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About turn for the big (Capesize) ships and more dry cargo news

By • May 6th, 2014 • Category: Dry Cargo

The Coracle Dry Cargo podcast for May 6, 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 May 2nd 2014. This report looks at the Capesize and Panamax markets.

The end of the week saw a swift about turn for the big Capesize ships, largely driven by Bocimar booking ships in the Atlantic for transatlantic rounds with the option of fronthaul trips. The charterer has been credited with six ships and some suggest more, with rates hitting $11,000 daily for a 180,000 tonner open Gibraltar 7 May. The agreed fronthaul options were said to be around $30,000 daily. A 181,000 tonner fixed on Wednesday morning for Gibraltar at $6,900 daily and was then re-let to Bocimar at $10,500 daily. There was little other activity transatlantic and there remained caution over whether this upward trend could be sustained. Rates also improved from Brazil, with Cargill fixing a 160,000 tonne 10% ore cargo for 20-30 May shipment from Tubarao to China at $19.75. The May Day holiday impacted significantly on trading in the East, however, a more positive tone appeared to have spilled over, with the West Australia/China route showing some improvement, albeit for early ships. BHP Billiton was said to have taken a Newcastlemax for 7-8 May for a 190,000 tonne 10% cargo at $7.80 and, just prior to that, covered a standard size 170,000 tonnes 10% from Port Hedland to Qingdao.

Looking at the Panamaxes there remained a shortage of transatlantic cargoes this week and owners were barely able to nudge rates higher, particularly those in the North Atlantic. A few owners preferred to do quick Baltic rounds – some of whom were paying around $3,500 daily rather than doing trips loading Baltic to the Mediterranean. Owners needed a premium to make it worthwhile as, in this market, redelivery Cape Passero would mean a ballast to Gibraltar at least.

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