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The Dry Cargo #shipping market for week ending May 25

By • May 27th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending May 25, 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 25th 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 comments on

We start with the Capesize sector where there was a bearish end to the week with rates slipping and very little to support a market still plagued by a long list of ships. Even in the north Atlantic, where it seemed tonnage had been tight, more ships have appeared and enquiry has thinned. There was talk that $5,000 a day was concluded for a transatlantic round, but details were elusive. A cargo has been done from Drummond to Rotterdam for about 160,000 tonne at just $8.75, which equated to something around that $5,000 daily level. Tubarao/Qingdao cargoes were trading at in the $18’s. In the East, West Australia/China closed out the week at $7.55 with a brief entry into the market from one of the Australian majors. Timecharter trading was negligible although a Japanese charterer took a 176,000-tonner from CJK for an east coast Australia/Japan trip at $6,800 daily.

Now we’ll turn to the Panamaxes sector where transatlantic activity almost dried up as the week drew to a close with rates slipping significantly to levels under five figures. The spike in fronthaul rates for ships open in the north Atlantic was short lived, but as the week drew to a close, east coast South America was more active and rates to the East appeared to have steadied around $16,000 daily plus $600,000 bonus. That said, an early position was done at $16,750 daily plus a $675,000 bonus. This market remained largely served by ballasters from the Indian Ocean or further east. Rates in the East dropped sharply with the list of tonnage growing. Grain houses were indicating rates of around $5,000 daily for NoPac rounds, but there were no takers. Some owners in north Asia have already taken the decision to ballast towards the US Gulf, but sources also suggested that some owners will simply drop anchor at current rates. Operated tonnage remained a different proposition and were more likely to suffer the weakening numbers. Period rates dropped at a similar pace with a 75,000-tonner reported to have fixed on Friday at $8,500 daily for 3 to 6 months trading with delivery Japan at the end of the month.

Lastly we look at the Handy and Supramax sectors where the very firm Atlantic markets just about outweighed the collapse in the Pacific to leave the overall picture about unchanged, although this disguised the true story of the imbalance between the two hemispheres. In the US Gulf, early tonnage was in short supply as reports emerged of a nice Tess 58 type being fixed for a trip to the Mediterranean at a firm $27,000 daily. Demand in the south Atlantic was also healthy where it was reported that a 2008 built 56,000 dwt vessel open West Africa was booked for a trip via East Coast South America to the Med at a solid $14,000 daily. Rates for handysizes from South America also remained pretty solid. By contrast, the week in the Pacific was far from healthy for owners with lengthening tonnage lists and a dearth of fresh activity. Any back-haul business is now being heavily discounted with rumours of a supra being fixed on subjects for delivery Taiwan for a trip to West Africa basis bunkers only. A 56,000 dwt vessel open Xingang spot was fixed APS Indonesia for a trip to Thailand at just $6,000 daily plus a $70,000 ballast bonus.  Handysizes have been holding up, although the poor returns in the panamax and supra sectors appeared to be having a negative effect on these vessels.