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January proves a black month for Dry Cargo shipping markets… Report Jan 13

By • Jan 13th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Jan 13, 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 13th 2012. This report will look at the Capesize and Panamax, Supra and Handymax markets.

We start with the Capes and January has proved to be the black month that many had feared with rates tumbling in a market beset by too many ships and bad weather hampering the export of raw materials. Worse than normal seasonal rains in Brazil wreaked havoc in ore mines; bad weather delayed coal movements in Colombia and a cyclone hit west Australian ports. In the East the market has possibly stabilized at around $7.75 for West Australia to China. The majors had been absent from the market for most of the week, but on Friday there were rumours that Rio Tinto had fixed 3 ships. Timecharter activity for round voyages and trips to the Atlantic remained negligible and on the trip-back, rates hit negative territory. Voyage business was allegedly concluded at $15 from Dalrymple to Rotterdam. The Tubarao/China market (largely served by ships from the East) dropped to $20 for early February, with some owners suggesting that with bunkers at $760 this equated to no more than $6,000 daily on a ship coming from Qingdao.
Ships open in northern Europe remained reluctant to go east, but thus far little has been reported fixed or even reportedly working.

Atlantic panamax rates continued to slide this week with new business largely being absent from the market. A build up of spot tonnage was evident. Charterers were able to secure voyage business at rates with a timecharter equivalent of substantially lower than $10,000 daily for transatlantic rounds. Fronthaul rates dropped to barely $20,000 daily as ballasters from the stricken East overshadowed the market.

In the East rates tumbled, particularly for ships coming open in south-east Asia. Owners preferred to ballast in some instances, but rates for the longer east coast South American rounds have also dropped significantly. Brokers talked of some ships open in the East willing $7,500 daily for the round voyage. This reflected in period rates with Bunge taking a 74,000-tonner open in Taichung for 3 to 5 months at $8,100 daily – at least $3,000 a day down on the last done. In north Asia there was a chance that tonnage in Japan would secure a touch higher for NoPac rounds, but activity has been limited.

On the small Supra and Handymax markets and the first full week back after the holidays provided little cheer for owners as the hitherto relatively firm Atlantic markets suddenly took a turn for the worse. In the US Gulf owners were having to concede rates below $20,000 daily for trips back.

As far as handysizes are concerned there is also little to write home about. South America initially showed promise, however like other areas this market also wobbled as ballasters set off in that direction. A modern 28,000 tonner obtained around $8,000 daily from Gibraltar for a Plate round with redelivery Mediterranean.

In the East there was also little respite for the owners although some reported short period fixtures were showing a significant premium over the spot market.

Eastern based Handysizes also found the going hard with rates coming under pressure. A 30,000 tonner open Japan was reported to have fixed at $5,750 daily for a Nopac round, thought to be loading Alaska.