Shipping market, Baltic dry cargo report for week ending Oct 4By james tweed • Oct 7th, 2013 • Category: Dry Cargo
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Thanks for downloading the dry cargo market report from Coracle Online and the Baltic Exchange for week ending October 4th 2013. This report looks at the Capesize and Panamax markets.
Starting with the Capesize market and Chinese demand for ore has been the key driver of recent rate gains and the market seemed to shrug off the almost week long holiday in China. Rates initially slipped on the key West Australia/China route as some local ships scrabbled for cover before the holidays and rates dipped to $11.80 from Port Hedland to Qingdao. This week saw some differentiation in rates from Port Hedland and Dampier since the recent draft cut in the latter port, with one charterer paying 40 cents more for Dampier load. Rio Tinto reportedly booked tonnage today for 14 October loading at $12.80 for 160,000 tonnes 10% from Dampier, while late reports suggest $13 has been done.
Timecharter rates hovered in the low $30,000 daily range but, for this market to maintain momentum there needs to be fresh activity from Tubarao. One charterer allegedly bid tonnage $29 but the owner declined. The North Atlantic market remained very tight for tonnage, though limited activity at the start of the week saw some owners willing to take rate cuts, with ships booked for rounds nearer the mid $30,000 daily range. Towards the end of the week, rates were back to the low $40,000 daily range.
Cargoes from St.Lawrence to the East showed timecharter equivalent returns of $60,000 to $61,000 daily. Sentiment remains positive for next week.
Now we look at the Panamaxes and rates remained solid in the Atlantic with the market well supported for transatlantic trading with tonnage still very tight on Gibraltar-Skaw range. Some sources suggested owners were unlikely to move for anything less than $17,000 daily, with the really quick trips nearing $20,000 daily.
In the US Gulf, early ships found the market more difficult, with limited interest. However, from 20th October onwards the cargo list was growing for eastbound destinations and a stronger market in the East has depleted the number of ballasters heading there. Rates for end October to first half November looked to be heading towards $20,000 daily with a million dollar bonus.
Period trading slowed in the East, as paper values eased at the start of the week but gathered momentum as the week drew to a close, with good enquiry evident for short periods.
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