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Dry cargo report for Cape and Panamax sectors. Jan 17, 2014

By • Jan 20th, 2014 • Category: Dry Cargo

The Coracle Dry Cargo podcast for Jan 17, 2014 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 week ending January 17th 2013. This report looks at the Capesize and Panamax markets.

Starting with the Capes and having started the week on a negative tone in the Atlantic and to a lesser extent in the Pacific, the end of the week is a different story, with all the routes showing an increase over the last two days of trading. The major mining companies returned to the market for West Australia/China and rates climbed from around $7 to nearer $8. As the week drew to a close Rio Tinto was said to have fixed two vessels at $7.75 and a further vessel at around $7.90 for end January/early February dates. There was talk of Saldanha Bay/China being fixed at $14.80 basis 1.25% total commission.

In the Atlantic, where the transatlantic round voyage route dropped almost $9,500/day on Monday, the market bounced back and gained back $3,000 in two days, with a lot of early tonnage being fixed.

There was some more activity on fronthaul, with Mittal covering a Lower Buchanan to Xiamen cargo basis 5/19 Feb, but no details have been reported. Owners are more upbeat going into next week and it remains to be seen what impact the impending Chinese holidays will have on the market in the last week of January.

Now the Panamaxes and despite the weight of open tonnage, levels have shown themselves to be fairly resilient, although early positions transatlantic remain easier and despite absorbing a number of vessels ballasting from the East, US Gulf fronthaul levels have held up pretty well.

Transatlantic business included a post panamax in the Mediterranean fixing a Gulf round at $14,000 daily and a 77,000 tonner open on the Continent for a round voyage via Amazon at $14,500 daily.
Throughout the week, there has been a strong demand for period of up to a year in the East. Coupled with South America continuing to attract tonnage from the Indian Ocean and the Far East this has helped bolster a flagging market. Period business has commanded a considerable premium over the spot market. A 75,000 tonner open North China secured $14,000 daily for a year and a kamsarmax in India reportedly obtained $15,500 daily for 4 to 6 months.

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