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Eastern Capes down, but Panamax and Supramax rates UP. Report April 27

By • Apr 29th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending April 27, 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 27th 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets.

We start with the Capesize sector where rates slipped yet again the East in a week of largely dull, flat trade. Rio Tinto closed out the week fixing a ship for 13 May Dampier for Qingdao at $7.50. Timecharter activity was limited, but those ships reported fixed achieved reasonable rates compared to voyage, with a 170,000-tonner earlier this week agreeing $7,500 daily for Dangjin spot delivery for an east coast Australian round. Period activity was spasmodic although a 150,000-tonner open Kemen agreed a rate in the low $10,000 daily range for short period.

The list of ships in the north Atlantic has shortened and there was a sense that rates might improve, especially for those charterers needing ships to go east.Transatlantic rates have yet to show an sign of moving with a 160,000-tonne 10% coal cargo covered at $9.40 from Bolivar to Rotterdam.

It’s been a positive week for the panamaxes with rates rising sharply, particularly in the Atlantic. Trading slowed towards the end of the week and there was just a sense that the market appeared a bit ‘toppy’. Prompt ships remained tight and owners were able to push charterers into conceding two legs or more, or even short period to cover cargoes. Short period rates touch $18,000 daily and similar levels were agreed for a couple of legs within the Atlantic. South America remained the pivotal market as charterers once again took Atlantic ships and ships coming from as far as South Korea. Much of the May business has now been covered and charterers for now were slow to move on June cargoes for fear of further fuelling the market. The knock on effect was evident in the East. Here charterers earlier in the week had been keen to secure ships for fear of them setting off in ballast towards South America, but as the week drew to a close, they backed off. Upcoming holidays could add to the uncertainty.

Looking at the supramaxes and it was another strong week in the Atlantic, especially for the larger deadweight vessels able to take advantage of panamax charterers able to cut size. Earlier in the week a 2011 built 60,000 dwt vessel was fixed for a trip from the US Gulf to Egypt at about $23,000 daily. Short duration trips from the East Med/Black Sea area were also showing firm numbers as reports emerged of a 2009 built 53,000 dwt vessel giving delivery spot in Greece fixed for a trip via the Black Sea to the PG at a hefty $22,500 daily. South America remains a feature for handysizes with early positions proving to be tight and charterers now prepared to concede DOP West Africa.

In the East, there was talk that the market may be looking a bit ‘toppy’ and it was certainly noticeable that the nickel ore enquiry (that has been a major factor in giving the market some substance recently) has not been so frequent. There was however some short period enquiry.