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Capesize rates sharply higher on most trades. Oct 8

By • Oct 8th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for Oct 8, 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 Oct 8th 2012. This report looks at the Capesize and Panamax and Supra markets.

It was a buoyant week for the Capesize ships, with rates sharply higher on most trades and owners seeing returns that for some at least covered operating costs. For the first time since 2010 Capesize values were almost two and a half times more than Panamaxes. Increased activity from Brazil underpinned the market and as owners saw viable business it left West Australian shippers having to pay more to attract tonnage. Rates for Brazil cargoes to China hovered around the low $20 level, plus there was more interest for ships moving cargoes from Nouadhibou and Seven Islands. A 140,000-tonne 10% cargo was reportedly fixed at $25 from Nouadhibou to Qingdao with the time-charter equivalent allegedly being $31,000 daily. Rio Tinto, among others, were active from West Australia and the rate for 160,000-tonnes 10% from Dampier to China reached $9 for 20 October onwards. Some charterers conceded improved time-charter levels with talk that a 180,000-tonner agree $15,500 daily for a West option East Coast Australian round.

Turning to the Panamaxes and after much talk about strengthening rates in the Atlantic there was finally some evidence of improved numbers being agreed, but this has for now been largely confined to the fronthaul. There was pressure for second half October from the US Gulf and with many of the ballasters from the East now absorbed, Atlantic ships were in the frame. A 69,000-tonner open Aughinish agreed a sharply higher $13,000 daily for a trip via the US Gulf to China. The volume of trans-Atlantic business improved and it looked as if the market was moving back to DOP delivery, but limited business has been reported fixed. A Colombia to Rotterdam cargo was booked late in the week at $11.50, a rate some said to equate to about $3,500 daily.

Sentiment in the East has been positive all week and rates have shown some limited rises. This slightly firmer trend was largely the result of many owners simply refusing to move at such low levels. Much of the business continued to be fixed on an APS basis, but there was increased NoPac grain and coal business. A 69,000-tonner built mid 1990s fixed from Oregon to the East at $6,000 daily plus a $250,000 bonus. Owners had been more willing to look at period business with short period rates nudging $7,000 daily for East delivery.

Lastly the Supra and Handymax sector and the market stuttered along in the Atlantic as owners with spot tonnage struggled to pin down early cargoes. In the US Gulf a 59,000 dwt 2012 built vessel was booked for a trip to the Far East at an easier $17,000 daily. There was also talk that operators were booking in cargoes from that area at weaker rates, but no actual details emerged. Scrap rates from the Continent were also struggling as reports.

In the South Atlantic, a one year old 34,000-dwt ship secured around $12,250 for a trip West Mediterranean, but she is ballasting from North Brazil to deliver. From the US Gulf, which has shown to be a real struggle for owners, a late 90s built 29,000 tonner open north coast South America agreed $6,000 daily for a trip delivery US east coast to the Continent, having been spot for a few days.

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