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Dry cargo review for June 15th

By • Jun 18th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for week ending June 15, 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 June 15th 2012. This report looks at the Capesize and Panamax, Supra and Handymax markets.

We start with the Capes where there was thin volume and little support this week. The Baltic Capesize Index “4 timecharter average” was barely in the mid $3,000 daily range. Rio Tinto was the key shipper of the week from West Australia to China with the rate dropping for early July 160,000 tonne 10% shipments from Dampier to Qingdao to $6.50. The only consolation for owners was that bunker prices came down during the week. Timecharter activity was scarce with Pacific round rates barely at $4,000 daily. Brazil activity has also been limited although a prompt cargo on a ship waiting off Brazil for a week fixed at $17.10 from Tubarao to Qingdao. North Atlantic trading has been almost non-existent with round voyage rates hovering around $4,000 to $4,500 daily.

Moving to the Panamaxes and rates spiked for fronthaul business as charterers needing prompt ships from the Continent and Mediterranean faced a tighter supply of tonnage. A ship open Gibraltar fixed for a trip via Murmansk to the East at $19,000 daily. However there were already signs that this activity has peaked and as the week drew to a close there was less urgency for July cargoes from east coast South America. Rates for ships coming from the Indian Ocean area for east coast South America/East cargoes were around $10,000 daily and a touch less for ships coming from Southeast Asia. Transatlantic rates firmed over the week, touching $11,000 daily for very early ships with good delivery. 

In the East, rates steadied over the week with owners managing to secure D.O.P rates, with levels hovering at around $6,000 daily or slightly more for NoPac rounds. Support came from ships ballasting to the US Gulf or South America and the increased activity from Indonesia. However these Indonesia traders will soon be back in the market and essentially fresh cargoes have been limited. 

Period trades have been few and far between although a 74,000-tonner did go earlier in the week for 24 to 29 months trading at $9,000 daily with August delivery in the East.

Lastly we look at the Handy and Supramax sectors and note that Atlantic continued to look firm in most areas. On the Continent, tonnage on prompt positions was in short supply with at least 2 or 3 vessels on subjects for trips to the East at over $20,000 daily. The Black Sea was also strong for the early positions. Sentiment was also better in the Pacific with increased demand for vessels willing to fix short period business. On the spot market, a 2011 built 56,000 dwt vessel was booked for delivery Indonesia for a trip to East Coast India at an improved $8,500 daily plus a ballast bonus of $110000.  On the Handysizes, a 2011 built 32,000 dwt vessel was reportedly fixed delivery Port Hedland 20/25 June for a trip to Southeast Asia with grain at a solid $8,000 daily plus a ballast bonus of about $100,000.

Thanks for listening