Capes down, Panamaxes up. Hear all about this week in the dry bulk shipping markets. Mar 9By james tweed • Mar 9th, 2012 • Category: Dry Cargo
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Thank you for downloading the dry cargo market report from Coracle Online and the Baltic Exchange for March 9th 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets.
We start with the Capesize sector where the long lists of ships continues to weigh heavily on the market. After a couple of weeks at $7.90, Rio Tinto shaved 10 cents off the rate for a March 21 onwards 160,000-tonne cargo from Dampier to China. Somewhat surprisingly charterers paid reasonable rates for ships trading from Newcastle: one 171,000 tonner at $8,250 daily for Nagoya delivery and one at $7,900, but the durations are uncertain. There has been some limited period fixing although with BCI time charter averages linked on a couple. A 180,000 tonner open Xingang agreed BCI timecharter average for the first 20 days of a 4 to 8 month period and the balance at $12,300 daily.
The Atlantic market remained very slow with ships struggling to find cargoes to fix. Ships from the east continued to absorb Tubarao cargoes with an end March-early April cargo done at $20.40 for Qingdao discharge. Transatlantic timecharter rates slipped with the Colombia/Continent coal rate at $9.10.
Moving to the panamaxes and the focus was on east coast South America, with increased grain cargoes particularly for first half April sparking a rise in rates. A 1996-built 73,000 tonner agreed $15,750 daily plus a $575,000 bonus for the run east. Ships from the Continent and Mediterranean, as well as the Indian Ocean and south east Asia, eyed the South American market. There were fewer committed ships in the US Gulf and rates here also improved. There has been more transatlantic trading, largely coal from the US east coast where voyage rates improved slightly, but timecharter trading was in short supply. A 73,000 tonner was rumoured booked from Gibraltar at $7,500 daily, but most expected this to be for quick business such as Kamsar.
The East was more nervous although with South American rates improving, owners were once again looking at the option of heading off in ballast.
Now the smaller ships and rates in the Atlantic finally improved after the Far Eastern markets had been leading the way for quite some time. In the US Gulf a well described 58,000 tonner was reported to be closely working business to the Med at about $12,000 daily. On the Continent there was talk that Supra tonnage was being fixed at around the $10,000 a day for scrap runs to Turkey.
In the East, the south-east Asia mineral trades continued to absorb plenty of tonnage and the market consequently maintained a firming trend. Handysize levels also improved with some short period activity in evidence.