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The Dry cargo market update podcast for week ending Feb 8

By • Feb 11th, 2013 • Category: Dry Cargo

The Coracle Online Dry Cargo podcast for Feb 8, 2013 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 Feb 8th 2013. This report looks at the Capesize and Panamax and Supra markets.

Starting with the Capesizes and West Australia/China rates improved and settled at around $7.35 as the week ended. Rio Tinto and FMG were both active during the week and as the week closed were still there to take further tonnage. Timecharter trading was generally limited, though Winning was active – taking a 172,000 tonner for an Indonesia around at about $6,500 daily. This, in theory, is a short duration but has been known to take upwards of 45 days. There was some Brazil/China fixing, with rates hovering either side of $18. Rates for Brazil/Continent cargoes crept up to $8.50. Tonnage has been tight in the North Atlantic, but owners were still chasing too few cargoes.

For the Panamaxes the market saw a spike in rates for early ships as charterers sought cover ahead of Chinese New Year holidays. Grain houses with NoPac cargoes paid firmer numbers, with a 73,700 tonner spot Japan fixing a NoPac grain round at $7,000 daily. There was limited activity from Australia, but Indonesia remained active and, even here, rates perked up. Charterers were there for period business but were still trying for bargain rates. Daily rates for LMEs have been hovering in the low $7,000s for short periods.

The Atlantic market remained very positional. Charterers with early cargoes paid firmer numbers but rates varied widely. A kamsarmax on the Continent was said to have seen $6,000 daily for a round voyage with redelivery Gibraltar but some of the ships in the US Gulf were still agreeing low voyage rates for coal to the Continent. Fronthaul trading was slow and South American cargoes to the East continued to be served by ballasters from the East.

Lastly the Supramax and handysizes where the US Gulf proved to be one of the few bright spots this week, as reports emerged of a Tess 45 type being fixed for delivery east coast Mexico 16/18 February for a trip via the Mississippi River to Italy at a much better $14,000 daily. A similarly described vessel was booked for 3 to 5 months trading, also with US Gulf delivery, at about $11,500 daily basis redelivery worldwide.

Handysize activity on the Continent included trips from France to West Africa in the mid/high $7,000s. Additionally, a modern 28,000 tonner was rumoured to have fixed from the Baltic to east coast South America at around $4,000 daily. 
There was no respite for owners in the East this week. There was a smattering of coal and mineral cargoes from South East Asia but these were concluded, in the main, at very low levels. Early positions for handysizes have weakened, with the Chinese New Year holidays looming next week. A one year old 29,000dwt ship open China fixed a round voyage via Nopac at $4,250 daily whilst a modern 33,000 tonner open Japan,went for 3 to 6 months at around $6,500 daily with redelivery PMO-Japan, which compares favourably to panamaxes.  

Thanks for listening