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What happened in Dry Cargo Shipping markets this week? Report Mar 2

By • Mar 2nd, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending March 2, 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 March 2nd 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets.

We start with the Capesize sector in a week that was largely flat with an over abundance of ships weighing on the market and very little inquiry for the hard pressed Atlantic traders. The focus has largely been in the East with Rio Tinto and BHP Billiton the primary movers, but rates remained locked at $7.90 for West Australia/China cargoes. Timecharter activity was piecemeal although a 150,000 tonner was rumoured booked for an east coast Australian round at $7,000 daily. There was some short period trading with a 169,000-tonner booked earlier this week from China for 4 to 7 months at $12,300 daily. Cargoes from Brazil remained sparse although the rate was hovering nearer to $21 for Qingdao. Atlantic rates remained dismal with Bolivar/Rotterdam fixed at $9.25. Timecharter activity was meagre with rates barely around $4,000 daily for transatlantic, although little has been reported fixed.
In terms of the Panamaxes and grain shipments from east coast South America underpinned the market. There was said to be a healthy list of cargoes, but rates have hardly moved as charterers could pick from ships coming from the Continent, Mediterranean, the Indian Ocean and southeast Asia. Rates for trips to the East were hovering in the mid $14,000 daily range and around $400,000 to $450,000 bonus. With transatlantic rates at rock bottom levels and ships having to wait for cargoes, owners preferred to go east in the hopes of firmer rates. Timecharter rates for single trips were only just around the low $4,000 daily range with charterers able to secure tonnage easily for voyage business, and in one instance with a ship waiting for a week.
Rates firmed over the week in the East, although they had been very positional with grain clean ships in Japan commanding the premiums with rates in the upper $8,000- $9,000 daily range for NoPac rounds. One ship in Jintang allegedly made $10,000 a day for a NoPac cargo, although this was for a trip to Iraq. There was increased Australian business as the week drew to a close mainly into India and Indonesian cargoes were being replenished, but rates for these trades have yet to match those for the NoPac trades.

For the Supramaxes and it was another difficult week for the Atlantic markets, although as the week closed there seemed to be a touch more optimism in the air. A nicely described 2011 built 56,000 tonner was booked for a trip from the US Gulf to the Far East at a more encouraging $19,750 daily.
In the Pacific and once again it has been the south-east Asia mineral trades (including a significant amount of nickel ore business) that has been driving the recent improvement. A 2005 built 55,000 dwt ship was fixed for a trip via Indonesia to India at $14,500 daily. There was also more interest on the short period market as Korean interests were reported to have booked a Tess 52 type open Lanshan early March for 3/5 months at $11,000 daily.