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A buoyant week for the Capes in Dry Cargo Markets… Report Oct 22

By • Oct 22nd, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for Oct 22, 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 22nd 2012. This report looks at the Capesize and Panamax and Supra markets.

We start with the Capesize sector and overall it was a buoyant week for the big ships with the major West Australian shippers active and increased trading from Brazil prompting significant rate rises. From West Australia mid week there were widespread rumours that $10 was done for 160,000 to 170,000 tonnes 10% to China. Then a stand-off prompted some jitters and some owners fixed at levels closer to the mid $9 mark, but by Friday rumours were circling that $10.10 was done for October. This ties up with a report that timecharter equivalent of $20,000 daily was done for a round.  STX Pan Ocean was linked earlier with the Stella Ada 180,000-dwt 2011-built for an Australian round at $17,000 daily (although this business was possibly fixed without broker participation).
The Tubarao/Qingdao rate also rose with $23 being agreed during the week. When charterers saw some easing in West Australia rates they dropped their levels for the Brazil run. Timecharter trips out were slow to surface, but were said to be hovering at around $30,000 daily. There was some transatlantic activity reported with rumours difficult to pin down, although at the start of the week a 180,000 tonner allegedly agreed $13,000 daily. Sources suggested one charterer indicated $11.50 for a mid November cargo from Bolivar to Rotterdam.

In contrast, Atlantic panamax rates came under downward pressure this week with the transatlantic trade taking the initial hit. There were always contrasting views on this market with some suggesting early on that the rate was $7,000 daily, but others suggested it was much nearer $6,000. With a very limited volume of new business surfacing, rates are likely to drift lower to the $5,000s daily range as the market once again switches to APS and BB rather than DOP. 

Voyage rates were once again showing very low timecharter returns. Fronthaul rates, particularly from the US Gulf, had been holding steady and nudged the low $16,000 daily plus low $600,000 bonus. Now levels have dropped significantly below this,  particularly as charterers take the cheaper larger supramaxes for US Gulf/Far East runs.

In the East rates were holding at the start of the week, but largely for prompt positions. As these cargoes were absorbed and the list of ships coming up grew longer, the market looked easier. The NoPac market for ships coming open Japan-South Korea did hold in the mid-high $7,000 daily range. Otherwise much of the trading focussed on Indonesia cargoes into China and India.

It was another sub-par week for the Supras on the European side with reports that a big 62,000 dwt vessel (although reported to be a heavy burner) was booked delivery Skaw for a trip via the US Gulf to the Far East at a low $10,350 daily. There was also some activity from the Continent for handysizes where rates barely held steady: a 25,000 tonner was reported to have gone from the Baltic to the east Mediterranean around $8,500 daily. A two year old 36,000-dwt, open Continent, went for a trip Brazil allegedly at $5,000 daily.

In the east Med/Black Sea area, nice Tess 52 type tonnage was reportedly talking around the $12,000 daily mark for quick duration trips to south-east Asia. From the US Gulf, front-haul rates seemed to have been steady as charterers switched from more expensive panamax tonnage.
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