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Dry cargoes nosedived in the first week of 2012. Report Jan 6

By • Jan 7th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Jan 6, 2012 in association with The Baltic Exchange

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Thank you for downloading the dry cargo market report from Coracle Online and the Baltic Exchange for January 6th 2012. This report will look at the Capesize and Panamax, Supra and Handymax markets.

We start with the Capes and the market simply nosedived in the first week of the New Year with charterers with West Australia cargoes now talking $9 for China. A 176,000-dwt 2011-built ship went to Swiss Marine for 4 to 6 months trading with retroactive delivery 2 January at $14,750 daily and this was a good rate considering the direction the market is taking, brokers said.

The north Atlantic had been looking reasonably steady before Christmas, but rates tumbled this week. A 2010-built 180,000-tonner spot Cape Passero agreed $15,000 a day for a transatlantic round, although a ship open on the Continent managed $18,000 daily. One ship in ballast from Cape Passero since 26 December failed yet again, this time at $12,000 daily. The Tubarao/China rate is now closer to the low $20 range.

Looking at the Panamaxes and a surfeit of early tonnage in the Atlantic drove rates down with many charterers able to secure tonnage on voyage business rather than timecharter. Some of the voyage rates were very low with $18 agreed for a coal cargo from Mobile to Hansaport. Timecharter rates were barely at $14,000 daily for round voyages. Fronthaul trading was relatively active, but with ballasters from the east appearing in the US Gulf on a frequent basis, rates eased.

In the East tonnage remained plentiful with many newbuildings still coming on stream. Sentiment remained very bearish. Round voyage rates are now under $10,000 daily. Short period activity was negligible but there were charterers still looking to take tonnage for 12 months. Rates were hovering around $12,000 daily for LMEs.

On the smaller ships and there wasn’t much encouragement for the owners in the north Atlantic, although there were still some reasonably attractive rates being paid to tonnage prepared to trade to the still extremely weak eastern markets. A Diamond 53 type giving delivery US Gulf mid-January was reportedly fixed at about $29,000 daily for a trip to West Coast India. A lack of enquiry from Cont/Med area led to an easing of rates, even for well described tonnage. A nice 58,000 dwt vessel was thought to have been booked for delivery East Med for a trip via the Black Sea to Singapore-Japan at about $21,000 daily. It was a slightly better picture in the south Atlantic where reports emerged of a supra being booked D.O.P. West Africa for a trip via east coast South America to the East at $21,000 daily.
In the East, more enquiry appeared, but rate levels remained very uninspiring. Handysizes in south east Asia are faring relatively well in comparison.

Thanks for listening