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Review of the dry cargo shipping markets in a holiday affected week. April 5

By • Apr 5th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending April 5, 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 31st 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets.

We start with the Capesize sector and despite the Chinese holidays, there was fresh business in the market this week. With plenty of tonnage still out there, rates only rose a touch. There had been rumours of $8 being done from West Australia to China. Timecharter trading was sluggish. BHP Billiton reportedly took the 169,000-dwt 2010-built Cape Spencer for 2 laden legs in the east at a BCI Index linked rate. The Atlantic market was very slow with owners holding off fixing at the very low rates on offer. Owners’ rate ideas were around $5,000 daily for transatlantic rounds, but there was little sign that charterers were prepared to pay this level. Ballasters from the east continued to absorb what Brazil cargoes were in the market with ‘K’ Line said to have taken a large Japanese-controlled capesize for a 30 April-14 May cargo from Ponta Da Madeira to the East. The ship was taken on timecharter, but the rate wasn’t reported. Vale allegedly took a 174,000-tonner for a 16 April onwards cargo from Tubarao to Qingdao at $20.50.

Moving to the Panamzes and it was a largely flat market in the Atlantic. There was some increase in pace from east coast South America with grain houses moving cargoes to the Continent and Mediterranean but rates remained largely steady with levels at around $10,000 daily plus $300,000 bonus. There were more ships willing to go east, but South American cargoes were largely served by ships coming from southeast Asia. Here there was talk of an 80,000-tonner agreeing $11,000 daily from Thailand for an east coast South America/Far East run. Owners with spot ships North Atlantic have largely cleared out, but rates weren’t much more than $7,000 a day for 40 day rounds. Both charterers and owners with ships ready next week appeared to be holding off until after the Easter break. Chinese holidays curtailed trading in the East with NoPac activity scarce and rates subsequently eased. A 74,000 tonner coming from Dalian 2nd April fixed for a NoPac/east run at $7,350 daily plus a $480,000 bonus. A 76,000 tonner open south Japan agreed $6,500 daily for a NoPac/Philippines run. Indonesia was more active with rates largely holding steady although with more ballasters now coming from the north. Period activity remained negligible with charterers able to secure ships in the very low $9,000 daily range.

For the smaller ships it was a week also affected by public holidays resulting in activity in all areas being fairly limited. The trend seemed to be softer all round. In the south Atlantic, a 2004 built 49,000 dwt vessel was booked delivery Recalada 8-10 April for a trip to southeast Asia at $14,750 daily plus a ballast bonus of $430,000. In the run up to Easter there was also some handysize trades from South America, including a 35,000 tonner open Paranagua fixing a trip with sugar to the Black Sea at $14,700 daily and a modern 31,000-tonner ballasting from West Africa for a trip from the Plate to Morocco at around $15,500 daily. In the US Gulf, there was talk of a couple of fixtures being concluded for trips to the Far East in the ‘low $20,000s’ daily.

In the East a mixed bag of fixtures surfaced although lengthening tonnage lists cast a bit of a cloud over the markets. A Tess 52 type open North China reportedly went to a grain house for a short period at an easier $10,750 daily. Although little activity emerged, the handysize market showed an easier tendency.