Dry cargo report for week ending July 5, 2013By james tweed • Jul 8th, 2013 • Category: Dry Cargo
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Thanks for downloading the dry cargo market report from Coracle Online and the Baltic Exchange for July 5th 2013. This report looks at the Capesize and Panamax markets.
Starting with the Capesizes and the market ran out of steam for the big ships this week, with rates sliding significantly after a few short weeks of steady gains. Trading slowed from West Australia and Brazil and this highlighted just how quickly the tonnage list grew, fundamentally proving that the market has changed little.
BHP Billiton featured in the market but were able to bring the Port Hedland/Qingdao rate down to the mid $7 range. The rate from Saldanha to Qingdao fell to the low $13’s, eroding most of the recent gains. However, there was more positive sentiment creeping into the market and some suggestion there could be a bounce next week. Sources suggested there were pending coal cargoes from Richards Bay and east coast Australia for August but the certainty and the volume was not clear.
Trading from Tubarao to China was limited this week, with a spot ship fixing at $19.25 while a ship due 20 July managed $20.45. Further north, a lack of transatlantic cargoes saw the timecharter rate slip to $12,000 daily midweek but, as the week closed, a major charterer was talking higher numbers, with more activity seemingly behind the scenes taking more ships off the market than previously supposed.
Moving to the Panamaxes and charterers needing tonnage from the continent faced a lack of prompt tonnage, with rates firming for the short Baltic rounds. A lack of early ships off the Continent was the driving force for rate gains, culminating in a 75,000 tonner open in Poland fixing a Baltic round at $16,000 daily.
Volume on other trades was limited, though the rate for two to three legs within the Atlantic generally held around $10,500 daily. Charterers wanting tonnage from the Continent or the US Gulf were not seeing many candidates. It was a different story from South America, with early cargoes dwindling and charterers with August cargoes in no hurry to fix. Rates looked under pressure.
In the East, rates remained inconsistent with no two similar ships seemingly able to achieve similar numbers. There was increased activity from Australia and several ships have been reported fixed but rates varied depending on specification and delivery.
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