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Review of Dry Cargo markets from a week when BCI4TC was ahead of BPI4TC. Sep 24

By • Sep 24th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for Sep 24, 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 Sept 24th 2012. This report looks at the Capesize and Panamax and Supra markets.

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We start with a look at the Capesize sector and it was a busy, positive week for the big ships with Brazilian and Australian markets being active meaning rates climbed significantly. For the first time for a considerable period the BCI 4 timecharter average was more than the BPI 4 timecharter rate. Rates have reached a pitch that will tempt some owners with ships swinging on the hook to start moving. For the market to maintain its momentum the pace of inquiry needs to be maintained. Brazil has been more active this week and not just with Vale (pronounced Valet as in chalet), but other operators as well. Rates for the key Tubarao/Qingdao run are around $20 to $21. The 177,000-dwt 2009-built Anangel Argonaut, which sailed 25 August from Qingdao, achieved $12,250 daily plus a $1.1 million bonus with Noble for a trip via Brazil to China – a rate said to show the owner $12,250 daily retroactive. Rio Tinto has largely dominated trading from West Australia with rates for 9 October onwards from Dampier to China at something around $8.

It was difficult to gauge the timecharter rate, but a 169,000-tonner did agree $8,000 daily from Qingdao for a West Australian round.

In the Atlantic there was some movement from Seven Islands to the East with the rate at $23.75 and a mid October 160,000-tonne 10% coal cargo fixed from Bolivar to Rotterdam at $9.35.

Now the Panamaxes and the Atlantic market had a punishing week with seemingly no floor in sight. Charterers comfortably secured voyage business at numbers that show poor, i.e.. zero, or even negative returns. It’s worth remembering that the timecharter rates don’t show that ships involved have waited for the business, and in some instances for 10 days or more. To put the transatlantic round rate at $1,500 daily is probably generous. Fronthaul trading has been negligible and again owners in the US Gulf have incurred waiting time to fix. The rate was around $12,000 to $12,500 daily and the bonus no more than $250,000.

In the East, trading was more active with some improvements in rates being noted, as the emphasis shifted to the north. Much of the business was done on an APS basis. A ship coming open in Kushiro – a good delivery for the load port – fixed at a rumoured $6,750 daily for a NoPac round, while a ship ballasting from Kunsan agreed $6,000 daily plus a $335,000 bonus basis APS NoPac.

It was a ‘flattish’ week for the supras with a few pockets of resistance appearing, principally in the East. In the Atlantic, reported activity was conspicuous by its absence, although there was an unconfirmed report that a 56,000 dwt vessel had been booked for a trip from the US Gulf to Turkey at about $11,500 daily. Earlier in the week a 58,000 dwt vessel was reportedly fixed with similar delivery for a trip to the East at about $18,500 daily.       

Thanks for listening