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Rates dropped sharply in the East as optimism quickly evaporated. Dry report Dec 10

By • Dec 10th, 2012 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for Dec 10, 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 Dec 10th 2012. This report looks at the Capesize and Panamax and Supra markets.

Starting with the Capesize sector and rates dropped sharply in the East as any optimism quickly evaporated. A slower pace from the major west Australian shippers at the start of the week quickly caused jitters. However, as the week drew to a close the three key players were all in the market taking ships for the latter part of December. Rates were generally lower with at least a couple concluded at $7.60 for 160,000-tonnes 10% from Dampier to Qingdao while there was talk that $7.50 or even $7.40 has been done from Port Hedland. Charterers were talking lower rates generally with rates indicated on the Saldanha/China run at under $13.

An extremely slow Brazil market, combined with a fleet of ballasters heading in that direction meant rates were sharply cut for what business was in the market.

The North Atlantic market had been tight for tonnage but as charterers maintained a low profile, nervousness was evident. Some talked rates sharply lower for transatlantic round voyages, but little was reported actually fixed. There was the suggestion that the timecharter rate was hovering around $15,000 daily.

For the Panamaxes and Atlantic trading was slow as charterers covered before the upcoming holidays. There remained a tight supply of prompt tonnage on the Continent with a few charterers still there to take tonnage, which could still result in some stronger numbers. Fronthaul trading was limited, particularly in the US Gulf and going forward rates looked easier.

Despite fresh business for ships in the East, as the week closed the list of ships continued to grow and rates slumped with charterers being able to secure tonnage on an APS basis again. Those owners with ships open China were still trying for $6,000 daily for NoPac rounds, but charterers were bidding $7,000 daily or less for APS NoPac and around $250,000 to $300,000 bonus. Period trading has been limited with some owners now willing $6,500 daily for short periods, but charterers looking at $6,000 daily.

It was a quieter week for the supras. Although rates in the Atlantic seemed to be holding more or less steady, some softer front-haul numbers were being agreed in the US Gulf.

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