Shipping Podcasts finalists for Maritime Media award

Dry cargo shipping report for week ending Feb 24

By • Feb 26th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending Feb 24, 2012 in association with The Baltic Exchange

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

This podcast is sponsored by Halcyon Recruitment –
Contact Halcyon to discuss your shore based maritime recruitment via email: or call them on +44 (0) 20 7717 8686


Thank you for downloading the dry cargo market report from Coracle Online and the Baltic Exchange for February 24th 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets.

We start with the Capesize sector and finally there was some movement in rates as the week drew to a close with $7.75 fixed for a 3-7 March 160,000-tonne 10% cargo from Dampier to China with talk of $7.80 and possibly $7.90 being done. This route has held at $7.60 for the past couple of weeks, but this rise is most likely the result of the position and higher bunker costs. Otherwise trading has been flat , although owners who were willing to risk a chance of delays in east coast Australia have seen rates of around 6 to $7,000 daily. Ships were said to be less willing to ballast towards Brazil but as yet this has had little impact with activity still being limited. Rates from Tubarao to Qingdao were hovering at around $20.50 and for a ship ballasting from China the return for 90 days would be about $6,000 daily.

In the Atlantic, transatlantic rates remained very weak with a 150,000-tonne 10% coal cargo fixed from Bolivar to Rotterdam for 10-24 March at a weak $9.25. The timecharter rate was barely mid $4,000 daily though actual fixtures were scarce. The front-haul rate nudged $20,000 a day, but again there was little actually being done. Some owners have preferred to take short period when they can with rates at around $12,500 daily for delivery in the east for about 4 to 6 months.

Atlantic Panamax rates fell sharply over the week as the list of early ships continued to grow and with little prompt business being available. Tranastlantic rates were barely 4 to $5,000 a day for straightforward business. There were some tentative signs that some owners were prepared to drop anchor rather than accept lower levels. However, Atlantic tonnage has started to compete more aggressively, with ships coming from the east and ballasting past the Cape of Good Hope. Rates for APS basis were about $14,000 daily plus a bonus of around $400,000, but charterers were pushing for lower numbers.

In the east, the market had a boost with increased grain activity from the NoPac underpinning rates. Rates were in excess of $8,000 daily for ships open Japan with STX Pan Ocean conceding $9,700 daily to a ‘fuel economical’ vessel. More spot ships have gone and others were heading off in ballast although there remained a shortage of Australian and Indonesian cargoes. Short period rates revived as the week drew to a close with paper values firmer. Short period levels climbed to over $10,000 daily once again.

Looking at the Handy and Supramaxes and the Atlantic markets remained very fragile with tonnage in the US Gulf area struggling to get over $9,000 daily for trips back to Europe. Waiting time was also proving to be a significant factor that owners were having to take in to account in their calculations. It was a similar picture for the Handys as a mid 90s built 28,000 tonner, having been spot for about two weeks in Jamaica, eventually fixed for delivery Guyana at $7,500 daily for a trip to the Black Sea.

Some cargoes were however starting to appear in the UK/Continent area as reports emerged of a 2011 built 58,000 dwt vessel open spot in Ghent being fixed for a scrap run to the east med at around $8,000 daily. There was also talk of a Tess 45 type being fixed for grain business from North France to West Africa around $7,500 daily.  South America was probably the one area where owners could achieve five figures albeit probably including a ballast to achieve this.

The improving Pacific markets were largely being driven by mineral enquiry from south-east Asia with an increased amount of nickel ore business playing its part, for those owners prepared to consider it.  In the north Pacific, a 2003 built 53,500 dwt Namura type was booked for delivery Japan for a trip via Indonesia with redelivery India at a better $8,600 daily. There has also been some short period business concluded at improved rates.