Nosediving Panamax rates in the Atlantic and more Dry Cargo newsBy james tweed • Jun 2nd, 2014 • Category: Dry Cargo
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Thanks for downloading the dry cargo market report from myCoracle.com and the Baltic Exchange for week ending May 30th 2014. This report looks at the Capesize and Panamax markets.
Starting with the Capes and there was a relatively promising start to the week in the East with the rate for West Australia/China around $8. Rates then started falling and by Friday reports were circulating that BHP Billiton had agreed $7.70 for 170,000 tonnes 10% for 5 or 8 June onwards. It was a case of owners fixing what they could with rates at the lower end. SwissMarine took a couple of ships for period business, with a 166,000 tonner 1996-built prompt for 7 to 9 months at $18,500 daily , while a 2009-built 169,000 tonner agreed $20,000 daily for 6 to 9 months trading. The pace from Brazil remained lethargic with rates hovering around $19 for June cargoes from Tubarao to Qingdao. Fronthaul business was generally sluggish and transatlantic interest remained limited.
Looking at the Panamaxes and rates simply nosedived in the Atlantic, especially for transatlantic business. The list of prompt ships continued to grow and new business was negligible. The outlook was gloomy. Voyage business that was done showed low timecharter equivalents, with a coal cargo fixed from Mobile to Turkey earlier in the week at $16, showing a return of $4,500 daily on a Kamsarmax coming open Gibraltar. In the East, rates slipped as a result of too many early ships in the market. Rates were struggling to hold around $7,000 daily for the longer rounds and the shorter Indonesia slipping below that level.
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