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Shortage of Capesize tonnage impacts rates this week in the Atlantic. Dry report May 4

By • May 4th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending May 4, 2012 in association with The Baltic Exchange

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Thanks for downloading the dry cargo market report from Coracle Online and the Baltic Exchange for May 4th 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets and please remember, we love to get your feedback, so please leave your thoughts as a comment on

We start with the Capesize sector where gains were made in the Atlantic this week with a shortage of north Atlantic tonnage finally impacting on rates. Levels still remained very low, but a 172,000-tonner was booked as the week drew to a close at $5,000 daily. There was talk of charterers mentioning higher numbers with some suggesting the next rate reported would be well in excess of $6,000 daily. There was more activity from Brazil with Vale entering the market and booking four ships for Tubarao/Qingdao at around $20.75.

In the East, the West Australia/China rate seemed to have found a bottom with $7.60 done and likely to be repeated. Timecharter rates have firmed with a 180,000-tonner fixed retroactively China 25th April for a Roberts Bank/Taiwan run at $7,000 daily.

It’s been a very unsettled end to the week for panamaxes in the Atlantic with a few ships keen to fix and this set off a downward run. There was talk that a 74,000-tonner, committed in the US Gulf, fixed an end May grain cargo to Skaw-Cape Passero range at a low $14,500 daily plus a $450,000 bonus. A 76,000-tonner in the Mediterranean agreed a trip to the East at just $19,000 daily. A build up of tonnage next week unsettled things and as rates slipped charterers retreated from the market. South America took a pause and rates slipped , with a charterer securing a 75,000 tonner 1998-built from east coast South America to the East at $17,000 daily plus a $700,000 bonus.

The East also saw a slide in rates as fresh inquiry was limited and those with prompt ships were prepared to drop rates.

For the Supramaxes and perhaps against the expectations of some, the Atlantic markets proved fairly resilient. In the US Gulf a charterer looking for an early vessel conceded over $20,000 daily to a well described 56,000 tonner for a trip back to this side. Off the Continent a Tess 45 type was booked for a scrap run down to the East Med at about $15,000 daily. In the south Atlantic a 57,000 dwt Dolphin type was paid $17,600 daily plus a ballast bonus of $450,000 for a trip to EC India-Singapore range.

There were some mixed messages in the East, perhaps clouded by the widespread holidays prevailing earlier in the week. It was noticeable however that nickel ore business was conspicuous by its absence.