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Dry cargo report podcast for wk ending Oct 28

By • Oct 29th, 2011 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Oct 28, 2011 in association with The Baltic Exchange

To learn more about the dry cargo chartering market, why not take Coracle’s Dry Cargo Chartering course?

Thank you for downloading the dry cargo market report from Coracle Online and The Baltic Exchange for October 28th 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.

Starting with the Capesize sector and it was once again clear that major Australian shippers being absent from the market, combined with holidays, unsettles the market. The week began on a positive note, but then nerves kicked in. As the week drew to a close BHP Billiton took 2 ships for 15 November and 20 November onwards from Port Hedland to Qingdao at a sharply low $11. Up to now the big two had been talking prompt ships, but sources suggested that the charterer took a prompt ship at under $11. More ships headed off in ballast towards Brazil, but shippers from here were eyeing a slowdown from Australia and stepped back from the market, causing jitters and resulting in charterers dropping their ideas on the Brazil rate to well under $30. Observers were hopeful that the Australian majors would again take the prompt ships and absorb some of the ballasters heading towards Singapore. The north Atlantic market had been tight for tonnage, but here too cargo volumes dwindled and trading stalled. The transatlantic rate was in the low $30,000 daily range and timecharter rates slipped under $50,000 daily.

Now we look at the Panamaxes and Atlantic rates remained solid as charterers with quick Baltic/Murmansk rounds were faced with a tight supply of tonnage. Rates were comfortably in the low to mid $20,000 daily range. The rate for two laden legs for ships open Cape Passero was around $17,500 daily. Trips to the east were firm. A 76,000-tonner open in three weeks time was asking $27,000 daily plus a $700,000 bonus and was seeing low $26,000 daily plus around the low $600,000 bonus. In the East, the market has been very positional, but rates were essentially steady. Cargoes from Indonesia and Australia to move coal into India and China lent support to the market while those charterers looking for tonnage open Japan were paying a premium. The round voyage rate was currently hovering
around $14,000 daily.

Next we look at the Supra and Handymaxes and after the recent strong run, it was a much more nervous week for the supras, especially in the East. In the north Atlantic however, some good rates were being registered, especially for trips to the much weaker Pacific basin. Handysize tonnage remains tight on the Continent, evident by a scrap charterer taking a late 90’s built 28,000 tonner from Morocco to cover a cargo from the UK to Turkey in the mid $20’s including free D/A’s at load port. Rates took a hammering in the Far East and as the week closed a 2010 built 57,000 dwt unit open Qingdao spot was fixed for a trip via Indonesia to India at a lowly $8,000 daily. Even premium paying nickel ore rounds were struggling to achieve last done.

Thanks for listening