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Dry report March 18

By • Mar 19th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending March 18, 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 18th 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets.

We start with the Capesize sector and there was an extremely slow week for the big ships with rates generally slipping. Cyclone worries kept the Australian majors absent from the market with the loaders shutdown in Port Hedland and Dampier as Cyclone Lua approached. The rate for West Australia/China hovered around $7.70 although earlier in the week a 170,000-tonner did agree a strong $10,250 daily for East Coast Australian rounds. There are currently delays at the east coast ports. The Atlantic saw very little activity with Brazil slow and rates being talked under $20 for Tubarao/Qingdao. Transtlantic rates remained weak with rates from Bolivar to Rotterdam barely over $9.

Looking at the PANAMAXES and South American grain remained the focus of activity and has been lending support to both the Atlantic and the Indian Ocean and southeast Asian markets. A considerable volume of tonnage has now been fixed, which has boosted front-haul values. Transtlantic rates remained low, although some improvement was evident. There was a clear out of post panamax tonnage, but at rates that have largely capped what their smaller relatives can see. The East remained steady at around $7,500 to $8,000 daily for NoPac rounds, but the market remained positional. Ships ballasting out of the area towards South America, rather than accept rates for staying in the East, helped steady the market.

It was another strong week for the supras and although conditions seemed a bit quieter in the East as the week closed, with a number of vessels said to be ‘fixing and failing’, confidence didn’t seem to be lacking. Mineral business from south-east Asia once again provided the main impetus during the week with premium paying nickel ore cargoes at the fore. A modern 57,000 dwt vessel open north China was reportedly booked for a nickel ore round at a strong $15,000 daily.

Handysizes have also fared well in Asia, with reports that a modern 32,000 tonner built 2011, open Singapore, fixed 2 legs trading in the East at $10,000 daily. In the Atlantic, the focus of attention was on the north coast South American area where a number of early stems needed to be covered with only a limited number of early vessels to choose from. The US Gulf was also showing improvement as reports emerged of a Tess 52 type being fixed for a trip to the Med at about $13,500 daily.  Although there are delays in Argentina as a result of strike action, handysize activity has flourished. A two year old 33,000-dwt ship fixed from the Plate to Morocco at $16,000 daily. whilst a 10 year old 28,000 tonner obtained close to $16,000 daily for a trip from Recalada to Mauritius/Reunion. In the East, the south-east Asia mineral trades continued to absorb plenty of tonnage and the market maintained a firming trend.