for a 160,000-tonne Dampier to Qingdao, but this has been hotly denied. BHP Billiton has been in the market, but to a lesser extent and sources suggest next week could see more interest for 1-10 November period. The volume of fixing was said to be causing congestion concerns in China.
Round voyage rates were up with a 171,000-tonner fixed for an east coast Australia round at $29,500 daily. With rates moving some market watchers were surprised at the lack of period activity. The one year market for ships in the east was around $15,000 daily. Brazil shipments were also busier with the Tubarao/Qingdao rate for 1-19 November 160,000-tonne 10% cargo currently at $28.65.
Further north rates remained steady, but so far with little fixing evident. Charterers backed off and were now indicating in the low $30,000 daily for transatlantic round for an early ship. Next week could see a slow start with Coaltrans in Madrid taking some players out of the market.
Now we look at the Panamaxes and here too it was a solid end to the week, both in the Atlantic and the East. There were some mixed views on the market with very few new transatlantic cargoes for longer durations quoted, although it should equally be noted that the tonnage list looked quite tight. This week little more than 5 ships were fixed on this run, although a quick Baltic round was concluded at $20,000 daily. The gap widened between owners and charterers ideas, with some of the former talking $20,000 daily for the longer round.
The front haul focus was on the US Gulf. In some cases, charterers opened with one cargo, but fixed 3 ships! Rates for October and early November climbed over the $27,000 a day level with mid $700,000 bonus for US Gulf delivery. Short period activity was evident with $24,000 a day registered for 4 to 6 months, but there is a question mark as to whether this rate is repeatable.
Short period trading was brisk in the east with the 4-6 month rate climbing to something in excess of $15,000 daily for a ship open in southern China. The year rate hovered around $13,500 daily. Single trip activity focussed on Indonesia with demand from there absorbing many of the early ships. Rates hit the high teens for quick rounds and an Indonesia/India run fixed at $17,500 daily.
Lastly we look at the Handy and Supramaxes where there were firm conditions in the Atlantic for supramaxes and handysizes also enjoyed a positive market. The US Gulf flourished through the week and a 61,600-dwt ship was rumoured to have secured $42,000 daily for a trip East, but it emerged it was fixed on a voyage basis. Transatlantic activity included a 2001 built 50,000 tonner fixing a trip Gulf/Continent at $30,000 daily. On handysizes, an early 90s built 27,000 tonner open Venezuela fixed a trip via Guyana to the Black Sea at $16,500 daily.
Thank for listening