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Struggling to find many positive comments this week on Dry Cargo Shipping.. Jan 27

By • Jan 27th, 2012 • Category: Dry Cargo

Capesize sector: A week of marking time, as Lunar New Year holidays and a cyclone disrupted shipments from West Australia combine to curb trade. High bunker costs continued to weigh heavily on the market. Hopes were then pinned on a full return to work stimulating demand and a resumption of shipments from Australia and Brazil, but rates drifted over the week with West Australia/China hovering around $7.75 and Tubarao/China agreed mid week at $19.10. The backhaul rate was in negative territory and although voyage business was done, it showed the owner a negative return.

The Atlantic market generally remained inactive, with demand from utilities and steel mills in western Europe negligible. Transatlantic rounds were barely holding around $5,000 daily and trips to the East paying no more than the high teens.

PANAMAXES: The market collapsed this week as Atlantic rates dropped sharply and owners struggled to find timecharter business on a DOP basis. Charterers were able to secure tonnage on a voyage basis at numbers showing very poor returns, with one cargo allegedly equating to zero basis Cape Passero for a US East Coast coal round. Most agreed that an owner would be fortunate to see $6,000 daily for a transatlantic round. Fronthaul business was limited and rates slipped…

Holidays severely reduced trading in the East. Tonnage was still plentiful and cargoes scarce. Round voyage rates were barely $5,000 to $6,000 daily and backhaul went into negative territory. Some owners continued to ballast towards the US Gulf and east coast South America. One 74,000-tonner fixed from Singapore for East Coast South America at $9,000 daily, but with redelivery southeast Asia. The collapse of the Atlantic market sidelined period traders and rates dropped sharply. Charterers were prepared to pay $9,000 to $10,000 daily for four to six months trading with few takers so far.

SUPRA/HANDYMAXES: This was a week when things went from bad to worse for the supras. A nice 56,000 dwt vessel in ballast from Morrisville was reported to have been booked APS North Coast South America for a trip to the Continent with grain at just $12,000 daily. In the US Gulf a 53,000 dwt Diamond type was reported to have been fixed for a trip to the Far East at about $18,000 daily, a significantly softer level.

Handysizes also came under pressure, although South America was at least showing more activity. A modern 28,000 tonner in ballast from West Africa fixed from the Plate to north Africa at $11,250 daily.

In the East, the Indonesian coal market provided some sort of support as reports emerged of a 57,000 dwt vessel, spot in Singapore, being booked for a trip from Indonesia with redelivery China -India range at just under $9,000 daily. Short period rates however took a hit as European interests fixed a 2004 built 52,400 unit delivery Lianyungang for 3/5 months at an easier $6,000 daily. Owners of handysizes had to graft hard to find employment: a number of holidays including the China New Year having an impact. There were reports that a newbuilding 35,000 dwt went for a year in the mid $8,000’s