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Capesize and Panamax rates improved, a bit… April 13

By • Apr 13th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending April 13, 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 April 13th 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets. If you’re sitting ICS exams next week, then from all of us at Coracle, we wish you the best of luck. We hope that these podcasts have helped you keep up to date with the day-to-day markets and we’d really appreciate your feedback. Please do leave a comment on ShippingPodcasts.com or email us at info@coracleonline.com .

We start with the Capesize sector in a week in which rates have improved, but the gains have so far been limited, although sentiment improved. The rate for 160,000-tonnes 10% from West Australia to China stood at $8 while BHP Billiton fixed 170,000-tonnes 10% at $7.95. Increased activity from Brazil underpinned the change in sentiment with owners prepared to chance the ballast. There was also some increased short period activity with talk that business was done at $14,000 daily, but details were elusive. The voyage rate from Brazil to China was hovering in the low $20 range. Fronthaul rates for ships open Continent and Mediterranean also improved with rates around the mid $20,000 daily range, but Transatlantic rates remained at low levels. Timecharter rates were struggling to even reach $4,000 daily.

The panamax market ended the week with what one broker described as a small fanfare. South America dominated the market for a large part of the week with charterers sourcing tonnage from the Indian Ocean and southeast Asia and from the Cont and Med. Rates for ships coming from the European side were in the upper teens whilst a 74,000-tonner coming from Malaysia was said to have agreed a rate in the low $12,000 daily range for an east coast South American round. Transatlantic rates were slow to move although they have improved: there was much debate over where the transatlantic rate stood, but it was moving up to $9,000 daily or thereabouts.

The East also saw gains with South America lending support and prompting charterers to look at short period. Rates improved with levels creeping closer to $10,000 a day. Increased activity for NoPac cargoes and Indonesian coal prompted optimism. A NoPac round with a ship open north China was reportedly concluded at $8,500 daily and a ship open Ulsan achieved $9,000 daily.

Looking at the Handy and Supramax sectors and sentiment seemed better in the south Atlantic as reports emerged of a 2001 built 50,000 dwt vessel open Lome spot for a trip via West Africa to China at about $17,000 daily.  However, the jury was out as far as the US Gulf was concerned with talk of better numbers being fixed, although little evidence actually emerged. It was reported that a 1999 built 47,000 tonner was fixed delivery US Gulf for a trip with petcoke to the Mediterranean at an ‘ok’ $15,500 daily.  Handysizes have been faring reasonably  well with a 10 year old 27,000-dwt ship open on the US Atlantic obtaining $11,500 daily for a trip East. In the south Atlantic, a modern 32,500-dwt vessel open West Africa agreed $12,000 daily for a trip via east coast South America to the East. 

The markets in the East certainly seemed to have turned the corner with an influx of premium paying nickel ore enquiry playing its part in absorbing a significant amount of early tonnage. There was an easier tendency for the smaller sizes through the week, although a smattering of period activity emerged at levels showing a premium over spot trips.